EMEA
KKR considers Asda buy after Sainsbury’s deal setback. (FS)
Ferragamo is not for sale.
Sika is interested in parts of BASF's construction chemicals business.
Vivendi to back Telecom Italia, Open Fiber network merger under right conditions. (FS)
Japan launches a $113m fund to invest in Nordic and Baltic tech companies. (FS)
AMERICAS
Roche nearing a $5bn deal to acquire Spark Therapeutics.
Buffett appears to fault Trump, making it tough for his Berkshire to find more big companies to buy. (FS)
Kraft Heinz write-down hits Berkshire results. (FS)
Canada's Barrick considers a buyout of rival Newmont Mining.
Canopy Growth to spin off properties into REIT.
Pinterest files confidentially for US IPO.
APAC
UAE's ADNOC seals $4bn pipeline infrastructure deal with KKR and BlackRock. (FS)
Logistics startup Flexport raises $1bn in SoftBank-led funding round. (FS)
Uber Eats close to selling Indian food delivery business to Swiggy. (FS)
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Latest Deals
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EMEA
NSF offered to acquire Provident valuing the equity of the business at £1.3bn ($1.7bn). All share merger would result in Provident Shareholders owning c. 87.8%. of the Enlarged NSF Group. The unsolicited bid is led by John van Kuffeler, former CEO of Provident for 22 years.
Provident has faced a number of challenges recently. NSF Board believes Provident can be turned around under new leadership.
"This transaction will create a market leader in the non-standard finance sector with a strong position in all four main segments. We have recognized the strong logic and value creation potential of a combination with Provident for some time and hence approached the Provident Board with a proposal in January last year." John van Kuffeler, NSF founder and Chief Executive.
Provident Financial is advised by Barclays, JP Morgan, and Brunswick Group. Non-Standard Finance is advised by Shore Capital & Corporate, Deutsche Bank, Ondra Partners, Slaughter & May, and Maitland.
Saputo acquired Dairy Crest for c. £975m ($1.3bn). Saputo will pay 620 pence in cash for each Dairy Crest share, which indicates a premium of c.11.7%.
"Dairy Crest is an attractive platform for Saputo and fits well within our growth strategy. We believe that under Saputo ownership, Dairy Crest will be able to accelerate its long-term growth and business development potential and provide benefits to Dairy Crest's employees and stakeholders. This recommended offer represents a compelling opportunity for Dairy Crest Shareholders, providing immediate value certainty." Lino A. Saputo, Jr., Chairman, and CEO of Saputo.
Dairy Crest Group is advised by Peel Hunt, Shore Capital & Corporate, Greenhill & Co, JP Morgan, Eversheds, and Brunswick Group. Saputo is advised by Lazard, Freshfields Bruckhaus Deringer, and Stikeman Elliott.
Advance Media Group, wholly owned subsidiary of Advance Properties, founded by Kiril and George Domuschiev, Bulgarian Real Estate oligarchs, has acquired 95% interest in Nova Broadcasting Group, Bulgaria’s largest commercial media group and comprises 7 TV channels from MTG. The transaction values 100% of the business at an EV of €185m ($210m).
Nova is not only Bulgaria’s largest commercial media group but also, complementary online businesses that reach on average 74% of the Bulgarian population every month.
“This deal with Advance Media Group will ensure the continued development of Nova, which CEO Didier Stoessel and his team have grown into Bulgaria’s leading commercial media group.” Jørgen Madsen Lindemann, MTG President & CEO.
MTG is advised by Citigroup.
BMW and Daimler are pooling their mobility services to create a new global player providing sustainable urban mobility for customers. The two companies are investing more than €1bn ($1.1bn) in total to develop and more closely intermesh their offerings for car-sharing, ride-hailing, parking, charging and multimodal transport. Cooperation comprises five joint ventures.
“Our mobility services have developed a strong customer base, and we are now taking the next strategic step. We are pooling the strength and expertise of 14 successful brands and investing more than €1bn ($1.1bn) to establish a new player in the fast-growing market for urban mobility,” Dieter Zetsche, Chairman of the Board of Management of Daimler and Head of Mercedes-Benz Cars.
Cairngorm Capital Partners has acquired Sentry Doors, fire protection system manufacturer. Financial terms were not disclosed.
Sentry Doors is a market leader in the manufacturing of timber fire and security door-sets for the social housing, public sector, commercial and residential markets.
“I’m delighted that Sentry Doors and Cairngorm Capital will be working together, as our sector is on the cusp of considerable change. Although I am beginning to think about retirement, it was really important to find the right partner who had the vision and ambition to guide Sentry Doors to fulfill its potential." Gordon Yates, Founder, and Managing Director Sentry Doors.
Sentry Doors is advised by BCMS, Smith Craven, and Mills & Reeve. Cairngorm Capital Partners is advised by CIL Management Consultants, JLT Group, Vail Williams, PricewaterhouseCoopers, and Addleshaw Goddard.
