Chinese state fund to invest $7.1bn in advanced manufacturing. (FS)
Westpac looking to raise $1.7bn.
Amazon’s investment in Future Retail faces antitrust hurdles.
Lion Air looking to raise $1bn in IPO in early 2020.
Central Group dedicates $663m for overseas investments. (Real Estate)
Your suggestions and comments support democratisation of M&A data. Follow the links below to explore dealmakers behind each transaction. If you know someone who might enjoy this briefing forward this email or subscribe directly. If you'd like to contribute to the future editions drop us a line.
Broadcom, an American designer, developer, manufacturer and global supplier of a broad range of semiconductor and infrastructure software solutions, completed the acquisition of the enterprise security unit of Symantec, a cybersecurity company, for $10.7bn in cash. The deal was announced in August 2019.
“This is a transformative transaction that should maximize immediate value to our shareholders while maintaining ownership in a pure-play consumer cyber safety business with predictability, growth and strong consistent profitability. In addition, it allows the Enterprise Security business to grow and compete on an enterprise platform with a worldwide sales and distribution reach which can service our existing customers. It also allows our Norton LifeLock business, a world-recognized leader in consumer and small business cyber safety to operate independently and give investors a clear understanding of the growth opportunity and strong financial performance,” Rick Hill, Symantec Interim President and CEO.
Broadcom was advised by BMO Capital Markets, Bank of America Merrill Lynch, Barclays, Citigroup, Credit Suisse, HSBC, JP Morgan, Mizuho Securities, Morgan Stanley, RBC Capital Markets, Wells Fargo Securities, Wachtell Lipton Rosen & Katz and Joele Frank. Symantec was advised by Goldman Sachs and Fenwick & West. Goldman Sachs was advised by Sullivan & Cromwell.
Platinum Equity-backed PAE, a provider of outsourced solutions for enduring missions of the United States government and international partners, agreed to merge with Gores Holdings III, a special purpose acquisition company sponsored by an affiliate of The Gores Group, in a $1.55bn deal.
“This transaction combines PAE’s strong track record of successful M&A and a de-levered balance sheet with the public company currency of a newly listed business, which will position the company to participate in the ongoing consolidation taking place in the government services sector. We are excited to participate in the company’s continued value creation through a meaningful remaining equity stake in the business,” Louis Samson, Platinum Equity Partner.
Platinum Equity is advised by Latham & Watkins. The Gores Group is advised by Deutsche Bank Securities, Evercore, Bank of America, Morgan Stanley, Moelis & Co, Weil, Gotshal & Manges and Sitrick and Company.
First Horizon National, which provides financial services through First Horizon Bank, First Horizon Advisors, and FHN Financial businesses, agreed to merge with IBERIABANK, an American financial holding company, in a $3.9bn merger of equals.
Under the terms of the merger agreement, IBERIABANK shareholders will receive 4.584 shares of First Horizon for each share they own. First Horizon shareholders will own 56% and IBERIABANK shareholders will own 44% of the combined company. Additionally, IBERIABANK shareholders will receive a 43% increase in their dividend after consummation of the transaction, based upon each company's current dividend per share.
“Our merger of equals with IBERIABANK is an exciting milestone and the logical next step in the continued successful transformation of our company. Separately, we are both formidable organizations with strong track records, great businesses and talented bankers. Together, First Horizon and IBERIABANK will create a powerful new company driven by our shared commitment to our customers, communities, shareholders and the employees we serve. We are pleased to have a partner with a complementary people-focused culture, shared values and a growth-oriented business model. Our combined new scale, deep experience in financial services and diverse business mix in the South uniquely position us to accelerate our growth and create lasting shareholder value,” Bryan Jordan, First Horizon Chairman and CEO.
IBERIABANK is advised by Goldman Sachs, Keefe Bruyette & Woods and
Simpson Thacher & Bartlett. First Horizon National is advised by Morgan Stanley and Sullivan & Cromwell.
Sabert, a global food packaging company, agreed to acquire LBP Manufacturing, a producer of environmentally progressive and sustainable food and beverage packaging. Financial terms were not disclosed.
"LBP's customer-centric culture and superior track record of developing performance-driven products that respond to their customers' needs make them a great fit to join our organization. As a leader in paper-based packaging, LBP's strong position in the Quick Service Restaurant channel combined with Sabert's sales network and global presence will allow the new organization to deliver tremendous value to the market, enabling us to achieve our vision of being the most admired company in our industry," Albert Salama, Sabert Founder and Chief Executive Officer.
