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%.