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AMERICAS
Regeneron, a biotechnology company, completed the acquisition of Decibel Therapeutics, a clinical-stage biotechnology company dedicated to discovering and developing transformative treatments to restore and improve hearing and balance, for $213m.
"We at Decibel are deeply committed to discovering and advancing innovative new therapies with the potential to be transformative for people with severe forms of hearing loss. We have built a pipeline of gene therapy product candidates for the ear that we believe have such potential. After full consideration, the Decibel Board has determined that this transaction is the best way to maximize shareholder value and ultimately benefit patients," Laurence E. Reid, Decibel President and CEO.
Actionstep, a global cloud practice management platform for midsize law firms, completed the acquisition of Soluno, a legal accounting software company, from AffiniPay, a full-service merchant account and online payment gateway provider. Financial terms were not disclosed.
"This is an important milestone for Actionstep in the US and Canada. As Actionstep continues to innovate and refine our technology for the legal midmarket, the addition of Soluno brings advanced legal accounting capabilities to our already comprehensive practice management offering." Early Stephens, Global Actionstep CEO.
Actionstep was advised by Envision Agency (led by Jobst Elster). AffiniPay was advised by Software Equity Group.
WEG, a Brazilian company, operating worldwide in the electric engineering, power and automation technology areas, agreed to acquire the Industrial Motors and Generators businesses of Regal Rexnord, a manufacturer of electric motors and power transmission components, for $400m.
"After a thorough strategic review, we believe this transaction with WEG will be a true win-win for both companies' principal stakeholders. The sale of our Industrial Motors and Generators businesses is consistent with our strategy of focusing the portfolio on products, sub-systems, end markets and/or applications where we can achieve GDP-plus growth rates and gross margins above 35%. While we have made significant progress improving the growth prospects and margins at these businesses, we believe that WEG is in a better position to accelerate their performance going forward," Louis Pinkham, Regal Rexnord CEO.
Regal Rexnord is advised by Guggenheim Partners and Godfrey & Kahn.
Allient, a global designer and manufacturer of precision and specialty Motion, Controls and Power products and solutions for targeted industries and applications, completed the acquisition of Sierramotion, a privately-owned company specializing in designing and engineering turn-key motion components. Financial terms were not disclosed.
“Sierramotion and Allient are well known to each other as they have collaborated and partnered in the past to develop industry leading solutions for the motion market. The engineering team at Sierramotion brings decades of experience in designing solutions for complex motion control problems, which we believe will advance our integrated motion solutions strategy and further enable our reach into our targeted end markets.” Dick Warzala, Allient Chairman and CEO.
Bay-Houston Towing, a Houston-based provider of harbor tug services, agreed to acquire Seabulk Towing Services, which operates eight harbor towing vessels, from Seacor, a petroleum industry company. Financial terms were not disclosed.
"We have admired Seabulk for many years, and Bay-Houston is delighted to expand its operations to two important, high-growth ports. We look forward to providing our customers with a smooth transition and long-term investment to support their growth in these ports," Philip Kuebler, Bay-Houston President and CEO.
Bay-Houston Towing was advised by Winston & Strawn.
Amazon, an American multinational technology company, agreed to invest $4bn in Anthropic, an operator of an AI safety and research company.
"Will help make Anthropic's models better, will help make our chip technology and our AI infrastructure better." Adam Selipsky, Amazon Web Services CEO.
Tecta America, a commercial roofing firm, agreed to acquire Pieros Construction, a company performing commercial roofing based in Somerville, NJ. Financial terms were not disclosed.
"We are thrilled to welcome Pieros to our family of companies. Richard (Rich) Pieros, Jean Pieros and the rest of the Pieros team have built a high-quality company to serve the commercial roofing needs of the Central and Northern New Jersey markets. Like Tecta, Pieros focuses on their employees, safety, and doing what is best for their customers. We look forward to working with Rich, Jean and the rest of the team as they continue to provide outstanding service to their loyal customer base," Dave Reginelli, Tecta President & CEO.
