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AMERICAS
US chipmaker Broadcom is set to receive an EU antitrust warning about the possible anti-competitive effects of its proposed $61bn bid for cloud computing company VMware, Reuters reported.
The European Commission opened an investigation in December, saying the deal would allow Broadcom to restrict competition in the market for certain hardware components which interoperate with VMware's software.
VMware is advised by Goldman Sachs (led by Sam Britton and Stephan Feldgoise), JP Morgan (led by Madhu Namburi), Gibson Dunn & Crutcher (led by Barbara Becker and Andrew Kaplan) and FGS Global (led by Paul Kranhold and Peter Siwinski). Financial advisors are advised by Debevoise & Plimpton (led by Michael Diz) and Sullivan & Cromwell (led by Alison S. Ressler and John L. Savva). Broadcom is advised by Bank of America (led by Kevin Brunner and Ron Eliasek), Barclays (led by Laurence Braham, Richard Hardegree and Gary Posternack), Citigroup (led by Tyler Dickson and Daniel Mallegni), Credit Suisse (led by David Wah), Morgan Stanley (led by Anthony Armstrong), Wells Fargo Securities, Cleary Gottlieb Steen & Hamilton, O'Melveny & Myers (led by Adit Khorana), Wachtell Lipton Rosen & Katz (led by David Karp, Ronald Chen and Viktor Sapezhnikov), Brunswick Group (led by Simon Sporborg) and Joele Frank (led by Joele Frank, Tim Ragones and Arielle Rothstein). Financial advisors are advised by Cooley (led by Ben Beerle). Silver Lake Partners is advised by Simpson Thacher & Bartlett (led by Atif Azher).
LKQ, an American provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles, agreed to acquire Uni-Select, a distributor of automotive refinish and industrial paint and related products in North America, for $2.1bn.
"The transaction offers compelling value and liquidity to our shareholders and is the culmination of the efforts by our dedicated team to improve our operations and drive efficiencies with a focus on excellent customer service. We see great opportunities to benefit our customers, employees, suppliers and brands by combining our complementary strengths within the larger, multi-disciplinary and growing LKQ team," Brian McManus, Uni-Select Executive Chair and CEO.
Uni-Select is advised by RBC Capital Markets, TD Securities, Fasken, Latham & Watkins, Linklaters, Stikeman Elliott and NATIONAL Public Relations. LKQ is advised by Bank of America, Wells Fargo Securities, Davies Ward Phillips & Vineberg, Slaughter & May and Wachtell Lipton Rosen & Katz (led by Mark Gordon and Mark A. Stagliano). Debt financing is provided by Bank of America and Wells Fargo Securities.
ProFrac, an energy services company, completed the acquisition of Performance Proppants, an in-basin proppant producer, for $475m.
"This transaction greatly enhances ProFrac's vertical integration strategy and demonstrates our commitment to the Haynesville, which we believe is a significant source of long-term opportunity. Additionally, it makes the Company the largest provider of in-basin sand in North America. With four mines totaling 10.4m tons per year of high-quality proppant production capacity serving the core of the Haynesville, ProFrac will be well positioned to secure supply for our fleets, enhance fleet utilization and add additional value to our customers," Ladd Wilks, ProFrac CEO.
Performance Proppants was advised by Stephens and Brownstein Hyatt Farber Schreck. ProFrac was advised by Piper Sandler, Brown Rudnick, Lowenstein Sandler, Winston & Strawn and Dennard Lascar (led by Ken Dennard).
Nuvini, a private serial software business acquirer, agreed to go public via a SPAC merger with Mercato Partners Acquisition, a publicly-listed special purpose acquisition company, in a $312m deal.
"Going public would, by itself, be an important step on our long-term strategy to become the leaders of B2B SaaS in Latin America. We believe partnering with a high-performing and experienced group like Mercato that is rooted in funding high-growth technology companies outside of high concentrated capital centers will be even more valuable," Pierre Schurmann, Nuvini CEO.
Nuvini is advised by Carey Olsen, Mayer Brown and Tauil & Chequer Advogados. Mercato is advised by Maxim Group, Latham & Watkins, Machado Meyer Sendacz e Opice Advogados and Maples Group.
Ready Capital, a multi-strategy real estate finance company that originates, acquires, finances and services small-to-medium balance commercial loans, agreed to merge with Broadmark Realty Capital, a specialty real estate finance company, in a $784m deal.
"We are excited about the continued growth of our commercial real estate investment platform with the Broadmark transaction and believe it will provide strategic and financial benefits to all shareholders. We believe our asset management and workout experience, along with the synergies we expect to realize, position us well over the long-term," Thomas Capasse, Ready Capital Chairman and CEO.
