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AMERICAS
Some of Frontier Communications' largest shareholders are concerned about its planned $20bn takeover by Verizon Communications, with its second-largest investor planning to vote against the deal.
The investor plans to vote against it when the deal comes up for shareholder vote on November 13. A majority of outstanding shares need to vote in favor of the deal to be approved, Reuters reported.
Verizon Communications, a telecommunications company, agreed to acquire spectrum assets of United States Cellular, an American mobile network operator, for $1bn.
"We are pleased that significant value for a portion of the remaining licenses will be realized and, importantly, that these agreements with multiple mobile network operators ensure that this spectrum will be put to work for consumers throughout the country. We are continuing the process to opportunistically monetize the remaining spectrum assets not included in today's announcement," Laurent C. Therivel, UScellular President and CEO.
UScellular is advised by PJT Partners, Clifford Chance, Cravath Swaine & Moore and Wilkinson Barker Knauer. Telephone and Data Systems is advised by Centerview Partners, Citigroup, TD Securities, Wells Fargo Securities and Sidley Austin.
Independent proxy advisory firms Glass Lewis and Institutional Shareholder Services recommend that Terran Orbital stockholders vote “FOR” the adoption of the acquisition plan from Lockheed Martin.
Glass Lewis considered the following key factors in making its recommendation that the Company underwent a comprehensive strategic review process, including during the go-shop period, and the proposed Merger represents the only viable option to investors.
Audax Private Equity, a private equity firm, completed the acquisition of the clinical services business of Avantor, a provider of mission-critical products and services to customers in the life sciences and advanced technologies industries, for $650m.
"This transaction not only strengthens our balance sheet and reduces interest expense, but also enables us to sharpen our focus on strategic growth opportunities in our lab and production businesses. We extend our gratitude to the associates transferring with the business for their invaluable contributions and wish them continued success as they embark on this new chapter under Audax's ownership," Michael Stubblefield, Avantor President and CEO.
Audax was advised by Moelis & Co, Ropes & Gray (led by Minh-Chau Le) and Wolf Theiss (led by Tereza Naucova). Avantor was advised by JP Morgan and Arnold & Porter Kaye Scholer.
Wafra, an alternative asset manager, agreed to acquire a majority stake in Aquila Air Capital, a specialty finance platform focused on providing aviation asset financing, from Warburg Pincus, a global growth investor. Financial terms were not disclosed.
"We are deeply grateful to Warburg Pincus for their belief in our vision and for supporting our growth over the last three and a half years. This milestone is a strong endorsement of our team’s hard work and the value we bring to the market. Partnering with Wafra will enable us to accelerate our expansion, introduce new products and services, and broaden our customer base globally," Al Wood, Aquila Air Capital CEO.
Aquila Air Capital is advised by Evercore and Kirkland & Ellis. Wafra is advised by Sidley Austin and Prosek Partners. Debt financing is provided by Atlas SP Partners.
Keywords Studios, an Irish video game industry services company, agreed to acquire Certain Affinity, an American video game development studio. Financial terms were not disclosed.
"We are thrilled to welcome Certain Affinity to the Keywords Group. We have enormous respect for their business and reputation. They bring a wealth of knowledge, experience, and expertise to our Create division, complementing our existing skills and expanding our presence notably in the US and Canada. We look forward to partnering with Max, Paul, and their team over the coming years to continue to drive growth in our Create division and overall business," Bertrand Bodson, Keywords CEO.
Keywords Studios is advised by Barclays, Deutsche Numis and MHP Communications.
Nexa Equity-backed Autura, a provider of government towing management software, agreed to merge with Radian Capital-backed Traxero, a towing software and solutions provider. Financial terms were not disclosed.
"We are thrilled to join forces with Traxero to deliver a unified solution that will reshape the towing industry. By combining our strengths, we are better positioned to deliver groundbreaking solutions to both government agencies and private towing companies that will set a new standard for efficiency and customer service," Ryan Davis, Autura CEO.
Traxero is advised by Goodwin Procter. Autura is advised by Weil Gotshal and Manges.
