EMEA
Britain’s competition regulator blocked Sainsbury’s proposed £7.3bn ($9.4bn) takeover of Walmart owned Asda - a huge blow to the supermarket groups who wanted to combine to overtake market leader Tesco.
The Competition and Markets Authority (CMA) ruling is also a major setback for Sainsbury’s Chief Executive Mike Coupe, the architect of the deal and the group’s boss since 2014. The deal would have resulted in a substantial lessening of competition at both a national and local level, with prices rising in stores, online and at petrol stations, the CMA said.
Coupe made unwanted headlines when he was caught on camera singing: “We’re in the money” shortly after the deal was announced last April. Analysts said questions will be raised over his future after it failed to win approval.
Walmart is exploring options for its Asda unit including an initial public offering after plans to combine the business with J Sainsbury to create the UK’s largest supermarket chain collapsed.
Shareholders of EDP-Energias de Portugal voted to effectively block a €9bn ($10bn) takeover bid by China Three Gorges, but the Portuguese utility said their partnership would continue, with a focus on Latin America.
The proposed scrapping of a 25% voting right limit was a key condition of CTG’s attempt to buy Portugal’s largest company, but it was opposed by activist investor Elliott and rejected by shareholders at a meeting. Portugal’s stock market regulator had said such a rejection would put an end to the offer.
This could open the way to an alternative proposal by Elliott, which has a 2.9% stake in EDP, for the group to raise €7.6bn ($8.5bn) from the sale of its Brazilian operation, Iberian thermal holdings and minority stakes in Spanish and Portuguese networks. EDP could then focus on further developing its alternative energy business, Elliott has said.
Bowmark Capital, the mid-market private equity firm, has agreed to sell CARE Fertility, the UK’s leading fertility clinic group for IVF treatment, to Silverfleet Capital. Financial terms were not disclosed.
CARE has aided the conception of over 30k babies, and its success rates are amongst the highest in the UK. With an extensive R&D capability, CARE has become one of the world’s leading providers of fertility treatment, genetic diagnosis and screening techniques, and associated fertility preservation procedures.
“With Bowmark’s help, CARE has grown in scale but never lost sight of the importance of delivering the best outcomes for our patients. Much has been achieved since the birth of the first IVF baby in 1978, but so much potential remains to further our understanding of infertility and we look forward to embarking on the next phase.” Simon Fishel, CARE founder.
Bowmark Capital was advised by KPMG. CARE’s management team was advised by Deloitte.
Getaround has acquired Drivy for $300m to move closer toward a shared vision of creating a world in which all cars are shared, and people everywhere are empowered to car share – to contribute building more livable cities that are both less congested and polluted.
Expanding on Getaround’s vision of a world where all cars are shared, the combined company now spans 300 cities in the US and Europe, adding international presence in six European countries: France, Germany, Spain, Austria, Belgium, and the UK With more than five million users between the two companies, Getaround is now the world’s leading carsharing marketplace.
Headquartered in Paris, Drivy has quickly built a community of two and a half million users across Europe with an established track record of local market execution and innovation.
"Connected technology, frictionless user experience, and increased car fleet density are the keys to this evolution, as they make it more convenient to use a shared car than your own. Getaround is an ideal partner for us because our companies are aligned in so many ways while being complimentary to key aspects of our business, like geography or fleet acquisition. I look forward to seeing what we can accomplish together.” Paulin Dementhon, Drivy Founder & CEO.
ClearCourse Partnership, a group of innovative technology companies providing membership software/services and digital capabilities to the membership, events & bookings and sports & leisure sectors, acquired NetXtra, a leading provider of intuitive integrated digital services to the membership, charity, not-for-profit and e-commerce sectors. Financial terms were not disclosed.
NetXtra team develop and support digital infrastructure services that connect Customer Relationship Management (CRM) systems with online engagement solutions.
“Over the past 20 years, NetXtra has grown to become a trusted partner and leading provider of digital services to not for profits, charities, unions and, more recently, e-commerce businesses. Joining ClearCourse is an ideal opportunity for us to capitalize on our leading position in order to deliver our services to a wider range of clients. The Partnership’s collaborative approach suits us perfectly and we’re very much looking forward to what the future holds.” Simon Hardingham, NetXtra Co-Founder and Managing Director.
Progressio’s Garda Plast, an Italy-based producer of plastic bottles, has sold its transportation and logistics activities to domestic transport group Gruber Logistics, in order to concentrate on its core activities. Financial terms were not disclosed.
