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AMERICAS
Colorado’s attorney general filed a lawsuit on February 14 seeking to block Kroger's proposed $25bn acquisition of rival supermarket chain Albertsons, saying consumers would be hurt as the US Federal Trade Commission and other states continue to scrutinize the deal, Reuters reported.
“Would lead to stores closing, higher prices, fewer jobs, worse customer service, and less resilient supply chains,” Phil Weiser, Attorney General.
Albertsons is advised by Credit Suisse, Jenner & Block, Brunswick Group, Goldman Sachs (led by Timothy Ingrassia), Debevoise & Plimpton (led by Ted Hassi), Fried Frank Harris Shriver & Jacobson (led by Philip Richter), Wachtell Lipton Rosen & Katz (led by Zachary Podolsky and Adam Emmerich), and White & Case (led by George Paul). Financial advisors are advised by Alston & Bird (led by Stuart Rogers), Cravath Swaine & Moore (led by Robert I. Townsend and Sanjay Murti), and Davis Polk & Wardwell (led by Phillip R. Mills and Cheryl Chan). Kroger is advised by Wells Fargo Securities, Citigroup (led by Brian Anton and David Finkelstein), Arnold & Porter Kaye Scholer, Weil Gotshal and Manges (led by Michael J. Aiello), and Joele Frank (led by Tim Lynch, Mahmoud Siddig, and Steve Frankel). Cerberus Capital Management is advised by Dechert (led by Eric Siegel and Mark Thierfelder) and FGS Global (led by Andrew Cole).
Genstar Capital-backed Clarience Technologies, a global provider of visibility and safety technology solutions for transportation, completed the acquisition of Safe Fleet, a company specializing in safety solutions for fleet vehicles, from Oak Hill Capital, a private equity firm focused on the North America middle-market. Financial terms were not disclosed.
“Clarience Technologies and Safe Fleet share a common mission of making transportation safer and smarter through technology. The acquisition of Safe Fleet provides our company with critical technologies, deep vocational segment expertise and a portfolio of powerful and complementary safety products that support our vision to provide comprehensive solutions to a broader set of transportation customers around the world," Brian Kupchella, Clarience Technologies Chief Executive Officer.
Clarience Technologies was advised by BMO Capital Markets, KKR Capital Markets, UBS and Weil Gotshal and Manges. Safe Fleet was advised by KPMG, Harris Williams & Co and Robert W Baird. Oak Hill Capital was advised by Paul Weiss Rifkind Wharton & Garrison and Kekst CNC (led by Jeremy Fielding).
KKR, an American global investment company, agreed to acquire a 50% stake in Cotiviti, a healthcare data and technology business, from Veritas Capital, an investor at the intersection of technology and government, for $10.5bn.
“I am excited to continue our partnership with Veritas and welcome KKR as a new partner. Since initially partnering with Veritas in 2016, we have dramatically expanded our scale and enhanced our value proposition to our customers. I look forward to collaborating with both KKR and Veritas to leverage our highly differentiated solutions to improve the cost and quality within the healthcare system," Emad Rizk, Cotiviti Chairman, President, and CEO.
Cotiviti is advised by Skadden Arps Slate Meagher & Flom (led by Kenneth Wolff) and Aria Marketing (led by Ross Homer). KKR is advised by Barclays. Veritas Capital is advised by JP Morgan (led by Nick Richit) and Prosek Partners.
CERo Therapeutics, an innovative immunotherapy company, went via a SPAC merger with Phoenix Biotech, a blank-check company, in a $50m deal.
“We are thrilled to join forces with PBAX. With CERo technology we see an opportunity to engage the body’s full immune repertoire for optimized cellular immunotherapy. Chris and Brian bring a wealth of experience to the CERo team during this important time as we look to test the first CER T cell therapeutic candidate in the clinic," Daniel Corey, CERo CEO.
CERo Therapeutics was advised by Cooley (led by Alan Hambelton) and Ellenoff Grossman & Schole. Phoenix Biotech was advised by Cohen & Company and Goodwin Procter.
Clarion Capital Partners, a private equity firm, completed the investment in Narrative Strategies, an integrated public affairs and corporate reputation agency. Financial terms were not disclosed.
