Bridgestone to buy Telematics from TomTom for €910m.
Bridgestone Europe, a subsidiary of Bridgestone Corp in EMEA, has agreed to acquire TomTom's to acquire its telematics business, for a cash consideration of €910m ($1bn), subject to customary closing adjustments.
The transaction will bring together the world's largest tyre and rubber company with the number one provider of digital fleet solutions in Europe, creating a leading data platform for connected vehicles. TomTom Telematics will accelerate Bridgestone on its journey to becoming a mobility solutions leader in the region, and the combination of both companies' offerings will allow Bridgestone to cross-sell tyres and solutions to a larger customer base. Furthermore, the data access will enhance Bridgestone's virtual tyre development and testing as well as connected tyre innovation benefiting all customers including OEMs.
Paolo Ferrari, CEO and President of Bridgestone EMEA, Executive Vice President of Bridgestone Group, said: "We have found our perfect match in TomTom Telematics. Our complementary assets and capabilities will create a fleet solutions powerhouse and will further strengthen Bridgestone's digital technology arm. Beyond scale, there would be considerable benefits by complementing our offerings, allowing us, among many other opportunities, to sell tyres and solutions across our customers. We are now well-positioned in EMEA to accelerate our data-driven business, expand our fleet customer base and seize fast-growing, profitable opportunities in the automotive mobility industry."
Morgan Stanley is acting as financial advisor to Bridgestone and Simmons & Simmons is acting as legal advisor. Barclays and Lazard are acting as financial advisors to TomTom and Allen & Overy is acting as legal advisor.
GSK Chairman Hampton to step down.
GlaxoSmithKline Chairman Philip Hampton will step down after more than three and a half years in the role, as Britain's biggest drugmaker prepares to split its business into two.
The announcement comes a month after GSK's Chief Executive Emma Walmsley announced a plan to split the company into two businesses, one for prescription drugs and vaccines, the other for over-the-counter products.
Walmsley, who took the helm in 2017, announced in December that GSK and Pfizer would combine their consumer health businesses in a joint venture with sales of GBP9.8bn ($12.7bn), 68%-owned by the British company, in an all-equity transaction.
"Following the announcement of our deal with Pfizer and the intended separation of the new consumer business, I believe this is the right moment to step down and allow a new Chair to oversee this process through to its conclusion over the next few years," Hampton said in a statement.
Naspers to spin-off MultiChoice Pay-TV Unit.
South African media and e-commerce group Naspers has gained stock exchange approval to spin-off and list Multichoice, Africa's biggest pay-TV business by subscribers. Multichoice stock will list on Feb. 27 with the share capital going to current Naspers shareholders.
Spinning off Multichoice is Naspers' first significant move towards narrowing a discount between its market value and the value of its stake in Chinese tech giant Tencent. Naspers itself trades at a significant discount to its stake in Tencent, prompting some investors to urge Naspers CEO, Bob Van Dyk, to find ways to narrow it.
For Multichoice, the move frees up cash to help it compete with the likes of Netflix and other leading streaming services.
Cinven and Advent to bid for Nestle's skin health business. (FS)
Cinven and Advent have teamed up to bid in an auction that could value Nestle's skin health business at about CHF7bn ($7bn). Blackstone, KKR, Carlyle, CVC, EQT and Partners Group are also expected to bid and might look for partners.
Nestle launched a review of the unit in September as company ditches underperforming businesses and fends off criticism from an activist investor who wants an overhaul. Information memorandums on the skin health business sale, being run by Credit Suisse and Evercore, are expected to be sent by the end of January, and first-round bids are likely to be submitted in early March.
Nestle Skin Health, which sells Cetaphil and Proactiv skin care products, Restylane wrinkle fillers and prescription dermatology medicines, had sales of CHF2.7bn ($2.7bn) last year, accounting for about 3% of Nestle's total.
Industry players which are said to might take part in the auction included Beiersdorf, Allergan, Henkel, Johnson & Johnson, L'Oreal, Pfizer and Unilever.
Linde to launch $6bn share buyback scheme.
Linde, the industrial gases giant, created by the merger of US Praxair and German rival Linde, said it would buy back up to $6bn of own shares, returning proceeds from assets it had to sell to win antitrust approval.
Under the repurchase program, Linde plans to acquire up to 15% of its outstanding shares between May 1, 2019, and Feb. 1, 2021. Linde may start the program earlier if its existing $1bn share repurchase program is concluded ahead of schedule.
The two companies had to sell more than €8bn ($9.1bn) in assets to win over global antitrust regulators to their merger.
China's Roadbot plans $614m tire plant investment in Abu Dhabi.
Chinese tire manufacturer Roadbot is setting up a plant in Abu Dhabi with an investment of AED2.2bn ($614m), in another sign of China's growing economic links with the United Arab Emirates. The United Arab Emirates are investing billions in industry and tourism and attracting foreign firms to set up industries to diversify its economy away from oil.
The facility will have an initial production capacity of 3m passenger car radial tyres and 1m truck and bus radial tyres. It will be fully operational by October 2020. Production of passenger car tires will be increased to 10m by 2022.
Colfax hires Goldman Sachs to sell Howden business.
Colfax Corp is pressing ahead with plans to sell its air and gas handling unit Howden as part of a shift to focus on the medical devices industry and has hired Goldman Sachs to handle the process.
An auction process for the company, which makes heat exchangers and gas compressors mainly for oil and gas companies, is expected to kick off in the coming days. Colfax is hoping to fetch about £1.5bn ($1.9bn) from the sale of the business.
Howden, founded in 1854 and bought by Colfax in 2012, makes core earnings of more than £150m ($193m). Business would mainly appeal to private equity funds.
Italy examines M&A options for troubled banks.
The Italian government has discussed facilitating a merger between struggling banks Monte dei Paschi and Banca Carige and at least one of their healthier rivals to dodge another banking crisis, according to Reuters. One reported possibility is a three-way deal between the two banks and UBI Banca.
Monte dei Paschi, rescued by the state in 2017, and Carige, recently put into special administration by the European Central Bank (ECB), are struggling with bad debts and the prospect of asset write-downs that would eat into their capital.
