Mergers & Acquisitions - Week Ending 06/22/12

The week’s first deal came on Tuesday, when KKR acquired Prisma Capital Partners, a fund of funds, for an undisclosed amount. It is believed that the private equity firm is looking to move into asset management through deals such as this. KKR gained 6.9% on the news. Also that day, pharmacy chain Walgreen purchased a 45 percent stake in British rival Alliance Boots for $6.7 billion. The move, which will create one of the world’s largest drugstore groups, is the latest in a flurry of acquisitions by US companies looking to capitalise on cheap European assets. The move was met with negative sentiment on the markets, with the buyer losing 5.9%.

On Thursday, the Cabot Corporation absorbed carbon supplier Norit for $1.1 billion. Securing this supply is part of their plan to refocus on higher margin units. The chemicals company fell 3.9%. The next day saw private equity group Bain Capital buy a 50 percent stake in Jupiter Shop Channel Company from conglomerate Sumitomo for over $1 billion. The private equity group is likely to have been attracted to the retail unit’s strong growth and wide reach in Japan. The seller decreased by 2.3%. Following a smaller increase the week before, telecoms giant América Movíl grew its stake in KPN to almost 21 percent for $1.59 billion. The Dutch firm have been trying to fend off their South American rival, citing a low offer, but to little avail. The bidder was up 0.6% as the target dropped 4.4%.