"The Narrative team and the business they have established fully aligns with our investment approach, market interests, and the value we place on collaboration, creativity, and discipline. Narrative's best-in-class team and exceptional growth trajectory – especially in the financial services, healthcare and life sciences sectors – attracted us to the business. We couldn't be more excited to partner with Narrative and bring additional resources to fully own the strategic communications process for their clients, from inception to execution," David Ragins, Clarion Managing Director.
Narrative Strategies was advised by BrightTower (led by Amir Akhavan) and Williams & Connolly. Clarion Capital was advised by Brownstein Hyatt Farber Schreck.
GSK, a pharmaceutical and biotechnology company, completed the acquisition of Aiolos Bio, a clinical-stage biopharmaceutical company, for $1.4bn.
“Given the limited treatment options for asthma patients with low T2 inflammation, we look forward to using our deep respiratory expertise to potentially offer a long-acting biologic to a broader portion of the 315m patients living with asthma,” Tony Wood, GSK Chief Scientific Office.
Henkel, a multinational chemical and consumer goods company, agreed to acquire Seal For Life Industries, a provider of corrosion prevention, waterproofing, fire and heat protection, and insulation products, from Arsenal Capital, a private equity firm. Financial terms were not disclosed.
“Strategic acquisitions to actively shape and strengthen our portfolio are an integral part of our Purposeful Growth Agenda. Seal for Life offers an attractive and highly profitable portfolio in protective coating and sealing, perfectly complementing our existing platform for the maintenance, repair and overhaul market. With this transaction we will further enhance our product portfolio in this attractive market and unlock even greater growth potential for our leading Adhesive Technologies business,” Carsten Knobel, Henkel CEO.
Pfizer agrees to pay $93m to settle Lipitor antitrust lawsuit.
Pfizer has agreed to pay $93m to settle antitrust claims by wholesale drug distributors that accused it of conspiring with India's Ranbaxy Laboratories to delay sales of less expensive, generic versions of the cholesterol drug Lipitor, Reuters reported.
Attorneys for Lipitor purchasers, including Rochester Drug Co-Operative and Puerto Rico's Drogueria Betances, disclosed the agreement in a filing on February 14 in the US court in Trenton, New Jersey.
Berkshire trims Apple, sheds four stocks, mum on new investment. (FS)
On February 14, Berkshire Hathaway said it had trimmed its huge stake in Apple, shed four common stock holdings, and kept investors guessing on what could be a major new investment by Warren Buffett, Reuters reported.
In a regulatory filing describing its US-listed stock holdings at the end of 2023, Berkshire said it sold 10m Apple shares in the fourth quarter but still owned more than 905m shares worth about $174bn. Warren Buffett also cut its stake in Paramount Global during the fourth quarter, prompting shares of the CBS parent to slide in extended trading on February 14.
Uber hits record high after unveiling first-ever $7bn share buyback.
Uber Technologies shot to a record high on February 14 after announcing its first-ever buyback of $7bn worth of company shares after a strong recovery in ride-share revenue and healthy demand in its food delivery business, Reuters reported.
The company posted its first annual net profit last week since it went public in 2019. Uber executives said they expect to make buybacks consistent over time. "Today's authorization of our first-ever share repurchase program is a vote of confidence in the company's strong financial momentum," Prashanth Mahendra-Rajah, Uber CFO.
Kidney drug developer Aurinia fails to clinch a sale.
Aurinia Pharmaceuticals, the kidney therapies developer that was pushed by activist hedge fund MKT Capital to sell itself, failed to attract binding offers and will embark on share buybacks and cost cuts instead, Reuters reported.
Aurinia plans to announce later on February 15 that it will conclude the strategic review it launched at the end of June without a deal after receiving only one non-binding expression of interest from more than 60 parties it contacted. That expression of interest did not result in a formal offer.
General Motors and Panasonic sign investment deals with Canadian graphite producer.
General Motors and Panasonic have signed agreements to buy electric-vehicle battery materials from Nouveau Monde Graphite and will invest in the Canadian miner to help it produce high-quality graphite in North America, Bloomberg reported.
GM and Panasonic have each committed to purchase 18k metric tons of active anode material annually over a period of six to seven years.
US banks, private equity firms compete to finance debt-backed deals. (FS)
Wall Street banks are raising billions of dollars to regain ground in lending to companies in debt-backed deals after giant private equity and asset management firms muscled in on the business over the last two years, Reuters reported.
