Friday, 23 September 2011

Mergers & Acquisitions - Week Ending 23/09/11


On Monday, Tyco International announced that it planned to split into 3 publicly traded businesses; an alarm unit, a flow control unit and a commercial and security unit. It is the latest in a string of troubled companies to combat the tough climate by spinning off units. They were up 2.4%. The midweek saw the end of a drawn out hostile takeover battle as Fosters' shareholders accepted SABMiller’s sweetened bid of $10.15 billion. The buyer, a brewing and beverage company, was down 1.9% while Australia’s largest brewer was boosted almost 6% on the news. Also that day, United Technologies purchased Goodrich Corporation, an aviation company, for $16.4 billion in an all cash deal. The technology giant finished 1.5% lower, as the target fell 2.1%.

On Thursday, Sumitomo Metal Industries and Nippon Steel agreed to merge under the latter company title, creating the 2nd largest steel maker on earth in a deal worth around $22 billion. Also that day, Yum! Brands sold 2 fast food units; ‘Long John Silver’s’ and ‘A&W Restaurants’ for an undisclosed fee. The buyers were both consortiums; ‘LJS Partners’ and ‘A Great American Brand LLC’. The quick service restaurant holding company, whose other brands include KFC and Pizza Hut, dropped 3% by the bell.