EMEA
ENGIE together with Caisse de dépôt et placement du Québec (CDPQ) has made the winning bid in a competitive process conducted by Petrobras for the acquisition of a 90% shareholding stake in Transportadora Associada de Gás (TAG) with a final and binding offer amounting to $8.6bn.
ENGIE will have a stake of 58.5% in the asset (of which 29.25% through ENGIE Brasil Energia) and CDPQ will have a stake of 31.5%, while Petrobras will maintain a 10% stake in TAG’s capital. In addition to its ownership, ENGIE will be responsible for the operation and maintenance after the third year.
According to Maurício Bähr, one of ENGIE’s strategic objectives is “to grow in renewable energies and in infrastructures such as transmission lines and the gas chain, as well as bring the company ever closer to the final client.”
Britain’s Competition and Markets Authority said it was investigating Visa's planned acquisition of payment company Earthport to gauge if the deal would reduce competition in the country.
Visa trumped Mastercard's bid with a sweetened offer of about £247m ($325m), prompting Earthport to recommend shareholders to accept the Visa offer.
Earthport is advised by N+1 Singer, Rothschild & Co, Bird & Bird, and Newgate Communications. Visa is advised by Goldman Sachs, Ashurst, Freshfields Bruckhaus Deringer.
A deadline for Italy’s biggest railways group to present a rescue plan for troubled carrier Alitalia is set to be extended by one month to end-April, Reuters reported.
Ferrovie dello Stato, the state-owned operator of Italy’s railways, is in talks with Delta Air Lines over the rescue of Alitalia but could not present a business plan for the carrier by the previous deadline.
Ferrovie is advised by Cleary Gottlieb Steen & Hamilton.
Magnit, Russia’s second-largest supermarket chain, made a non-binding proposal to buy Lenta for $3.65 per global depository receipt after its largest shareholders agreed to sell a 42% stake to Mr. Mordashov's Severgroup for a slightly lower price of $3.60 per GDR.
The move has met with a skeptical response from Lenta’s shareholders, who have been in informal talks with Magnit for months without any offer materializing and are now locked into a binding deal with Mr. Mordashov.
Lenta said that its independent directors had asked Magnit to provide “clarity around the timing, conditionality, and deliverability of any such transaction and precisely what Magnit is proposing to acquire.” Magnit said in a statement that it wished to acquire 100% of the company’s shares, but provided no details.
Severgroup is advised by Citigroup.
Funds advised by Permira Debt Managers are to support private investment house Ardian in its acquisition of a majority stake in Revima, an international maintenance, repair and overhaul (MRO) specialist in the aviation sector. Financial terms were not disclosed.
Revima group is a leading independent player in the civil and freight aviation MRO market, specializing in auxiliary power units and landing gears. Revima supports aircraft operators, lessors and repair stations worldwide, positioning it as one of the most experienced MROs in the world, with an extensive understanding of airline expectations, best in class value and services.
“Revima is a well-regarded business in the fast-growing and resilient aerospace market. It has a strong management team with a demonstrated growth track record. The business continues to perform strongly, and we are excited to support the company in its future growth strategy. We are also delighted that Permira Debt Managers is backing new owners Ardian, a top-tier sponsor with strong sector expertise and excellent reputation.” Roy Awad, PDM Investment Director.
Deutsche Bank to face some strict requirements if it is to merge with Commerzbank.
Deutsche Bank said it was open to further restructuring of its US investment bank after Commerzbank executives sought clarity on its plans during merger talks, Reuters reported.
The future of the bank’s US trading and investment banking presence had already been in question, with some shareholders calling for further cuts on top of ones announced last year. Speculation has intensified following confirmation of the merger talks last month. Among the options floated by the bank during the talks were a further scaling back of its US equities business, including prime brokerage services for hedge funds, and reductions at its corporate finance business.
Furthermore, Reuters reported that The European Central Bank will ask Deutsche Bank to raise fresh funds before it gives the go-ahead for a merger with a state-backed rival. The official said that Deutsche would be required to have the buffer, which has yet to be calculated, to cope should it experience setbacks while integrating Commerzbank if a deal is agreed.
Bank mergers are key to a stronger eurozone.
Mergers in Europe’s fragmented banking sector are necessary to make the sector more resilient as the euro-zone seeks to protect itself from future crises, France’s finance minister told Reuters.
Bruno Le Maire, who joined President Emmanuel Macron’s centrist government in 2017 despite coming from the ranks of France’s conservative Republicans party, said banking sector consolidation was needed alongside a single regulatory supervisor and more integrated capital markets.
