EMEA
EU antitrust regulators warned that German utility E.ON’s acquisition of Innogy’s assets might reduce competition and lead to price hikes in Germany and other EU states.
E.ON is buying Innogy’s assets as part of an asset swap with Innogy’s owner RWE which recently won EU approval to purchase E.ON’s renewables and nuclear electricity generation units.
The European Commission cited deep concerns about the deal’s impact on competition in Germany, the Czech Republic, Slovakia and Hungary. It has opened an in-depth investigation, after E.ON and Innogy decided not to offer commitments during Brussels’ initial probe of the takeover.
E.ON is advised by BNP Paribas, Perella Weinberg Partners and Linklaters. RWE is advised by Bank of America Merrill Lynch, Citigroup, Rothschild & Co, and Freshfields Bruckhaus Deringer.
Platinum Equity acquired a majority stake in Grupo Ibérica de Congelados (Iberconsa), a global provider of frozen seafood products from Portobello Capital and affiliates of the company’s founding families. Financial terms were not disclosed.
The sellers and members of the Iberconsa management team will be minority investors alongside Platinum Equity.
“Iberconsa has established itself as a leader in the markets it currently serves. The company has grown substantially in recent years and can benefit from Platinum’s operational expertise to help maximize the benefits of its increased scale. We also intend to further grow the business through new acquisitions by deploying our M&A resources to help the management team expand the company’s product portfolio and geographic reach." Louis Samson, Platinum Equity Partner.
Platinum Equity is advised by Deloitte, Lazard, and Latham & Watkins. Portobello Capital is advised by Ernst & Young and Nomura.
Three groups bid to build a $1.6bn gas pipeline in Bulgaria.
Three consortiums have submitted bids in a €1.4bn ($1.6bn) tender to build a pipeline to carry Russian natural gas across Bulgaria, state-owned network operator Bulgartransgaz.
The consortiums include companies from Italy, Hungary, and Saudi Arabia, Reuters said. The Balkan country is rushing to build the 484-km (303 miles) pipeline from its southern border with Turkey to its western border with Serbia, aiming to secure a link to the Russia-backed TurkStream twin pipeline to southeast Europe.
Thyssenkrupp and Tata JV under threat of getting refuse from the European Commission.
The two companies last year struck a deal to combine their European steel units to create the continent’s second-largest steelmaker after ArcelorMittal, a move that must be cleared by the European regulators.
Brussels last month sent a statement of objections in its antitrust review of the transaction, effectively asking for remedies in exchange for approval in three areas - electrical steel, galvanized steel for car parts, and packaging steel.
Mubadala Ventures invests in Wefox $125m funding round. (FS)
Mubadala Ventures invests in a $125m funding round for Wefox, insurance consulting services through an InsurTech platform that unites insurance-sector with digital capabilities.
AMERICAS
Apollo acquired Direct ChassisLink and Blume Global from EQT Infrastructure. As part of the transaction, EQT will retain a 20% minority stake in DCLI and Blume Global for c. $2.5bn.
DCLI has grown to become the leading North American provider of domestic and marine chassis to the intermodal supply chain. Blume Global has developed a digital supply chain platform leveraging its 25-year history of data-driven insights across its vast global logistics network.
“We are excited to have the support of a world-class financial sponsor like Apollo as we look to grow our asset provisioning business, expand into new adjacencies, and capitalize on the tremendous market opportunity for Blume. EQT’s vision and backing have allowed us to grow rapidly over the past few years. We are thankful for EQT’s ongoing support, and we welcome Apollo to the DCLI family.” Bill Shea, DCLI CEO.
DCLI is advised by Citigroup, Simpson Thacher & Bartlett. Apollo is advised by Barclays and Paul Weiss Rifkind Wharton & Garrison.
Blackstone has acquired a minority stake in GI Partners. Financial terms were not disclosed.
The investment provides GI Partners with balance sheet capital to reinvest in the business and engage in strategic initiatives.
“This investment is a testament to the strength of the people and processes which have driven our success over the last two decades. We look forward to leveraging the partnership with Blackstone as we continue to grow and diversify the business for the benefit of our investors.” Rick Magnuson, GI Partners Founder, and Executive Managing Director.
GI Partners is advised by Evecore and Kirkland & Ellis. Blackstone is advised by Simpson Thacher.
Carousel Capital completed the acquisition of the Process Barron from Sterling Group. Financial terms were not disclosed.
Process Barron designs, manufactures and installs industrial process fans and material handling systems and provides follow-on service and maintenance for this equipment.
"Important to our family was the right cultural fit and the ability to reinvest alongside our partners. Sterling has been the right partner for our family and for all employees. We look forward to future continued growth with Carousel Capital." Ken Nolen, Process Barron CEO.
Carousel Capital is advised by Houlihan Lokey and Willkie Farr & Gallagher.
National Grid, British multinational electricity, and gas utility company acquired Geronimo Energy, a leading clean energy developer based in Minneapolis, for $100m.
National Grid is also progressing an agreement to acquire a 51% share in 378MW of solar and wind generation projects developed by Geronimo (in operation and under construction) for $125m.
The projects, which have long-term power purchase agreements in place, will be jointly owned by National Grid and Washington State Investment Board ('WSIB') and operated by National Grid. Once finalized, the joint venture with WSIB will have the right of the first offer on future projects developed by Geronimo Energy. This investment is consistent with our long-term strategy of evolving the Group for the future.
SFW Capital Partners has made a strategic investment in Greenshades Software, in partnership with Greenshades’ co-founders, David Rosas, and Matt Kane. Financial terms were not disclosed.
SFW’s principals have supported many highly regarded companies in the Information and Software sector. With SFW’s strategic support and resources, Greenshades plans to make significant investments to expand its product portfolio, enhance its sales and marketing capabilities, access new markets, and meaningfully accelerate its growth and development.
