Tag Archives: Merger / Acquisition / Acquisition

British fashion retailer Next pulled out of a joint offer for owner Topshop Arcadia | Instant News


FILE PHOTO: The next logo is seen outside a shop in central London, England January 3, 2017. Image taken January 3, 2017. REUTERS / Stefan Wermuth / File Photo

(Reuters) – Next Plc said on Thursday that it had pulled out of a bid for brands owned by British conglomerate Arcadia Group Philip Green because it was unable to meet price expectations from a bankrupt fashion chain.

“Next plc announces that it has withdrawn from the process of acquiring any, or all, of the Arcadia Group from Administrators,” the company said in a statement.

The retailer launched a joint offering in December with American investment firm Davidson Kempner Capital Management for control of the Arcadia Group.

The subsequent recall could pave the way for Chinese retailer Shein to buy Topshop for more than £ 300 million ($ 411.57 million), Sky News said in an earlier report. (bit.ly/2Y3Iv6g)

Other bidders for Arcadia include Boohoo Group, Asos Plc and Authentic Brands Group, which is partnering with JD Sports Fashion, according to Sky News.

Topshop owners and Topman Arcadia went into administration in November, putting more than 13,000 jobs at risk and falling victim to the UK’s biggest employer of the COVID-19 pandemic.

Reporting by Ann Maria Shibu in Bengaluru; Edited by Vinay Dwivedi

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UPDATE 3-Australian Bingo Industry gets $ 1.8 billion buy offer, stocks soar | Instant News


* CPE Capital led consortium table A $ 3.50 / share offering

* Co says talks with the PE consortium are ongoing

* Stock hit highs since Feb 2020 (Update in last paragraph with CPE Capital declining to comment)

January 19 (Reuters) – Bingo Industries Australia said on Tuesday that it had received a cash purchase offer of A $ 2.29 billion ($ 1.8 billion) from a consortium led by private equity firm CPE Capital, delivering shares of a waste management company. to an 11-month high.

The offer comes at a time when the government is injecting stimulus into the recycling and construction sectors and encouraging infrastructure investment as the economy reopens from the lockdown imposed by the coronavirus.

Under the proposal, Bingo shareholders would earn A $ 3.50 per share, nearly a 28% premium for the last close of the shares, the company said in a statement.

A deal will hand over nearly A $ 460 million to Chief Executive Officer and major shareholder Daniel Tartak, whose parents started Bingo on the outskirts of Sydney in 2005 by acquiring a small skip bin company for less than A $ 1 million.

Bingo said the proposal includes an alternative structure that would give shareholders the option to receive a mix of unlisted cash and scripts at a lower upfront price than the cash offer.

“The proposal is being considered by Bingo’s independent board committee and discussions and due diligence with the consortium are under way,” the company said.

Bingo stock surged as much as 23.7% to A $ 3.39, the highest since February 20, 2020, but is still trading below its bid price.

“(The offer) is just one shot and an opportunity to engage with the family,” said Henry Jennings, senior analyst at the Marcustoday Financial Newsletter.

“The takeover has to be close to A $ 4 to get over the line.”

CPE Capital’s investment portfolio ranges from the food to the auto sector, and includes the Banksmeadow Recycling site, which was purchased from Bingo in 2019.

CPE Capital declined to comment.

$ 1 = 1.3017 Australian dollars Report by Sameer Manekar in Bengaluru, additional reporting by Byron Kaye in Sydney; Edited by Nick Zieminski and Stephen Coates

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Google closed the Fitbit deal as US and Australian investigations continued | Instant News


WASHINGTON (Reuters) – Search and advertising giant Google closed its deal to buy fitness tracking firm Fitbit, it said on Thursday, even as US and Australian competition regulators said they were continuing to investigate a $ 2.1 billion transaction.

The Justice Department, which sued Alphabet Inc’s Google in October for allegedly violating antitrust laws in its search and search advertising businesses, said it “has not yet reached a final decision on whether to pursue enforcement action” over the Fitbit deal.

