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AMERICAS
Sunoco, a master limited partnership with core operations that include the distribution of motor fuel, agreed to acquire NuStar Energy, an independent liquids terminal and pipeline operator, for $7.3bn.
The transaction has been unanimously approved by the board of directors of both companies and is expected to close in the second quarter of 2024 upon the satisfaction of closing conditions.
NuStar Energy is advised by Barclays, Sidley Austin and Wachtell Lipton Rosen & Katz (led by Igor Kirman and Zachary S. Podolsky). Sunoco is advised by Truist Securities, Vinson & Elkins and Weil Gotshal and Manges (led by Michael J. Aiello).
Debt financing is provided by Bank of America and Truist Securities.
General Atlantic, a global growth investor, agreed to acquire an additional stake in The Argus Media Group, an independent provider of intelligence to the global energy and commodity markets, from Hg Capital, a private equity firm. Financial terms were not disclosed.
"We are delighted that General Atlantic remains a committed partner to Argus in the next phase of our growth. Argus serves its customers around the world by navigating the challenges presented by the move to a sustainable future, which involves both traditional hydrocarbon and energy transition commodities. Our mission to bring transparency to these markets remains unchanged. I am pleased that Argus continues to be an independent business with many employees invested in the Company. I would like to express my thanks to the Hg team for their support and partnership which has been instrumental in helping Argus continue to grow," Adrian Binks, Argus Media Chairman and CEO.
The Argus Media Group is advised by JP Morgan, Macfarlanes and White & Case. General Atlantic is advised by Morgan Stanley, Freshfields Bruckhaus Deringer and Edelman. Hg Capital is advised by Evercore and Skadden Arps Slate Meagher & Flom (led by Richard Youle and George Gray).
Investment companies Arkhouse and Brigade Capital offered to acquire Macy's, an American department store chain, for $5.8bn.
The offer was rejected. In light of the board's concerns, as well as the lack of compelling value in their non-binding proposal, Macy's has determined not to enter into a non-disclosure agreement or provide any due diligence information to Arkhouse and Brigade. Arkhouse threatened to bring the matter directly to Macy's shareholders if talks do not pick up.
Macy's is advised by Bank of America, Wells Fargo Securities and Wachtell Lipton Rosen & Katz. The bidders are advised by Jefferies & Company, Cadwalader Wickersham & Taft, Paul Weiss Rifkind Wharton & Garrison and Longacre Square Partners (led by Scott Deveau and Joe Germani).
Blackstone, a private equity firm, completed an investment in Salas O’Brien, an employee-owned engineering and technical services firm. Financial terms were not disclosed.
“Salas O’Brien is thrilled to partner with Blackstone as we continue our journey of growth. As more companies and institutions pursue their decarbonization, energy transition, and critical infrastructure goals, Salas O’Brien’s expertise has never been more needed in the world. Blackstone’s investment helps us gain greater access to talent, enhances our technology resources, and helps us better serve more clients. The fact that we can do all of this while retaining our employee ownership approach and in partnership with the incredible professionals at Blackstone is an amazing validation of our team’s hard work—and positions us to get even better,” Darin Anderson, Salas O’Brien Chairman and CEO.
Salas O’Brien was advised by Guggenheim Partners and Latham & Watkins. Blackstone was advised by Chartwell and Kirkland & Ellis.
Bodycote, a supplier of heat treatments, metal joining, hot isostatic pressing and coatings services, completed the acquisition of Lake City HT, a hot isostatic pressing and vacuum heat treatment business, for $66m.
"Completion of the acquisition of Lake City HT is an exciting further step in our strategy to grow our Specialist Technologies businesses and footprint. This acquisition is an excellent fit, enhances our profitability and earnings per share in addition to allowing us to capitalise on the appealing structural growth opportunities in Medical and Aerospace markets," Stephen Harris, Bodycote CEO.
Sandoz, a supplier of off-patent medicines, agreed to acquire CIMERLI business from Coherus, a biopharmaceutical company, for $170m.
“I am pleased that we can add another high-value product to the growing Sandoz biosimilar portfolio, further strengthening our existing ophthalmology franchise. The addition of CIMERLI® reinforces our commitment to biosimilars and represents a huge step towards our goal of pioneering patient access to more affordable and much-needed medicines in the US,” Keren Haruvi, Sandoz North America President.
Coherus is advised by JP Morgan and Latham & Watkins.
