EMEA
The board of Renault will meet on Tuesday to discuss Fiat Chrysler’s merger offer, the French carmaker said, as Finance Minister Bruno Le Maire reiterated the government’s conditional support for the tie-up.
Renault directors will decide whether to open formal talks with FCA when they reconvene after informal work sessions being held this week. Italian-American FCA on Monday pitched a $35bn merger with Renault to create the world’s third-biggest carmaker, joining forces to tackle mounting industry challenges including investment-heavy emissions regulation, vehicle electrification, connectivity and driving autonomy.
FCA is advised by Goldman Sachs, Nomura, d'Angelin & Co, Darrois Villey Maillot Brochier, and Sullivan & Cromwell.
Ithaca Energy acquired Chevron North Sea for $2bn. The transaction will add a further ten producing field interests to the existing Ithaca portfolio, four of which relate to assets operated by the Company, resulting in an approximately 150% increase in the proven and probable reserves of the Company and a 300% increase in forecast 2019 production.
With the addition of the high quality, long life assets that characterize the CNSL portfolio, the acquisition delivers upon several key strategic objectives of the Company and establishes Ithaca as the second largest independent oil and gas producer in the UK North Sea.
"The acquisition of CNSL is a significant step forward in the long term development of Ithaca Energy and underlines our belief in the North Sea, particular in the UK Central North Sea where the enlarged business will own a range of interests in several key producing assets." Les Thomas, Ithaca Energy CEO.
Chevron North Sea is advised by BNP Paribas. Ithaca Energy is advised by JP Morgan and FTI Consulting.
Euronext has completed its confirmatory due diligence on Oslo Børs and declares its offer unconditional. As a result, the offer will now be completed, and Oslo Børs VPS shareholders who have tendered their shares in the Offer will receive an Offer Price of NOK158 ($18) per share plus applicable interest payments.
Settlement of shares tendered under the Offer and agreed to be acquired is expected to occur by June 14, 2019. Euronext will communicate the result of the Offer and its expected total holding of Oslo Børs VPS shares next week.
Oslo Bors is advised by Arctic Securities, Carnegie, Advokatfirmaet Thommessen, and Advokatfirmaet Selmer. Euronext is advised by Bank of America Merrill Lynch, Rothschild & Co, SEB Corporate Finance, SpareBank 1 Markets AS, and Schjodt. Nasdaq is advised by Goldman Sachs and Skadden Arps Slate Meagher & Flom.
Allianz has struck two separate deals in the UK general insurance market, spending a combined £820m ($1.03bn) on acquisitions that will make it number two in the sector.
Following the latest acquisitions, the L&G business will be integrated with LV General Insurance. Allianz has the right to use the LV brand for another seven years.
The Rank Group, a gambling company based in the United Kingdom, acquired Stride Gaming, a leading international gaming company, for £115m ($145m). The offer represents a premium of approximately 29% to the Closing Price per Stride Share of 118 pence on 30 May 2019. Commenting on the Offer, Nigel Payne, Chairman of Stride, said:
"Despite Stride's strong market position, ownership of its leading technology and excellent long term growth potential, the Board recognizes the scale of the mounting regulatory and fiscal pressures which the UK gaming sector is facing. It is also concerned that investor sentiment to Stride is likely to continue to be negatively impacted by these external pressures for some time.
Following the announcement of Stride's strategic review in February 2019, Stride had approaches from a number of parties, in addition to Rank. After extensive discussions, the Board concluded that a combination with Rank has significant strategic logic and its offer of 151p per share represents fair value for Stride shareholders in the current environment. Accordingly, the Board of Stride is unanimously recommending Stride Shareholders to vote in favor of the Offer."
Stride Gaming is advised Investec, Carey Olsen, Pinsent Masons, and Hudson Sandler. The Rank Group is advised Goodbody, Peel Hunt, Evercore, CMS, Mourant Ozannes, and FTI Consulting.
Tele2 has agreed to sell its Croatian business to United Group for an enterprise value of €220m ($245m). The transaction provides an opportunity for Tele2 to realize value from the successful development of the Croatian business and to further advance its strategy with a focus on the Baltic Sea region. Closing is expected before the end of 2019 and is subject to regulatory approval.