General Atlantic, a private equity firm, led a $50m Series C round in Jüsto, an online grocer in Latin America with operations in Mexico, Brazil, and Peru.
“This new funding round highlights the strong belief our investors have in Jüsto, our team, and the unique approach we bring to the table. We are excited to continue deploying our capital to redefine the grocery experience in Latin America through advanced technology and efficient operations,” Ricardo Weder, Jüsto Founder and CEO.
General Atlantic was advised by Paul Weiss Rifkind Wharton & Garrison.
American Industrial Partners, a private equity firm, agreed to acquire the US and Canadian architectural coatings business of PPG, a supplier of paints, coatings, and specialty materials. Financial terms were not disclosed.
"We're thrilled to be acquiring a storied business with a heritage dating back 125 years and look forward to partnering with the management team and employees to deliver best-in-class customer service across product and brand innovations. As a longtime leader in residential and commercial architectural paint with some of the industry's most iconic brands, the Company is well-positioned to benefit from growth in both the Pro and DIY consumer categories," Rick Hoffman, AIP Partner.
American Industrial Partners is advised by Ropes & Gray.
Foundation Source, a provider of cloud-based solutions for private foundations and planned giving, completed the acquisition of Vennfi, a financial technology company. Financial terms were not disclosed.
"With this acquisition, Foundation Source can now offer a DAF platform with an intuitive and frictionless user experience that sets a new industry standard for technology innovation. This strategic acquisition is an important milestone in Foundation Source's mission to make giving easier and more impactful, and we're excited to make these philanthropic solutions widely available to help people and companies drive change," Joseph Mrak III, Foundation Source CEO.
Foundation Source was advised by The Neibart Group.
Bain & Co-backed Ashling Partners, an intelligent automation and digital transformation solutions provider, completed the acquisition of Reveal Group, an intelligent automation services company. Financial terms were not disclosed.
"This acquisition is more than just expanding our portfolio—it's about deepening our ability to deliver sophisticated Multimodal Automation solutions that meet the diverse needs of our clients. We're bringing on board not only valuable technology but also a team of experts who will help us unlock new possibilities for organizations looking to drive seamless digital transformation," Marshall Sied, Ashling Partners Co-Founder.
KCI Technologies, a multi-disciplined engineering, consulting, and construction firm, completed the acquisition of McLaren Engineering Group, a full-service engineering firm. Financial terms were not disclosed.
"McLaren's impressive catalog of projects and top-tier talent bring exceptional value and expertise to our organization. This addition strengthens our capabilities, expands our service offerings and geographic footprint, and sets the stage for continued growth and shared success in the future," Bryan Lawson, KCI Technologies Professional Services Sector President.
Cigna Group has revived efforts to combine with its smaller rival Humana after merger talks fell apart late last year.
The two health insurance giants, with a combined market value of more than $125bn, have held informal discussions recently about a potential deal, said the sources who asked not to be identified because the talks are not public. The discussions are in the early stages.
The talks come amid ongoing pressure from the federal government to control Medicare costs that have eaten away at Humana’s finances and market value. An agreement between the two would likely rank among the five biggest health insurance deals, The Business Times reported.
Lucid Group announces 262m share public offering, PIF in talks of $1.67bn investment. (FS)
Lucid Group has announced a public offering of approximately 262m shares of its common stock. The shares will be available for purchase through various channels, including direct sales, agents, and brokers, at prevailing market prices or negotiated prices. Additionally, Lucid has granted Bank of America, the sole underwriter, an option to purchase up to 39m additional shares within 30 days.
Lucid's majority stakeholder, Ayar Third Investment Company, an affiliate of the Public Investment Fund (PIF), is in discussions to purchase approximately 375m shares in a concurrent private placement. This potential transaction aims to maintain Ayar’s 58.8% stake in Lucid, contingent on the completion of the public offering and meeting customary closing conditions.
The proceeds from the public offering and the possible private placement will be used for general corporate purposes. Lucid plans to allocate the funds toward capital expenditures and working capital to support the company's ongoing operations and growth initiatives.
Lucid is advised by Bank of America and Skadden.
Buffet sells more Bank of America shares after buybacks push his stake back above 10%.
