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AMERICAS
Occidental, an American company engaged in hydrocarbon exploration, agreed to acquire CrownRock, a Midland-based oil and gas producer, for $12bn.
"We believe the acquisition of CrownRock's assets adds to the strongest and most differentiated portfolio that Occidental has ever had. We found CrownRock to be a strategic fit, giving us the opportunity to build scale in the Midland Basin and positioning us to drive value creation for our shareholders with immediate free cash flow accretion. We are excited about combining CrownRock's high-performing team into our organization and expect to continue Occidental's exceptional operational and financial results for years to come," Vicki Hollub, Occidental President and CEO.
CrownRock is advised by Goldman Sachs, Tudor Pickering Holt and Vinson & Elkins (led by Steve Gill and Robert Kimball). Occidental is advised by Bank of America, Latham & Watkins (led by John Greer and Bill Finnegan) and Brunswick Group.
Blue Sage Capital, an Austin, Texas-based private equity firm, completed the investment in Geo-Solutions, a provider of highly complex geotechnical and environmental remediation services. Financial terms were not disclosed.
"Geo-Solutions has differentiated itself through its deep industry knowledge and ability to safely complete some of the industry's most complex engagements. We could not be more excited to partner with Darin and the rest of the Geo-Solutions team, and we are eager to execute on our joint strategy for growth," Peter Huff, Blue Sage Founding and Managing Partner.
Geo-Solutions was advised by FMI Capital Advisors. Blue Sage was advised by Kroll, NFP, Queen Saenz + Schutz and Cherry Bekaert.
Investcorp, a global alternative asset manager, completed the acquisition of a 50% stake in Infrastructure Business of Corsair Capital, a global alternative investment firm.
Financial terms were not disclosed.
“This investment enhances our strategic capabilities in the global infrastructure sector. We recognize Investcorp Corsair’s potential as a driving force for economic growth. Our new partnership with Corsair also underscores our dedication to delivering value to our stakeholders and advancing Investcorp’s long-range plan,” Mohammed Alardhi, Investcorp Executive Chairman.
H&E Equipment Services, one of the largest equipment rental companies in the US, agreed to acquire Precision Rentals, an equipment rental agency in Arizona. Financial terms were not disclosed.
"Since 2006, Precision Rentals has successfully grown its equipment rental business through a focus on reliability, fleet diversity and exceptional customer service. The company's branch operations are in cities with strong construction activity and excellent future opportunities, including several mega projects. The acquisition is expected to expand the H&E customer base as branch density is increased across the Phoenix and Denver metropolitan areas," Brad Barber, H&E Equipment Services CEO.
Hub International, a global insurance brokerage and financial services firm, completed the acquisition of JRP Financial Services, an independent benefits brokerage firm. Financial terms were not disclosed.
JRP specializes in in employee benefits, pension planning and human resources.
Macy's investors mount $5.8bn buyout bid. (FS)
An investor group consisting of Arkhouse Management and Brigade Capital made a $5.8bn offer to take department store chain Macy's private, Reuters reported.
Arkhouse Management, a real-estate focused investing firm, and Brigade Capital Management, a global asset manager, submitted a proposal to acquire the Macy's stock they don't already own for $21 a share on December 1.
Cigna abandons pursuit of Humana, plans $10bn share buyback.
US health insurer Cigna has ended its attempt to negotiate an acquisition of rival Humana after the pair failed to agree on price, as the company announced plans to buy back $10bn worth of shares, Reuters reported.
A Cigna-Humana combination would have created a company with a value exceeding $140bn, based on their market values, but was certain to attract fierce antitrust scrutiny. The discussions came six years after regulators blocked mega-deals that would have consolidated the US health insurance sector.
Manulife to reinsure $10bn with KKR's Global Atlantic. (FS)
Manulife Financial agreed to reinsure $10bn of reserves with KKR's Global Atlantic Financial Group and its partners in a deal the company said is the largest long-term care reinsurance transaction in the industry's history, Bloomberg reported.