"We are proud of the business we have built in Croatia and especially its outstanding development in the last two years, driven by our talented employees and our valued customer base. We believe Tele2 Croatia will create even greater value for our customers going forward, as part of United Group’s family of telecom and media companies. For Tele2, this opportunity enables an increased focus on successfully executing our strategy in the remaining footprint." Anders Nilsson, President, and CEO of Tele2.
Tele2 is advised by Perella Weinberg Partners.
Broadcasters ProSiebenSat and Mediaset denied a newspaper report that they were in talks on creating a pan-European TV company after the Italian media house bought a 9.6% stake in its German rival this week, Reuters reported.
The holding company would be based in the Netherlands or Belgium and not in countries such as Italy, Spain or Germany where the broadcasters have much of their business. ProSieben was focusing on the launch next month of its streaming joint venture with Discovery, called Joyn, as well as initiatives to develop ‘smart’ advertising, Conze added in a statement.
“We are not engaged in such discussions. We are making good progress in executing our strategy and are fully focused on developing ProSiebenSat.1 into a digital and future-ready company,” ProSieben CEO Max Conze.
Deutsche Bank and UBS entertained the idea of mega-merger earlier this year.
Deutsche Bank and UBS Group explored the idea of a mega-merger earlier this year that would have created continental Europe’s most prominent financial institution.
Top Deutsche Bank and UBS officials held preliminary discussions in recent months about a possible combination, Bloomberg reported. The talks, which never proceeded beyond the initial stage, grew out of now-stalled negotiations to combine the firms’ asset management businesses.
The move underscores the full range of options Deutsche Bank has been willing to explore as Chief Executive Officer Christian Sewing hunts for a new strategy to present to investors. There may be regulatory support for tie-ups amid increased US competition: European Central Bank President Mario Draghi said in April that Europe’s banking system is overcrowded and “the need for consolidation is very significant.”
Italy's football club Fiorentina confirms sale process.
Italian Serie A soccer club ACF Fiorentina said its owners were negotiating a sale.
In a statement, the club said its board had resigned after being informed by the Della Valle family that a sale process was underway. Mediacom Chairman Rocco Commisso was interested in buying Fiorentina, Reuters reported.
The Della Valle’s own luxury goods group Tod’s and - since 2002 - the Florence-based club.
Total expects Papua New Guinea to honor LNG deal.
French energy company Total said on Friday that it expected Papua New Guinea’s incoming government to honor a contract signed by the previous administration for a liquefied natural gas project in the South Pacific archipelago.
“We note that the new prime minister has indicated that he will honor the contracts that were already signed. According to our information, this touches on the gas agreement signed by PNG’s government to develop the Papua LNG project.” Total said in a statement sent to Reuters.
Whirlpool confirms €250m Italy Investment plan.
Whirlpool (WHR), an appliance manufacturer, confirmed it would invest €250m ($278m) in Italy for the 2019 to 2021 period to enhance its industrial sites and said €80m ($89) had been allocated to the sites this year.
The company reaffirmed its commitment to Italy as an industrial and market base for its Europe, Middle East, and Africa operations at a meeting in Rome between Italian trade unions and management.
Whirlpool said it plans to proceed with the reconversion of its Naples site and to sell the business to a third party. The company will work with unions and other parties to define the details and timeframe of the reconversion in the coming days.
AMERICAS
thyssenkrupp Elevator has acquired the Elevator division of Nashville Machine Company. Formerly the exclusive distributor in the Middle Tennessee area for thyssenkrupp Elevator, Nashville Machine Elevator has 130 employees, all of which will be allowed to join thyssenkrupp. Financial terms were not disclosed.
“As one of our most trusted distributors, Nashville Machine Elevator has consistently demonstrated expertise and commitment to thyssenkrupp and our state-of-the-art products and technology. Their strong relationships in the Nashville area coupled with an excellent service, modernization and new installation base makes Nashville Machine and its hard-working employees a perfect fit in the growing thyssenkrupp Elevator family.” Steve Wedge, Interim CEO and CFO of thyssenkrupp Elevator North America.