Warren Buffett sold another slug of Bank of America stock after the lender repurchased enough of its own shares to nudge his stake back above 10% — a regulatory threshold that requires rapid disclosure.
Buffett’s Berkshire Hathaway reaped about $370m selling stock last week, according to a filing detailing his 16th round of disposals since mid-July. That trimmed Berkshire’s stake in the second-biggest US bank to 9.97%, Bloomberg reported.
Aventiv Technologies receives buyout interest in offer to avoid bankruptcy. (FS)
Platinum Equity-backed Aventiv Technologies has told investors there’s been interest from multiple parties to purchase the prison-phone company as it faces a December deadline to reach a buyout deal or face potential bankruptcy.
Management said it has received interest from those looking to buy the entire company and not just parts of Aventiv, Bloomberg reported.
Berkshire Hathaway lifts stake in Sirius XM after Malone deal.
Warren Buffett is amplifying his bet on Sirius XM, as Berkshire Hathaway keeps adding more shares of the radio broadcasting firm to its portfolio. The conglomerate has acquired $42m worth of shares in the three days through October 18.
Berkshire Hathaway now has a stake of about 32.5% in Sirius XM’s publicly traded stock, having become the top holder last month. That change came as billionaire John Malone’s Liberty Media split off its 83% stake and combined it with its separate tracking shares in the broadcaster, Bloomberg reported.
Dana exploring sale of off-highway unit.
Dana is exploring a sale of its off-highway business, as the automotive supplier responds to sluggish demand in its key markets.
The Maumee, Ohio-based company is working with advisers on the potential divestment. The business could fetch a few billion dollars in a sale.
Dana’s off-highway business provides drive and motion systems for heavy-duty vehicles in the agriculture, materials handling, mining, construction and forestry sectors. The unit generated revenue of about $3.2bn and earnings before interest, taxes, depreciation and amortization of $465m in 2023, Bloomberg reported.
Equatorial Energia taps Safra to advise on wind power assets sale.
Equatorial Energia, a Brazilian energy distributor, is working with Banco J. Safra to advise on a sale of wind power assets.
The company is considering whether to sell some or all of those assets. In 2022, Equatorial bought Echoenergia Participacoes, which holds one of the largest wind power portfolios in the country, Bloomberg reported.
Citigroup nabs BBVA tech head to lead revamp ahead of Banamex IPO. (People)
Citigroup poached Banco Bilbao Vizcaya Argentaria’s head of software development to lead a technology architecture overhaul at its Banamex unit ahead of the Mexican consumer bank’s planned initial public offering next year.
Francisco Leyva will serve as head of operations and technology at Banamex once the business officially completes its separation from Citigroup. Citigroup expects to have finalized the unit’s carve out by the end of this year, with its IPO then slated for the end of 2025.
Leyva will report to Manuel Romo, Citibanamex’s chief executive officer who will become Banamex’s CEO upon its separation from the New York-based lender, Bloomberg reported.
EMEA
Royal Unibrew, a brewing and beverage company, agreed to acquire the Minttu and local nordic brands portfolio from Pernod Ricard, a global wine and spirits group. Financial terms were not disclosed.
The local portfolio of brands includes spirits, liqueurs and Finnish wine brands, the most known being liqueur Minttu, along with their related production assets based in Turku (Finland). Hartwall also acquires Lapponia liqueurs as well as a wide selection of berry and fruit wines and a variety of glögi brands.
Owners of Falck mull options for the $1.6bn ambulance services firm.
The owners of Falck are considering options for their stakes in a possible deal that could value the Danish ambulance and firefighting services company at €1.5bn ($1.6bn) or more.
Falck shareholders, which include the Lundbeck Foundation and investment firm Kirkbi, have been holding discussions with potential advisers about options including a sale of their holdings or an initial public offering, Bloomberg reported.
ABB has at least $1bn to spend on M&A.
ABB at least $1bn to spend on deals as it looks to boost its revenues by being more active in M&A, Chief Financial Officer Timo Ihamuotila said.
The Swiss engineering firm said it would target smaller and mid-sized companies but did not rule out larger deals.
