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AMERICAS
Illumina faces a record fine from the EU as early as next week after the world's biggest gene sequencing company bought Silicon Valley cancer screening start-up Grail for $8bn without Brussels' approval, FT reported.
The fine, which can be up to $453m or 10% of the group's turnover, would exceed the previous record of $136m imposed on telecoms group Altice in 2018, 1% of the company's turnover.
United Community Banks, a bank holding company, completed the acquisition of First National Bank of South Miami, a bank, for $116m.
"We are thrilled to welcome this group of talented bankers to the United Community team. While we have been acquainted for some time, we've had the opportunity to really get to know the FNBSM team since announcing the merger. Their culture and approach to community engagement, customer service, and the employee experience is very similar to ours at United Community," Lynn Harton, United Community Banks Chairman and CEO.
First National Bank was advised by D.A. Davidson & Co, Barack Ferrazzano Kirschbaum & Nagelberg (led by Joseph T. Ceithaml and Robert M. Fleetwood) and Gozdecki Del Giudice Americus Farkas & Brocato. United Community Banks was advised by Morgan Stanley, Stephens and Wachtell Lipton Rosen & Katz (led by Brandon C. Price).
Shore Bancshares, a bank holding company, completed the merger with Community Financial, a holding company of Community Bank of the Chesapeake, for $254m.
"We have great respect for Scott, his management team and the significant organic and strategic growth built through his tenure. I am proud to succeed Scott and to lead the combined management team. We have a tremendous opportunity to deliver enhanced shareholder returns by building upon our combined bank's commitment to the success and prosperity of all our stakeholders. We will execute a business strategy with a focus on delivering exceptional customer service and increasing shareholder value while continuing to honor our community values," James M. Burke, TCFC President and CEO.
Akima, a provider of products and services to federal agencies, completed the acquisition of Pinnacle Solutions, a provider of innovative training and sustainment products and services to defense customers. Financial terms were not disclosed.
"We are thrilled to add Pinnacle's innovative technology solutions and capabilities to the Akima family. Pinnacle's talented people and commitment to their customer's mission complements Akima's value-driven culture. Pinnacle will significantly enhance our ability to serve our aerospace customers," Bill Monet, Akima President and CEO.
Pinnacle Solutions was advised by Houlihan Lokey.
Nidec, a comprehensive electric motor manufacturer, completed the acquisition of Houma Armature Works, a service partner which remanufactures motors and generators. Financial terms were not disclosed.
The acquisition of Houma is part of NMC's strategy to be competitive in both product and aftermarket spaces to accelerate profitable growth. Through this acquisition, NMC will be able to enhance its service offering, including expanding its share within its own US installed base, and Houma will be able to provide services to NMC's customers.
GTCR nears up to $20bn Fidelity National's merchant business. (FS)
Private equity firm GTCR is in advanced talks to acquire a majority stake in the merchant business of payment processing company Fidelity National Information Services in a deal that values the division at between $15bn and $20bn, Bloomberg reported.
The deal would be the largest in GTCR's history and enable FIS to undo its soured $43bn acquisition of Worldpay in 2019. Worldpay comprises the bulk of the FIS merchant business, which processes payments for companies.
GTCR's offer prevailed over Advent International, another buyout firm that was also vying for the business. If the negotiations conclude successfully in the coming days, FIS plans to keep a minority stake in the business.
US FTC drops Altria complaint after Marlboro-maker exits stake in Juul Labs. (FS)
The US Federal Trade Commission said it dismissed a complaint against Marlboro cigarette maker Altria and e-cigarette maker Juul Labs that was brought after Altria bought a 35% stake in Juul, Reuters reported.
The agency also said it would vacate an FTC administrative law judge's decision in favor of the companies in February 2022. Since it has been vacated, it cannot be cited as precedent, the agency said in the statement announcing it was dropping the litigation. The FTC said in 2020 that Altria's $12.8bn investment violated antitrust law because the company acquired the position rather than continuing to compete against Jul in the market for closed-system e-cigarettes.
