Today - Friday, March 27, 2015
- Israel Chemicals (NYSE:ICL) agrees to acquire Canada's Allana Potash (OTCPK:ALLRF) for C$137M (US$109M), a deal ICL hopes will accelerate development of a potash mine in Ethiopia.
- ICL already owns 16.36% of shares in Allana and would pay C$0.50/share for the portion it does not own.
- Allana's Danakhil project in Ethiopia could yield up to 1M metric tons/year of muriate of potash for 25 years.
- Bernstein analyst Ronny Gal lifts his price target 15% for Teva Pharmaceutical Industries (NYSE:TEVA) to $69 (from $60) citing the firm's continued shift to branded drugs, a deeper pipeline and a more global customer base. He also notes that management has a list of 25 preferred acquisition targets, including some in generics (for example, biosimilars) that would yield substantial synergies.
- Hecla Mining (NYSE:HL) agrees to acquire Revett Mining (NYSEMKT:RVM) in an all-stock deal valued at $20M.
- HL says it plans to continue to advance permitting of the Rock Creek project in Montana, one of North America's largest undeveloped silver and copper deposits; RVM has reported inferred resources of 229M oz. of silver and 2B lbs. of copper at Rock Creek.
- Dow Chemical (NYSE:DOW) says it will split off a major part of its chlorine business and merge it with Olin Corp. (NYSE:OLN) in a deal valued at $5B.
- The new entity, which will include Dow’s U.S. Gulf Coast chlor-alkali and vinyl, global chlorinated organics and epoxy businesses, is expected to have revenue of nearly $7B.
- The move comes as Dow faces criticism of its structure from the Third Point hedge fund, which has pressured Dow to break apart its petrochemicals business from its specialty chemicals segment.
- DOW +6.1%, OLN +4.8% premarket.
5:03 AM| 2 Comments
- Swiss private bank Union Bancaire Privee has agreed to buy Royal Bank of Scotland's (NYSE:RBS) international private banking arm Coutts International.
- "This acquisition confirms our commitment in further developing our wealth management business and represents a significant milestone in our growth strategy," said UBP's chief executive.
- While both parties did not disclose a price, the FT suggested on Thursday that the deal would fetch $600M-$800M.
- Previously: RBS sale of Coutts International getting near (Mar. 26 2015)
- Amazon (NASDAQ:AMZN) is in talks to buy online luxury retailer Net-a-Porter in what could be the biggest acquisition yet for the e-commerce giant, Women's Wear Daily reports.
- Amazon has long coveted the high-end fashion retail sector and any deal for Net-a-Porter, which is owned by Swiss firm Compagnie Financire Richemont (OTCPK:CFRUY), could come with an approximate €2B price tag.
Thursday, March 26, 2015
- RBC Bearings (NASDAQ:ROLL) agrees to acquire Dover's (NYSE:DOV) Sargent Aerospace & Defense business for $500M.
- RBC says Sargent supplies highly engineered products to a customer base it already knows well, and that Sargent's manufacturing processes and design expertise align well with and complement those of RBC.
- RBC estimates EPS accretion of $0.25-$0.35 for the first year of operations as a combined company.
- Shares halted.
- HP (NYSE:HPQ) is close to selling a 51% stake in its H3C Technologies Chinese networking hardware unit to state-backed Tsinghua Unigroup, the WSJ reports. Echoing an October report about HP's sale efforts, the paper states H3C is "worth roughly $5 billion in total."
- Sources state a sale might include "a separate server operation," and could still be a few weeks away. Tsinghua is said to be competing with other bidders, including investment firm China Huaxin.
- Tsinghua has bought Chinese chipmakers RDA and Spreadtrum, and since formed a mobile processor partnership with Intel. HP, meanwhile, saw its networking revenue fall 11% Y/Y in the January quarter, something that was blamed on "execution issues" in the U.S. and China. Like other U.S. enterprise IT firms, the NSA scandal has taken a toll on HP's Chinese sales.
- The report comes as HP gets set to acquire enterprise Wi-Fi hardware/software vendor Aruba Networks ahead of a PC/printing spinoff expected to occur by the end of FY15 (ends Oct. '15).
- A rumor that the Chinese consortium interested in acquiring OmniVision (OVTI +1.6%) might up its offer by $1/share to $30/share has helped the image sensor vendor move higher. Many other chip stocks are selling off for the second day in a row.
- The consortium, led by Beijing P-E firm Hua Capital, made a $29/share non-binding buyout offer last August. OmniVision currently trades 10% below the offer price.
