EMEA
Mitsubishi UFJ Financial Group (MUFG) acquired Aviation Finance division from DVB Bank. The asset purchase agreement provides for the entire Aviation Finance client lending portfolio (c. €5.6bn), employees and other parts of the operating infrastructure to be transferred to MUFG Bank. The transaction also includes the acquisition of DVB’s Aviation Investment Management and Asset Management businesses which will be assigned to a newly established subsidiary of BOT Lease.
DVB's Aviation Finance division is an arranger and provider of financing for aircraft. Aviation Finance offers its clients financing solutions ranging from bridging loans to complex long-term facilities.
“Aviation Finance is a key growth pillar for MUFG, and this acquisition will see a step-change in our ability to offer bespoke solutions to our clients. We are excited to be welcoming lots of experienced professionals to our established team, enabling us to broaden our customer base and cement our position as a leading player in this space,” Masato Miyachi, MUFG’s Senior Managing Corporate Executive.
The Dutch government wants seats on the board of Air France-KLM and more cost cuts, few days after buying a large minority stake in the airline and triggering a diplomatic spat with France.
The Netherlands quietly amassed a 13% stake in the airline in a move announced late on Feb. 26, almost matching the 14.3% stake held by France, Air France-KLM’s biggest shareholder.
The US Justice Department said it was requiring Thales to divest its general purpose hardware security module (GP HSM) business in order for Thales to proceed with its proposed acquisition of Gemalto.
French defense electronics maker Thales and Netherlands-based chipmaker Gemalto are the world’s leading providers of GP HSMs, which generate keys and encrypts data, and are significant direct competitors in the United States, the Justice Department said in a statement. Together they account for 66% of the US market for the sale of GP HSMs.
“The proposed divestiture will fully resolve all competition concerns,” the Justice Department said.
KKR and China's Tencent are competing for a stake in Vivendi's Universal Music. (FS)
KKR and China’s Tencent Music are exploring rival bids for up to half of Vivendi’s iconic Universal Music Group (UMG). The deal could potentially be worth up to €20bn ($23bn), Reuters reported.
French tycoon Vincent Bollore, who controls Vivendi with a 25% stake, is in the process of selecting banks to oversee a partial sale of UMG.
Macquarie is the leading bidder for Currenta, Bayer's chemical park operator. (FS)
Macquarie has made a leading bid to acquire a 60% stake in Currenta, which Bayer is selling to reduce its debt.
Talks between Bayer and the Australian bank’s Macquarie Infrastructure and Real Assets (MIRA) arm will likely continue for a few more weeks.
DWS and KKR, OMERS have also expressed interest in the asset, according to Reuters.
EFG-Hermes Holding eye new Asian acquisitions. (FS)
EFG-Hermes Holding is considering an expansion into South East Asia as Egypt’s biggest investment bank seeks to grow in emerging markets.
The Cairo-headquartered company, which operates in 12 countries, is “looking at potentially one or two” new markets this year, Chief Executive Officer Karim Awad said.
AMERICAS
Conflicting cultures and management styles are overshadowing Barrick Gold $18bn bid for rival Newmont Mining, becoming factors just as important to the deal’s success as whether or not the pair’s lucrative assets in Nevada and elsewhere fit well together.
At the heart of the debate is Nevada, where Barrick and Newmont have owned neighboring mines since the 1980s. Newmont said it prefers a joint venture in the state, a plan which Barrick says would be too complicated and not financially beneficial to all shareholders.
Northill Capital has completed the acquisition of a majority stake in leading outsourced CIO business, Strategic Investment Group by acquiring the equity interest previously held by FFL Partners. Financial terms were not disclosed.
“Strategic Investment Group is the gold standard independent investment firm in the OCIO/Solutions sector with a track record of success spanning over three decades. Strategic’s investment-led approach and belief in value creation through active management is highly complementary to Northill’s approach and brings diversification to our investment portfolio." Jon Little, Northill Capital Partner.
Strategic Investment Group was advised by Morgan Stanley.
Apollo bets on Clearway Energy. (FS)
Apollo Global Management has bought a 6% stake in Clearway Energy, a renewable energy producer whose shares were hit after PG&E, troubled California based utility, filed for bankruptcy.
Clearway has cut its dividend from 33 cents to 20 cents per share last month amid concerns that PG&E could abandon its power purchase agreement with Clearway, a wind, solar and natural gas-fired power generation company.
The PG&E contract accounts for about 23% of Clearway’s cash flow. Clearway Chief Financial Officer Chad Plotkin told investors on the company’s fourth-quarter earnings call that PG&E had continued to make payments, but that the cash did not flow to Clearway because of debt covenants in its renewable energy projects.
Brookfield seeks other acquisitions in Brazil, including Sabesp. (FS)
Brookfield is looking for additional targets in Brazil after a recent wave of acquisitions, including Sao Paulo state sanitation company Sabesp, Reuters reported.
Sao Paulo’s government, which took office in January, wants to privatize several companies to raise some 3bn reais ($794m). Among the targeted divestments is its controlling stake in Sabesp, one of the world’s largest sanitation companies serving 28m people.