L3Harris explores sale of a $1bn avionics unit.
L3Harris Technologies, the aerospace and defense company, is exploring a sale of its avionics business. The US company is working with an adviser on the sale, which could fetch about $1bn based on typical earnings multiples. The asset could attract interest from private equity firms and strategic buyers, Bloomberg reported.
With a divestiture, L3Harris would join large aerospace and defense companies selling non-core assets. Raytheon Technologies is in talks to offload some flight control and actuation activities to France's Safran.
The avionics unit makes electronic systems for commercial and military aircraft including flight control instruments, radio and navigation systems. Shares of L3Harris have fallen about 15% in the past year as elevated material costs sap margins, valuing the company at about $37bn.
Los Andes Copper weighs funding options for the Chile project including sale.
Los Andes Copper, a mining exploration company, is considering options to finance development of a deposit it owns in Chile, including a potential sale of the asset or the company.
The Vancouver-based firm is working with advisors to study strategic options as it prepares for the next stage of the Vizcachitas project in Chile. Los Andes Copper isn't currently running a formal sale process, but may start gauging interest from potential buyers.
Chile accounts for a quarter of the world's mined copper and has the most reserves. Companies are weighing investment decisions in the nation as regulatory risk subsides. An initial constitutional process that threatened radical changes has given way to a more conservative format, and the government agreed to limit tax hikes.
Yahoo to return to public markets.
Yahoo, one of the internet's oldest and best-known brands that had once been a dotcom stock market darling, is planning to return to the public markets.
CEO Jim Lanzone has said that his goal was to take the company to an IPO again as part of a plan to return the Silicon Valley-based group to prominence, FT reported.
Yahoo was "ready financially, the company has a great balance sheet, we're very profitable," he said. But Lanzone added that being private allowed the company to make necessary structural changes, creating a series of business units similar to the model used when he was head of CBS Interactive.
EMEA
PGA Tour Chief Operating Officer Ron Price and board member Jimmy Dunne are set to testify on July 11 before a US Senate panel about the circuit's surprise merger with Saudi-owned LIV Golf.
Democrat Richard Blumenthal, chairman of the Senate Homeland Security and Governmental Affairs Subcommittee on Investigations, and the panel's top Republican, Ron Johnson of Wisconsin, announced the witnesses for the hearing — titled "The PGA-LIV Deal: Implications for the Future of Golf and Saudi Arabia's Influence in the United States" — on July 3rd.
Matas, a health and beauty retailer, agreed to acquire KICKS, a beauty company, from Axel Johnson, a family business that builds and develops trade and service businesses in the European market, for $196m.
"With the acquisition of KICKS Group, we are creating the Nordic leader in beauty and wellbeing through the addition of the KICKS and Skincity banners. KICKS Group and Matas are an excellent match and by combining our two complementary businesses, strong omnichannel positions and passionate organisations and shared culture of customer service, we will lead the Nordic beauty market. I look forward to welcoming our approximately 1.7k new Swedish, Norwegian and Finnish colleagues to the group.United, we willstrive to always be the first choicefor beauty and wellbeing in the Nordics to the benefit of both our customers, colleagues, partners, and shareholders," Gregers Wedell-Wedellsborg, Matas CEO.
Sonic Healthcare, a medical diagnostics company, completed the acquisition of Medical Laboratories Duesseldorf, a clinical laboratory, for €180m ($192m).
"Following our recent announcement of the acquisition of the Diagnosticum laboratory group, our partnership with Medical Laboratories Duesseldorf continues our focus on accretive expansion in the German market. We warmly welcome the pathologists and staff of MLD into our German and worldwide team of colleagues at Sonic Healthcare and we look forward to working together with this highly reputable and experienced group. The combination with MLD in the West of Germany will further enhance our offering to clinicians and their patients in this important region of the country," Colin Goldschmidt, Sonic CEO.
Carlyle, an investment firm, agreed to acquire PR0PH3CY, a consulting firm that creates cybersecurity-related products and concepts, from IK Partners, a private equity firm. Financial terms were not disclosed.