ADQ-backed Unifrutti Group, a specialist in premium fresh fruits production and distribution, completed the acquisition of Verfrut, a key South American fruit producer and exporter. Financial terms were not disclosed.
This acquisition represents an important step in expanding Unifrutti's integrated and sustainable global multi-fruit platform. With Verfrut's inclusion, Unifrutti becomes a major fruit company in Chile, one of the largest production centers for grapes and cherries globally, and a leading apple player in the southern hemisphere. Furthermore, this acquisition strategically extends Unifrutti's reach into Peru, a key hub in the fresh produce sector.
Unifrutti was advised by Rothschild & Co.
ASSA ABLOY, a Swedish conglomerate whose offerings include products and services related to locks, doors, gates, and entrance automation, completed the acquisition of Integrated Warehouse Solutions, a US manufacturer of loading dock equipment. Financial terms were not disclosed.
"I am very pleased to welcome IWS into the ASSA ABLOY Group. This acquisition delivers on our strategy to strengthen our position in mature markets through adding complementary products and solutions to our core business," Nico Delvaux, ASSA ABLOY President and CEO.
Tradeweb, a global operator of electronic marketplaces for rates, credit, equities and money markets, completed the acquisition of r8fin, a technology provider that specializes in algorithmic-based execution for US treasuries and interest rate futures. Financial terms were not disclosed.
“We are developing an integrated approach to accessing the US Treasury market through multiple liquidity pools across cash and futures – and r8fin is an important part of that approach. This acquisition is very much in Tradeweb’s wheelhouse, and we believe it represents a meaningful step forward in how electronic trading can unlock new possibilities for relative value hedge funds and other clients. We are also pleased to welcome r8fin co-founder Assad Fehmy to Tradeweb,” Billy Hult, Tradeweb CEO.
SEC probes B. Riley deals with client tied to failed hedge fund. (FS)
US authorities are investigating B. Riley Financial's deals with a client who was linked to a securities fraud, and the use of his assets to help the investment bank obtain a loan from Nomura, Reuters reported.
B. Riley said in a statement that it was unaware of any SEC investigation regarding any of the matters and that it would cooperate if such a situation occurred.
The SEC has carried out interviews in recent months about B. Riley and its relationship with Brian Kahn. Kahn is one of two co-conspirators named by co-founder of hedge fund Prophecy Asset Management John Hughes who last year pleaded guilty to securities fraud.
Amer Sports to weigh raising up to $1.8bn in US IPO.
Amer Sports, the maker of Wilson tennis rackets and Salomon ski boots, is seeking to raise as much as $1.8bn in a US initial public offering, Bloomberg reported.
The company could market about 100m shares in a range of $16 to $18 each. Terms of the potential offering may be announced as soon as in the coming days.
The listing would be the biggest in the US since a crop of IPOs led by semiconductor designer Arm Holdings $5.23bn offering in September failed to deliver a hoped-for rebound in the market.
Choice Hotels nominates board directors in hostile Wyndham bid.
Choice Hotels International pressed ahead with its $8bn hostile bid for Wyndham Hotels & Resorts on Monday by nominating a slate of directors to replace Wyndham's eight-member board, Reuters reported.
It is Choice's latest attempt to break a stalemate after trying for most of the last year to negotiate a deal with Wyndham, which has rebuffed the bid as low-premium and fraught with antitrust risk. Wyndham has also raised concerns about the combined company carrying too much debt and a slowdown in Choice's business.
Choice said its slate of nominees includes hospitality industry veteran Jay Shah, who currently serves on the board of private equity-backed HHM Hotels; Susan Schnabel, founder of aPriori Capital Partners which advises private equity on leveraged buyouts; James Nelson, CEO of real estate investment trust Global Net Lease; and Fiona Dias, who served on Choice's board from 2004 to 2012.
US regulator seeks more data on Occidental-CrownRock deal.
Exxon Mobil's $60bn proposed deal for Pioneer Natural Resources and Chevron's $53bn agreement for Hess had also attracted FTC requests for additional information, as a wave of consolidation sweeps the sector. Occidental and CrownRock said they received the FTC request on January 19, and will continue to work constructively with the regulator.
The proposed acquisition would boost Occidental's oil and gas production in the top US shale field by 170k barrels of oil and gas per day to 750k barrels.
Wall Street banks want to lure back loan deals lost to private credit.