- TransDigm (TDG -0.2%) has completed its purchase of the Telair Cargo Group, an aerospace cargo handling business, from AAR (AIR), for ~$725M in cash.
- The company financed the acquisition through a combination of existing cash on hand and borrowing of $75M under its existing revolving credit facility.
- Previously: TransDigm to acquire Telair Cargo Group (Feb. 23 2015)
- Telefonica Brasil (NYSE:VIV) plans to raise up to $4B in fresh capital through a rights issue - that will could be announced as early as today - to buy local broadband provider GVT, Reuters reports.
- Brazil's anti-trust watchdog Cade gave Telefonica Brasil the go-ahead for the €7.2B ($7.8B) acquisition yesterday, but said the deal is dependent on certain conditions being met.
- These include the sale of Spanish parent company Telefonica's (NYSE:TEF) stake in Telecom Italia (NYSE:TI), which owns rival Brazilian mobile operator Tim Participacoes (NYSE:TSU).
- Marking a new milestone since their December 2013 merger, American Airlines (NASDAQ:AAL) and U.S. Airways expect to receive a single operating certificate from U.S. regulators on April 8.
- Although the carriers still have to combine their reservation systems, a single certificate will mean the FAA recognizes the airlines as one, and that the majority of their flight, maintenance and dispatch procedures will be identical.
- AAL +0.4% AH
Wednesday, March 25, 2015
- The odds of 3G Capital Partners financially backing a takeover by Anheuser-Busch InBev (NYSE:BUD) of SABMiller (OTCPK:SBMRY) were taken down a notch by analysts after the merger between Heinz and Kraft Foods was announced.
- 3G is considered a likely source of financing for the +$100B A-B would need to put together an attractive offer for its beer rival, but will be a little lighter in the wallet after the Kraft buy.
- The analyst community has been sharply divided over the last year on if the beer mega-merger is actually in the works.
4:34 PM| 1 Comment
- European Union antitrust regulators have suspended their investigation into Siemens' (OTCPK:SIEGY -0.6%) $7.6B bid for Dresser-Rand (DRC -0.1%) while waiting for "important information" from the German company.
- Siemens says the deal is still on schedule and expects to close in the summer of 2015 or earlier, but says it cannot comment further on the EU's request.
- EU regulators have expressed concerns that the merged company would reduce competition in turbo compressors and drivers for trains.
- Hain Celestial (NASDAQ:HAIN), Pinnacle Foods (NYSE:PF), and WhiteWave Foods (NYSE:WWAV) are all setting up for gains today after the Heinz-Kraft merger raises the M&A profile in the sector.
- Previously: Kraft, Heinz announce merger
- Previously: Food sector on watch after mega-merger announced
- Premarket trading: HAIN +1.9%, WWAV +1.9%, PF +1.0%.
- Swiss Bank Vontobel (OTC:VONHF) has purchased a 60% stake in Britain's TwentyFour Asset Management, which has around £4.4B ($6.54B) AUM.
- "The transaction strengthens Vontobel's presence in the U.K. market, extends its fixed income product offering and underlines its commitment to broaden its asset management business through targeted investments," said the bank.
- In a separate statement, Vontobel said it was in talks with BNY Mellon about a possible takeover of Meriten Investment Management, an asset manager in Germany. Meriten managed around €24.5B ($26.75B) at the end of 2014.
- H.J. Heinz, owned by P-E firm 3G Capital and Berkshire Hathaway (BRK.A, BRK.B), and Kraft (NASDAQ:KRFT) have entered into a definitive merger agreement to create The Kraft Heinz Company, forming the third largest food and beverage company in North America.
- Heinz shareholders will own a 51% stake in the combined company, while Kraft shareholders will hold a 49% stake and receive a special cash dividend of $16.50 per share.
- Together the new company will have eight $1B+ brands and five brands between $500M-$1B.
- "I am delighted to play a part in bringing these two winning companies and their iconic brands together. This is my kind of transaction," said Berkshire Hathaway CEO Warren Buffett.
- 3G previously took Burger King private in 2010, bought Tim Hortons last year through the holding and teamed up with Berkshire Hathaway two years ago to buy Heinz for $23B.
- Kraft’s revenue last year was effectively flat at $18B and net profit fell 62% to $1B, due to higher commodity costs and big charges related to its post-employment benefit plans.
- Previously: Kraft now +16.5% on buyout report; MDLZ, CAG also gain (Mar. 24 2015)
- KRFT +15.8% premarket.
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