Australian Competition and Consumer Commission chairman Rod Sims said “depending on the results of our investigation, we will consider whether to take legal action on this matter”.

Google said it “complied with the extensive DOJ (Department of Justice) review over the past 14 months, and the agreed waiting period has ended without their objection.”

“We are in constant contact with them and we are committed to answering additional questions,” the company added.

Google did not immediately respond to Sims’ statement.

Large transactions are rare without antitrust approval.

Google won EU antitrust approval last month for a Fitbit bid after agreeing to restrictions on how it will use data related to customer health.

Australia rejects similar restrictions proposed by Google, expressing concerns that it might block Fitbit rivals from connecting to phones running Google’s Android operating software.

Fitbit makes watch-like devices for measuring physical activity that compete with Apple Watch and others. Google says it is buying the company to compete in this market.

“We are working with global regulators on an approach that protects consumer privacy expectations,” said Google in a blog post, which said Fitbit had 29 million active users.

“(It includes) a series of binding commitments confirming Fitbit users’ health and fitness data will not be used for Google advertising and this data will be separated from other Google advertising data.”

Although Alphabet is known for its free service, its search engine, it owns many other businesses, including online advertising services, audio devices and thermostat maker Nest, YouTube video streamer, and self-driving car company Waymo.

Google’s plans to buy Fitbit raised concerns when it was announced at the end of 2019 due to its already rich data set about people, what they buy, where they travel and more.

Fitbit fitness trackers and other devices monitor user steps and calories burned. They also measured floors climbed, heart rate, and how long and how well people slept.

Alphabet shares closed around 1% on Thursday. The company is expected to retain 1,800 Fitbit employees.

Reporting by Diane Bartz in Washington and Munsif Vengattil in Bengaluru; Additional reporting by Paresh Dave in Oakland, California; Edited by David Gregorio and Christopher Cushing

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Italy’s MPS will open up the data room next week but needs a source of time | Instant News


ROME / SIENA (Reuters) – State-owned company Monte dei Paschi is expected to provide access to confidential data to potential merger partners within days, three sources with knowledge of the matter said on Wednesday.

PHOTO FILE: PHOTO FILE: Entrance to the Monte dei Paschi head office in Siena, Italy, 27 October 2017. REUTERS / Stefano Rellandini / Photo Files / Photo Files

The opening of the data room, which marks the start of the process for the re-privatization of Tuscan banks, comes as Italy faces a government crisis after the junior coalition party on Wednesday withdrew its ministers from the cabinet.

Monte dei Paschi (MPS) has announced a capital shortfall of up to 2.5 billion euros ($ 3 billion) and will present plans to fill it to the European Central Bank at the end of the month.

While the Ministry of Finance continues to work to fulfill promises made to Brussels when it rescued the MPS in 2017, people say Rome will only be able to present an outline of planned steps for the bank and count on winning more time from the ECB.

In order to come up with a durable solution to bank woes, the Ministry of Finance is looking to conclude a merger deal for MPS and has focused on UniCredit as the ideal partner.

With UniCredit now in the process of selecting a new chief executive after CEO Jean Pierre Mustier said in November he would step down in mid-April, MPS is also looking for possible alternatives.

The MPS said on Monday that its advisers would explore options regarding opening up the data room. Apart from UniCredit, Banco BPM, BPER Banca, Credit Agricole Italia and BNL-BNP Paribas will also be explored, said two sources.

Asked about the list of names, both MPS advisors, Mediobanca and Credit Suisse declined to comment.

Banco BPM does not currently include MPS among possible merger options, but its advisers are ready to assess the situation if they are to be contacted, a source close to Banco BPM said.

BPER Banca declined to comment. Credit Agricole Italy and BNL-BNP Paribas could not be reached for comment.

Financial sources said Credit Agricole Italy, which plans to launch a takeover offer for smaller rival Creval, is not interested in MPS.