Sabert is advised by Gibbons P.C. and Mesirow Financial. LBP is advised by Rothschild & Co and Lazard. JP Morgan, Wells Fargo Securities, SunTrust Robinson Humphrey and Nomura are providing debt financing.
Stryker, a Fortune 500 medical technologies firm based in Kalamazoo, Michigan, agreed to acquire Wright Medical Group, a global medical device company focused on extremities and biologics, for $5.4bn. The boards of directors of both Stryker and Wright Medical have approved the transaction.
“We believe this transaction will provide truly unique opportunities and will create significant value for our shareholders, customers and employees. By merging our complementary strengths and collective resources, we will be able to advance our broad platform of extremities and biologics technologies with one of the world’s leading medical technology companies that shares our vision of delivering breakthrough and innovative solutions to improve patient outcomes,” Robert Palmisano, Wright Medical Chief Executive Officer and President.
Wright Medical Group is advised by JP Morgan, Guggenheim Partners and Ropes & Gray.
CPPIB, a global investment management organization, agreed to acquire Pattern Energy, a publicly-traded renewable energy company, for $2.6bn. Under the terms of the merger agreement, Pattern Energy shareholders will receive $26.75 in cash consideration for each share of Pattern Energy, representing a premium of approximately 14.8% to Pattern Energy's closing share price on August 9, 2019.
"This agreement with CPPIB and Riverstone provides certain and significant value for Pattern Energy shareholders with an all-cash transaction at a very attractive stock price. Over the years, Pattern Energy has been able to provide shareholders with a consistent dividend and now our shareholders can realize the value embedded in the Company. We believe the proposed transaction reflects the strength of the platform we have built," Mike Garland, Pattern Energy CEO.
Pattern Energy is advised by Evercore, Goldman Sachs, Paul, Weiss, Rifkind, Wharton & Garrison, LodeRock Advisors, Joele Frank. Riverstone is advised by Kekst CNC. CPPIB is advised by Shearman & Sterling.
Yellow Wood Partners, a Boston-based private investment firm, completed its $585m acquisition of Dr. Scholl's, a footcare brand from Bayer, a global enterprise with core competencies in the life science fields of health care and nutrition.
"The Yellow Wood team is excited to become the next steward of the iconic Dr. Scholl's brand. Dr. Scholl's is the leading brand in the footcare category and we see great potential to grow the brand in its existing and other sales channels. The brand fits extremely well into the Yellow Wood consumer-focused business model as our firm has the operating experience from other carve-out investments to work with the Bayer employees who are continuing with the brand to build an exciting new stand-alone platform company," Dana Schmaltz Yellow Wood, Managing Partner.
Bayer was advised by Citigroup, Sawaya Partners, and Covington & Burling. Yellow Wood was advised by Fried Frank.
Q2 Holdings, a provider of digital transformation solutions for banking and lending, completed the acquisition of PrecisionLender, a commercial banking software developer, for $510m.
“The combination of PrecisionLender, Cloud Lending and our expanding corporate banking capabilities position Q2 as the leader in digital transformation solutions for commercial banking. We are excited to help our customers use our combined data insights to build lasting relationships with their customers and are thrilled with the outstanding leadership, culture and talent that PrecisionLender will bring to the Q2 family,” Matt Flake, Q2 CEO.
PrecisionLender was advised by William Blair & Co and Cozen O'Connor. Q2 was advised by Jefferies & Company, DLA Piper and Red Fan Communications.
ORIX, a Tokyo-based financial services firm, agreed to acquire Hunt Real Estate Capital, which finances commercial real estate, from Hunt Companies, a family of companies in the real estate and infrastructure markets. Financial terms were not disclosed.
“The Hunt Real Estate Capital acquisition represents the culmination of our efforts to create a top-tier national commercial real estate lender, one with the capital, skillset and product range to more flexibly address the needs of commercial real estate investors and developers than traditional bank lenders,” Terry Suzuki, ORIX USA President and CEO.
Hunt is advised by Paul Weiss Rifkind Wharton & Garrison. ORIX is advised by Beekman Advisors, Davis Polk & Wardwell and Marketwave.
First Internet Bank, a bank holding company with assets of $4.1bn, completed the acquisition of the small business lending division of First Colorado National Bank. The balance of loans acquired was approximately $38m and was comprised primarily of SBA 7(a) loans. Additionally, the balance of the servicing portfolio acquired was approximately $102m and consisted of guaranteed SBA 7(a) loans sold in the secondary market.