KKR considers Asda buy after Sainsbury’s deal setback. (FS)
Private equity group KKR is exploring a bid for UK supermarket chain Asda after a planned £7.3bn ($9.5bn) takeover of the UK’s third-biggest grocer by its larger rival J Sainsbury looks set to collapse.
The Sunday Times, which first reported KKR’s interest, said Tony De Nunzio, a senior adviser at the buyout group, would become the company’s chairman if it manages to strike a deal. Mr. De Nunzio served as Asda’s finance director and later its chief executive before stepping down in 2005.
Ferragamo is not for sale.
Ferragamo’s Chairman Ferruccio Ferragamo denied the founding family could consider selling the eponymous luxury shoemaker, after speculation about a possible sale.
“We’re in love with this company, it’s not up for sale,” the Ferragamo chairman said on the sidelines of a fashion show in Milan.
Despite shrinking profits in the past two years and the challenge of rejuvenating a brand rendered famous by Hollywood stars such as Audrey Hepburn have fuelled market talk that Ferragamo could follow other Italian fashion names that have been snapped by foreign buyers. The chairman and newly-appointed Chief Executive Micaela Le Divelec expressed confidence about the group’s ability to relaunch.
Sika is interested in parts of BASF's construction chemicals business.
Switzerland’s Sika would be interested in buying some parts of BASF’s construction chemicals business but has ruled out bidding for the whole business, Chief Executive Paul Schuler told Reuters.
The Swiss chemicals maker is still awaiting a sales pack from bank Goldman Sachs which has been appointed by BASF to oversee the sale of the business which could carry a price tag of up to €3bn ($3.4bn).
Funding a deal would not be a problem for Sika, which is mainly concerned about the overlap between the two companies business in concrete admixtures, used to waterproof or strengthen building projects.
Vivendi to back Telecom Italia, Open Fiber network merger under right conditions. (FS)
Telecom Italia’s (TIM) main shareholder Vivendi said it would back a merger of the fixed-line networks of TIM and rival Open Fiber if conditions were right while renewing its attack on US activist fund Elliott.
Elliott, which owns just under 10% of TIM, is locked in a battle with Vivendi over how to re-launch the debt-laden firm after last year wrested control of its board from the French media giant.
In a series of slides, Vivendi said TIM’s fixed network was core to value creation, adding it would support a merger of Open Fiber with TIM if conditions were right from an operational, financial and regulatory standpoint and overseen by an independent board.
Japan launches a $113m fund to invest in Nordic and Baltic tech companies. (FS)
The Japanese government along with several companies has established a €100m ($113m) fund to invest in Nordic and Baltic technology firms.
Japan Bank for International Cooperation has partnered with Panasonic, Honda Motor, Omron and others to launch the fund.
“In addition to successful investments, the goal for the fund is to better link Japanese corporations to co-operate with the Nordic technology firms and innovations. So far the corporations feel that they have had limited access historically to the Nordic startups,” Investment Director Claes Mikko Nilsen.
AMERICAS
A Brazilian judge suspended negotiations for the tie-up of Brazilian aircraft maker Embraer and Boeing, according to a court document.
The court issued an injunction suspending an Embraer shareholders meeting scheduled for Feb. 26 that would vote on whether to approve the terms already agreed upon by the two companies.
The decision will likely be appealed to a higher court. Several previous injunctions blocking the progress of the negotiation have been overruled. Federal judge Victorio Giuzio Neto wrote in his decision on a union lawsuit against Embraer that until all alleged illegalities in the negotiating process were evaluated, the shareholders meeting must be suspended.
First Reserve has acquired South Carolina-based Refuel, a retail fuel distribution and convenience store chain. Also, the private equity firm has agreed to acquire another South Carolina-based gas station and convenience store chain West Oil. Financial terms were not disclosed.
"First Reserve has a history of backing experienced management teams with strong middle-market platforms to drive growth and create value for our stakeholders. We are pleased to partner with Mark Jordan and Travis Smith to establish a new platform in what we believe is the highly fragmented retail fuel distribution sector. Under their leadership, we believe Refuel, in part powered by the synergies of the combination with West Oil, is well-positioned for expansion in an attractive regional market." Gary Reaves and Neil Wizel, Managing Directors at First Reserve.
Private investment firm Auxo Investment Partners invested in Andrie, a Michigan-based Jones Act bulk transporter of specialty products including liquid asphalt, cement, light oil petroleum products, and calcium chloride throughout the Great Lakes. Financial terms were not disclosed.
As Auxo looks to build a platform of marine transport companies, “Andrie is a great fit for us,” Managing Partner Jeff Helminski. Andrie meets Auxo’s acquisition criteria for investing in mature industrial companies that hold a “best-in-class position” within their sector, he added.
Roche nearing a $5bn deal to acquire Spark Therapeutics.