Broadmark Realty Capital is advised by JP Morgan, Bryan Cave Leighton Paisner and Sidley Austin. Ready Capital is advised by Wells Fargo Securities and Alston & Bird.
Turnspire Capital, a private investment firm, completed the acquisition of USG Water Solutions, a provider of water asset management services for small and medium public water utilities, from Veolia, a utility services provider. Financial terms were not disclosed.
"We are thrilled to acquire this incredible business. USG pioneered the tank maintenance program over thirty years ago and has maintained its position as the pre-eminent supplier in the market as a division of larger global corporations, most recently Veolia. As an independent company under Turnspire's ownership, and led by John Flaugher and the talented current management team, USG can build on its legacy to achieve operational excellence and sustainable growth in tanks under management," Ilya Koffman, Turnspire Managing Partner.
Turnspire Capital was advised by Harris Williams & Co, Chapman and Cutler and Gasthalter & Co (led by Mark Semer). Veolia was advised by Houlihan Lokey.
DIH Technology, a robotics and virtual reality technology provider in the rehabilitation and human performance industry, agreed to go public via a SPAC merger with Aurora Technology Acquisition, a publicly-traded special purpose acquisition company, in a $322m deal.
"We are thrilled to become a public company through the merger with ATAK. Being a public company, we will have the resources to significantly expand our global growth and value-delivery platform; to meet the increasing demand and enthusiasm for our robotic and VR enabled solutions around the world; and to accelerate our "Total Solution" strategy through innovations and consolidation. All those will greatly benefit our customers, patients, partners, and the industry as a whole. Our mission is to transform the fragmented rehabilitation care model and deliver inspirational effects that positively impact millions of lives, from therapists to patients. By becoming a public company, we are confident that we can achieve this mission and continue to innovate and empower the highest level of care to our customers and patients," Jason Chen, DIH Chairman and CEO.
DIH Holding is advised by Maxim Group and Loeb & Loeb. Aurora is advised by Dentons.
1st Security Bank of Washington, a provider of banking services, completed the acquisition of seven branches in Washington and Oregon from Columbia Banking System, a commercial banking institution. Financial terms were not disclosed.
"We are excited about the proposed acquisition of these branches and the expansion of our franchise into the Oregon market. As experienced acquirers, we are committed to providing our new customers and employees with the best possible transition from Columbia and look forward to offering our personalized banking services to these communities for years to come," Joe Adams, 1st Security CEO.
Dr. Reddy's Laboratories, a global pharmaceutical company headquartered in Hyderabad, India, agreed to acquire the US prescription unit of Mayne Pharma, an ASX-listed specialty pharmaceutical company, for $105m.
"The US has always been an important market for us. The portfolio of products acquired from Mayne Pharma is a strategic fit with our growth objectives. The portfolio includes some high entry-barrier products. It also complements our existing portfolio by introducing products focused on women's health. Our strong balance sheet enables us to acquire products of strategic importance to strengthen our base business and build for long-term growth," Erez Israeli, Dr. Reddy's CEO.
Stellantis, one of the world's largest automakers and mobility providers, completed the $150m investment in McEwen Copper, which holds 100% interest in the Los Azules copper project in San Juan, Argentina and the Elder Creek project in Nevada, USA.
"We are delighted to have Stellantis as a partner in the future development of our Los Azules copper project. Together, we share a vision to build a mine for the future based on regenerative principles that can achieve net-zero carbon emissions by 2038. We are committed to delivering green copper to Argentina and the world, a product that will contribute to the electrification of transportation and the protection of our atmosphere," Rob McEwen, McEwen Copper CEO.
Ostendo Technologies, a developer of solid-state lighting based display technologies, agreed to merge with Veea, a smart edge solutions provider. Financial terms were not disclosed.
"During my many conversations with Allen about the next great technology revolution, we always come back to the same conclusion: these technology franchises are stronger and more valuable together. We are excited about the opportunities this merger will create for our worldwide customers, our partners and our employees. Together we will solve the problem of the last 50 meters and the last 3 centimeters—changing how and what we see in our daily interactions with information, the real world and the people around us," Hussein S. El-Ghoroury, Ostendo Founder and CEO.
Stripe said to be in advanced talks to raise $4bn at a markdown valuation of $55bn. (FS)
Digital payments processor Stripe is close to raising $4bn in fresh capital at a valuation of about $55bn, DealStreetAsia reported.
The latest capital raise from investors including Thrive Capital could be the largest private funding round in recent memory, marking a steep decline in the valuation of the fintech startup, which was valued at $95bn in early 2021.
Cvent rejects a $3.9bn purchase bid from Blackstone. (FS)
A $3.9bn purchase bid from buyout company Blackstone has been rejected by Cvent, a US software supplier that supports in-person and virtual meetings.