CEO Morten Wierod also said he was confident about future business opportunities in the United States, ABB's biggest market, regardless of whether Kamala Harris or Donald Trump wins next month's presidential election, Reuters reported.
France's richest family, Red Bull in exclusive talks for Paris FC aquisition.
The Arnault family, owners of the LVMH luxury goods conglomerate, are in exclusive negotiations to buy a controlling stake in French football club Paris FC in a deal that will see energy drinks giant Red Bull secure a minority shareholding.
The Agache group, which is controlled by LVMH CEO Bernard Arnault, said in a statement that it hoped to transform the French capital's second professional club into one of the country's leading sides.
Arnault family is advised by Rothschild & Co.
Gateway Partners considering a sale of Tim Horton Golf franchise stake. (FS)
Dubai-based private equity firm Gateway Partners is considering selling its stake in the Gulf franchise of Tim Hortons, four years after its initial investment in the Canadian coffee chain.
Gateway is working with BNP Paribas on the sale which is expected to receive non-binding bids in the coming weeks. The plans are at an early stage and could still change, Bloomberg reported.
Ejada Systems taps Goldman for IPO at $1.5bn value.
Ejada Systems is considering an initial public offering in Riyadh at a valuation of as much as $1.5bn, marking a rare listing by a technology services firm in Saudi Arabia.
Goldman Sachs and Al Rajhi Capital have been hired to arrange the potential offering, which could come in the next few months. Ejada is owned by Al Rajhi Bank, Saudi Arabia’s second-largest lender by assets. The bank could look to sell at least 30% in the business, Bloomberg reported.
LuLu is said to gauge IPO appetite this week.
LuLu Group International, which operates one of the Middle East’s largest hypermarket chains, plans to start gauging investor interest this week in preparation for what could be among the year’s biggest initial public offerings in the region.
The firm will hold roadshows starting Monday. Its owners are seeking a valuation of at least $5bn in the Abu Dhabi listing. The firm initially considered a dual listing in Riyadh, but now plans to sell shares only in Abu Dhabi. It has picked Abu Dhabi Commercial Bank, Citigroup, Emirates NBD Capital and HSBC to work on the offering. Moelis & Co is acting as an independent financial adviser, Bloomberg reported.
APAC
Fuji Soft is standing by KKR & Co’s tender for its shares despite receiving a higher bid from Bain Capital that’s won the support of the Japanese software developer’s founder, Bloomberg reported.
The Yokohama-based software developer held a board meeting on October 18 and decided to recommend its shareholders accept the first phase of KKR’s tender offer through October 21.
JSW Steel, an India steel producer, agreed to acquire thyssenkrupp Electrical Steel India, a cold rolled grain oriented and cold rolled non-grain oriented electrical steel manufacturer, from thyssenkrupp. a steel distributor, for €440m ($478m).
“The supply of raw materials from thyssenkrupp's German steelworks to India is cost-intensive and weakens our competitiveness in India in the long term. Setting up our own local raw material production is not economically feasible for us. Compared to our local competitors, we will not be able to achieve the same economies of scale by supplying from Germany. This is why the sale is the right step for us at the right time,” Dennis Grimm, thyssenkrupp Spokesman of the Executive Board.
thyssenkrupp is advised by Avendus.
Kotak Mahindra Bank, a financial services conglomerate, agreed to acquire the India personal loan business from Standard Chartered, a multinational bank. Financial terms were not disclosed.
“India’s unsecured lending market offers significant growth potential for Kotak, especially in the higher-end segment. Our
strong risk management, customer-centric products, and technology-driven approach position us for sustainable growth. This transaction supports our Retail Assets growth strategy and reinforces our commitment to retail lending. It provides access to a high-quality customer base, and with Kotak Group’s successful integration track record, we are committed to a smooth transition. We look forward to welcoming new customers to Kotak Mahindra Bank, ensuring a seamless transition and enhanced experience with our diverse products and services," Ambuj Chandna, Kotak Mahindra Head-Products, Consumer Bank.
Kotak Mahindra is advised by Weber Shandwick (led by Suvida Awle).