Gruber, based in Ora, generates a €340m turnover and operates facilities in 24 locations in Asia and Europe. The acquisition saw the two parties agree on the long-term ambitions of the transportation.
NORD Holding has successfully sold its minority stake in AVISTA Oil, one of the leading used oil processing companies in Europe and the USA, to Bitburger Holding and SKION. Financial terms were not disclosed.
The minority investment was executed with the purpose to fuel the company's long-term growth plan, to internationalize the existing business and to expand the product portfolio.
"We are pleased, that we were able to support the excellent management of AVISTA OIL at major developments, such as their international expansion into the USA. The new shareholder base allows AVISTA Oil to reach the next level of growth", Andreas Bösenberg, NORD Holding Managing Director.
StellaGroup, backed by PAI Partners, acquired CRH’s Shutters & Awnings platform. Financial terms were not disclosed. Following this transformational acquisition, StellaGroup will transition from the French leader to one of the main European players in the sun protection and closure system market.
CRH S&A is one of the largest producers of shutters, awnings and garage doors in Western Europe with 2018 sales in excess of €200m ($223m).
"This is a truly transformational acquisition for StellaGroup as we significantly expand outside France for the very first time. We are very excited to be positioning ourselves as a European leader in the sector and look forward to working with CRH S&A’s management team.” Didier Simon, StellaGroup CEO.
Deutsche Bank-Commerzbank merger talks collapsed.
German hopes of creating a national banking champion able to challenge global competitors were dashed, when Deutsche Bank and Commerzbank ended merger talks due to the risks of doing a deal, restructuring costs, and capital demands.
The decision to ditch the talks followed a final early morning meeting between Deutsche Bank Chief Executive Christian Sewing and his Commerzbank counterpart Martin Zielke, Reuters reported.
Commenting on the filed merger the head of Germany’s BdB banking association Hans-Walter Peters said: “A merger would not make commercial sense in the current situation. The decision doesn’t have a direct impact on customers and companies.” German Minister Olaf Shulz, who was the person that announced the merger, showed similar opinion: “Such cooperation only makes sense if it pays off in business terms and moves towards a resilient business model,” but added that German industry needed competitive banks for its global business after merger talks between Deutsche Bank and Commerzbank ended in failure.
Germany’s Labour Minister Hubertus Heil acknowledged the announcement of the country’s two biggest banks, Deutsche Bank and Commerzbank to discontinue end talks to merge, that could cost a loss of 20k people, as a “private sector decision of two companies”.
On the other hand, UBS Chief Executive Sergio Ermotti showed a different opinion: “Consolidation one day or the other will be part of the equation in Europe. In my point of view, the fact that (Deutsche Bank and Commerzbank) were talking was indicative of the fact that possibility is more than remote...So the consequences (of the cessation of talks) from my point of view is just a delay of an inevitable outcome.”
Thyssenkrupp supervisory board to review CEO's breakup plans.
Thyssenkrupp’s supervisory board plans to stress-test the viability of Chief Executive Guido Kerkhoff’s plans to break up the steel-to-submarines conglomerate given changed market conditions, Reuters reported.
Under fire from activist investors, Kerkhoff in September laid out plans to separate the company’s elevators, car parts and plant engineering units from its materials trading and shipbuilding businesses.
But a global trade war and fears of an uncontrolled exit by Britain from the European Union have spooked markets, making it harder for companies to spin off or list large divisions.
Asterion frontruns in Telefonica's data center acquisition.
Investment fund Asterion is ahead of its competitors to buy the data center business of Spanish telecoms operator Telefonica, Reuters reported.
Asterion will pay €600m ($669m) for the asset. Telefonica said in a statement that it was in an advanced stage of negotiations for the sale of some of its data centers but that no deal had been confirmed yet.
Asterion has emerged ahead of rival bids from infrastructure and investment funds, the source said, although no deal has been finalized or agreed.
Saudi Aramco considering potential gas JVs.
Saudi Aramco’s chief executive said the company was in discussions with many partners around the world regarding potential joint ventures in gas, and that it has sold its first LNG cargo.
The state oil giant, the world’s top oil producer, wants to become a major player in gas and is eyeing projects around the world to help it gain a firm foothold in the international gas business, Amin Nasser said in Riyadh.
“There is a lot of potentials to grow in gas ... We are currently in discussion with a lot of partners around the world for growing our international gas position. For the time being, we are looking at potential JV or partnership,” Nasser said.