Investment banks including Goldman Sachs, Citigroup and Barclays are seeking to poach back leveraged finance deals that were snapped up by direct lenders when markets were more volatile, Bloomberg reported.
Bankers in Europe and the US are speaking with buyout firms about private credit loans that were signed when credit spreads were blowing out and banks were preoccupied with hung debt on their balance sheets. Now that leveraged loan markets have calmed down and interest rate cuts are on the horizon they want to get some of the business back.
Exxon sues two ESG investors. (FS)
Exxon Mobil is suing two sustainable investment firms in a bid to block them from putting forward a shareholder proposal that would commit the oil company to further curb its greenhouse-gas emissions and target its customers’ emissions, WSJ reported.
In a federal lawsuit filed in Texas, the Houston-based oil giant said investment firms Arjuna Capital and Follow This became Exxon shareholders only to put forward proposals that would “diminish the company’s existing business.”
Arjuna submitted a proposal in December asking shareholders to pass resolutions committing Exxon “to go beyond current plans, further accelerating the pace of emission reductions in the medium-term.” This joined the proposal the following day, Exxon said. In a departure from Exxon’s current policy, they advise the oil company to target the emissions of its suppliers and customers in addition to its own.
EMEA
Groupe FDJ, a French gaming operator, agreed to acquire Kindred, an online gambling operator, for SEK28bn ($2.7bn)
"I'm delighted with today's transaction announcement between FDJ and Kindred, creating a leading European gaming operator with the financial and strategic capabilities to further expand its global footprint. I believe that combining with FDJ, Kindred can accelerate the delivery of long-term strategic projects, continue to grow in core markets, and provide a trusted source of entertainment to customers. It will also speed up our path towards 100% locally regulated revenue. I'm excited to bring Kindred's extensive experience and know-how into FDJ's organisation, contributing to the development of a leading online gaming business. I'm also very proud that FDJ acknowledges and values the skilled employees and strong assets within Kindred," Nils Andén, Kindred CEO.
Kindred is advised by Canaccord Genuity, Jefferies & Company, Morgan Stanley, PJT Partners and White & Case.
Brickability, a building material company, completed the acquisition of Topek, a construction services provider, for £48m ($61m).
"We've seen in our Bricks and Building Materials division how cladding products supply has gone from strength to strength. With Topek, which will sit in our Contracting division, we will be building on that and expanding our existing product and services range into supply and installation as we continue to pursue our diversified multi-business strategy," Alan Simpson, Brickability CEO.
Crédit Agricole, a French international banking group, completed the acquisition of a 7% stake in Worldline, a French multinational payment and transactional services company. Financial terms were not disclosed.
This investment is building upon the strategic partnership between Crédit Agricole Group and Worldline, for which the signing of a binding agreement was announced in July 2023. It is intended to strengthen this partnership to create a major player in the French merchant payment services market.
iQSTEL, a technology company, agreed to acquire a 51% stake in QXTEL, a telecommunications services provider. Financial terms were not disclosed.
"The company continues to grow and expand its suite of products and services both organically and through mergers and acquisitions. iQSTEL has completed 10 acquisitions since June 2018 and continues to develop an active pipeline of potential future acquisitions," iQSTEL.
Compass Group, a British catering company, agreed to acquire CH&CO, a catering and hospitality company. Financial terms were not disclosed.
“I have always admired CH&CO and its real passion for food. I believe that by combining our strengths the proposed acquisition will bring a multitude of benefits to clients, customers and employees. Together we have the potential to create even more compelling and innovative solutions for our clients and customers, as well as a wider range of career opportunities for our talented people in both organisations,” Robin Mills, Compass Group UK & Ireland CEO.
Russian tycoon Rybolovlev to explore sale of AS Monaco Football Club.
Billionaire Dmitry Rybolovlev has hired an advisory firm to study the possibility of a sale of his controlling stake in AS Monaco football club amid interest from potential buyers, Bloomberg reported.
Rybolovlev, one of a few Russian tycoons who is not under sanctions as he left the country over a decade ago, got at least two proposals to sell his stake from American investors last year.
Rybolovlev’s company appointed investment bank Raine Group to serve as its exclusive financial adviser as it explores strategic alternatives for its stake in the club after receiving unsolicited inbound interest.
Miracle-Ear owner buys up points of sale as US consumers age.