“I consider that today European banks are still too fragmented and we need banking consolidation,” Le Maire.
Ardian in exclusive talks to acquire Sintetica. (FS)
Ardian is in exclusive talks to acquire Switzerland-based pharmaceuticals company Sintetica.
Sintetica is a pharmaceutical company delivering injectable anaesthetics and analgesics to patients worldwide, through innovative science and excellence in development, production, and marketing.
The process kicked off early in October with Rothschild as vendor adviser. Final details of the deal are being firmed up.
Monzo secures another £100m of funding to reach £2bn valuation. (FS)
The fast-growing digital bank Monzo is close to raising £100m ($131m) of fresh funding in a deal that will almost double its valuation and catapult it into the position of Britain’s second-biggest fintech start-up.
Just six months after it raised money at a valuation of £1bn ($1.3bn), the millennial-friendly bank is about to seal another funding round valuing it at £1.9bn ($2.5bn), The Sunday Times reports.
The cash injection, led by a new American investor, has been agreed by Monzo’s board but could take several months to be signed off by the Prudential Regulation Authority. It will mean that Monzo’s valuation has multiplied by almost 250 times since it first raised cash at an $10.5m (£8m) valuation in June 2015.
Banco BPM dismisses possible interest for Monte dei Paschi.
Italy’s the third biggest lender, Banco BPM, could be interested in tie-ups with banks close to its home turf in the north of the country, its CEO said in comments that appeared to play down a possible deal with Monte dei Paschi di Siena.
Asked whether the bank, which is based in the Lombardy and Veneto regions, could consider a merger with Tuscan lender Monte dei Paschi, which was bailed out in 2017 and is 70% owned by the state, Giuseppe Castagna said on Saturday: “We look more at banks that are close to our territory.”
UK Billionaire Ratcliffe considers the acquisition of Nice Soccer Club. (FS)
British billionaire Jim Ratcliffe’s Ineos Group Holdings said it’s in talks to invest in OGC Nice, the French Ligue 1 soccer club.
France’s Olympique Gymnaste Club Nice Côte d’Azur, owned by an investor group led by NewCity Capital Chief Executive Officer Chien Lee, would join the chemical firm’s investments in Switzerland’s Lausanne soccer club and its recent purchase of the UK’s Team Sky cycling group, which will become Team Ineos in May.
AMERICAS
A US federal judge reviewing an agreement between the government and CVS Health allowing the pharmacy chain to buy health insurer Aetna indicated that he wanted to hold a hearing in May to hear from critics of the $69bn deal, which has completed on Nov. 28 2018.
Judge Richard Leon of the US District Court for the District of Columbia said in a court hearing that he would likely take a week to hear from the American Medical Association and other opponents of the transaction, which closed in November. Other critics included the AIDS Healthcare Foundation, pharmacy, and consumer groups.
Aetna was advised by Allen & Company, Evercore, Lazard, Davis Polk & Wardwell, Simpson Thacher & Bartlett, and Sloane & Company. CVS Health is advised by Bank of America Merrill Lynch, Barclays, Goldman Sachs, Centerview Partners, Sullivan & Cromwell, Weil Gotshal and Manges, Dechert, McDermott Will & Emery, Shearman & Sterling, and Kekst & Company.
Goldcorp shareholders approved Newmont Mining’s $10bn takeover offer, removing one of the last remaining hurdles to create the world’s largest gold producer.
While some Goldcorp shareholders had voiced concerns in recent weeks, in the end, there was little push back against blessing the biggest-ever corporate takeover in the gold sector’s history.
“We appreciate Goldcorp shareholders’ vote of confidence, which moves us one step closer to creating the world’s leading gold business,” Gary Goldberg, Newmont Chief Executive.
Goldcorp is advised by Bank of America Merrill Lynch, Fort Capital Partners, TD Securities, Cassels Brock & Blackwell, Neal Gerber & Eisenberg, Osler Hoskin & Harcourt, and Skadden Arps Slate Meagher & Flom. Newmont Mining is advised by BMO Capital Markets, Citigroup, Goldman Sachs, Cleary Gottlieb Steen & Hamilton, Goodmans, King & Wood Mallesons, Lee & Ko, Wachtell Lipton Rosen & Katz, White & Case, and Joele Frank.
OMERS Infrastructure acquired a 10.01% stake in 407 International, which holds a concession over 407 Express Toll Route from SNC-Lavalin Group for C$3bn ($2.34bn).