US banks reduced lending to lower-quality corporate borrowers in 2022 as the Federal Reserve aggressively raised interest rates. Rising borrowing costs also derailed deal markets, particularly for transactions underpinned by high levels of debt.
Feud erupts at $14bn credit manager over lucrative stake. (FS)
A Wall Street distressed-debt maven has resurfaced to take on his one-time protege at $14bn credit firm Kennedy Lewis Investment Management, Bloomberg reported.
John Brice, the former Kennedy Lewis chairman who left four years ago, is seeking a 15% stake in the company. That could be worth at least $100m, based on a conservative estimate of the valuation at which the firm has been pursuing a deal for a partial or complete sale.
EMEA
Barclays eyes SocGen's UK private bank.
Barclays is in the early stages of considering a bid for Societe Generale's UK private bank in an effort to expand its business targeting wealthy individuals, Reuters reported.
SocGen, advised by Rothschild & Co, has begun inviting bidders to take part in an auction for its Kleinwort Hambros unit. The French group is also readying to sell its private banking operations in Switzerland as it looks to shed businesses in a strategy revamp.
Prysmian signs record $5.4bn of deals with Germany's Amprion.
Italy's Prysmian, the world's largest cable maker, signed three contracts with Amprion worth $5.4bn in the latest deals in a major expansion of Germany's power grid, Reuters reported.
Prysmian said the three deals - for two offshore grid connection systems and an underground cable project - represented its biggest package deal ever in value and in kilometres. They are part of Germany's plan to install 70 gigawatts of offshore wind energy by 2045 and will support the transmission of energy generated in the North Sea to consumers in the western and southern regions of the country.
Swisscom is the sole remaining party in talks for Vodafone Italy.
Swisscom is the only party in discussions over a potential Vodafone tie-up in Italy, Reuters reported.
A combination with Swisscom's Fastweb Italian business is the sole option Vodafone has been working on after its January rejection of a bid to merge its Italian operations with those of Iliad.
Mercedes-Benz sells stake in Russian truckmaker Kamaz.
Mercedes-Benz Group has sold its stake in Russia's largest truckmaker, Kamaz, becoming the latest Western company to complete its withdrawal from Russia following the country's 2022 invasion of Ukraine, Reuters reported.
The German carmaker, which did not disclose the price of the transaction or the buyer, said the deal was completed this month after securing all necessary regulatory approvals. Mercedes-Benz, which at the time was Daimler, took over a 15% stake in Kamaz from Daimler Truck in September 2021 with a view to returning it to Daimler Truck after the truckmaker was spun off from the carmaker in December 2021.
Centrica is considering investment in the UK's nuclear plant Sizewell C.
Centrica is considering investing in the planned UK nuclear power plant Sizewell C, making it a potentially key stakeholder in the British government's plans to draw private investors to build the project, Bloomberg reported.
The backing from one of Britain's biggest energy companies could be key to the country's plans to reach a final investment decision on the multi-billion-pound project later this year. Centrica Chief Executive Officer Chris O'Shea said the company is looking at investing in Sizewell during a call with journalists on the morning of February 15 after releasing full-year results.
Italy's Bending Spoons eyes deals after new fundraising round. (FS)
Bending Spoons, one of Europe's largest mobile app developers, is looking for acquisition targets after a fundraising round valued the company at about $2.6bn, Bloomberg reported.
The Italian company raised $155m from a group of investors including Baillie Gifford, Neuberger Berman-backed NB Renaissance, as well as Durable Capital Partners.
Fashion chain White Stuff explores sale amid takeover interest.
The founders of White Stuff, the fashion retailer, are exploring a potential sale of the business they founded in 1985. George Treves and Sean Thomas have engaged Rothschild, the investment bank, to field offers following the receipt of an unsolicited approach from a prospective buyer.
The pair had not committed to a sale of the chain and said that a decision to do so would depend on the valuation it attracted. One analyst suggested that the company could be worth in the region of £50m ($63m).
Saudi Arabia's Modern Mills IPO is covered within hours.
Investors snapped up all of the shares in Saudi Arabia's Modern Mills for Food Products initial public offering shortly after books opened, showing that demand for regional listings is still strong, Bloomberg reported.
Books were covered throughout the price range of $11.7 to $12.8 per share in the IPO, which could raise as much as $314m. At the top end of the range, the firm would be valued at $1bn.