“This acquisition is consistent with our strategy to diversify our revenue and asset generation channels in a capital-efficient manner. The portfolio and the team that have joined us today accelerate our momentum in building a nationwide small business platform. We are delighted to welcome aboard these new members of our SBA team,” David Becker, First Internet Bank President and Chief Executive Officer.
First Internet Bank was advised by Hovde Group and Faegre Baker Daniels. First Colorado was advised by The Capital Corporation.
Charlesbank Capital Partners agreed to invest $100m in DoiT International, a provider of proprietary public cloud optimization and operations software and public cloud expertise.
"Our goal is to help our customers harness the power of public cloud technologies in the most efficient way, freeing up their resources to invest in providing the best products to their customers. This investment by Charlesbank will allow us to accelerate development of our platform's multi-cloud capabilities and support for the three major public cloud platforms," Vadim Solovey, DoiT founder.
Charlesbank Capital Partners is advised by MVP Capital Advisors. Bain Capital and Deutsche Bank are providing debt financing.
Amulet Capital-backed OPEN Health, a multi-disciplinary health communication and market access group, agreed to merge with Pharmerit International, a provider of health economics and outcomes research. Financial terms were not disclosed.
"Over the past two decades, we have proudly grown Pharmerit into a global strategic leader dedicated to our mission of demonstrating and communicating the value of innovative healthcare interventions with the development of rigorous evidence. In joining OPEN Health, we are significantly expanding our client base and will be able to provide a wider range of integrated services to our clients, notably the medical affairs groups. We very much look forward to working with the OPEN Health management and Amulet teams to contribute to the long-term growth of OPEN Health,” Marc Botteman, Pharmerit International Partner.
Pharmerit is advised by Edgemont Partners. Amulet Capital is advised by Kent Place Communications.
Cottonwood Venture Partners-backed SitePro, an automation technology solutions and service provider for the energy industry, agreed to acquire Integrated Control Solutions, an oilfield automation provider. Financial terms were not disclosed.
"The ICS acquisition is a key part of our corporate development strategy to expand the number of sites automated with our platform and solidify unmatched customer service for the markets in which we operate. We are extremely excited to have ICS founders, Randy Greer and Dominic Whitworth, retaining ownership in SitePro and joining our management team. Randy and Dominic's industry expertise and commitment to customer service will help accelerate SitePro to its next growth phase." David Bateman, SitePro Chairman of the Board and Co-CEO.
ICS is advised by Jackson Walker. SitePro is advised by Dwyer Murphy Calvert. JP Morgan is providing debt financing.
PTC, which develops and delivers technology solutions, comprised of software and services, completed its $470m acquisition of Onshape, a developer of the SaaS product development platform that unites robust computer-aided design software with powerful data management and collaboration tools. The acquisition positions PTC to capitalize on the inevitable industry transition to SaaS.
“We expect our acquisition of Onshape will enhance the momentum we’re seeing with our Creo and Windchill products,” Jim Heppelmann, PTC President and CEO.
Hudson Group, a leader in North American travel retail, agreed to acquire OHM Concession Group, a food and beverage concessions operator in North America. Financial terms were not disclosed.
“This acquisition is a pivotal step in accelerating Hudson’s growth strategy within the $6bn North American food & beverage airport concessions market. It expands our existing stake and adds new capabilities, including full-service, fast casual, sports restaurants and fine dining locations to our portfolio, ultimately bringing unmatched offerings to suit all types of travelers’ needs,” Roger Fordyce, Hudson Group CEO.
Hudson Group is advised by Davis Polk & Wardwell and Coyne Public Relations.
EMCOR Group, a mechanical and electrical construction services provider, completed its acquisition of Batchelor & Kimball, a full-service provider of mechanical construction and maintenance services. Financial terms were not disclosed.
“We are pleased to have successfully completed the acquisition of BKI. With one of the most experienced executive and field management teams in the mechanical construction industry, BKI will further broaden and enhance the service offerings EMCOR provides to its customers,” Tony Guzzi, EMCOR Chairman, President and Chief Executive Officer.
EMCOR was advised by Ropes & Gray and FTI Consulting.
DoorDash, a last-mile logistics platform in the US, completed its acquisition of Caviar, an all-in-one food ordering platform, from Square, a financial services, merchant services aggregator and mobile payment company, for $410m. The deal was announced in August 2019.