Mitsubishi, a global integrated business enterprise, agreed to acquire a 50% stake in AC Ventures, an early-stage technology venture fund, from Ayala, a Philippine conglomerate, for $319m.
“We believe Mitsubishi can add meaningful value to Mynt, which will allow Mynt to deliver significant value to its over 94m registered users. It’s all about serving better the many Filipinos that depend on GCash and Fuse, and for making a wider variety of financial and other products available to as many Filipinos as possible,” Cezar Consing, Ayala President and CEO.
TPG, a private equity firm, led a $150m Series F round in Eruditus, a company which specializes in making education accessible and affordable to individuals, companies, and governments, with participation from Softbank Vision Fund 2, Leeds Illuminate, Accel, CPP Investments and the Chan Zuckerberg Initiative.
The focus will be on building AI products for teaching experiences, expanding focus to sell courses to enterprises and to double down on the Indian market, especially as Eruditus considers going public in India in the future.
7-Eleven's turnaround plan requires heavy lifting to stop Couche-Tard's $47bn takeover.
Japan's Seven & i is betting it can boost value by hiving off underperforming businesses and focusing on mainstay 7-Eleven stores. The outcome of its strategy will determine whether it can outmanoeuvre a $47bn Canadian takeover bid.
Seven & i plans to split off its supermarket operation and some 30 other "non-core" units into a holding company, York Holdings. It will rename itself 7-Eleven Corp to emphasise its new focus and aims to bring in strategic investors for York and eventually list it.
The shake-up shows Seven & i's determination to ditch the conglomerate discount that has weighed on its shares for years. Poor performance at the supermarket business hasn't helped either, making the Japanese company a ripe target for a takeover bid from Alimentation Couche-Tard, Reuters reported.
Hong Kong pledges to shrink IPO vetting to about 100 days.
Hong Kong has pledged to vet and debut companies in about 100 days in a bid to guarantee a set timeframe for initial public offering applicants.
For companies fully meeting listing requirements, the stock exchange and regulator will limit the two rounds of question-and-answer sessions to within 40 business days, according to a joint statement by Hong Kong Exchanges and Clearing and the Securities and Futures Commission. It is expected that another 60 business days will be needed by applicants and sponsoring banks to address any comments by regulators. The median time to get approved is now 173 business days.
The move comes as IPOs are stirring back to life after a prolonged lull. China in late September unleashed a barrage of measures designed to jump-start the economy and support stock markets, Bloomberg reported.
China Resources Beverage is said to set price $649m IPO at top of range.
China Resources Beverage is slated to price its initial public offering at the top of the range to raise about $649m, reflecting keen demand for one of Hong Kong’s biggest listings this year. The company plans to list shares on October 23.
Order books for the offering closed Thursday, a day earlier than anticipated, and were multiple times oversubscribed. The strong demand triggered the clawback mechanism, meaning that 40% of the shares on offer will go to retail investors.
China Resources Beverage has said it will use the proceeds in areas such as expanding production capacity and on sales and marketing. It attracted $310m in commitments from cornerstone investors, which agree to hold shares for at least six months, Bloomberg reported.
Pony AI files for US IPO.
China-based autonomous driving firm Pony AI, backed by automaker Toyota, filed for an initial public offering in the US, in another sign of growing investor interest in new listings and easing regulatory pressures.
Pony AI has applied to list on the Nasdaq stock exchange under the ticker symbol "PONY." The company did not reveal the size of its offering. Goldman Sachs, Bank of America, Deutsche Bank, Huatai Securities and Tiger Brokers are the underwriters of the offering, Reuters reported.
K Bank pulls IPO due to weak demand, eyes restart next year.
Online lender K Bank has withdrawn its $700m-plus initial public offering in Seoul amid concerns over high valuation and dependency on a cryptocurrency operator for its funding.
K Bank failed to generate enough demand for listing during the recent bookbuilding. The lender plans to revive the IPO early next year after changing details such as the number of shares on offer.
A successful listing would have made it South Korea’s largest IPO in more than two-and-half years and valued the bank at up to $3.6bn. The withdrawal came after concerns over valuation and its reliance on a cryptocurrency exchange for deposits, Bloomberg reported.
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