Swiss drugmaker Roche Holding is nearing a deal to acquire US biotechnology company Spark Therapeutics.
The deal for Spark could be announced Monday, if not sooner, at a price tag of nearly $5bn, but could still fall through, the Wall Street Journal said, citing the unidentified sources. Spark’s market value was just under $2bn at Friday’s market close. The newspaper reported there was at least one other unidentified bidder for Spark as of Friday.
Buffett appears to fault Trump, making it tough for his Berkshire to find more big companies to buy. (FS)
Warren Buffett appeared to fault US President Donald Trump for taking too much credit for the nation’s economic growth while acknowledging that market conditions are making it tough for his Berkshire Hathaway to find more big companies to buy.
Buffett lamented these states of affairs in his widely read annual letter to Berkshire shareholders. Trump often takes credit for upbeat news on the economy and stock market, sometimes tying them to his economic policies. Buffett, who supported Democrat Hillary Clinton in her 2016 White House run, said no one person should claim credit when things go well.
Kraft Heinz write-down hits Berkshire results. (FS)
Berkshire reported a loss of nearly $28bn on the drop in its equity and derivative investments, as well as a further $3bn impairment charge related to its equity stake in consumer goods company Kraft Heinz. The maker of Kraft macaroni and cheese late this week said it would take a $15bn write-down and disclosed that it was the subject of a probe by US securities regulators over its accounting policies.
Canada's Barrick considers a buyout of rival Newmont Mining.
Canada’s Barrick said it considered making an all-stock bid for US rival Newmont Mining, a deal that would create a monolith in the global gold sector and likely push smaller peers to start buying each other.
Barrick, already the world’s largest gold miner, said its contemplated proposal did not offer any premium to Newmont’s shareholders and that no decision had been taken so far.
Deal-making had largely been dormant in the gold sector in recent years, as companies focused on cutting costs amid investor criticism of inadequate management of capital.
But Barrick’s $6.1bn buyout of rival Randgold Resources last month set off a fresh wave of deals, with Newmont following soon thereafter with a $10bn offer to buy smaller rival Goldcorp. That combination would make Newmont the world’s top gold miner if it closes as planned next quarter.
Canopy Growth to spin off properties into REIT.
Canopy Growth is considering multiple ways to leverage its assets, including issuing bonds, mortgaging its properties or even spinning them off into a real estate investment trust, according to the pot company’s chief executive officer.
“I do not wish to continue to be complimented on the extraordinarily clean balance sheet I have,” Bruce Linton said in a phone interview to Bloomberg. “It is not an efficient use of assets.”
Pinterest files confidentially for US IPO.
Pinterest has filed confidentially for a US initial public offering and is expected to seek a valuation for the company of at least $12bn.
The visual search site could list toward the end of June. A final decision on the San Francisco-based company’s IPO plans hasn’t been made.
APAC
UAE's ADNOC seals $4bn pipeline infrastructure deal with KKR and BlackRock. (FS)
ADNOC has been expanding through strategic partnerships since 2017. Last month it won a combined $5.8bn investment from Italy’s Eni and Austria’s OMV for a stake in its refining business to establish a new trading operation owned by the three partners.
The 18 pipelines have a total length of over 750 km and capacity of 13m barrels per day. Funds managed by KKR and BlackRock will form a consortium to hold a 40% stake in the entity, with ADNOC owning the rest. ADNOC will have sovereignty over the pipelines and management of pipeline operations.
Logistics startup Flexport raises $1bn in SoftBank-led funding round. (FS)
Freight logistics provider Flexport said on Thursday it had raised $1bn in funding led by SoftBank, valuing the company at $3.2bn.
Flexport moves freight globally by air, ocean, rail, and truck for the world’s leading brands. It competes with numerous other freight forwarding online marketplaces that are focused on price comparison, as well as helping their clients book and track shipments. Its goal is to compete more directly with likes of DHL, FedEx, and UPS.
The company expects to use the funding to hire more engineers, including at its new second technical office in Chicago, add more local experts in global markets, and invest in warehouses. San Francisco-based Flexport has raised nearly $305m in funding over five rounds, excluding the most recent round. Existing investors Founders Fund, DST Global and SF Express, a Chinese express delivery company, also participated in the latest round.
Uber Eats close to selling Indian food delivery business to Swiggy. (FS)
Uber Eats, the food delivery arm of the global ride-hailing platform is in final stages of negotiations to sell its India business to rival Swiggy, reported Economic Times.
The deal, which is expected to close by next month, will be Swiggy’s largest acquisition till date, and Uber’s first divestment of its food business globally. The transaction is likely to be a share swap, sources said, giving Uber about 10% stake in the Bengaluru-based company last valued at $3.3bn. The development is in line with Uber’s global strategy to cut down on losses as it prepares for a public offering at a possible valuation of $120-150bn.
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