The deal includes $4.4bn of long-term care reserves, or 14% of Manulife's total, and will release $883m of capital, which the Toronto-based insurer said it plans to return to shareholders through share buybacks. That will add to core earnings per share and return on equity.
Endeavor Energy explores sale for as much as $30bn.
Endeavor Energy, the largest closely-held oil and gas company in the Permian basin, is exploring a sale that could value it between $25bn and $30bn, Bloomberg reported.
The Midland, Texas-based company founded by Autry Stephens has enlisted JP Morgan to launch a sale process in the first quarter of 2024.
BlackBerry cancels spinoff of internet-of-things unit, names new CEO. (People)
Mobile services and devices company BlackBerry will no longer spin off its its internet-of-things business, a reversal from a previously announced turnaround plan, Bloomberg reported.
BlackBerry will reorganize to keep that business in house alongside its cybersecurity unit, the Waterloo. The decision was made "with a view to each division operating independently and on a profitable and cashflow-positive basis going forward".
Nvidia to expand ties with Vietnam, support AI development.
US chipmaker Nvidia's chief executive said the company will expand its partnership with Vietnam's top tech firms and support the country in training talent for developing artificial intelligence and digital infrastructure, Reuters reported.
Nvidia, which has already invested $250m in Vietnam, has so far partnered with leading tech companies to deploy AI in the cloud, automotive and healthcare industries, a document published by the White House in September showed when Washington upgraded diplomatic relations with Vietnam.
Microsoft's multibillion-dollar OpenAI partnership examined by UK watchdog.
Microsoft, which is thought to have played a key role in the rapid reinstatement of ChatGPT maker OpenAI boss Sam Altman after his sudden ousting last month, has insisted the companies retain operational independence, Sky News reported.
The Competition and Markets Authority wants to review whether the partnership has led to an acquisition of control, if a de facto merger has taken place, and if this could impact competition.
Stonepeak, Lineage, Losa team up to fuel emergent cold LatAm's $500m expansion. (FS)
Emergent Cold Latin America has raised $500m in equity commitments from new and existing investors to further expand its regional cold storage network.
Emergent Cold LatAm will use the capital to further grow its regional cold storage network via business acquisitions, greenfield projects and facility expansions. Additionally, the company plans to invest in technology and best practices to enhance operational standards and customer service.
EMEA
The PGA Tour said on Sunday that it has unanimously decided to advance discussions with Strategic Sports Group, a consortium of US-based sports team investors that includes Fenway Sports Group, Reuters reported.
The PGA Tour Policy Board selected SSG to further negotiate with, even as talks with the Saudi Arabia's Public Investment Fund continue to progress.
Andreessen-Horowitz, a venture capital firm, and LightSpeed Ventures, a venture capital firm, led a $414m round in Mistral AI, a generative AI developer, with participation from Salesforce, BNP Paribas, General Catalyst, La Famiglia, Eric Schmidt, New Wave, Motier Ventures, and Sofina.
The company said it aims to achieve frontier-level AI capacities in the coming months and build developer and enterprise-oriented products.
South Africa selects Russia's Gazprombank as partner for PetroSA refinery.
South Africa has agreed to a recommendation from national oil company PetroSA to select Russia's Gazprombank Africa as an investment partner for its mothballed gas-to-liquid refinery at Mossel Bay, Reuters reported.
Gazprombank is Russia's third-largest lender by assets and a key conduit of the Russian energy trade.
The 45k barrel-per-day Mossel Bay plant has been under care and maintenance for several years as dwindling offshore gas resources meant the plant could no longer operate.
Saudi Arabia eyes majority control of London’s Heathrow airport. (FS)
Saudi Arabia may ultimately gain majority control of London Heathrow Airport, Europe’s busiest, as several shareholders consider the sale of their interests, Bloomberg reported.