CVC Co-Founder Mackenzie to step back ahead of IPO. (FS, People)
Donald Mackenzie, Co-Founder and Co-Chair of CVC, has decided to step back from an active role with the business, Europe's largest buyout firm, to focus on his private interests ahead of the company's long-awaited public listing.
Mackenzie was part of a small group of Citibank executives who spun out in 1993 to form CVC, which, with €188bn ($160bn) in AUM, is now one of Europe's biggest private equity firms. Last year, CVC, which is currently preparing for an initial public offering, having postponed its original plan to list in November due to market uncertainty, closed the largest buyout fund on record with €26bn ($22bn) in capital commitments.
APAC
Renesas Electronics, a Japanese semiconductor manufacturer, agreed to acquire Altium, an Australian-listed software maker, for $5.7bn.
“Development processes continue to evolve and accelerate. With our Purpose “To Make Our Lives Easier” in mind, our vision is to make electronics design accessible to the broader market to allow more innovation through a cloud-based platform. Addition of Altium will enable us to deliver an integrated and open development platform, making it easier for businesses of all sizes and industries to build and scale their systems. We look forward to working with Altium’s talented team as we continue to invest and drive our combined platform to the next level of value for our customers," Hidetoshi Shibata, Renesas CEO.
Renesas is advised by Deutsche Bank, Covington & Burling, DLA Piper, and Nagashima Ohno & Tsunematsu. Altium is advised by JP Morgan, King & Wood Mallesons, Reed Smith, and GRACosway (led by Ben Wilson).
TSMC gains $42bn to pass Visa as investors bet on AI boom.
Taiwan Semiconductor Manufacturing gained about $42bn of market value after investors bet the chipmaker to Nvidia and Apple will become one of the biggest winners of an AI development frenzy, Bloomberg reported.
Taiwan's largest company soared 7.9% in the first trading session after a week-long Lunar New Year break, propelling its capitalization to a record $575bn. That was enough to surpass Visa to become the world's 12th most valuable company. TSMC's biggest gain in more than a year emerged after Morgan Stanley lifted its price target on the chipmaker by about 9%.
Tata Group is considering a spinoff of battery business Agratas.
Tata Group is considering a potential spinoff of its battery business as the Indian conglomerate expands its foray into the country's renewable energy and electric-vehicle sectors, Bloomberg reported.
Tata is in the early stages of discussions about eventually breaking out Agratas Energy Storage Solutions as an independent unit. Such a structure would allow the battery business to raise funds and go public in Mumbai at a later stage.
Woodside flags a $1.2bn charge against assets bought under the BHP merger.
Woodside Energy, Australia's largest energy firm, flagged a non-cash post-tax-asset impairment of around $1.2bn from its Shenzi oil and gas field in its 2023 fiscal earnings, sending its shares down to close at a two-month low on February 15, Reuters reported.
India's Reliance in talks to buy Tata Play stake from Disney.
India's Reliance Industries is in talks to buy Disney's stake in satellite TV provider Tata Play as billionaire Mukesh Ambani's firm seeks to bolster its media presence, Business Standard reported.
The oil-to-telecom conglomerate is looking to buy Walt Disney's 29.8% stake in the loss-making Tata Play as it seeks to offer its entire JioCinema content to Tata's customers.
FWD mulls options for $10bn insurer after IPO delay.
FWD Group, the Asian insurer controlled by billionaire Richard Li, is considering options, including a potential stake sale after delaying a planned initial public offering, Bloomberg reported.
The company could seek a valuation of more than $10bn in any deal. Global insurers, including Toronto-based Sun Life Financial, have approached FWD to express interest in a tie-up.
Magellan names Rahmani managing director, will transition to CEO. (People)
Magellan Financial Group appointed Sophia Rahmani in a transitory role of managing director, with a view to making her chief executive officer within 12 months, as the struggling money management firm attempts to reposition itself following years of turmoil, Bloomberg reported.
Rahmani joins from Maple-Brown Abbott and will start in May. Magellan intends to appoint her CEO of the group within 12 months of her start.
UBS taps debt capital market Asia co-head to lead private credit. (People)
UBS Group has appointed Ben Sung as head of Corporate Book for Southeast Asia, leading its charge to boost private credit business in the region, Bloomberg reported.
In his new role, Sung will manage the bank's private credit and structured lending for the region. He was formerly UBS' co-head of Debt Capital Markets in Asia.
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