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%.