At least one shareholder is close to selling its stake after Saudi Public Investment Fund, together with the investment company Ardian, in which Saudi Arabia is an investor, agreed to buy the 25% stake held by Spain’s Ferrovial in late November. The $3bn deal was about 70% above Morgan Stanley’s estimated valuation.
TPG nears deal for UK education provider Outcomes First. (FS)
American private equity firm TPG is nearing a deal to acquire UK special educational needs provider Outcomes First Group, Bloomberg reported.
Rise Fund, the private equity firm's impact investing arm, beat out other bidders for the business. Middle Eastern alternative asset manager Investcorp will become a significant minority investor in Outcomes First through the transaction and have a representative on its board.
Kretinsky tells Casino unions retailer must sell assets to survive.
Investors set to take control of Casino Guichard-Perrachon told French unions that the firm is at risk of collapse within a year if the retailer doesn't sell unprofitable hypermarkets and supermarkets, Bloomberg reported.
Representatives of an investor group led by Czech billionaire Daniel Kretinsky along with the retailer's management met unions on December 7.
France's Saint-Gobain hunts for fresh acquisitions as part of sustainability push.
France's Saint-Gobain is on the lookout for more acquisitions outside Europe as the construction supplier pursues a shift into more environmentally-friendly materials, FT reported.
Benoit Bazin, who is also due to become Saint-Gobain's chair next year, said the group still had "positions to take" in North America, Asia and in emerging markets after a roughly €7bn ($7.5bn) acquisition spree in the past five years.
Germany to support green steel at Stahl-Holding-Saar with $2.8bn.
The German government plans to support steelmaker Stahl-Holding-Saar's in its transformation towards greener production with $2.8bn, Reuters reported.
Robert Habeck said Berlin was about to receive the green light for the aid from the European Commission. The importance of helping the steel industry with the costly reform of its production in line with climate goals, warning that otherwise Germany's attractiveness as a location for companies and its supply chains were under threat.
Gilbert's AssetCo in talks to absorb parts of Rees-Mogg firm.
The fund management group founded by Martin Gilbert, the City veteran, is in talks to absorb parts of the firm jointly founded by Sir Jacob Rees-Mogg, the former cabinet minister, Sky News reported.
London-listed AssetCo is one of a number of suitors circling Somerset Capital management, which announced it would wind itself down following the loss of St James's Place, its largest client.
Football's last holdout to private equity to consider investment. (FS)
Germany's top professional football clubs voted in favor of a potential TV rights sale, a deal that could help narrow the gap with the UK's Premier League, Bloomberg reported.
German football is one of the last holdouts to foreign investment, with its clubs protected from full takeovers, and smaller clubs repeatably rebuffing previous attempts to agree on private equity investment.
Owners of O2 Arena and Hammersmith Apollo enter race for See Tickets.
The owners of London's O2 Arena and Hammersmith Apollo have each entered the race to buy See Tickets, after French media group Vivendi kicked off a sales process for one of the UK's biggest ticketing merchants, FT reported.
Vivendi is hoping to fetch up to €300m ($323m) for See Tickets, and a first round of indicative bids has been submitted in recent weeks.
Turkey's Pegasus mulls new aircraft order, adds routes to expand.
Pegasus Hava Tasimaciligi is considering a new aircraft order to extend its growth push into the next decade, months after the Turkish carrier agreed to purchase three dozen more Airbus jets, Bloomberg reported.
Strong demand to Turkey and the addition of a second runway at its home airport in Istanbul provide impetus for further expansion. The low-cost carrier is adding at least six new destinations next year and will occupy a new terminal at Sabiha Gokcen Airport once construction is completed, as early as 2026.
APAC
Sigma Healthcare, an Australian, ASX-listed company with a focus on the pharmacy industry, agreed to merge with Chemist Warehouse, a pharmacy company, in a $5.8bn deal.
"The Proposed Merger is a step-change event for Sigma. With Sigma having had a commercial relationship with CWG and its founders spanning more than 40 years, we are excited by the efficiencies, synergies and growth opportunities that we anticipate being unlocked through the merger of the two complementary businesses. The combined group will have extensive capabilities and expertise to benefit franchisees and customers, including through more brand choice, products and services and expanded marketing capabilities," Michael Sammells, Sigma Chairman.