Amex Ventures, an investment firm, completed the investment in Sensible Weather, a climate finance platform. Financial terms were not disclosed.
This investment will help Sensible Weather, which offers a climate finance platform that combines the latest weather, financial, and risk management technologies, better deliver seamless products and services that help mitigate the impacts of disruptive weather on travel, events, and outdoor experiences.
Coherent in talks with Japanese firms for silicon carbide investment.
Coherent, a major US supplier of materials used to make chips for the automotive industry, has attracted interest from four Japanese conglomerates for an investment in its silicon carbide business at a valuation of as much as $5bn, Reuters reported.
The investment would alleviate the financial burden for Coherent, which has said it will invest $1bn over the next 10 years to expand its production of silicon carbide wafers, which help boost the range of electric vehicles more than chips made with traditional silicon.
Denso, Hitachi, Mitsubishi Electric and Sumitomo Electric Industries have held discussions about taking a minority stake in Coherent's silicon carbide business. Coherent may accept more than one of these companies as investors in the silicon carbide division at a valuation of between $4bn and $5bn.
EMEA
Ares Management is providing a direct-lending package of about £1bn ($1.2bn) to support the merger of two personal insurance businesses in the UK, Bloomberg reported.
Ardonagh Group is selling its Atlanta Group division to UK insurer Markerstudy. The deal will create a new business with nearly 8m customers across its home and motor insurance units.
Markerstudy is advised by Continuum Advisory, Skadden Arps Slate Meagher & Flom (led by Robert A. Chaplin) and Certus (led by Ben Welsh). Debt financing is provided by Ares Management. Ardonagh is advised by Fenchurch Advisory Partners, Powerscourt (led by Justin Griffiths) and Zuke Communications (led by Elinor Zuke).
EU antitrust regulators will decide by October 20 whether to clear luxury e-commerce company Farfetch's acquisition of a stake in online fashion retailer YOOX Net-A-Porter from Richemont, Reuters reported.
The companies announced the deal in August last year, underscoring a series of investments in digital services by luxury players as they turn to new channels to reach customers, encouraged by the shift to online shopping during the pandemic.
Farfetch would initially acquire a 47.5% stake from Switzerland-based Richemont, owner of brands including Cartier jewellery and IWC watches. The EU competition enforcer can approve the deal with or without remedies after its preliminary review or it can open a four-month investigation if it has serious concerns.
Booking Holdings' proposed $1.7bn purchase of Swedish peer ETraveli Group was blocked by EU antitrust authorities after the company failed to allay concerns about its dominance in online hotel reservations. Booking said it would challenge the veto, which has won unconditional approval in the United States and Britain, Reuters reported.
The European Commission said Booking's remedies were not sufficient to address its concerns, confirming a Reuters story earlier this month. The veto suggests that EU regulators may be taking a tougher stance on mergers in the digital sector.
Enovis, a US maker of orthopedic bracing and shoe inserts, agreed to acquire Lima, a medical device company, from EQT Partners, a private equity firm, for $850m.
“We are confident the acquisition of Lima will enable us to build on our strong growth trajectory and global leadership in orthopedic solutions to create immediate and sustainable value for our patients, customers, employees and shareholders.” Matt Trerotola, Enovis Chair and Chief Executive Officer.
Enovis is advised by JP Morgan, UBS, and Allen & Overy. Debt financing is provided by JP Morgan and UBS.
Altamont Capital Partners, a private investment firm, completed the acquisition of Douglas Products, a specialty products manufacturer and marketer of high-quality brands in the global agriculture production and structural pest control markets, from Brightstar Capital Partners, a private equity firm. Financial terms were not disclosed.
"We're proud to have partnered with such a strong team at Douglas over the years." Randall Eason, Altamont Capital Partners Managing Director.
Altamont Capital Partners was advised by Narrative Strategies (led by Madeline LaMura).
Carac, a mutual savings, retirement and provident fund, completed the acquisition of French life insurance activities of Ageas, a Belgian-French multinational insurance company. Financial terms were not disclosed.