Brookfield and its subsidiaries have made nearly a dozen major acquisitions in Brazil since 2013. The companies have spent about $10bn on energy, infrastructure, and real estate assets during the country’s deepest recession.
Eaton looks to spin off its lighting business unit.
US industrial conglomerate Eaton is going to spin-off its lighting business unit, which makes LED lighting and controls, and has sales of about $1.7bn in 2018.
The spin-off, which is aimed at creating an independent, publicly traded company, is expected to be completed by the end of 2019, Eaton said.
Goldman Sachs is serving as the company’s financial adviser on the deal.
Lyft disclosing financials in the wake of a future IPO.
Lyft inched closer to becoming the first ride-hailing company to make a stock market debut by releasing its filing for an initial public offering, revealing to the public a detailed look at its financial performance.
Fast-growing but money-losing Lyft expects to be valued at up to $25bn in its IPO, Reuters reported. The 220-page document provides a picture of a company with high growth and improving economics but widening losses.
Gap to separate its well-performing Old Navy brand.
Gap shares surged 24% as a number of Wall Street analysts applauded the company’s decision to separate its better-performing Old Navy brand.
The company, once a trendsetter with its casual logo emblazoned hoodies to Khaki cargos, has struggled to keep pace with fast-fashion rivals such as Zara and H&M.
Old Navy has been the only bright spot for the company in the past few years, cushioning it from the weak performance of its namesake Gap and Banana Republic brands, where sales have also taken a hit from fewer additions of new designs.
Qatar fund eyes at least 5% stake in Deutsche Bank. (FS)
The sovereign wealth fund of Qatar is seeking a stake of at least 5% in Deutsche Bank. Qatar Investment Authority could buy the stake on the open market or from Chinese conglomerate HNA, which has a 6.3% holding in Germany’s biggest bank.
APAC
Faurecia has tendered 95% of Japan’s Clarion, car equipment maker ’s shares in its offer.
The French company said it will complete the acquisition process on March 7, and follow a squeeze-out procedure to buy the remaining shares in Saitama-based Clarion. On April 1, Faurecia will launch a Japan-based business group named “Faurecia Clarion Electronics”, which will regroup Clarion, Parrot Faurecia Automotive, and Coagent Electronics, Reuters explained.
The group plans to employ nearly 9.2k people and over 1.6k software engineers, as well as generate over €2bn ($2.3bn) of sales by 2022, Faurecia said.
Australia’s competition regulator has chosen a provisional date for when it will decide whether to approve TPG Telecom's proposed merger with the Australian arm of Britain’s Vodafone Group.
The regulator’s decision may be further complicated by TPG’s move in January to abandon plans to build a mobile telephone network due to a ban on the use of equipment from Huawei Technologies, its chosen supplier.
Carlyle acquired a 9% stake in SBI Life Insurance from BNP Paribas. (FS)
Carlyle has bought a 9% stake in India’s SBI Life Insurance from BNP Paribas in a deal that could be worth about $653m.
SBI Life is a joint venture between State Bank of India, the country’s largest lender by assets, and BNP Paribas Cardif. BNP’s stake in the Indian insurer will be 13% after the deal, while SBI will remain a majority shareholder with 62% stake, Carlyle said.
Carlsberg buys a minority stake in Chinese microbrewery Jing-A.
Danish brewer Carlsberg has bought a minority stake in Chinese microbrewery Jing-A. Financial terms were not disclosed.
Carlsberg will distribute beer produced by Beijing-based Jing-A while the Chinese brewer will remain in control of producing its craft and specialty beers and developing its brand, a Carlsberg spokesman said, noting that this was a “small investment.”
The news was first reported by Danish newspaper Borsen.
Ferrero still in a race for Arnott's cookies.
Italian confectioner Ferrero and two other bidders are left in the race to buy Arnott’s biscuits and other international assets put on sale by Campbell Soup, the Australian Financial Review reported.
The newspaper also said the deadline for submitting binding bids was March 20, adding the deal could be worth $3bn. Ferrero, which started an aggressive acquisition campaign four years ago, is vying with Oreo cookies maker Mondelez International and a consortium comprising private equity firms KKR and Bain Capital.
Tata Motors holds on to JLR.
India’s Tata Motors denied media reports that it was exploring options for its ailing luxury car unit Jaguar Land Rover Automotive.
The reports of a potential stake sale drove Tata Motors shares up as much as 3.7 % to 184 rupees. The stock pared some of the gains and ended up 1.6%.
“There is no truth to the rumors that Tata Motors is looking to divest its stake in JLR,” a Tata Motors spokesperson told Reuters.
Japan's Daiichi Sankyo explores OTC business sale.
Japan’s Daiichi Sankyo is exploring the sale of its over-the-counter drugs (OTC) business and has hired JP Morgan to advise on the potential deal, Reuters reported.
Japan’s No.4 drugmaker by revenue has been focused on developing cancer treatments to offset a revenue drop following patent expirations of its mainstay high blood pressure drug.
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