Mergers & Acquisitions - Week Ending 04/20/12
On Monday, GDF Suez purchased
the remaining 30 percent stake in International Power, a British utility
firm, for $10 billion. This move is expected to expand GDF's reach in emerging
markets. The French energy titan and International Power were up 2.9% and 3.5%
respectively. Goldman Sachs sold $2.5 billion worth of shares in the Industrial & Commercial Bank of China to, among others, Temasek Holdings.
The Singapore-based wealth fund has also recently bought stakes in other Asian
banks despite whispers that they may be overvalued. The seller increased by
2.3%, while the world's largest bank was relatively unchanged. Also that day, Anheuser-Busch InBev took on a 51 percent stake in drinks producer CND for
$1.2 billion. This deal will give CND the push to distribute products on a
wider network in the Caribbean market they serve. The world's largest brewer
grew by 1.7%. The following day, Toshiba TEC bought IBM's Retail Store
Solutions unit for around $850 million. With the purchase, they are creating
the world's largest point of sale focused company. Both IBM and the office
machinery unit jumped 2.3% and 6.9% respectively.
The midweek saw Alimentation
Couche-Tard absorb Statoil's Fuel & Retail unit for $2.8 billion. It is
likely that the Canadian retailer is looking to strengthen its presence in
Scandinavian and Eastern European markets. The buyer was boosted over 15% while
the oil and gas firm fell 0.3%. SXC Health purchased rival drug benefits
manager Catalyst Health for $4.4 billion. The news of consolidation comes as
the industry is getting ever-more competitive; two of the largest managers
merged, while other health firms are now setting up their own benefits schemes.
The markets reacted positively; the bidder and target gained 11.3% and 34%
respectively. Wow Internet, Phone & Cable acquire rival Knology for $750
million in an all-cash deal. The buyer said the move will expand its geographic
reach. The broadband specialist increased by 7%. Later that day it was
announced that Audi would buy Ducati for $1.12 billion. It is seen as a
supplementary purchase more than anything else; their product lines have very
little in common with the target focusing solely on motorcycles. There are said
to be possible synergies in the manufacture of more efficient engines, however.
Volkswagen's luxury car unit lost 0.6% on the news.