Blackstone withdrew from the talks when Cvent rejected its $8 per share offer as being too low. Vista Equity Partners Management, a private equity firm, owns the majority of the shares of Cvent. Trading in its shares finished on Thursday at $7.64. When Blackstone approached Cvent with an unsolicited offer the company was not considering a sale. It is unknown if Blackstone would make another unsolicited offer or if any other bidders will emerge.
Pfizer in talks to buy cancer drugmaker Seagen.
Pfizer is in early-stage talks to acquire cancer drugmaker Seagen in what could be a multi-billion dollar deal. Seagen had a market capitalization of roughly $30bn, as of Friday's close.
Seagen was in advanced talks to be acquired by Merck, in a deal that would have been worth $40bn or more, Reuters reported.
Canaccord is worth more than management LBO offer, RBC says.
An independent valuation says Canaccord Genuity Group is worth as much as 40% more than what’s being offered by a group of senior executives and employees to take the company private, Bloomberg reported.
A management-led group offered C$11.25 ($8.27) a share in early January, saying the company would be better off in private hands given its volatile earnings. But Canaccord is worth C$12.75 ($9.37) to C$15.75 ($11.57) per share in an assessment done for a special committee of the financial firm’s board by Royal Bank of Canada.
Union Pacific plans to name new CEO this year. (FS, People)
Union Pacific said it plans to name a new chief executive this year, hours after a major shareholder publicly urged the railroad company’s board to oust Lance Fritz from the job, WSJ reported.
Soroban Capital Partners, a New York hedge fund managing about $10bn, on Sunday disclosed a letter it wrote to Union Pacific directors pushing for the change, arguing that the company has underperformed on Mr. Fritz’s watch.
EMEA
Scale Facilitation-backed Recharge Industries, an Australian battery technology startup, completed the acquisition of Britishvolt, the collapsed UK startup which had struggled to fund a major electric-vehicle battery factory in northern England. Financial terms were not disclosed.
"Our proposal combined our financial, commercial, technology and manufacturing capabilities, with a highly credible plan to put boots and equipment on the ground quickly. Our technology – including an exclusive license for the intellectual property and battery technology – has been developed and validated over the last decade through C4V in the US and will be the backbone of both gigafactories in Geelong and Cambois. Backed by our global supply chain, strategic delivery partners and a number of significant customer agreements in place, we're confident of making the Cambois Gigafactory a success and growing it into an advanced green energy project. We can't wait to get started and want to start as soon as possible," David Collard, Recharge Industries Founder.
Britishvolt was advised by Ernst & Young. Recharge Industries was advised by 333 Capital, KordaMentha, Sidley Austin, 56 Degrees North (led by Sophie Ashcroft) and PricewaterhouseCoopers.
Aerodyne, the Malaysia-based drone solutions provider, completed the investment in Aiviewgroup, the drone service provider in Italy, based in Rome. Financial terms were not disclosed.
By joining forces, Aiviewgroup and Aerodyne can harness synergies from both their respective areas of expertise and technologies, and bring it to a wider global audience.
Octopus Energy plans rapid increase in offshore wind spending.
Renewables investor Octopus Energy Generation plans a rapid increase in investment in offshore wind power after spending $1bn in less than a year, Reuters reported.
The firm, part of Octopus Energy Group, said it has raised its stake in the 270 MW Lincs offshore wind farm off the east coast of England to 31% from 23.25%. The Lincs wind farm comprises 75 wind turbines generating enough clean power for 240k UK homes every year. It has been running since 2013 and is operated by Ørsted.
Adnoc Gas IPO upsized to about $2.5bn on heavy demand.
The United Arab Emirate’s main oil company has increased the size of the initial public offering of its gas business — already set to be the world’s largest so far this year — by a quarter to as much as $2.5bn, Bloomberg reported.
The move comes after investors snapped up all available shares within hours of them going on sale last week. Adnoc will now offer 3.84bn shares, or a stake of about 5%, in Adnoc Gas in the IPO. It was previously looking to sell 4%.
Ex-UK Chancellor Javid to join Centricus Asset Management. (FS, People)
Sajid Javid, the UK’s former Chancellor of the Exchequer, is set to join London-based Centricus Asset Management, joining a long list of politicians who’ve moved into financial services after leaving office, Bloomberg reported.
Javid intends to take up a role as a senior advisor at the $40bn investment company, but talks about the details of his appointment are still ongoing.
Citigroup loses top London-based dealmaker. (People)
Citigroup is losing one of its most senior dealmakers, with Alison Harding-Jones, the head of its M&A business in Europe, the Middle East and Africa, set to depart at the end of next month, FT reported.
Harding-Jones has run the US bank’s M&A operations in the region since 2017, when Citi poached her from UBS as it sought to bolster its European business. She also holds the title of vice-chair of corporate and investment banking for the region.
