Friday, 24 February 2012

Mergers & Acquisitions - Week Ending 02/24/12

On Monday, construction firm URS purchased rival Flint Energy Services for $1.25 billion. This will greatly increase URS's offerings to energy companies as they continue to expand their shale operations. The bidder was up 0.9% as the target was boosted 66%, reflecting the large premium offered. The following day saw action in utilities, as Fortis acquired CH Energy for $1 billion in an all-cash deal. This will allow the Canadian firm to enter the electricity and gas distribution market in the US. The buyer lost 1.4% while CH Energy gained 12.7%. CME Group doubled its stake in the Dubai Mercantile Exchange to 50 percent for an undisclosed amount. This will aid the DME in increasing the power of the Oman oil futures contract. The financial group dropped 1.3%. BCG Capital purchased the majority of Grubb & Ellis’ assets following their bankruptcy. The financial brokerage hopes that this deal will allow it to successfully diversify into real estate. The seller plummeted 55.7%. Also that day, Wells Fargo took over BNP Paribas’ North American loan unit, worth around $9.5 billion. This news sees the US bank continue to grow as BNP look to meet strenuous European capital requirements. Wells Fargo and the French bank were down 1.2% and 2.8% respectively.

The midweek saw Shell buy Cove Energy for $1.6 billion. This will allow the buyer to grow its East African natural gas operations. The oil and gas giant was relatively unchanged while Cove closed 23.6% higher, mirroring the premium paid. The following day, Citigroup said that it would divest its 10 percent stake in HDFC, a large Indian mortgage lender, worth approximately $2 billion. A desire to bolster its capital reserves is among possible motives. The financial conglomerate was up 1% on the news as HDFC lost 3.6%. On Friday, El Paso Corporation spun off its production and exploration units to a consortium of investors including Apollo Global Management for $7.1 billion. This news, which follows Kinder Morgan’s takeover of the seller, is the latest in what is considered the North American gas boom, much of which is built on shale formations and a process known as ‘fracking’. By the bell, the energy firm and Apollo had gained 1.5% and 1.7% respectively.

Friday, 17 February 2012

Mergers & Acquisitions - Week Ending 02/17/12

On Tuesday, Glory purchased Talaris from the Carlyle Group for $1 billion. The Japanese buyer is no doubt looking to gain from the global growth of the cash handling equipment maker, who have proven to be one of Carlyle’s best investments. The automated service firm were up 1.2%. The following day, Kellogg acquired Pringles from Procter & Gamble for $2.695 billion. The consumer goods firm had previously agreed terms with Diamond Foods, but this collapsed following difficulties at Diamond arising from accounting discrepancies. There is strong international growth projected for the potato chip brand. The bidder gained 5.1% while the vendor was relatively unchanged. Thursday saw ConocoPhillips sell its Vietnamese unit to Perenco for $1.29 billion. This is the latest in a string of spin-offs by the energy firm, who are looking to raise $20 billion over two years whilst refocusing on more profitable units. The seller fell 0.9%. 

The following day, Mitsubishi bought a 40 percent stake in natural gas producer Encana for $2.9 billion. This is another drop in an ocean of recent deals focusing on shale formations. The Japanese conglomerate increased 2.6% while Encana dropped 0.6%. Credit reporting firm TransUnion was taken over by Advent International and GS Capital Partners for $3 billion. This comes as the credit industry is under increased scrutiny due to the excesses which lead to the 2008 financial crisis. Goldman Sachs, owner of GS Capital, grew by 1%. Also that day, Groupon purchased database builder Hyperpublic. This is expected to help Groupon serve customers by understanding them and their local environment better. The e-marketplace lost 0.2%.

Friday, 10 February 2012

Mergers & Acquisitions - Week Ending 02/17/12

On Tuesday, Glencore International purchased the portion of Xstrata that it didn’t already own in a deal that values the firm at around $62 billion. This comes amidst mass consolidation in mining aimed at taking advantage of emerging economies' needs. Xstrata fell 2.5% while the world’s largest commodities trading company was relatively unchanged. Also that day, Itau Unibanco acquired the remaining 50 percent of Redecard for $6.81 billion. It is expected that this move will help the target remain competitive as more firms enter the payment processing market. The bidder gained 1.2%. Thursday saw Oracle buy Taleo, an online HR software firm, for $1.9 billion. This is the buyer’s second major investment in cloud computing, despite their outlook on the industry once being negative. The tech giant grew 0.6%, while Taleo were boosted a massive 17.2%, reflecting the large premium being offered.

Friday, 3 February 2012

Mergers & Acquisitions - Week Ending 02/03/12

On Monday, ExxonMobil said it would divest its Japanese operations to refinery operator TonenGeneral Sekiyu for $3.9 billion. Recently, oil giants have been seeking to refocus on lucrative exploration and development projects rather than refining. The bidder was relatively unchanged while the vendor lost 1.1%. ABB purchased electrical component maker Thomas & Betts for $3.9 billion in an all-cash deal. They believe that this move will supplement their business, whilst insulating against weak European demand. The Swedish industrial giant fell 3.3%, as the target was boosted 23%, reflecting the large premium being paid. Also that day, Gores Group acquired Pep Boys for $791 million. The auto parts provider is expecting the private equity firm’s investment to facilitate growth. Pep Boys increased 23.4%, mirroring the premium offered.

The following day, ThyssenKrupp sold its Inoxum unit to Outokumpu for $3.5 billion. The deal will create one of the world’s biggest steel makers. The buyer saw an 11.5% slide, while the German tech firm grew by 2.5%. The midweek saw TPG Capital’s $801 million takeover of GlobeOp Financial Services. The firm, who provide administrative services to hedge funds, welcomed the capital inflow. They gained 19.7%, representing around half of TPG’s premium. On Friday, Hutchison Whampoa bought carrier Orange Austria for $1.7 billion. This comes amidst continued consolidation in the European telecoms market. The global tech firm were up 7.1%.