Thursday, August 27, 2015
- Wells Fargo (NYSE:WFC) is the leader in the hunt to buy General Electric's (NYSE:GE) railcar financing unit, in a deal that could come by Labor Day, Bloomberg is reporting.
- Wells Fargo would outpace Sumitomo Mitsui Financial Group in that case.
- The sale is another step in GE's divestment of financial services in order to focus on core manufacturing.
- The railcar financing business has more than $4B in assets.
- Viterra, the Canadian grain handler owned by Glencore (OTCPK:GLCNF, OTCPK:GLNCY), agrees to acquire the largest oilseed processing plant in eastern Canada for $190M to triple crushing capacity.
- The deal more than triples Viterra's crushing capacity, which the company says places it among the three biggest processors in Canada with Bunge and Cargill.
- The Quebec plant on the St. Lawrence Seaway can process 1.05M metric tons/year of canola and soybeans; Canada is the world's top producer of canola.
- Cellcom Israel (NYSE:CEL) is off 2.5% in U.S. trading after it announced its initial review of a possible purchase of some or all of Golan Telecom, a rival that put itself on the block.
- Bank Rothschild, representing Golan Telecom shareholders, has invited offers for the company -- a move that is likely to remove a party from the hotly competitive Israeli wireless market, and result in service price increases.
- ADRs of peer Partner Communications (NASDAQ:PTNR) are 4.1% lower, and Bezeq (OTCPK:BZQIY) is down 3.4% in OTC trading.
- Earlier, Cellcom closed down 4.7% in Tel Aviv; Partner closed down 5.3%.
- Previously: Israeli telecoms up as former disrupter Golan Telecom hires bank to explore sale (Aug. 26 2015)
- Following the sale of its Separations Media business, Polypore (NYSE:PPO) has been fully acquired and will operate as a core company under the Asahi Kasei Group (OTCPK:AHKSY).
- The two will work together to integrate their technology to enable further development and growth of the battery separator business.
- Ireland's CRH agrees to acquire U.S. glazing products manufacturer CR Laurence for $1.3B.
- Already the leading producer of asphalt and No. 3 supplier of construction aggregates in the U.S., CEO Albert Manifold says the deal "makes us by a country mile the number one in this sector."
- CRH expects the acquisition to generate $115M in EBITDA from sales of ~$570M in 2015, boosting its own U.S. glass business.
- Manifold says the company now will take a breather from large-scale acquisitions after also recently completing a €6.5B ($7.35B) acquisition of assets that Holcim and Lafarge had to sell to win regulatory approval for the newly merged LafargeHolcim, the world's biggest cement maker.
- CRH also reports its H1 net profit rose to €46M ($52.2M) from €45M a year ago, slightly above analyst estimates, while revenues rose 13% to €9.37B from €8.32B, matching expectations.
- Abbott Laboratories (NYSE:ABT) has denied a report that it's preparing an offer for St. Jude Medical (NYSE:STJ) that would value the medical device maker at about $25B.
- St. Jude shares have now pared back their gains in early trading after surging 17% on the rumor.
- STJ +4.9% premarket
- Previously: FT: Abbott prepping $25B takeover offer for St. Jude (Aug. 27 2015)
- Hospira (NYSE:HSP) has received clearance from the FTC regarding its pending merger with Perkins Holding Company, a wholly-owned subsidiary of Pfizer (NYSE:PFE).
- All required regulatory approvals have now been secured, though the merger remains conditioned upon the expiration of a post-clearance waiting period in one foreign jurisdiction.
- Hospira expects the merger to close on or about September 3, 2015.
- SEC Form 8-K
- Abbott Laboratories (NYSE:ABT) is preparing a takeover bid for St. Jude Medical (NYSE:STJ) that is likely to value the medical device maker at $25B, FT reports.
- Sources say the firm has been working with advisers for several weeks, lining up the financing for a cash and stock offer.
- Abbott and St. Jude already have a strong alliance in the field of cardiovascular devices, and a full merger would give the enlarged company greater leverage in negotiating with healthcare providers.
- STJ +13.2% premarket
- Update: Quoting a spokesperson, Bloomberg says Abbott isn't making an offer for St. Jude.
- Greatbatch (NYSE:GB) agrees to acquire privately owned Lake Region Medical for ~$1.73B in cash and stock.
- GB says the deal will create one of the largest medical device OEM suppliers in the world serving the cardiac, neuromodulation, vascular, orthopedic and advanced surgical markets.
- GB expects the transaction to be double-digit accretive to cash EPS in 2016 and meaningfully more accretive thereafter.
- Having ditched its $46B offer for Syngenta (NYSE:SYT), Monsanto (NYSE:MON) may look to downshift beefing up its crop protection portfolio through humbler acquisitions, partnerships and licensing agreements.
- "If we don't acquire Syngenta, we'll still be on Plan A," Monsanto's Michael Frank said last month. "It won't be Syngenta. It will be somebody else, or somebodies else."
- Monsanto's $46B bid is the largest deal to be pulled since the withdrawal of Valeant's $54B offer for Allergan last November.
- Previously: Syngenta must explain "Plan B" after Monsanto pulls deal, investors say (Aug. 26 2015)
- Previously: Monsanto's "discipline," commitment to resume buybacks pleases analyst (Aug. 26 2015)
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