407 ETR is the world’s first all-electronic, open-access toll highway. The road stretches 108 km across the Greater Toronto Area, and provides customers with fast, safe and reliable service.
“Today’s announcement reflects our continued commitment to seek investments involving large-scale, core infrastructure assets around the world, in line with our long-term perspective as an owner. This investment in 407 ETR, located in our home base of Ontario, will build upon our transportation-related holdings. This portfolio of high-quality assets covers all modes of transport, and stretches from the United States and the United Kingdom to Germany, India, and Australia,” Ralph Berg, OMERS Global Head of Infrastructure.
OMERS Infrastructure is advised Macquarie Group.
US subsidiary of Elbit Systems, an Israel-based international defense electronics company, acquired the night vision business of Harris Corporation, a leading technology innovator, for $350m.
The transaction is conditioned on completion of Harris' proposed merger with L3 Technologies, as well as customary closing conditions, including receipt of regulatory approvals.
"The market position and technological strength of Harris Night Vision make this acquisition significant to our long-term growth strategy, with a particular focus on the US Elbit Systems of America has a proven track record of providing high-performance solutions and support services to the US defense and homeland security markets. We believe that the completion of this acquisition will be beneficial both for Elbit Systems and for Harris Night Vision's employees and customers." Bezhalel (Butzi) Machlis, Elbit Systems President & CEO.
Elbit Systems is advised by Jefferies & Company and Covington & Burling. Harris Corporation is advised by Morgan Stanley and Sullivan & Cromwell.
CD&R fund acquired a majority equity interest in Sirius Computer Solutions, a leading national IT solutions integrator. Financial terms were not disclosed.
With $3.5bn in annual gross sales, Sirius provides world-class solutions from proven technologies helping clients transform their business by managing their operations, optimizing their IT, and securing it all.
“At Sirius, we are focused on how we can best deliver business outcomes for our clients, which is why we continue to invest in the best technical skills, the right processes and tools, and strategic partnerships,” Joe Mertens, Sirius president, and CEO.
Sirius is advised by Raymond James, William Blair & Co, and Debevoise & Plimpton. Clayton, Dubilier & Rice is advised by Credit Suisse and Kirkland & Ellis.
Greenbacker Labs has invested in Exergy Energy, a provider of renewable energy. Financial terms were not disclosed.
Exergy Energy provides 100% renewable energy, backup generation, and improved reliability to commercial and industrial customers at costs below that offered by other energy providers.
“Exergy greatly appreciates Greenbacker Labs’ confidence in, and support of, Exergy’s 100% Renewable, Always-On Distributed Utility business model. With Greenbacker Labs’ support and capital investment, Exergy will accelerate its growth and bring its exclusive 100%-green utility services to more organizations seeking to reach their sustainability goals.” David March, Exergy Energy CEO.
Centerbridge Partners acquired IBM’s marketing platform and commerce software offerings from IBM. Financial terms were not disclosed.
After closing, Centerbridge intends to form a standalone company that will deliver a modern, comprehensive portfolio of solutions to meet the CMO’s most significant challenges across marketing and advertising. The Company will announce a new name and brand identity, which will be launched after the close.
“The Company is a demonstrated leader in offering AI-powered marketing solutions in an ever-evolving industry. We are deeply committed to advancing these compelling products through continued investment and intend to accelerate existing product roadmaps and introduce new categories. Following the close, we look forward to working with existing business partners and the Company’s highly talented team, including Mark Simpson, whose industry experience and significant domain expertise make him the perfect fit to lead this business during its next phase of growth.” Jared Hendricks, Centerbridge Senior Managing Director.
Center Rock Capital Partners has acquired The Merit Distribution Group, a leading national distributor of paint sundries, flooring products, and related installation supplies. Financial terms were not disclosed.
Merit conducts its business under the brand names of Lancaster in the paint sundries industry and EJ Welch in the flooring products and supplies industry.
“The Merit team has worked hard to successfully enter new product categories and penetrate new territories. Center Rock’s team demonstrated a deep understanding of our company’s capabilities, product portfolio, and customer-centric culture. With Center Rock as our partner, we are eager to pursue further growth via organic initiatives and acquisitions.” Mitch Jolley, Merit’s CEO.
Highview Capital have acquired Frontier Fire Protection, a leading provider of fire and life safety solutions in the US Mountain West and Southwest regions. Financial terms were not disclosed.
