Friday, 20 January 2012

Mergers & Acquisitions - Week Ending 01/20/12


In what was an unusually sluggish few days, Tuesday saw the week’s only two deals. Royal Bank of Scotland sold its aircraft leasing unit to a group of Japanese investors led by Sumitomo Mitsui Financial. Motives behind the $7.3 billion deal include the buyers' aim to develop SMFL Aircraft's presence in Asia, and the seller’s aim to strengthen their Tier 1 ratio. The Japanese financial firm gained 1.2%, while RBS were up almost 2%. Also that day, DS Smith purchased the packaging unit of Svenska Cullulosa, a Swedish consumer goods firm, for $2 billion. This deal comes as the recycled packaging manufacturer looks to increase its European market share. The bidder and vendor rose 3.2% and 10.5% respectively.