Palo Alto Networks, the global cybersecurity leader, has acquired Twistlock, the leader in container security, and PureSec, a leader in serverless security, to extend its Prisma™ cloud security strategy for $410m.
With the additions of Twistlock and PureSec to the Prisma cloud security suite, Palo Alto Networks will be uniquely positioned to secure today’s modern applications throughout the entire life cycle, enabling organizations to deliver innovations that are secure, reliable, and scalable.
"Today marks another exciting step forward in our commitment to offering our customers the industry's most complete cloud security offering. We believe that our acquisition of these leading companies will significantly enhance our ability to be the cybersecurity partner of choice for our customers while expanding our capabilities and strengthening our Prisma cloud security strategy." Nikesh Arora, Palo Alto Networks chairman, and CEO.
Twistlock is advised by Meitar Liquornik Geva Leshem Tal. Palo Alto Networks is advised by Sidley Austin.
Fidelity International, one of the largest shareholders in Acacia Mining, said Barrick Gold’s low bid to buy the Acacia shares it does not already own showed a lack of judgment and it was a “no brainer” to reject it.
The comments in an interview are the first public response from one of Acacia’s top shareholders since Barrick’s offer earlier this month to buy them out for $787m.
Barrick Gold spun off Acacia into a separate company in 2010 but owns 64% of it. Barrick has said the offer level reflects the risk of operating in Tanzania and it has until June 18 to turn the indicative bid into a firm offer.
Excel Search Group has entered into a definitive agreement to merge with Profectus. Financial terms were not disclosed.
Excel Search Group is a Houston based business advisory and executive search firm with a substantial portfolio of new and existing clients throughout Texas, including several Fortune 500 companies. Not only will Profectus continue to attract top talent, but the integration of leadership will create a more strategic approach to clients and their overall objectives.
“People are your most important resource. This is why the merger of both firms made sense. In today’s world, human capital needs to be at the top of the list.” Gilbert Alba, Excel Search Group President.
Lewis & Clark Bank and Clatsop Community Bank completed merging Clatsop into Lewis & Clark in a stock and cash transaction. Clatsop Community Bank shareholders receive 0.3 Lewis & Clark Bank shares and $2.89 in cash in exchange for each share of Clatsop stock.
The combined bank, named Lewis & Clark Bank and headquartered in Oregon City, has assets of approximately $300m and branch locations in Oregon City, Oregon; Seaside, Oregon; and Astoria, Oregon.
“The completion of our merger with Clatsop Community Bank expands our geographic footprint while strengthening our ability to serve our clients.” Jeffrey Sumpter, President & Chief Executive Officer of Lewis & Clark Bank.
Clatsop is advised by RP Financial and Lane Powell. Lewis & Clark is advised by Sandler O’Neill + Partners and Miller Nash Graham & Dunn.
Thoma Bravo, a leading private equity investment firm, has completed the acquisition of Autodata Solutions Group, a provider of data and software solutions that power the automotive ecosystem. Financial details were not disclosed.
Autodata Solutions provides SaaS and software solutions that range from back-end automation systems that enable dealer-to-original equipment manufacturer (OEM) vehicle ordering to data-driven consumer-focused interactive marketing initiatives. Its solutions increase the effectiveness of the automotive sales chain.
“We are aligned in our commitment to bring high-quality data and software solutions to an industry undergoing significant technological adoption, with an increasing focus on leveraging digital channels.” Craig Jennings, President of Autodata Solutions.
Thoma Bravo was advised by Kirkland & Ellis. KKR Capital Markets and RBC Capital Markets provided financing. KKR & Co was advised by RBC Capital Markets and Simpson Thacher & Bartlett.
Validity, completed its acquisition of Return Path, the global leader in email deliverability. Financial terms were not disclosed.
The combination of Return Path and Validity provides organizations with the most comprehensive technology solutions to target, contact, engage, and retain customers effectively.