"With Carlyle's experience of scaling and internationalising cyber security businesses like PR0PH3CY, we believe they are the perfect partner for our next stage of growth. We look forward to working with the Carlyle team as we enter the next phase of our growth journey," Arthur Bataille, PR0PH3CY CEO.
PR0PH3CY is advised by Yuma Paris.
Abu Dhabi and OMV in talks to form a $30bn chemicals giant.
Abu Dhabi and Austria's OMV are exploring a combination of Borouge and Borealis to create a chemicals and plastics company worth more than $30bn, Reuters reported.
The two parties are discussing a possible Borealis valuation of about $10bn, including its Borouge stake, adding that the overall valuation of the combined entity could ultimately exceed $30bn.
The owners are discussing the potential valuation and ownership structure of a combined entity and may reach the broad outlines for formal merger negotiations in the coming weeks.
Advil owner Haleon to explore sale of nicotine gum business.
Consumer health giant Haleon is exploring a potential divestment of some smoking cessation products as it seeks to offload non-core businesses.
Haleon is working with an adviser to identify potential suitors for the Nicotinell brand of nicotine gum, patches and lozenges. The business is attracting interest from both investment firms and consumer companies and could be worth as much as $800m in a sale.
Haleon, which was spun off from GSK last year, has a market value of about $37.5bn. Deliberations are ongoing and no final decisions on a sale have been made.
Veoneer launching sale of a $500m passive safety unit. (FS)
The owner of automotive technology company Veoneer has kicked off a sale of its passive safety business.
US private equity firm SSW Partners is working with advisers to gauge interest in the unit. The asset, which could fetch as much as $500m, may draw interest from private equity firms and companies in the industry.
London newspaper City AM puts itself up for sale.
City AM, a free business-focused newspaper in London, is seeking a buyer as part of fundraising discussions.
The nearly 18-year-old title is half owned by a Dutch consortium with the remaining two quarters owned by Jens Torpe and Lawson Muncaster, its CEO and managing director respectively. It has hired FRP Advisory to pursue a sale.
City AM, which said it has an online readership between 1.8m to 2m per month and print circulation of 67.7k, suffered during the pandemic as commuting into the City of London ceased and advertising took a hit. In January this year it stopped printing a Friday edition altogether as employees in the Square Mile and Canary Wharf continue to work from home.
Billionaire Kretinsky boosts equity offer for casino as Niel Group makes bid.
Czech billionaire Daniel Kretinsky increased the size of his proposed equity investment in Casino Guichard-Perrachon as he competes with a trio of French business executives to take control of the debt-laden French supermarket operator.
Casino received offers from Kretinsky and the group led by telecom billionaire Xavier Niel as part of its proposed restructuring. Trading in both Casino and Naouri's listed holding company, Rallye, was suspended after stocks gained 16% and 96% respectively.
Italy's Eni wants to reduce oil exposure with asset sales.
Italy's Eni, aims to reduce its exposure to oil in favor of natural gas and non-fossil fuels in part through asset sales, said the energy group's CEO Claudio Descalzi.
Speaking at the Rome presentation of a report by the International Renewable Energy Agency. Eni plans to generate €1bn ($1.1 billion) of net proceeds from the balance between asset sales and acquisitions between 2023 and 2026.
Ineos owner Jim Ratcliffe accuses UK regulator of being 'hostile to business'.
Sir Jim Ratcliffe, the owner of chemicals giant Ineos, has accused Britain's competition regulator of becoming "increasingly hostile to business" after it blocked its purchase of assets being sold by a Swiss group.
Ratcliffe said the decision by the Competition and Markets Authority to block the deal with Switzerland's Sika earlier this year was "yet another example of a deal being stopped that would benefit the UK".
Ratcliffe, one of the UK's richest men who is also in the race to buy Manchester United football club, is the latest to criticise what some executives view as an increasingly aggressive stance by the CMA. Activision Blizzard, the video games maker, branded Britain as "closed for business" earlier this year after the regulator blocked its acquisition by Microsoft.