The disposal aligns with Ageas's strategy to streamline its European portfolio and to concentrate on its core markets in the region.
Biosynth, a supplier of critical materials to the life science industry, agreed to acquire Pepceuticals, a UK producer of synthetic peptides with multi-kilogram GMP facilities and fill-finish capabilities designed to support customers from clinical trials to commercial supply. Financial terms were not disclosed.
"We are very excited for Pepceuticals to be joining Biosynth. The Pepceuticals team has great expertise in optimizing the production of peptides and working at GMP and larger scales, making it a natural fit for Biosynth as we round out our peptide offering," Urs Spitz, Biosynth CEO and President.
Aviva, a multinational insurance company, agreed to acquire AIG Life, an insurance agency, from Corebridge Financial, an American multinational financial services company, for $563m.
“This acquisition brings significant strategic and financial benefits to Aviva. It strengthens our prospects in the highly attractive UK protection market and continues our progress in repositioning the Group towards capital-light growth. We look forward to welcoming our new customers and colleagues to Aviva.” Amanda Blanc, Aviva Group Chief Executive Officer.
Galp Energia, a Portugal-based holding company engaged in the oil and gas industry, and Mitsui, a general trading companie in Japan, formed a $426m joint venture.
“These projects are some of the largest of their kind, representing an overall investment of $692m. This is a significant contribution to the launch of the new industries of the future in Portugal, placing Galp at the forefront of the development of low carbon solutions necessary for the energy transition. The decisions are based on the expectation that the fiscal and regulatory developments in Portugal will not hinder the success of such large-scale investments.” Paula Amorim, Galp Energia Chairwoman.
Sweden's SBB soars on cash infusion relief, reorganisation.
SBB's shares and bond rose sharply on Monday after the Swedish property group secured an SEK8bn ($719m) cash boost and said it would reorganise its business, Reuters reported.
"SBB intends to use the cash to address near-term financial commitments, including agreed investments, dividends, and debt maturities," SSB.
Under pressure to cut its debt amid soaring interest rates, SBB said in May it might sell all or parts of its business, but talks to divest its remaining 51% stake in education unit EduCo to Canada's Brookfield Asset Management later collapsed.
Supermarket franchisee Spinneys Dubai plans IPO in 2024.
Spinneys Dubai, the franchisee of the supermarket chain in the United Arab Emirates and Oman, is planning an initial public offering of the business in the second quarter of 2024.
Albwardy Investment, the franchise's 100% owner, hired Rothschild & Co to advise on the planned IPO, Reuters reported.
It invited banks this week to pitch for roles in the offering, expected to be up to 30% of the company.
Renk IPO aims for market capitalization of up to €1.8bn.
German defence contractor Renk said on Monday it would price its initial public offering at €15 ($16) to €18 ($19) per share, which would give it a potential valuation of up to €1.8bn ($1.92bn), Reuters reported.
Private equity owner Triton, which has been an investor since 2020, will continue to hold its majority stake in Renk, which supplies gearboxes for Germany's Leopard battle tank.
Triton plans to sell up to 27m Renk shares, raising up to €486m ($517m) in proceeds. Renk's free float would be 27%, according to a company statement.
Goldman, HSBC join forces with other banks on client disclosures.
Goldman Sachs and HSBC are among a group of five banks adopting a common global approach to disclosing clients' stock positions, a move which participants say could help cut costs and bolster transparency.
The group, which also includes Barclays, BNP Paribas and one other bank, is working on a tool to minimise the risks of under-reporting, particularly when investors make so-called short bets or build stakes using derivatives, Reuters reported.
Regulators require investors to report the securities they hold when certain thresholds are breached, which requires complex, time-consuming analysis of the rules. If there is room for interpretation, this can lead to missteps and penalties.
Deutsche Bank’s DWS to pay $25m to settle SEC probes.
Deutsche Bank’s DWS asset management arm agreed to pay a total of $25m to settle Securities and Exchange Commission probes into alleged greenwashing and anti-money laundering lapses, Bloomberg reported.