"Validity continues to welcome great leading global brands, such as Return Path, to the Validity family. For over 20 years, the incredible team at Return Path has pioneered innovative ways to solve key issues related to data quality and created the industry’s dominant email deliverability platform. We’re thrilled to welcome the Return Path team, customers and solutions into the Validity family,” Mark Briggs, Validity CEO.
Return Path is advised by Houlihan Lokey and Sullivan & Cromwell.
Gen Cap America has partnered with management to acquire Mayflower Sales, a Brooklyn-based value-added distributor of premium physical security and storefront hardware products. Financial terms were not disclosed.
Mayflower is a value-added distributor of premium products including locks, locksets, access control systems, and door hardware. For decades, Mayflower has provided quality products and personalized service to a variety of customers and end markets, including sub-contractors, hospitals, universities, and government institutions.
“For three generations, we here at Mayflower have earned our reputation for service and quality because of our uniquely qualified and experienced staff that helps provide solutions for our customers. Nothing about that model will change going forward. We selected Gen Cap based on their long-standing track record of partnering with established management teams to drive continued success.”Paul Swetow, Mayflower CEO.
Cushman & Wakefield has acquired the Austin, Texas, operations of Peloton Commercial Real Estate, one of Austin’s market-leading, full-service real estate brokerage, property management and project management firms. Financial terms were not disclosed.
Peloton’s portfolio of leased and managed properties includes 5m square feet of office, industrial, retail, and mixed-use property in the greater Austin area.
“Austin continues to be one of the fastest-growing and most dynamic markets in the country. Investing in Kevin, Brian, Matt, and their first-class team brings Cushman & Wakefield an enhanced competitive edge in serving the Austin business community. From startups to corporate giants, our ability to serve local, national, and global occupiers and investors in Austin has never been stronger.” Andrew McDonald, Cushman & Wakefield’s West Region President.
BASF to divest its $3bn Construction Chemicals Arm. (FS)
BASF has kicked off a sale process for its construction chemical business, which could fetch about €2.7bn ($3bn), Bloomberg reported.
The German company has started to contact select interested parties, a BASF representative said in response to Bloomberg queries, declining to comment further. Carlyle Group and building-materials maker Standard Industries are among potential suitors considering offers for the unit.
It could also attract interest from other private equity firms, including Bain Capital, Cinven, and KKR.
Total acquired Toshiba's US LNG business.
Total will take over Toshiba’s US liquefied natural gas business and get $800m cash from the Japanese group as part of the deal, the companies said on Saturday, weeks after attempts to sell it to a Chinese buyer fell through.
The French energy major is paying $15m for the shares in the Texan assets, the firms said. Toshiba will also pay Total $815m to take over all the contracts linked to the business, Total added.
The Japanese group had previously said that its US LNG operations might cause it losses of as much as 1tn yen ($9bn). For Total, the deal comes amid a big push to expand its LNG portfolio.
Warren Equity-backed M&D Distributors acquired Diesel Testers. (FS)
M&D Distributors, an independent aftermarket distributor of diesel engine parts and components, announced its asset acquisition of Diesel Testers, a service dealer that provides diesel engine parts and repair services through its retail location in Texas. Financial terms were not disclosed.
Diesel Testers will serve as the M&D’s first branch location servicing customers within West Texas and the greater Permian Basin area, which has led North America’s resurgence in domestic oil and natural gas production over the last several years.
"We are excited to enter the rapidly growing and underserved Odessa market through the acquisition of Diesel Testers. Our presence and investments will add tremendous value to our customers as the region continues to experience unprecedented levels of industrial activity," Michael Zhang, Vice President at Warren Equity Partners.
Gauge recapitalized irth. (FS)
Gauge Capital has partnered with the owners and management team of irth Solutions to recapitalize the company. Financial terms were not disclosed.
Founded in 1985 and headquartered in Columbus, Ohio, irth is a leading provider of 811 ticket management and field service management software. irth’s software helps companies in the energy, utilities, and telecom sectors protect their critical assets.