Blackstone gets a setback in Milan building ownership dispute. (FS)
Blackstone has suffered a setback in its lawsuit against the media tycoon Urbano Cairo’s RCS MediaGroup over the ownership of the Italian company’s headquarters in Milan.
A New York court ruled that the dispute over the ownership of the building should be decided first in Italy.
Blackstone sued RCS, the owner of the Corriere della Serra newspaper, in New York in late November, claiming Mr. Cairo had tried to extort money by falsely claiming his company still owned the building.
The private equity company’s real estate division bought the property from RCS in 2013, before Mr. Cairo took control of the media group. After refurbishing it and renting out its vacant space to tenants including Loro Piana and UBI Banca, Blackstone agreed to sell it to Allianz last year for about twice the €120m ($134m) it had paid.
AMERICAS
SoftBank's HAPSMobile and Alphabet's Loon have formed a long-term strategic relationship to advance the use of high altitude vehicles, such as balloons and unmanned aircraft systems, to bring connectivity to more people, places, and things worldwide. As part of the new relationship and HAPSMobile’s financial and investment strategy, HAPSMobile has made a decision to invest $125m in Loon.
Loon has obtained the right to invest the same amount in HAPSMobile in the future. Furthermore, to strengthen the relationship, the companies are actively exploring commercial collaborations to accelerate the deployment of high altitude network connectivity solutions, with a focus on expanding mobile internet penetration, enabling the internet of things (IoT) applications, and assisting in the deployment of 5G.
“Building a telecommunications network in the stratosphere, which has not been utilized by humankind so far, is uncharted territory and a major challenge for SoftBank. Working with Alphabet’s subsidiary Loon, I’m confident we can accelerate the path toward the realization of utilizing the stratosphere for global networks by pooling our technologies, insights, and experience. Even in this current era of coming 5G services, we cannot ignore the reality that roughly half of the world’s population is without Internet access. Through HAPS, we aim to eliminate the digital divide and provide people around the world with the innovative network services that they need.” Junichi Miyakawa, Representative Director & CTO of SoftBank, also President & CEO of HAPSMobile.
Community Bank System and Kinderhook Bank have entered into a definitive agreement pursuant to which Community Bank System will acquire Kinderhook Bank, the parent company of National Union Bank of Kinderhook in an all-cash transaction representing total consideration valued at approximately $93m.
The transaction was approved by stockholders of Kinderhook Bank. This transaction will provide a natural market extension for both institutions, joining two high-quality, low-risk franchises with long histories of customer service, as well as a commitment to their communities. Kinderhook Bank provides Community Bank a solid operating presence in the Capital District of Upstate New York, with total assets of nearly $640m, deposits of $560m, and 11 banking offices across a five-county area.
"Our acquisition of Kinderhook Bank will extend our banking footprint into the attractive Capital District markets which are similar to the other Upstate New York markets in which we successfully compete. Our move to establish a broader and deeper banking presence in this region reflects the relative economic, demographic and geographic attractiveness of the area." Mark E. Tryniski, Community Bank System, President, and Chief Executive Officer.
Community Bank System was advised by Loomis & Co and Cadwalader, Wickersham & Taft. Kinderhook Bank was advised by Endicott Financial Advisors and First Capital Equities, and Cranmore, FitzGerald, & Meaney.
PayScale, the leading provider of SaaS-based compensation data, analytics and software, got a majority investment from Francisco Partners, a global technology-focused private equity fund. Financial terms were not disclosed.
This investment will provide PayScale with a new financial partner to build upon the company’s strong momentum and help continue to drive product innovation. PayScale has grown substantially in recent years as employees and employers alike increasingly demand modern compensation software that enables more data-driven compensation decisions, leading to greater pay transparency and equity.
“Compensation-related friction continues to affect employers and employees globally. The changing dynamics of the workforce, including the shift from Boomers to Millennials as the dominant cohort in today’s workplace and the entrance of Gen Z, has made it impossible for CEOs to leave compensation to chance." Adam Solomon, Francisco Partners Principal.
PayScale is advised by Raymond James & Associates and Willkie Farr & Gallagher. Francisco Partners is advised by Kirkland & Ellis.
Oak, a new private client, corporate services and fund administration group, has acquired International Administration Group (IAG). Financial terms were not disclosed.
IAG is a specialist fund administration business. IAG delivers bespoke fund administration and depositary services to private equity, open-ended, listed an alternative asset fund structures and will become the center of fund expertise within the Oak business.
