Friday, 6 April 2012

Mergers & Acquisitions - Week Ending 04/06/12

On Monday, KKR purchased shale properties from WPX Energy for $306 million. This is the latest in a string of oil and gas deals by the private equity firm, this one focusing on the highly popular 'fracking' method of extraction. The bidder and vendor were up 1.2% and 2.4% respectively. DBS Group Holdings absorbed Bank Danamon for $7.2 billion. The deal, which is one of the largest in SE Asian financial services in recent times, sees DBS looking to tap into Indonesia’s rapid growth. The Singapore bank fell 1.1%. Also that day, Schiff Nutrition acquired Airborne for $150 million in an all-cash deal. The supplement manufacturer adds to the nutritional firm's vast offerings. Schiff gained almost 5%.
The following day, it was announced that the Molson Coors Brewing Company would buy StarBev for $3.54 billion. This comes as Molson Coors looks to move into the emerging Eastern European markets. They buyer was down 5.4%. Also that day, Royal Bank of Canada bought the 50 percent of RBC Dexia Investor Services it didn’t already own for $1.1 billion. Dexia, which provides other institutions with back office operations, will compliment RBC’s existing products lines and bolster its global presence. They dropped 2.8%. On Thursday, the Rothschild banking family consolidated their European businesses through their company, Paris Orléans. The holding company, which is listed on the French exchange, will buy stakes in their British investment bank N.M. Rothschild & Co. and their French asset manager. This is expected to strengthen their capital reserves and efficiency. Paris Orléans jumped 4.2% on the news.