"The acquisition further enhances the breadth of our merchant selection, enabling us to offer customers even more choice when they order through DoorDash. We look forward to welcoming the Caviar team to DoorDash and expanding our partnership with Square in the future," Tony Xu, DoorDash CEO.
DoorDash was advised by Skadden Arps Slate Meagher & Flom.
Solugenix, an IT implementation and support services provider, agreed to acquire SEI, a provider of support solutions for multi-location environments. Financial terms were not disclosed.
“Over the course of the last two decades SEI has perfected the use of US-based remote workforce to provide high-quality support for demanding business users. This forms a perfect complement to Solugenix’s focus on implementing and supporting complex technology solutions for high-value, high-risk business processes. The combined team will have the skills and the scale to take on bigger engagements in what we are already good at: Complex IT applications, Artificial Intelligence, Machine Learning, Robotic Process Automation and Data Science,” Shashi Jasthi, Solugenix CEO.
Axereal, France’s largest grain cooperative, agreed to acquire the malt business of Cargill, an American privately held global corporation based in Minnetonka. The companies announced their intention to conduct this transaction in December 2018. Financial terms were not disclosed.
"This acquisition meets our two strategic objectives: Firstly, to invest in the downstream of barley to increase the value of our farmers production in France and internationally, and especially in growing markets. Secondly, we have a long-term vision for our cooperative farmers. This acquisition will help ensure that our trajectory is competitive. We at Axereal are leading the way for the agricultural transition with industrial innovation that provides quality food whilst respecting the environment." Jean-François Loiseau, Axereal Group President.
Axereal is advised by Cleary Gottlieb Steen & Hamilton.
Leviton, which manufactures and distributes electrical wiring devices, network and data center connectivity solutions, agreed to acquire Viscor, a lighting manufacturer, which specializes in lighting for architectural, commercial, medical, institutional and industrial applications. Financial terms were not disclosed.
“By adding Viscor to the Leviton family, we will be able to provide a much deeper portfolio of lighting options for our customers. Equally important, Viscor’s product portfolio will be further enhanced with access to our wide variety of innovative lighting control options,” Daryoush Larizadeh, Leviton President and COO.
Symphony Talent, a provider of employer brand and candidate experience solutions, agreed to acquire SmashFly Technologies, a global recruitment marketing and candidate relationship management technology provider. Financial terms were not disclosed.
"SmashFly is a longstanding industry trailblazer with an exceptionally strong brand and product perception in the market. Through this acquisition, we have an immense opportunity to diversify our customer base, grow our global presence, and strengthen our market leadership by uniting the best solutions and creative minds in the industry," Roopesh Nair, Symphony Talent President and CEO.
Proofpoint, an enterprise security company based in Sunnyvale, California, agreed to acquire ObserveIT, an Insider Threat Management software company, for $225m. Closing of the transaction is expected to occur late in the fourth quarter of 2019 and is subject to customary closing conditions, including Hart-Scott-Rodino merger review, and any other required regulatory approvals.
“Today’s ObserveIT acquisition underscores Proofpoint’s commitment to providing organizations with people-centric cybersecurity and compliance solutions that protect what matters: their people and the data they have access to, in a post-perimeter, cloud-first world,” Gary Steele, Proofpoint Chairman of the Board and CEO.
Marmon, a Berkshire Hathaway subsidiary, agreed to acquire a 60% stake in the Colson Medical Companies, a global provider of specialty medical devices, from Colson Associates, which develops, manufactures and distributes a wide range of innovating medical devices. Financial terms were not disclosed.
“Their innovative, proprietary products and processes and outstanding reputation make them an ideal fit for Marmon and provide our organization with another strong growth platform,” Angelo Pantaleo, Marmon Chairman and CEO.
Wildeboer Dellelce, Canada's corporate finance and the business transactional law firm, agreed to acquire a 50% stake in IHG, a full-service sports agency. Financial terms were not disclosed.
“Partnering with one of Canada’s most forward-looking and entrepreneurial law firms and its related companies within the WD Group of Companies provides IHG with a new platform upon which to build the IHG brand and offer clients additional services and value,” Murray Koontz, IHG founder and President.
Cooper Tire, an American company that specializes in the design, manufacture, marketing and sales of replacement automobile and truck tires, agreed to acquire the remaining 42% of Corporacion de Occidente, its tire making, Mexico-based joint venture with TRADOC. Financial terms were not disclosed.