Chemist Warehouse is advised by Oaktower Partnership, Rothschild & Co and Herbert Smith Freehills (led by Michael Ziegelaar and Natalie Bryce). Sigma is advised by Goldman Sachs, HMC Capital, Gilbert + Tobin, BlueDot Media (led by Steve Dabkowski) and Domestique (led by Jim Kelly).
TikTok, a short-form video hosting service company, and GoTo, a flexible-work provider of software as a service and cloud-based remote work tools for collaboration and IT management, agreed to form a joint venture. Financial terms were not disclosed.
As part of the agreement, Tokopedia and TikTok shop Indonesia's businesses will be combined under the existing PT Tokopedia entity in which TikTok will take a controlling stake. The shopping features within the TikTok app in Indonesia will be operated and maintained by the enlarged entity.
TikTok is advised by The Hoffman Agency. GoTo is advised by Goldman Sachs.
United Overseas Australia, a property development and investment company, and CapitaLand, a real estate investment company, agreed to form a $247m joint venture.
The proposed project is a mixed-use development in Vietnam with an initial proposal consisting of the construction of 4 high rise towers comprising residential, commercial and retail space, 1 medium rise tower comprising residential and retail space and 2 low rise towers comprising residential space.
QIA takes a 4.26% stake in Kingdee. (FS)
A unit of Qatar Investment Authority, Qatar's sovereign wealth fund, agreed to acquire a 4.26% stake in Kingdee International Software, an enterprise management software company, for $200m.
The firm believes the share sale will strengthen its financial position, broaden the shareholder base, and is in the interests of the company and the shareholders as a whole.
China's SPIC plans $5.9bn investment turning green hydrogen into fuel.
China's State Power Investment announced a $5.85bn investment plan in northeast China to produce fuel from hydrogen produced from wind power, Reuters reported.
The projects, that include a 3.5 gigawatt wind power plant, a 164k metric ton per year hydrogen-making facility and 400k tpy each of sustainable aviation fuel and methanol, will be built in Qiqihaer city of Heilongjiang province.
Huawei to start building first European factory in France next year.
China's Huawei will start building its mobile phone network equipment factory in France next year, pressing ahead with its first plant in Europe even as some European governments curb the use of the firm's 5G gear, Reuters reported
The company outlined plans for the factory with an initial investment of $215m in 2020, but the roll-out was delayed by the Covid-19 pandemic.
Papua New Guinea in advanced talks with Chinese banks to fund its stakes in LNG megaprojects.
Papua New Guinea's state-owned petroleum company is in advanced talks with Chinese banks to help fund its stakes in the two major liquefied natural gas projects in the country, Reuters reported.
Kumul Petroleum is holding talks with banks in the US, Europe and Australia, but its managing director Wapu Sonk said talks with Chinese banks had gone further as they had fewer concerns around fossil fuel development.
Shein holds talks with LSE to dangle prospect of London listing.
The fast-fashion giant Shein has held talks with the London Stock Exchange about the possibility of staging a blockbuster public listing in the UK, even after filing documents paving the way for a flotation in New York, SkyNews reported.
The discussions were focused on the possibility of a listing in the UK, with one saying the Singapore-based behemoth was continuing to explore various options for raising capital through a public share sale.
Hong Kong's small brokers push for new rules to revive IPOs.
Hong Kong's struggling smaller brokers and advisers have formed a union-like association to prod the government for more support as the city suffers through a drought of initial public offerings and sagging trading, Bloomberg reported.
Officially kicking off on December 12, the Association of Hong Kong Capital Market Practitioners is organized by 29 smaller brokers and advisers to nudge regulators to loosen the tight grip they have put on the city's small-cap market. The group has backing from some of the financial hub's key politicians, including Executive Council convener Regina Ip.
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