“Greenshades exhibits the key characteristics that we look for in our information and software investments: compelling value proposition, large addressable market, deep customer relationships, and a potential to unlock meaningful growth through a range of strategic and operational initiatives. We are excited to partner with David, Matt, and the Greenshades team to continue building the business and accelerating its growth." Omair Sarwar, a Partner at SFW who will be joining Greenshades’ Board of Directors.
GE considers the sale of 50% stake in renewable energy joint venture with Enel.
General Electric is exploring a sale of its 50% stake in a renewable energy joint venture with Italy’s Enel, the latest deal GE CEO Lawrence Culp is pursuing to pay down debt, according to Reuters.
The joint venture, called EGPNA Renewable Energy Partners, was formed in late 2016 between Enel’s US-based renewables subsidiary, Enel Green Power North America (EGPNA) and GE Energy Financial Services. It could be valued at more than $1bn, excluding debt.
Amazon, Berkshire Hathaway, and JP Morgan joint healthcare company to be called Haven. (FS)
Amazon, Berkshire Hathaway, and JP Morgan said their joint healthcare company would be called Haven and will focus on better primary care access, more straightforward insurance benefits and more affordable prescription drugs for their employees.
Haven will be tasked with improving healthcare for the three companies’ 1.2m employees and family members in the United States, but will also share its findings with outsiders.
Blackstone nears $20bn for flagship buyout fund. (FS)
Blackstone Group expects to reach about $20bn, when it completes the first phase of capital raising for its flagship fund, signaling the appetite for private equity has yet to wane.
The New York-based firm notified investors that the first close for its eighth buyout fund might be in March or early April, according to Reuters. Blackstone hasn’t yet set a limit for the fund’s size as it approaches a record for its buyout pools.
Carlyle planning to raise $1.8bn Japan focused fund. (FS)
Carlyle Group expects to seek 200bn yen ($1.8bn) for its fourth fund to make buyout investments in Japan.
The firm has started reaching out to some investors about the next Carlyle Japan Partners pool before it officially begins fundraising, Reuters reported.
Quinbrook closed its fund with $1.6bn of investor commitments. (FS)
Quinbrook Infrastructure Partners, a specialist global investment manager focussed exclusively on lower carbon and renewable energy infrastructure investment and operational asset management in the US, the UK and Australia, has held the closing of its Low Carbon Power Fund, raising a total of over $1.6bn in investor commitments to the strategy.
“We are very grateful to both our longstanding investors and our new institutional clients who have enabled us to achieve our largest fund raising to date. We especially value their commitment to Quinbrook’s investment strategy, which seeks to deliver both ongoing cash yield and absolute gains from the creation of new low carbon energy infrastructure assets and the remediation of impaired or undervalued energy assets and businesses." David Scaysbrook, Quinbrook co-founder and managing partner.
Xerox is restructuring business by creating the holding company.
Xerox will implement a structure in which the printer maker will become a wholly owned unit of a new holding company. The reorganization is expected to be performed in mid-2019, and the new holding company’s shares will trade on the New York Stock Exchange under its current ticker “XRX.”
Altice USA to divest its Lightpath fiber unit.
Cable operator Altice USA is exploring options for its Lightpath fiber unit, including divestment of the seller of Internet services to large corporations that could fetch $3bn.
New York-based Altice USA has hired investment bank Goldman Sachs to assist in the process, Reuters said, asking not to be named because the matter is private. The discussions are still early, and Altice is also considering bringing on an investor in Lightpath without disposing of it entirely.
APAC
Grifols acquired 26% interest in Shanghai RAAS Blood Products, a pharmaceutical company specialized in the research, manufacture, and sale of plasma-derived products for therapeutic use, in exchange for a non-majority share (45% economic and 40% voting rights) in Grifols Diagnostic Solutions, for $1.9bn.
This alliance is an important step forward in Grifols' sustainable growth and long-term strategy, generating value for all of its divisions, particularly the Bioscience and Diagnostic Divisions. In exchange, the agreement will enable Shanghai RAAS to diversify its business with the support of a global leader in NAT technology and other innovative diagnostic solutions.
Grifols is advised by Osborne Clarke, Proskauer Rose, JunHe, Nomura and China International Capital Corporation.
SoftBank launches a $5bn fund to invest in Latin America tech firms. (FS)
SoftBank is launching a $5bn fund to invest in technology companies in Latin America, ramping up its tech ambitions beyond its huge Vision Fund.
The new fund will be headed by SoftBank‘s Chief Operating Officer Marcelo Claure, with the Japanese technology conglomerate committing an initial $2bn and serving as the fund’s general partner.
Singtel to buy Bharti Airtel shares worth $525m.
Singapore Telecommunications (Singtel) would buy roughly $525m worth Bharti Airtel stock as part of the Indian telecoms operator’s plan to raise $4.6bn through new shares and bonds.
The fundraising plan, announced last month, is aimed at cutting debt and shoring up Bharti Airtel’s balance sheet as the Indian telecom industry reels from the impact of a price war triggered by the entry of Reliance Jio Infocomm.
Benxi Steel is not going to merge with Ansteel Group.
Benxi Steel Group will not merge with regional rival Ansteel Group, the chairman of Benxi Steel said, putting paid to long-running talk of a potential merger.
Benxi Steel and Ansteel are located in northeast China’s Liaoning province. Benxi is backed by the provincial government and Ansteel by Beijing. The two steel groups have been reported to be in talks over a possible merger since 2005 as part of Liaoning’s efforts to mainstream and de-leverage its heavy industry.
“We have completely stopped the talks with Ansteel on a merger,” Chen Jizhuang, chairman of Benxi Steel.
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