Mideast's biggest tobacco firm AIR invites banks to pitch for roles in IPO. (FS)
Dubai-based Advanced Inhalation Rituals, the Middle East's biggest tobacco company, has invited banks to pitch for roles in its planned initial public offering next year. AIR, one of the world's biggest producers of shisha molasses, is planning a flotation in the first half of 2024.
Britain's Kingsway, the majority owner of AIR, is seeking a sale as part of a dual-track process, where a seller pursues a sale and an IPO at the same time. In March Kingsway had hired Rothschild to advise it on options for AIR, including a possible IPO, Reuters reported.
German defense supplier Renk weighs IPO.
Renk is advancing plans to raise capital — possibly through an initial public offering or private share sale — as the military gearbox maker looks to expand amid Germany's pledge to increase defense spending in the coming years.
CEO Susanne Wiegand said the board is currently weighing a range of options to finance growth and does not want to do it with debt. Wiegand indicated that she would prefer an IPO, but said more analysis is still needed.
NEC holds first close of $1.5bn NextPower V ESG. (FS)
NextEnergy Capital, a global solar specialist in the renewables sector, has held the first close of its fifth investment vehicle NextPower V ESG, which is targeting capital commitments of $1.5bn with a $2bn hard cap, at $480m.
The fundraising to date comprises $330m in direct commitments and $150m in co-investment allocations. Investors in NPV ESG include KLP, a German occupational pension fund, and a large Nordic pension fund.
NPV ESG expects to secure commitments from additional investors in its second close later this year, with several investors currently active in due diligence.
APAC
HDFC, a housing financier based in Mumbai, completed the merger with HDFC Bank, a commercial banking firm, in a $40bn deal.
"This is a defining event in our journey and I'm confident that our combined strength will enable us to create a holistic ecosystem of financial services. We're truly happy to welcome the talented team of HDFC into the HDFC Bank family. I believe our journey will be defined by agility, adaptability, and a relentless pursuit of excellence. As we navigate the path ahead, we will embrace challenges as opportunities, learn from our experiences, and strive to be the benchmark of success and integrity in the financial services industry," Sashi Jagdishan, HDFC Bank CEO & MD.
HDFC Bank was advised by Deloitte, Harsh Chandrakant Ruparelia, BNP Paribas, Citigroup, Edelweiss Capital, Goldman Sachs, HSBC, ICICI Bank, JP Morgan, Morgan Stanley, Nomura, Cravath Swaine & Moore (led by Philip Boeckman) and Wadia Ghandy (led by Gopal Bankar and Ashish Ahuja). Financial advisors were advised by Freshfields Bruckhaus Deringer (led by Arun Balasubramanian). HDFC was advised by Bansi S. Mehta & Co, Ambit, Arpwood Capital, Axis Capital, Bank of America (led by Raj Balakrishnan), Credit Suisse, IIFL, JM Financial, Jefferies & Company, Kotak Investment Banking, Motilal, AZB & Partners (ld by Ashwath Rau and Zia Mody), Argus Partners (led by Krishnava Dutt), Singhi Advisors and Nova Dhruva Capital. Financial advisors were advised by Sullivan & Cromwell (led by Stephen M. Kotran).
Infrastructure Development Finance, a finance company, agreed to merge with IDFC FIRST Bank, a private sector bank formed by the merger of the banking arm of Infrastructure Development Finance Company and Capital First. Financial terms were not disclosed.
"This is an important event for the Bank and for all the shareholders of the Bank as well as IDFC Limited. We now embark on the next phase of our growth journey towards our long-term vision, and to create sustainable shareholder value in the years to come," Sanjeeb Chaudhuri, IDFC FIRST Bank Chairperson.
IDFC FIRST Bank is advised by Deloitte, Harsh Chandrakant Ruparelia, ICICI Bank, JM Financial and AZB & Partners.
Paine Schwartz Partners, a private equity firm, offered to acquire the remaining 86.22% stake in Costa Group, a grower, packer and marketer of fresh fruit and vegetables, for $935m.