The acquisition of IAG with its established expertise and reputation in the provision of fund administration services will significantly enhance Oak’s multi-jurisdictional, high-quality fund services offering.
“Our aim is to deliver financial solutions that exceed the expectations of our institutional and private clients worldwide. We build long-lasting relationships with our clients and intermediaries and director-led service delivery is customary, ensuring clients always receive a quality, personal and cost-effective service. Our people-led approach is shared by IAG which makes this new development a great fit for everyone involved." Stuart Platt-Ransom, Oak CEO.
FWM Holdings, the parent company of Forbes Family Trust and LGL Partners, multi-family offices serving ultra-high-net-worth families, is to acquire Optima Fund Management. Financial terms were not disclosed.
Optima is a New York-based private investment firm specializing in alternative investments, with $2bn in assets.
“Dixon and his investment team have been pioneers in the hedge fund industry for more than 30 years, and we are excited to welcome a trusted partner who brings expertise and a strong track record. Optima also has deep relationships with top managers, which is essential for access to the most promising funds. We believe Optima delivers strategies that are well-positioned to perform as markets grow more volatile." Keith M. Bloomfield, FWM Holdings and FFT Chief Executive Officer and a founding partner.
Apollo and Cerberus eye possible acquisition of Shutterfly. (FS)
Shutterfly, the online retailer working with a financial adviser to review strategic alternatives, has drawn interest from Apollo Global Management and Cerberus Capital Management.
The buyout firms are weighing separate bids for the Redwood City, California-based company. Both have discussed financing options with lenders, Bloomberg reported.
Centerbridge considers options for Great Wolf Resorts. (FS)
Centerbridge Partners is considering strategic options for indoor water-park operator Great Wolf Resorts, Bloomberg reported.
The buyout firm is working with advisers to weigh alternatives including raising capital for growth, or a sale. The initiative came in response to unsolicited takeover interest in Great Wolf, which could fetch more than $3bn in a sale.
Comcast considering selling its stake in Hulu to Disney.
Comcast is in talks to sell its stake in Hulu to Walt Disney, CNBC reported.
The report comes 10 days after Hulu bought back wireless carrier AT&T's stake in the US entertainment streaming service for $1.43bn. With Comcast’s stake, Disney will now have a 90% share in Hulu.
Sibanye-Stillwater lowers valuation for miner Lonmin.
South Africa’s Sibanye-Stillwater revised its offer for Lonmin, with new terms that gave a valuation for the struggling platinum miner that was about £60m ($77m) less than originally proposed.
Lonmin said Sibanye was offering an additional 0.033 Sibanye shares per Lonmin share in a deal to create the world’s No.2 platinum producer. Sibanye had initially said in December 2017 that it was offering 0.967 new shares for each Lonmin share.
Although the revised offers give more Sibanye shares to Lonmin investors, an analyst said this still led to a lower valuation because Sibanye shares have fallen in value since the offer was first made in 2017.
Ontario Teachers' Pension Plan introduces a new growth equity arm. (FS)
Ontario Teachers' Pension Plan has launched Teachers' Innovation Platform, an investment division that will focus on late-stage VC and growth equity deals with tech companies around the world.
Olivia Steedman, who has been with the Toronto pension fund since 2002, will lead the division as a newly appointed senior managing director.
Berkshire not considering buying Bankrupt PG&E. (FS)
Warren Buffett’s Berkshire Hathaway quashed a report that it is in talks to buy bankrupt California utility PG&E.
The utility jumped in early morning trading after SparkSpread reported the legendary investor was eyeing the power supplier brought low by California wildfire liabilities. The utility gained as much as 17% in New York pre-market trading before receding to a 3.3% gain.
Arsenal Capital Partners closes Fund V at $2.4bn. (FS)
Arsenal Capital Partners, a leading specialized private equity firm focused on middle-market specialty industrials and healthcare companies, announced today that it completed fundraising for Arsenal Capital Fund V with $2.36bn of committed capital. The firm's previous fund closed in 2016 with $1.3bn of committed capital.
Fund V will be a continuation of the strategy employed by Arsenal's previous funds, investing in specialty industrials and healthcare platforms between $100m and $500m of enterprise value. In each platform, Arsenal will execute value creation initiatives focused on achieving high organic growth and completing a number of accretive acquisitions to assemble broader value-add solutions and grow market positions.