The penalties include $19m for “materially misleading statements” about how it incorporates environmental, social, and governance factors into research and investment recommendations and $6m for failing to develop a mutual fund AML program, the SEC said in a statement on Monday. DWS didn’t admit or deny the SEC’s findings.
Group of Italian investors in Mediobanca backs new term for CEO Nagel. (People)
A group of Italian investors with a combined 10.9% stake in Mediobanca will vote to give Chief Executive Alberto Nagel a new term at a shareholders' meeting on October 28, Reuters reported.
At the helm of the Italian bank since 2008, Nagel has come under fire in the last two years from two major shareholders - the Del Vecchio family's holding company Delfin and Italian tycoon Francesco Gaetano Caltagirone - who hold 19.8% and 9.8% stakes, respectively, in the bank.
APAC
Burman, an Indian billionaire businessman and chairman of Dabur, a consumer goods company, agreed to acquire a 26% stake in Religare Enterprises, an India-based diversified financial services group, for $255m.
"The proposed transaction is in line with our vision to create a leading financial services platform that encompasses lending, broking and health insurance services," Anand Burman, Dabur Chairman.
Thailand expects Tesla, Google, Microsoft to invest $5bn, prime minister says.
Thailand's Prime Minister Srettha Thavisin said on Sunday the country expected to receive investment of at least $5bn from Tesla , Google and Microsoft, Reuters reported.
"Tesla would be looking into an EV manufacturing facility, Microsoft and Google are looking at data centres," Srettha Thavisin, Thailand's Prime Minister, said without detailing whether the $5bn was expected to be a combined investment or made individually by each company.
South Korea’s Ecopro Materials IPO set to be largest since early 2022.
South Korea’s Ecopro Materials is seeking to raise up to KRW665.9bn ($498m) through an initial public offering in Seoul, potentially the largest in the Asian country since early 2022, Bloomberg reported.
The battery-materials producer is offering about 14.5m shares at KRW36.2k ($27) to KRW46k ($34) apiece, according to a filing Monday. Bookbuilding is expected between October 30 and November 3, with pricing slated for November 7.
SoftBank to raise $800m via bond-type class shares. (FS)
SoftBank plans to raise JPY120bn ($809m) via Japan's first public offering of bond-type class shares, Reuters reported.
The Japanese telecommunications arm of tech investment giant SoftBank Group first announced the issuance in May, saying the shares would be listed before the close of the 2023 financial year, which ends on March 31, 2024.
The shares will not have voting rights nor can they be converted into common shares, so the issuance would not affect current shareholders, SoftBank said in a statement in May.
Australian casino group Star Entertainment to raise $481m in equity.
Australian casino operator Star Entertainment Group is tapping the capital markets for a second time in 2023 as it aims to raise AUD750m ($481m) as part of a major capital restructure to strengthen its balance sheet, Reuters reported.
The capital raise consists of a AUD589m ($379m) 1 for 1.65 pro-rata accelerated non-renounceable entitlement offer and a AUD161m ($104m) institutional placement, according to a statement.
India's Serentica Renewables lands $360m debt, just days after securing $310m.
India’s Serentica Renewables, a decarbonisation platform, said it has secured $361m in debt from power sector lender REC, just days after raising $310m from Power Finance, DealStreetAsia reported.
With the new funding, Serentica is expected to develop its hybrid renewable energy projects coming up in Karnataka. The company is setting up 560 MW of wind and solar capacities in the southern state of India.
“With the funding secured, we will be accelerating the development of our first phase of projects, which will bring clean energy to hard-to-abate energy-intensive industrial consumers and help them move towards a net-zero future,” Pratik Agarwal, Serentica Renewables Director.
China’s Nio considering raising $3bn from investors.
Nio is considering raising around $3bn from investors, as questions swirl around the Chinese electric-car maker’s health amid mounting losses, Bloomberg reported. The fundraising could happen as soon as next year.
Nio said in a statement that it currently has no reportable capital raising activity, aside from the $1bn convertible notes offering the company announced completing earlier Monday.
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