Thursday, December 25, 2014
- Sumitomo Mitsui (NYSE:SMFG) has announced that it will buy Citigroup's (NYSE:C) Japanese retail banking operations to expand services for wealthy individuals in the country.
- The deal, which includes ¥2.4T ($20B) in deposits, 740K customers and 32 branches, is expected to close in October.
- Previously: Timeline disclosed for SMBC, Citi deal (Dec. 24 2014)
Wednesday, December 24, 2014
- Brookfield Asset Management (BAM +0.8%) agrees to acquire the 30.6% of Brookfield Residential Properties (BRP +4.8%) it does not already own, after raising its earlier offer by 5.4% to $24.25/share.
- The deal will cost BAM ~$870M and value BRP at ~$2.84B.
- BRP operates in 11 major markets in the U.S. and Canada, including Austin, Denver, Los Angeles, Phoenix, Sacramento, San Diego, San Francisco and the Washington, D.C., area.
- After years of takeover drama, j2 Global (NASDAQ:JCOM) has informed Carbonite (NASDAQ:CARB) of its intention to commence a cash tender offer to acquire all the outstanding shares of Carbonite at $15/share.
- Carbonite is flying on the news, up over 8% premarket.
- Previously: J2 offers to buy Carbonite (again) (Dec. 03 2014)
- HeidelbergCement (OTCPK:HDELY) has clinched a deal to sell its Hanson Building Products business to P-E firm Lone Star Funds for $1.4B to reduce its debt.
- Up to $100M of the takeover price will be payable in 2016, depending on the 2015 performance of Hanson Building Products.
- The cement maker expects the deal to close in the first half of 2015 and said it would use the proceeds to reduce net financial debt, which stood at €7.6B ($9.3B) at the end of September.
- Hanson Building Products filed for an IPO in September.
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- Sumitomo Mitsui (NYSE:SMFG) will buy Citigroup's (NYSE:C) Japanese retail banking operations in October for about ¥40B ($332M), Reuters reports, outlining a date for the long-awaited sale. Sumitomo Mitsui will announce the deal tomorrow.
- Citi is looking to exit 11 consumer-banking markets with poor returns, including Japan, as it looks to focus on corporate and investment banking, markets and transaction services.
Tuesday, December 23, 2014
- Trimble (TRMB -0.3%) has bought Iron Solutions, a provider of analytics tools for agricultural producers and dealers. Terms are undisclosed.
- Iron claims to manage "over 15 million data points annually from over 1,200 manufacturers and over 2,200 retail sources throughout North America." Its products cover equipment pricing and dealership optimization, and also include an equipment marketplace.
- Trimble has been growing its software exposurel; the company bought real estate software provider Manhattan Software in August. Agriculture was a weak spot for the company in Q3.
- IP risk-protection firm RPX (RPXC -0.4%) is buying most of the Rockstar Consortium's remaining patents (over 4,000 of them) for $900M - roughly a fifth of the ~$4.5B the consortium paid to buy the full portfolio in 2010 from bankrupt Nortel.
- RPX will license the patents to a syndicate of 30+ companies that includes Google and Cisco in exchange for payments. Everyone else will be able to license them under FRAND terms. RPX is only directly contributing $35M to the purchase.
- Rockstar, whose members include Apple, Microsoft, BlackBerry, Ericsson, and Sony, had launched a series of lawsuits against Android OEMs. The sale comes amid an increasingly difficult legal and political environment for IP licensing firms.
- Spherix (NASDAQ:SPEX), which bought over 100 of Rockstar's patents and patent applications earlier this year and has used them to sue Cisco, Verizon, and Huawei, is trading lower
- Halliburton (NYSE:HAL) yesterday disclosed details of its sometimes-tense courtship of Baker Hughes (NYSE:BHI), showing that the companies had to bridge a $3.3B gap before reaching agreement for HAL to acquire its smaller rival for cash and stock that valued BHI at $34.6B.
- BHI wanted $36.1B in stock and cash, which was 10% above HAL’s initial offer of $32.8B, and the companies eventually met in the middle during final, over-the-weekend negotiations.
- Separately, an email yesterday from BHI CEO Martin Craighead to all employees did not mention layoffs but noted serious business concerns, saying pricing pressure on its products and services will intensify next year, and "market conditions will demand tough decisions from us in the months ahead.”
- The Family Dollar (FDO +0.2%) shareholder meeting has been adjourned to January 22, according to the Charlotte Observer.
- The delay was expected with the FTC yet to finalize its ruling on the amount of store closings it requires in a Dollar General (DG +1%) acquisition of Family Dollar.
- Recap: Dollar General is in with a $9.1B offer for FDO to top the $8.5B Dollar Tree (DLTR +0.9%) bid which is preferred by the target's board
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- Under pressure to find new sources of growth, Telstra (OTCPK:TLSYY) has reignited its Asian expansion drive with a $697M purchase of Pacnet, Asia’s biggest operator of subsea cables.
- Pacnet owns cables with a combined length of 46K kilometers and has 29 data centers in 17 cities in the Asia Pacific region including in China.
- The FCC is again pausing its review of the proposed $45B merger of Comcast (NASDAQ:CMCSA) and Time Warner Cable (NYSE:TWC), citing delays in getting documents from the latter.
- Imposing an informal 180-day countdown for the review, the FCC is determining whether combining the cable companies is in the public interest.
- Time Warner Cable has promised to produce the missing documents, but the agency is pausing the review at day 104 until Jan. 12, saying it needs extra time to study new submissions.
Monday, December 22, 2014
- The options being considered by Advanced Energy (NASDAQ:AEIS) for its solar inverter ops include "a sale, joint venture, partnership, licensing or other alternatives including additional product line optimization and rationalization, in order to maximize shareholder value."
- AEIS also says it plans to record a $10M-$14M non-cash inventory charge in Q4 related to "the company's strategic review and resulting retirement of certain central inverter legacy products."
- Central (string) solar inverters have been losing ground to microinverters. The former are cheaper than the latter, but can also be less reliable and/or efficient.
- Shares are halted.
- Occidental Petroleum (OXY -0.6%) is in talks to acquire closely held shale explorer Three Rivers Operating Co. II at a price below $20K/acre, Bloomberg reports.
- A purchase of Three Rivers' owned rights to 82K acres in the Permian Basin would cement OXY’s dominance in the area that is the most prolific U.S. crude region, and would be the company’s first significant acquisition in more than four years.
- In addition to announced a dividend hike, SunEdison's TerraForm Power (TERP -1.2%) YieldCo has announced the purchase of 77.6MW of solar plants from a Capital Dynamics fund. The 39 plants come with power purchase agreements that have a weighted average lifetime of 19 years.
- The assets are expected to produce $21M in unlevered cash available for distribution (CAFD) in 2015, and be immediately accretive to CAFD/share.
- Terraform is paying for the deal by expanding the size of its term loan facility. The company is also increasing the size of its revolving credit facility (thus far undrawn) to $215M.