APAC
Air India to fund $70bn plane order with cash, equity amid overseas push.
Air India said it plans to fund its $70bn order for a record 470 aircraft with internal cash, equity and through sale-and-leasebacks, as the airline seeks to rapidly expand its presence in international markets, Reuters reported.
Tata Group-owned Air India said it would buy 220 planes from Boeing and 250 from Airbus in a deal that has eclipsed previous records for an order made by a single carrier.
Japan Post plans to sell $9.5bn worth of shares in the banking arm.
Japan Post plans to sell $9.5bn of shares in its banking unit, the latest step in the postal group's privatization, Bloomberg reported.
The former state-run mail and financial services giant is seeking to sell about 975m shares in Japan Post Bank. The offer to domestic and international investors is at an indicative discount range of 2% to 4%.
Malaysia says Abu Dhabi's IPIC and Aabar to pay $1.8bn to settle 1MDB dispute. (FS)
Abu Dhabi’s International Petroleum Investment and its unit Aabar Investments have agreed to pay $1.8bn to settle a legal dispute over the scandal at Malaysian state fund 1MDB, DealStreetAsia reported.
Malaysia in 2018 had filed a challenge in a London court against a settlement agreement between 1MDB and IPIC that had been negotiated a year earlier during the premiership of former leader Najib Razak. Najib was sentenced to 12 years in jail last year after being found guilty in a 1MDB-related corruption case.
Adani in talks to raise $400m debt against Australian coal port assets.
India’s Adani Group is in talks with global credit funds to raise up to $400m in debt against assets of the Carmichael coal mine, DealStreetAsia reported.
The Adani Group, which saw about $145bn wiped off its market value after a US short seller accused it of improper use of offshore tax havens, operates the Carmichael coal mine, the North Queensland Export Terminal, which is a major port for Queensland coal exports, as well as a solar farm in Australia.
India's SpiceJet restructures dues to Carlyle Aviation, to raise fresh capital. (FS)
India's SpiceJet said it will convert around $100m in dues to an aircraft lessor into equity and debentures and raise fresh capital of $300m, sending the shares up as much as 6%.
The low-cost carrier will convert its dues to Carlyle Aviation Partners into new shares worth $29.5m, giving the commercial aviation investment and servicing arm of Carlyle Group a 7.5% stake in the company, Reuters reported.
SoftBank, Ant seek to sell Paytm stake via open market.
China's Ant Group and Japan's SoftBank Group are seeking to sell their stakes in Indian digital payments firm Paytm in the open market, Reuters reported.
The companies had earlier approached Bharti Airtel founder-chairman Sunil Mittal to sell their stakes in Paytm's parent One 97 Communications, but those talks did not make much headway.
GK Goh’s largest holder is said to consider take-private.
GK Goh Holdings’s largest shareholder is considering taking the Singapore-listed company private, Bloomberg reported.
GKG Investment Holdings, which owns about 63% of the company, is working with financial advisers on the deal.
Investcorp opens Tokyo office to target Japan deals. (FS)
Investcorp, the Bahrain-based alternative investment manager that once owned Tiffany and controlled Gucci, is opening an office in Tokyo to raise funds and pursue acquisitions of high-end Japanese manufacturers and other hidden gems, FT reported.
The move represents the debut of major, private Middle Eastern funds in Japan and comes as private equity groups from around the world are increasingly concentrating their attention on the opportunities created by a national succession crisis, where companies have no replacements for elderly founders.
Apparel retailer Fabindia shelves $482m IPO amid rough market conditions.
Apparel retailer Fabindia said it has withdrawn its $482m initial public offering amid rough market conditions, becoming the latest company to scrap listing plans as interest rate worries pressure stock markets, DealStreetAsia reported.
India’s benchmark Nifty 50 stock index is down over 4% so far this year on worries that major central banks, including the US Federal Reserve, will prolong a high interest rate regime due to a persistent rise in inflation.
Indonesian miner Amman Mineral Internasional files papers for IPO.
Indonesian copper and gold miner Amman Mineral Internasional has submitted the documents needed to launch an initial public offering, DealStreetAsia reported.
Indonesia’s energy company Medco Energi Internasional owns a 23.1% stake in Amman Mineral.
Hitachi plans US hiring spree as Big Tech slashes jobs. (People)
Significant Big Tech job cuts are turning the US into a key hiring ground for Hitachi, with the Japanese company saying it is eyeing “a big opportunity” and also looking for acquisitions in Silicon Valley and beyond, FT reported.
“It’s a tailwind for us. We want to hire really good people among those who were let go. Of course, we need to be very selective since the salaries for the people hired by those companies are generally high,” Keiji Kojima, Hitachi CEO.
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