"The demand for Fund V is a testament to our leading franchises in specialty industrials and healthcare and our deep and experienced team. By leveraging our extensive expertise and our model of integrating investment, industry, and operating talent, Arsenal's 'Strategic Company Building' strategy consistently produces high-growth, technology- and innovation-rich companies that generate superior returns for our investors." Jeff Kovach, Arsenal Co-Founder, and Co-Managing Partner.
Arsenal was advised by Kirkland & Ellis.
Clairvest to close its VI PE Fund at $850m. (FS)
Clairvest Group has held a first and final closing for Clairvest Equity Partners VI at its hard cap of $850m.
Marketing of CEP VI commenced in January 2019 with a fund target size of $800m. Clairvest’s commitment to the fund is $230m alongside $620m from third-party investors. As with Clairvest’s previous funds, Clairvest will be the single largest investor in CEP VI.
“Our success is premised on fundamental value creation, proactive deal origination and ensuring a true alignment with our management partners and fund investors.” Ken Rotman, Clairvest CEO.
APAC
L&T IDF, a subsidiary of LTFH, has entered into a commitment for up to 25.1% minority equity investment from Apis Growth Fund II, a private equity fund managed by Apis Partners.
The Fund’s investment into L&T IDF will support the growth of its loan book focused on infrastructure projects in India, strengthen its capital structure, and further its technology and digitization strategy. This long-term partnership will support the Company in accessing low-cost international sources of funds which will be utilized to refinance operational infrastructure projects in India.
“Our IDF business has built significant strengths in core areas of renewable energy, road and transmission financing, resulting in a high-quality loan book and consistent returns. This partnership with Apis is a reflection of the value creation that the Indian infrastructure financing space offers to investors looking for sustainable returns in the long term. Apis’ extensive experience in financial services will further strengthen our integration with global financial markets, as we continue on the path of robust growth.” Mr. Dinanath Dubhashi, L&T Finance Holdings Managing Director & Chief Executive Officer.
Russia’s Novatek to sell stake in Arctic gas project to Chinese partners.
Novatek, Russia’s top independent gas producer, Thursday signed binding deals on the conditions to sell a 20% stake in its second Arctic gas liquefaction project to Chinese partners, equally split between China National Oil and Gas Exploration and Development and China National Offshore Oil.
The deals - signed at the One Belt, One Road forum in Beijing — makes CNODC, a subsidiary of China National Petroleum, and Cnooc the second and third foreign shareholders in Arctic LNG 2, after France’s Total bought a 10% share in the $20bn project earlier this year.
Novatek did not disclose the worth of its deals with the Chinese companies but noted it was a step to continue firming its relations with China, which already owns nearly a third in Novatek’s first liquefaction plant, Yamal LNG, through CNPC’s 20% and Silk Road Fund’s 9.9%.
Japan's Hitachi considering selling its chemical unit.
Japan’s Hitachi plans to sell its majority stake in Hitachi Chemical, Reuters reported, in what would mark the latest deal by the sprawling conglomerate to streamline its businesses.
Hitachi, Japan’s largest manufacturer by revenue apart from automakers, has been reorganizing its structure in recent years, selling non-core assets while investing in energy and other businesses where it sees opportunities.
The sale of Hitachi Chemical could start as early as next month, adding that the unit could attract strategic suitors as well as buyout funds.
Korea National Oil hired Scotia Bank to sell 30% in Dana Petroleum.
State-run Korea National Oil has hired Canada’s Scotia Bank to help find a financial partner for a 30% stake in its British subsidiary Dana Petroleum, DealStreet Asia reported.
The process is expected to kick off in early May when confidential information packages will be circulated to interested parties to undertake due diligence checks on the business. The stake could be valued at up to $550m. KNOC bought Aberdeen-based Dana, an exploration and production company with operations across the North Sea, the Netherlands, and Egypt, in 2010 for $2.9bn, including the company’s bondholders.
Hosen Capital targets $1bn fund for Asia food acquisitions. (FS)
Hosen Capital is looking to raise as much as $1bn to buy stakes in Asian food producers and predicts that more companies will be up for grabs in the region.
It will be the Beijing-based private equity firm’s third dollar-denominated fund, and its biggest, founding partner Hang Wang said in an interview. Hosen is looking for targets in the region, including in Japan, South Korea, and Taiwan, he said. “Mergers and acquisitions is a trend, so this will demand a larger fund,” Wang said, adding that fundraising will begin by June.
Hosen already manages a $130m and a $460m fund; the first made fourfold returns and, with more than half of the second invested, it expects at least a similar earning.
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