Costa and PSP were hopeful of an agreed deal in coming days, further due diligence and negotiations on a potential scheme implementation agreement are expected to continue through July.
Costa is advised by UBS and King & Wood Mallesons.
First Pacific, an investment holding company, GT Capital, a Philippine conglomerate, and Mitsui, a global trading and investment company, increased bid price to acquire a 36.7% stake in Metro Pacific Investments, a unit investment holding company, for $986m.
"We regard this new offer as the best and final price the Bidders are able to deliver to MPIC's minority shareholders. Due to the transaction timetable, approvals, and regulatory requirements of the entire process across multiple jurisdictions, there will be no further opportunity to adjust the price," Christopher H. Young, First Pacific Executive Director.
Mitsui & Co is advised by UBS.
Croda International, a British speciality chemicals company, completed the acquisition of Solus Biotech, a provider of premium, biotechnology-derived beauty actives, from Solus Advanced Materials, a Korea-based company principally engaged in the manufacturing and sale of electronic components, for £232m ($294m).
"This is a strategic bullseye for Croda, consolidating our position as a global leader in supplying sustainable, natural actives for personal care across three critical technology platforms of peptides, ceramides and retinol. It significantly enhances our sustainable biotechnology capabilities and adds a North Asia manufacturing and innovation facility, providing a springboard to premium markets in Asia and beyond. I am especially excited about their brilliant technology, with Solus bringing rich IP and proprietary know-how that we will be able to deliver to customers globally," Steve Foots, Croda CEO.
Samvardhana Motherson, an auto parts maker, agreed to acquire a 81% stake in the four-wheeler business of Yachiyo Industry, a fuel tanks and sunroofs developer, from Honda Motor, a conglomerate manufacturer of automobiles, motorcycles, and power equipment, for $128m.
"This acquisition is an important landmark for Motherson as we are honoured to be handpicked by Honda San for a global partnership. We will give our best to live up to the trust bestowed upon us by Honda San. These new product segments are in line with our increasing content per car strategy as well as our customer-centric approach. We believe this business will be highly synergistic with Motherson's existing portfolio as we see ample opportunities to grow this new business globally by leveraging our global relationships with automotive OEMs. We are looking forward to the exciting times ahead," Vivek Chaand Sehgal, Motherson Chairman.
Motherson is advised by Adfactors PR.
CATL-backed chinese energy start-up seeks funds at $831m value.
An energy storage start-up backed by Contemporary Amperex Technology is considering a round of fundraising that would value it at as much as CNY6bn ($831m) to fuel further growth amid the global clean-power transition, Bloomberg reported.
Contemporary Nebula Technology Energy is in talks with financial and strategic investors to raise about CNY600m ($83m). The firm is drawing interest as energy storage systems are core to China's green push and are part of the country's most recent five-year plan.
DFC approves $191m worth of investments in Asia in Q2 2023.
US development bank International Development Finance has approved at least $191m worth of investments in companies based in, or focused on, Asia, including India, DealStreetAsia reported.
The deals, which involved debt financing and equity investments, were part of the more than $3bn that the DFC approved at the Board and Corporation levels during its fiscal third quarter of 2023, which runs from April to June.
HSBC 'open' to stake boost in joint venture after China partner auctions stake.
HSBC's is "open to opportunities to expand its businesses" in China after its local partner put a 31% stake in a joint venture on the block.
The auction of a stake in HSBC Jintrust Fund Management comes after Europe's largest bank was seeking to boost ownership and expand its presence in the asset management market of the world's second-largest economy in May.
Chinese state-owned Shanxi Trust, which owns 51% stake in the joint venture, is auctioning off the partial ownership with an asking price of CNY1bn ($138m). The China fund unit is valued at CNY3.2bn ($441m).
Alibaba said to weigh options for video platforms Youku, Tudou.
Alibaba is exploring options for its video entertainment assets, as the Chinese tech giant wades deeper into its plan to revamp its structure, Bloomberg reported.