"There is a large unaddressed segment of companies with critical assets, and with the recent investment from Gauge, we plan to accelerate our market penetration, expand into other industry verticals, and develop additional solutions within the FSM space that satisfy unmet needs of our customers” Trent Peugh, irth President, and CEO.
irth was advised by Vaquero Capital.
Amazon considers Boost Mobile acquisition from T-Mobile to spread its tentacles to 5G.
The ambition signaled that Amazon is looking to dive deeper into the wireless industry, strengthen its cloud services, and ultimately take advantage of the next-generation 5G networks that are expected to transform significant technology facets.
Comcast is not interested in acquiring divested spectrum from Sprint-T-Mobile deal.
Bloomberg reported earlier this week that Comcast and Charter Communications were in discussions with US regulators to buy wireless spectrum. T-Mobile and Sprint were considering divesting frequency back to the government, which would then sell it to help establish the fourth carrier.
Transat's top investor urges to drop out of Air Canada deal.
Transat's largest shareholder urged the company not to sell itself to Air Canada, and said Transat should not consider any offer until it restores its profitability, Globe and Mail reported.
“We don’t think this is an opportune time to be selling the company,” Peter Letko of Montreal-based investment manager Letko, Brosseau & Associates.
Clayton, Dubilier & Rice presents a new leadership team. (People)
Clayton, Dubilier & Rice has appointed Nate Sleeper as Chief Executive Officer, and David Novak and Rick Schnall as Co-Presidents, effective 1 January 2020. Donald Gogel, CD&R’s current Chief Executive Officer, will continue to serve as Chairman.
“I have worked closely with Nate, Dave, and Rick for two decades and am confident in their abilities to carry the vision and values of the Firm forward,” says Gogel.
TPG considers buying Capital Senior Living. (FS)
Private equity firm TPG is looking to acquire senior living communities operator Capital Senior Living, Bloomberg reported.
TPG has made several approaches for an acquisition, all of which have been rebuffed by Capital Senior Living, the report said.
APAC
An Australian regulator said it will review its approval for Crown Resorts’ $1.5bn casinos being built in Sydney after the gambling giant’s founder James Packer sold nearly half his stake in the company to Hong Kong’s Melco Resorts.
The New South Wales gambling regulator had given its nod in 2014 to Crown’s prized growth prospect on condition Crown would not do business with the father of Melco CEO Lawrence Ho, Stanley Ho, who at the time under investigation in Australia and the United States for possible ties to organized crime.
However, the latest move by billionaire Packer to sell 20% of Crown, nearly half his 47% stake, to Melco Resorts & Entertainment plunges into uncertainty Packer’s pet project - the 75-floor tower-to-be on the Sydney waterfront aimed at luring wealthy Chinese gamblers.
Japanese Government leaves Nomura out of Japan Post share sale after information leak.
Japan named six investment banks to lead manage a high sale of shares in Japan Post, leaving out top-ranked Nomura days after it was disciplined over an information leak. While the government has yet to announce the size of the share sale, it is widely expected to raise at least 1.2tn yen ($11bn).
The Ministry of Finance said it had chosen Daiwa Securities, Mizuho Securities, and SMBC Nikko Securities to handle the domestic sale. Goldman Sachs, Merrill Lynch, and JP Morgan were selected for overseas sales.
India's SpiceJet considers taking over widebody jets previously operated by Jet.
Indian budget airline SpiceJet is examining the prospect of taking over widebody jets previously operated by Jet Airways, but initial studies show they need significant maintenance work, its chairman said.
SpiceJet, which operates narrowbody and turboprop planes, does not have firm plans to become a widebody operator with longer-range flights in the wake of Jet’s collapse in April, SpiceJet Chairman Ajay Singh said.
“Certainly, a gap has been created, and there seems to be an opportunity, but it is also a business that we don’t know very much about. A higher risk business,” Ajay Singh told Reuters.
New Jersey considers $100m investment in Warburg’s $4.25b China-SEA fund. (FS)
New Jersey Division of Investment, which manages investments for the $76.5bn state pension fund, has proposed an investment of up to $100m in the $4.25-bn China-Southeast Asia-focused private equity fund of global investor Warburg Pincus.
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