"Full ownership of COOCSA is an important step in our strategic plan to optimize our global manufacturing footprint with cost-competitive production of quality tires to meet market demand, in this case throughout Latin America, as well as in North America," Brad Hughes, Cooper President & Chief Executive Officer.
Akamai Technologies, the intelligent edge platform for securing and delivering digital experiences, completed its acquisition of Exceda, Latin America's provider of application acceleration services and content delivery via the Internet. Financial terms were not disclosed.
“We look forward to leveraging our Akamai-related expertise and knowledge to deliver superior results for our customers. We also welcome the opportunity to work with the broad array of Akamai partners to grow the company’s Latin America business,” Claudio Baumann, Exceda CEO.
ButcherJoseph Financial Holdings, an affiliate of investment banking firm ButcherJoseph & Co, agreed to acquire Laffer Investments, a boutique investment banking firm specializing in ESOPs, mergers and acquisitions, private capital sourcing and valuation advisory services for middle-market companies. Financial terms were not disclosed.
“The investment professional depth and the broad product mix of the Laffer firm will enhance our ability to provide clients with investment advice and solutions to help them grow and preserve their wealth. I’ve known and respected the Laffer firm for years making this such a natural combination. I am thrilled and excited about the future of our firm,” Nancy Tengler, ButcherJoseph Chief Investment Strategist.
Raybow Pharmaceutical, a global pharmaceutical chemistry services provider, agreed to acquire PharmAgra Labs, a contract chemistry organization. Financial terms were not disclosed.
"Raybow's European and US clients will appreciate the option for contract services within the US. The PharmAgra team has a proven track record established during their 20 years of custom synthesis services. Coupled with existing capacity ranging from grams to multi tons, we now have the flexibility to accommodate all of our clients' phase-appropriate outsourcing activities on multiple continents," Bin Wang Raybow CEO.
WeCommerce, a Canadian e-commerce technology company, agreed to acquire Rehash, a Shopify agency. Financial terms were not disclosed.
“Rehash gives WeCommerce important exposure into the growing segment of brands looking to offer seamless omnichannel in-store and e-commerce experiences to their customers. They are a great addition to WeCommerce’s growing portfolio of Shopify Plus agencies,” Chris Sparling, WeCommerce’s CEO.
Axchem USA, a part of Axchem Group, a global network of locally-focused businesses serving the Pulp and Paper market, agreed to acquire Novel Industrial Solutions, which operates in the paper industry, delivering sustainable solutions to all market segments. Financial terms were not disclosed.
"The combination of Axchem's considerable resources and scope with Novel's innovation-based approach to solving the industry's most complex problems quickly and cost-effectively is an exciting new concept. This will enable our new organization to grow even faster, delivering even better results for current customers, and expanding into many more Pulp and Paper mills," Chris Tatman, Novel Industrial Solutions President.
Insight Service Group, a provider of medical and fraud management insurance services, completed its acquisition of Archangel Investigations, a private investigator in Los Angeles, California. Financial terms were not disclosed.
"We are looking forward to joining the ISG family and leveraging their industry expertise and national scale to continue to deliver high-quality services to our clients," Michael Clarke, Archangel CEO.
Arco, which develops educational software, completed its $413m acquisition of Sistema Positivo de Ensino, one of the largest K-12 content providers to private schools in Brazil.
“This acquisition of Positivo significantly expands our footprint and drives our scale further, strengthening our capacity to invest in high-quality content and technology. As a result, we will be able to enhance the learning experience of over 1m student,” Ari de Sá Neto, Arco CEO and Founder.
HubSpot, a growth platform, agreed to acquire PieSync, a cloud services provider. Financial terms were not disclosed.
"The HubSpot platform has grown significantly over the past four years, with more than 300 integrations now available to customers. While those integrations are powerful on their own, the addition of PieSync's two-way sync technology will amplify that power and enable our customers to get the most value out of the tools they use every day," Brian Halligan, HubSpot co-founder and CEO.
Sachem Head Capital Management to push for the sale of 2U. (FS)
Sachem Head Capital Management, an investment management firm based in New York City, built a position in 2U, an educational technology company, and plans to push the company to explore strategic alternatives, including a sale.
The New York hedge fund, run by Scott Ferguson, is now one of the 2U’s top shareholders. The exact size of Sachem Head’s stake was not disclosed.
McDonald's CEO fired over relationship with employee. (People)
McDonald’s fired Chief Executive Steve Easterbrook because of his consensual relationship with an employee, the latest challenge for the company as it races to keep up with changes reverberating throughout the food industry, WSJ reported.