Hearing aid specialist Amplifon is boosting its presence in one of the world’s most important acoustic equipment markets, Bloomberg reported.
The Italian company has purchased a network, comprising around 50 stores, of one of the main franchisees for its North American brand Miracle-Ear. The final terms of the deal were not disclosed.
Miracle-Ear currently has over 1.55k shops across the US. After the transaction, Amplifon will directly operate 350 of them, as it positions itself to benefit from sales to the country’s aging population.
APAC
Sony Group and Zee Entertainment have officially called off a planned $10bn media merger in India after two years of drama and delay, abandoning their effort to create an entertainment giant in Asia’s biggest streaming market, Bloomberg reported.
The collapse of the deal in content-hungry India creates more uncertainty for TV broadcaster Zee in particular as competition heats up, with Disney also seeking to merge its Indian businesses with the media assets of billionaire Mukesh Ambani's Reliance.
Axiata’s Link Net considering sale of stake in Indonesia fiber business.
Indonesian internet provider Link Net is considering selling a stake in its fiber business to raise as much as $500m to fund an expansion, Bloomberg reported.
The unit of Axiata Group, Malaysia’s biggest wireless carrier, is seeking an adviser to help with a potential sale, which could raise $400m to $500m.
BlackRock to sell Shanghai office towers at 30% discount. (FS, RE)
BlackRock is seeking to sell an office complex in Shanghai at about a 30% discount to its purchase price reflecting the sluggish commercial property market in China’s biggest city, Bloomberg reported.
The New York-based asset manager is marketing the property in northwestern Shanghai at a reduced rate to speed up the sale.
BlackRock bought two towers at Waterfront Place from PGIM Real Estate for a reported CNY1.2bn ($167m) in 2018. They have a total area of 27.8k square meters of office space in Chang Feng, a decentralized business district.
Chinese grilled fish diner chain considering Hong Kong IPO.
Shenzhen Gantang Mingshan Catering, the company behind popular Chinese restaurant chains including grilled fish diner Tanyu, is weighing an initial public offering in Hong Kong as soon as this year, Bloomberg reported.
China International Capital is working with the Shenzhen-based firm on preparations for a listing. GTMS, as the company is known, may seek to raise a few hundred million dollars in a share sale. It currently has a valuation of about CNY7bn ($973m) to CNY8bn ($1.12bn).
Indonesian state firm Pertamina's shipping arm weighs IPO next year.
Pertamina International Shipping, a unit of Indonesian state energy firm Pertamina, is considering an initial public offering next year to help finance its expansion plan, DealStreetAsia reported.
The firm this month said it plans to add six very large gas carriers this year to its fleet as it focused on gas transportation. It launched two of those VLCGs earlier this month.
Clime Capital hits $127m first close of second SE Asian clean energy fund. (FS)
Singapore-based Clime Capital, a long-established listed investment company, wrapped up the initial round for its South East Asia Clean Energy Fund II, securing $127m.
Key investors in the fund include Allied Climate Partners, Australian Development Investments, and the Global Energy Alliance for People and Planet.
BPEA Credit plans to launch first India-SE Asia fund at $750m this year. (FS)
BPEA Credit, a prominent mid-market performing credit platform in Asia, plans to launch its inaugural India-Southeast Asia fund with a targeted size of $750m by the end of the year, DealStreetAsia reported. While this will be the firm’s fourth fund to date, it will be the first to include Southeast Asia.
The key drivers for the firm behind its Southeast Asia expansion are the substantial size of these economies, the region’s growth and its ability to absorb a large amount of capital to support it. Complementing these are the reforms that further the growth, allowing them the ability to earn attractive returns.
Deutsche Bank names Kim as South Korea chief country officer. (People)
Deutsche Bank has named Samuel Kim as chief country officer for South Korea, replacing Sungeun Ahn, who is leaving the bank after more than a decade with the German lender, Bloomberg reported.
Kim, who joined Deutsche Bank last year as chairman of mergers and acquisitions in Asia Pacific, will relocate to Seoul from Hong Kong soon. He will continue to lead M&A in the region and tap on his relationships in the region, including with financial sponsors and conglomerates.
Prior to joining Deutsche Bank, Kim worked at Morgan Stanley in the US and Asia for more than 24 years, holding a number of senior roles. He will work closely with Hyun-Nam Park, who will continue in her role as Deutsche Bank’s branch manager in Korea.
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