On Monday, Energy Transfer Partners purchased Sunoco for $5.3 billion. This,
the latest deal in America’s thriving energy sector, is focused on
increasing the ETP’s presence in the distribution of oil and
natural gas. The pipeline operator was up 3.6% while Sunoco jumped
21%, reflecting the large premium being offered. Microsoft
announced that it would take a 17.6 percent stake in Barnes &
Noble’s ‘Nook’ for $300 million. They are looking to
capitalise on the rapid growth of the physical tablet business. The
software giant was relatively unchanged as the book seller soared
52%. Hologic, the medical equipment maker, absorbed Gen-Probe in
a $3.72 billion move. This is part of a wider strategy by Hologic to
grow its budding diagnostics unit. The buyer was down 10% (on
unrelated news of a lawsuit) while the diagnostics firm was boosted
18.7%. Also that day, Terra Firma Capital Partners bought Four Seasons
Healthcare, a nursing home operator, for $1.3 billion. The private
equity firm believe that, with less debt, the target has the
potential to lead the industry.
The following day, Mitsui and Mitsubishi acquired a 15 percent stake in an Australian natural gas
project owned by Woodside Petrolium for $2 billion. This comes as
many Japanese energy companies have been looking for alternatives
following the shut down of several nuclear plants in the wake of the
Fukishima disaster. The seller increased by 3.7% as Misui and
Mitsubishi, both large divsersified groups, fell 1.8% and 2.1%
respectively. The day also saw two large retail deals. The first came
when shoe company Collective Brands was split in two in a $2
billion deal. The Performance & Lifestyle unit being purchased by Wolvereine Worldwide and Payless ShoeSource /Collective Licencing
by Blum Capital and Golden Gate, both privite equity firms. The
target grew 1.9% while the apparel maker dropped 4.4%. The other came
in women's clothing when Charming Shoppes was integrated into its
rival, Ascena Retail Group, for $890 million. The success of
Ascena's Lane Bryant chain for plus-sized women is likely to have
driven the acquisition. The buyer was relatively unchanged as Ascena
was knocked 6.9%.
The midweek saw action in
pharmaecuticals, as Novartis purchased Fougera Pharmaecuticals for
$1.5 billion in cash. This is expected to create the world's largest
generic skincare company, with significant synergies in sales and
costs. Novartis lost 1.2%.
On Thursday, China's Bright Foods Group
took majority control over Weetabix from Lion Capital for $1 billion.
They state-owned firm believe that the British brand has exciting
international growth prospects. Also that day, BG Group sold its 60
percent stake in Comgas, a Brazillian gas company, to Cosan for
$1.8 billion. The British energy firm are looking to free up cash
with which to invest globally. The deal was met with negative
sentiment on the markets, with BG and the sugar and ethanol producer
down 1.8% and 1% respectively.