The company said Sunday that its board voted Friday to terminate Mr. Easterbrook after investigating his relationship with the unnamed employee. Mr. Easterbrook resigned from McDonald’s board as well.
Takeaway.com, a Dutch dot-com company specialized in online food ordering and home delivery, changed the terms of its offer for Just Eat, a British online food order and delivery service, in response to a counter bid from Prosus. Takeaway changed the structure of its takeover attempt from a scheme of arrangement that needed 75% approval by both sets of shareholders to a formal offer that requires 75% of Just Eat shareholders to give the nod.
"With this switch, we provide additional deal certainty to the Just Eat shareholders," Jitse Groen, Takeaway CEO.
Just Eat is advised by Goldman Sachs, UBS, Oakley Advisory, Linklaters, and Brunswick Group. Takeaway is advised by Bank of America Merrill Lynch, Lazard, Cravath Swaine & Moore, De Brauw Blackstone Westbroek, NautaDutilh, and Slaughter & May. Prosus is advised by JP Morgan, Allen & Overy, and Finsbury Hering Schuppener. Investec is providing debt financing to Prosus.
Bain and Cinven-backed STADA, a pharmaceutical company based in Bad Vilbel, Germany, agreed to acquire Walmark, an independent vitamins, minerals and nutritional supplements manufacturer and distributor, from Mid Europa Partners, a private equity investor in Central and Eastern Europe. Financial terms were not disclosed.
"The acquisition by STADA validates Walmark's transformation from a family-led business to an international platform. Working in partnership with new management team, we have achieved our original vision for the company and created a valuable strategic asset by developing and implementing a thorough approach to operational excellence and focused product innovation," Matthew Strassberg, Mid Europa Co-Managing Partner.
STADA is advised by EY, Citigroup and Kinstellar. Mid Europa Partners is advised by BCG, PwC, Rothschild & Co, AK Jan Evan, Weil Gotshal and Manges and White & Case.
Public real estate investment company Aedifica offered to acquire Hoivatilat, a Finnish healthcare real estate investment company, for €577m ($644m). The offer represents a 16% premium.
“Hoivatilat is an attractive partner to enter into the Nordic healthcare real estate market with a high-quality, purpose-built portfolio, a large pipeline of projects and a very experienced management team. Moreover, both companies share the same values and long-term commitment. Given Aedifica’s international growth track record and Hoivatilat’s proven build-and-hold strategy, this landmark transaction provides an excellent platform for the combined group’s future growth in the Nordics. This transaction will further establish the Aedifica group as the European market reference in listed healthcare real estate,” Stefaan Gielens, Aedifica CEO.
Hoivatilat is advised by Danske Bank and Roschier Attorneys. Aedifica is advised by SEB Corporate Finance and Dittmar Lawyers.
Reuters reported that DBRS Morningstar, a global credit rating agency, placed ratings on Fiat Chrysler Automobiles and PSA Group under review with positive implications following the announcement of a merger of the two groups. DBRS Morningstar placed BBB (low) ratings on both FCA and PSA.
Fiat Chrysler is advised by Community Group, Image Sept, and Sard Verbinnen & Co.
Private equity firm Verdane agreed to acquire a majority stake in momox, Europe’s largest re-commerce company for books, CDs, DVDs, computer/video games and clothing. Financial terms were not disclosed.
“Since Verdane came on board as an investor last autumn, the team has worked with us as an experienced partner in the consumer and fashion sector with a strong focus on e-commerce. We look forward to deepening this partnership even further in the future and jointly strengthening momox in its position as the leading re-commerce company in Europe”, Heiner Kroke, momox CEO.
Banco Santander, a Spanish multinational commercial bank and financial services company, agreed to invest £350m ($430m) in Ebury, a foreign exchange facilitator for small and medium-sized companies. The deal will give Santander a 50.1% stake in the company.
"Small and medium-sized businesses are a major engine of growth around the world, creating new jobs and contributing up to 60% of total employment and up to 40% of national GDP in emerging economies. SMEs are becoming increasingly global and Santander is the best-positioned bank to play a leading role to help them access global trade finance. By partnering with Ebury, Santander will deliver faster and more efficient products and services for SMEs, previously only accessible to larger corporates," Ana Botín, Banco Santander Executive Chairman.