Entering the data room requires the signing of a confidentiality agreement, a step UniCredit has not taken despite contact with the Ministry of Finance regarding the terms of a possible deal.

Rome has worked out a package of measures that will ensure the deal will not harm the buyer’s capital reserves, a key condition set by UniCredit which, according to a fourth source with knowledge of the matter, will also apply to other banks.

But the main hurdle for sales is about 10 billion euros in damages claims MPS is facing after decades of mismanagement.

MPS Fondazione in July filed an extra-judicial claim of 3.8 billion euros against the bank, which the Ministry of Finance hopes can be scrapped as part of a settlement deal.

Chairman Carlo Rossi on Wednesday said the foundation plans to initiate legal action on the claim, although it remains open for discussion.

($ 1 = 0.8214 euros)

Reporting by Giuseppe Fonte in Rome, Valentina Za in Milan and Silvia Ognibene in Siena; Additional reporting by Andrea Mandala; Edited by Elaine Hardcastle and Steve Orlofsky

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New Fortress Energy is betting on Brazilian LNG growth with the acquisition of Hygo | Instant News


RIO DE JANEIRO (Reuters) – US-based New Fortress Energy Inc said on Wednesday it would buy natural gas company Hygo Energy Transition Ltd for $ 2.18 billion to expand its presence in Brazil, the frontier for growth in the burgeoning liquefied natural gas market. developing.

New Fortress, an energy infrastructure company, is among the private sector players turning their sights to Brazil, where demand for super-cooled LNG is increasing, although the market is smaller than in India and China, where power generation is shifting away from more coal. dirty to natural gas.

With Brazil opening up its natural gas industry to private investors, other companies including oil major BP PLC and US-based EIG Global Partners are also planning multibillion-dollar investments in the country.

New Fortress, a growing competitor in the LNG industry, has a small liquefaction plant in Florida and ships LNG throughout the Caribbean. In the past year, its market value has jumped 286% to $ 10 billion, according to Refinitiv Eikon data. The company is building a larger LNG import terminal in Mexico.

The company will acquire all of Hygo’s outstanding shares for 31.4 million shares of NFE Class A common stock and $ 580 million in cash.

Brazil’s annual demand for LNG is expected to grow by more than 80% by 2021, the fastest rate in the world, although its starting point is relatively low compared to large Asian consumers, said Kristen Holmquist, forecasting specialist at Poten & Partners.

Unlike these countries, most of Brazil’s electricity comes from hydropower. This LNG supply is partly intended to replace the supply of natural gas from pipelines originating from Bolivia.

Hygo transports supercooled fuel and has become a key player in Brazil’s natural gas industry as state-controlled Petrobras sells assets, canceling what was almost a monopoly on the market.

Hygo – a 50-50% joint venture between US private equity firm Stonepeak Infrastructure Partners and Golar LNG – has recently invested in a number of LNG projects in Brazil for power generation. The company is also competing to operate a highly desirable LNG import terminal which is leased by Petrobras.

“There is strong growth in Brazil for electricity-powered projects,” Holmquist said in a webinar on Wednesday.

Hygo has told Reuters in 2020 that it plans to use LNG instead of diesel in trucks.

The transaction has a corporate value of $ 3.1 billion and an equity value of $ 2.18 billion, according to the statement.

The Hygo acquisition comes four months after the company’s trading debut in New York was suspended at the last minute after Brazilian federal prosecutors said the then company’s chief executive was appointed in the early stages of a corruption investigation, to activity at the company previously.

The CEO at the time, Eduardo Antonello, had left the company. He hasn’t been charged.

New Fortress also agreed to buy Hygo’s controlling company, Golar LNG Partners LP for about $ 251 million in general equity value and a company value of $ 1.9 billion.

Golar LNG Ltd was up 15% in US trading, while New Fortress Energy was up 10%.

Reporting by Sabrina Valle and Rithika Krishna; Edited by Maju Samuel, Krishna Chandra Eluri, Steve Orlofsky and David Gegoryo

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