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.