International Consolidated Airlines Group, an Anglo-Spanish multinational airline holding company, agreed to acquire Air Europa, a Spanish airline, for $1.1bn.
"Acquiring Air Europa would add a new competitive, cost-effective airline to IAG, consolidating Madrid as a leading European hub and resulting in IAG achieving South Atlantic leadership, therefore generating additional financial value for our shareholders. IAG has a strong track record of successful acquisitions, most recently with the acquisition of Aer Lingus in 2015 and we are convinced Air Europa presents a strong strategic fit for the group," Willie Walsh, IAG Chief Executive.
ZEDRA Group, a specialist in trust, corporate and fund services, agreed to acquire LJ Fiduciary, a provider of fiduciary and administration services, from Alvarium, an investment firm. Financial terms were not disclosed.
"This acquisition will give us an important opportunity to fast track our growth by diversification into different client segments in these two jurisdictions, Switzerland and the Isle of Man. It will reinforce mutual strengths and strong existing market positions. LJ Fiduciary has a first-class client and staff base and we look forward to welcoming both into the ZEDRA Group," Ivo Hemelraad, ZEDRA Group Director.
Huazhu Group, a hotel management company in China, offered to acquire Deutsche Hospitality, a German luxury hotel company, for €700m ($781m).
“This acquisition is an important milestone in our global growth strategy. Deutsche Hospitality is a perfect strategic fit and we expect competitive advantages for both companies. The brands of Deutsche Hospitality will enhance the offering of Huazhu and its operating capabilities in the high-end European hotel market,” Qi Ji, Huazhu Group Founder and Executive Chairman.
EDF Renewables, which provides wind and solar solutions as a NERC certified green project development company, agreed to buy Pivot Power, a British start-up company which specializes in battery storage and infrastructure for electric vehicle charging points. Financial terms were not disclosed.
“Pivot Power’s purpose from the start has always been to accelerate the UK’s transition to a cost-effective, reliable, low-carbon energy system and in parallel fast-track the rapid adoption of clean transport. EDF Renewables shares our vision and of course brings the expertise, resources and platform to make this a reality,” Matt Allen, Pivot Power CEO.
MOL acquired Chevron's stake in Azeri oilfields for $1.6bn.
MOL, a producer and distributor of premium automotive, commercial and industrial lubricants, autochemicals and additives, acquired Chevron's stake in Azeri oilfields for $1.6bn. The deal with Chevron includes a 9.57% stake in the BP-operated Azeri-Chirag-Gunashli field in the Caspian Sea and an 8.9% stake in the Baku-Tbilisi-Ceyhan pipeline that transports the crude to the Mediterranean.
"This major $1.6bn transaction is a significant milestone in building our international E&P portfolio, in one of our core regions, the CIS, where we will team up with world-class partners. Following the closing of the deal, around half of our production will come from outside the CEE region, giving us a healthy balance. With these new barrels we are also strengthening our resilient, integrated business model, which will continue to generate robust cash flow to finance the MOL 2030 transformational projects as well as rising dividends to our shareholders," Zsolt Hernádi, MOL Chairman and CEO.
Saudi Aramco says oil plant attack will not affect IPO valuation.
Saudi Aramco assured it does not expect a recent attack on its oil plants to have a material impact on finances and operations as it launched an initial public offering on Sunday by announcing its intent for a domestic flotation. The assault, which Riyadh blamed on Iran, shook oil markets and prompted the United States to deploy additional American military forces and hardware to bolster the kingdom's defenses, Reuters reported.
Saudi Aramco’s blockbuster listing still remains shrouded in mystery after the company finally announced its plans, with scant details disclosed and expert valuations varying wildly from around $1.2tn to $2.3tn.
"The company does not expect the impact of these attacks to have a material impact on its business, financial condition or results of operations," Saudi Aramco.
Delta considers pulling out of Alitalia bid consortium.
Delta Air Lines reportedly could pull out of a consortium looking to rescue Alitalia, the flag carrier of Italy, as it is unwilling to enter a possible bidding war with Lufthansa. Delta is expected to refuse to raise its offer to invest about $112m in Alitalia this week.
Israel-Egypt gas pipeline deal to be announced this week.
Reuters reported that the deal that would transfer control of a natural gas pipeline between Israel and Egypt is expected to be closed in the next few days. Texas-based Noble Energy, Israel’s Delek Drilling and Egyptian East Gas have partnered in a venture called EMED, which last year agreed to buy a 39% stake in the subsea EMG pipeline, which will carry Israeli gas exports to Egypt, for $518m.