Frontier Fire provides full-service fire sprinkler and fire alarm solutions, including installation, retrofitting, inspection and detection. The Company serves an established network of general contractor customers across four states and a diverse range of end-markets, including multi-family residential, healthcare, mixed-use, industrial, education, government, office, senior housing, and retail.
"Frontier Fire is proud to provide quality, forward-thinking safety solutions, and in just a few years, we’ve successfully grown our footprint to reach new customers and become a true one-stop shop for fire and life safety solutions, from design and engineering to fabrication and installation, repair and service, and inspection. I am confident that with Highview’s support, we’ll quickly accelerate into our next phase of growth.” Greg Londo, Frontier Fire Chief Executive Officer.
Frontier Fire is advised by Lincoln International.
Apollo and CVC are considering the acquisition of Perrigo's pharmaceuticals unit. (FS)
Apollo Global Management and CVC Capital Partners are among bidders vying for Perrigo’s prescription pharmaceuticals arm, Bloomberg reported.
Carlyle Group, Altaris Capital Partners, and Cerberus Capital Management have also advanced to the next round of bidding for Perrigo’s Generic Rx unit. The business could fetch slightly more than $2.5bn.
GPP recapitalizes Little Spurs Pediatric Urgent Care. (FS)
Great Point Partners made a growth recapitalization of Little Spurs Pediatric Urgent Care, a leading provider of pediatric urgent care services, operating 12 clinics in Texas. Financial terms were not disclosed.
The Company’s clinics treat children with acute illnesses or injuries in an urgent care setting, providing a convenient and cost-efficient alternative to emergency room treatment, while maintaining the highest quality of care.
“Given the trend towards timelier access, higher quality, and lower costs within the US health care system, the pediatric urgent care industry offers a strong value proposition to various constituents, especially children,” Bret Tenenhaus, Great Point Partners Vice President.
Apotex considers the sale.
Canadian drugmaker, Apotex is exploring a sale as some major pharmaceutical companies and investors expressed interest in the closely held Canadian drugmaker, Bloomberg reported.
Apotex is working with a financial adviser as it reviews options that may lead to a partial or full sale of the business. A sale of the whole company could fetch about $3bn.
APAC
The Competition Commission of India approved Larsen and Toubro's (L&T’s) takeover bid for Mindtree. The L&T-Mindtree deal, which will see the diversified engineering conglomerate purchase up to 66.32% stake in the Bengaluru-based IT services firm for around $1.5bn, is the first hostile takeover bid in the Indian IT industry.
Private equity investors, including Advent International, KKR and Baring Asia also made offers for Mindtree but were outbid by L&T.
L&T was advised by Citigroup, Axis Capital, KPMG, AZB & Partners, and Baker McKenzie. Coffee Day was advised by Cyril Amarchand Mangaldas.
Malaysian Prime Minister says other companies may buy rare-earths processor Lynas.
Other companies may be in the running to buy Australian rare-earths processing company Lynas, which may lose the operating license for its processing plant in Malaysia, the country’s Prime Minister said.
Lynas operates an $800m plant in the Malaysian town of Kuantan that refines ore from a rare-earths mine that it owns in Australia. Malaysia has recently halted the renewal of its operating license over concerns about how it handles radioactive wastes at the site.
Lynas last week rejected a $1.1bn takeover offer from Australian conglomerate Wesfarmers though Wesfarmers said they remain keen on the talks.
“We have opened up the business to other people, and there are other companies willing to acquire Lynas,” Mahathir said.
SoftBank eyes $15bn more for its Vision Fund. (FS)
SoftBank is discussing adding up to $15bn to its Vision Fund. The vehicle currently totals about $100bn and has already committed a reported $70bn to investments since its 2017 launch. SoftBank founder Masayoshi Son intends to raise a new $100bn fund every two or three years and could begin raising a second Vision Fund by the end of 2019.
SoftBank's string of big-ticket investments includes Uber, Opendoor, and DoorDash. And it's continued to make moves. The Japanese conglomerate began a joint venture with India's Oyo to expand the budget hotel business' operations into Japan.
Jet Airways sale may delay.
Lenders to India’s troubled Jet Airways may have to wait a little longer to sell a stake in the carrier, as they need more clarity from the country’s central bank, the Business Standard newspaper reported.
Jet, India’s oldest private carrier, is saddled with more than $1bn in debt, compounding its financial woes and forcing it to ground most of its fleet.
After Jet failed to convince potential investors, including its largest shareholder Etihad Airways, to bail it out, Indian banks decided to take a majority stake in the carrier.
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