The company is conducting a strategic review of video streaming platforms Youku and Tudou. One of the options under consideration is to inject the assets into Alibaba Pictures Group and bolster the business scope of the Hong Kong-listed company.
The review on video platform assets comes as Alibaba plans a six-way restructuring to try to juice growth and create a family of standalone leaders in businesses from ecommerce and media to cloud and logistics. The company announced a surprising shakeup of its leadership last month, replacing its eight-year veteran chief Daniel Zhang.
Allegro says an independent board to oversee PwC Australia's government business. (FS)
Australian investment firm Allegro Funds said it would set up an independent board to oversee PwC Australia's government practice business, which it bought last month, and committed A$100m ($67m) for transition costs.
The scandal, which broke in January, revolves around a former PwC tax partner who had been advising the federal government on laws to prevent corporate tax avoidance and shared confidential information with colleagues who then used it to pitch to multinational companies for work.
Singapore's $2bn fintech Nium eyes US IPO in two years.
Singapore payments company Nium aims to break even in time for a US initial public offering within two years, a positive signal for Southeast Asia's struggling start-up ecosystem.
Nium, valued at about $2bn, is preparing to go public in the US by the second quarter of 2025, said Prajit Nanu co-founder and CEO. Nium, which like larger US peer Stripe helps companies handle payments, more than doubled its revenue to $82m last year even as Southeast Asia's tech and start-up industries were hit by rising interest rates and higher levels of inflation.
Rakuten applies to list brokerage arm as debt concerns mount. (FS)
Rakuten has taken a step to list its online brokerage arm, as Japan's e-commerce leader struggles to dispel concerns over its debt levels and ability to make mobile operations profitable.
Rakuten Securities has applied to go public on the Tokyo Stock Exchange. The move is part of a drive to speed up decision making at each of Rakuten's various businesses, which range from online shopping to finance and wireless services.
Billionaire Hiroshi Mikitani's online retailer has seen its shares tumble to a 14-year low as its loss-making mobile business drains cash ahead of a wall of maturing debt. Since April, the company has listed its banking unit and sold shares in an additional offering in a bid to ease its financing woes.
Mankind Pharma's success boosts hopes of more consumer IPOs in India.
The stellar performance of Mankind Pharma since its listing in Mumbai in May could trigger more consumer-related initial public offerings in India in the second half.
The company, which raised INR43.3bn ($528m) in India's second-largest new share sale this year, has seen its shares jump 57% in almost two months.
Mankind has strong name recognition among Indian consumers and investors due to its popular line of fast-moving consumer products, including condoms, sanitizers and antacids. The stock is a good example of what investors are willing to buy when it comes to IPOs, according to Peihao Huang, co-head for Asia ex-Japan ECM at JPMorgan Chase in Hong Kong.
Deutsche Bank hires Morgan Stanley's Kim as M&A chairman in Asia. (People)
Deutsche Bank has hired Samuel Kim, a veteran Morgan Stanley dealmaker, as the German lender continues to beef up its investment banking operations in Asia Pacific.
Kim is joining Deutsche Bank as its chairman of mergers and acquisitions in APAC. He will be based in Hong Kong and report to Mayooran Elalingam, Deutsche Bank's head of investment banking coverage and advisory for APAC, Bloomberg reported.
Deutsche Bank has been on a hiring spree in APAC this year as it seeks to boost its ranks and take back market share from Wall Street rivals. It has recruited various senior investment bankers from Credit Suisse, including Joe Lai as chairman of origination and advisory for Asia, Rui Wang to be head of investment banking coverage and advisory for Greater China, and Lim Zi-Kuan as its co-head of M&A for Asia.
Jirnexu founders, Grab Indonesia president move to new roles. (People)
Hann Liew and Lucas Ooi, co-founders of Malaysia-based fintech firm Jirnexu, are leaving their executive roles at the company.
Previously, Liew was an executive director and Ooi was corporate development director. Other founders include Yuen Tuck Siew, who will continue to serve as the CEO. Both Liew and Ooi plan to remain as shareholders and board members.
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