“Upon the transfer of the full amount of the consideration to the sellers, which is expected to be performed in the coming days, the EMG transaction will be closed in practice,” Delek.
Banco BPI looking to sell Angola bank stake.
Banco BPI, a major privately-owned bank in Portugal, is looking to decrease its 48.1% stake in Angola’s leading bank BFA based on a recommendation from the ECB but is in no rush to sell.
“We continue with the intention of reducing our holding. When and how remains open. Fortunately, we have no deadline and will not sell at a bad price, we will sell when the conditions are good,” Pablo Forero, BPI CEO.
Mark Hemsley to leave CBOE. (People)
Mark Hemsley, Cboe's Europe president, is set to resign from his position at Cboe Global Markets, an American company that owns the Chicago Board Options Exchange and the stock exchange operator BATS Global Markets.
The head of Cboe’s European business will step down next February, the exchange said in a statement. David Howson, chief operating officer of Cboe Europe, will succeed him.
Morningstar, a provider of independent investment research, agreed to acquire AdviserLogic, an Australian adviser software firm. Financial terms were not disclosed.
"Morningstar believes in the value of financial advice, and we share a common mission with advisers to empower investor success. We're excited to expand our ability to support advisers at a critical time for the industry by welcoming AdviserLogic into the Morningstar family," Jamie Wickham, Morningstar Australasia Managing Director.
CPE Capital, a private capital manager, agreed to acquire Levett Engineering, a precision component manufacturer with an Australian and international client base that includes the defence, aerospace, medical, electronics and commercial engineering sectors. Financial terms were not disclosed.
“I’m incredibly proud of what the team at Levett has achieved since its founding in 1989. The acquisition by CPE Capital’s Australian defence portfolio company will provide the capacity and capability to better service our existing clients in the Joint Strike Fighter Program, and create the platform to service new clients in different domains and programs,” Paul Levett, Levett Engineering Founder and Owner.
Chinese state fund to invest $7.1bn in advanced manufacturing. (FS)
Deal Street Asia reported that state-owned Chinese investment fund, operated by the largest national investment group State Development & Investment Corporation, plans to allocate an additional sum of $7.1bn to the country’s advanced manufacturing sector.
The fund mainly backs companies in areas like rail transit equipment, industrial robotics, new-energy vehicles, high-end medical devices and innovative drugs, smart manufacturing, new material, modern agricultural equipment, high-end shipbuilding, and marine engineering equipment.
Westpac looking to raise $1.7bn.
Westpac Banking, an Australian bank and financial services provider headquartered at Westpac Place in Sydney, is looking to raise $1.7bn in capital from shareholders after reporting a 15% slide in full-year cash earnings. The company plans to use the additional funds to beef up its capital levels to meet tougher Australian regulatory requirements.
“2019 has been a disappointing year. Financial results are down significantly in a challenging, low-growth, low-interest-rate environment,” Brian Hartzer, Westpac Chief Executive.
Amazon’s investment in Future Retail faces antitrust hurdles.
India’s antitrust body asked Amazon to provide more information about its planned acquisition of a 3.6% stake in India’s Future Retail, a retailer that operates multiple retail formats in both value and lifestyle segments of the Indian consumer market.
In a notice to Amazon last month, the Competition Commission of India said that in certain overlapping segments and areas of operation of the parties, the combined market share exceeds the threshold specified in the combination regulations.
Lion Air looking to raise $1bn in IPO in early 2020.
Lion Air, an Indonesian low-cost airline, accelerated preparations for a stock market listing in the first quarter of next year with an IPO that could raise up to $1bn, Reuters reported.
The airline, which had been awaiting an official report on last year’s deadly crash of a Lion Air Boeing 737 MAX before deciding on a long-delayed flotation, is hoping to fund future aircraft deliveries to service an improving regional market for air travel.
Central Group dedicates $663m for overseas investments. (RE)
Deal Street Asia reported that Thailand’s top retailer Central Group is looking to invest over $663m in Vienna, Osaka and Turin, capitalizing on a strong local currency. The Thai baht has been Asia’s best-performing currency so far this year, firming over 7% against the dollar.
Central Group’s investments include a joint venture with Austria’s Signa Group in a 58k square meter luxury mixed-use project in Vienna, which will comprise a hotel, restaurants and retail shops.
Connect the World of Dealmakers
Expand your network of fellow Dealmakers by inviting your colleagues and coworkers.