Deals: Monsters in the Wings?

In our M&A Roundup for the week ended June 1, real dealmaking is tepid compared to the mega-billion-dollar buzz over Anheuser-InBev and Rio Tinto-BHP Billiton.

Talk of monster global acquisitions swirls around Anheuser-Busch ($45 billion, by Belgium-based InBev NV) and Rio Tinto PLC ($178 billion, by BHP Billiton Ltd.) But the picture for North American deals that have reached the agreement stage was several levels of magnitude more modest last week.

How modest? Even with North American dealmaking more than doubling from the prior week, the value of the 28 transactions done in the seven days ended June 1 reached only $7.83 billion — compared with 31 deals worth $2.74 billion.

There were, however, four billion-dollar-plus deals among the top 10 North American transactions in the latest week, according to data provided to CFO.com by mergermarket. Leading the way was Sterlite Industries India’s agreement to buy copper company Asarco LLC from Grupo Mexico S.A.B. de C.V. for $2.6 billion.

Overall, last week’s transactions increased year-to-date deals to 1,455 transactions, worth a total of $339.63 billion. In the prior year, a record for dealmaking, 2,233 had been agreed to by this time, totaling $805.89 billion.

Sterlite Industries India to buy Asarco LLC from Grupo Mexico S.A.B. de C.V. for $2.6 billion

Tuticorin, India-based Sterlite, which is involved in copper smelting, mining, and refining, won an auction for Tucscon-based Asarco, the integrated copper mining, smelting, and refining company that is owned by Grupo Mexico, of Colonia Roma Sur, Mexico. Grupo Mexico’s business extends to the mining and processing of zinc, silver, gold, molybdenum, and lead, along with copper.
Seller financial advisor: Lehman Brothers
Bidder financial advisor: ABN AMRO
Seller legal advisor: Baker Botts
Bidder legal advisor: Shearman & Sterling

XTO Energy Inc. to buy the oil properties in Bakken Shale from Headington Oil Co. LP for $1.85 billion

Fort Worth-based XTO, an oil and gas exploration and production company, agreed to acquire 350,000 acres of property with oil reserves in the Bakken Shale region from Headington, based in Montana for cash and equity. The transaction is expected to closed on or before July 15.
Seller financial advisor: JPMorgan
Bidder financial advisor: Internal
Seller legal advisor: Not available
Bidder legal advisor: Internal

AMP Capital Investors Ltd., Deutsche Bank AG, Public Sector Pension Investment Board, and Stichting Pensioenfonds Zorg en Welzijn to buy 25 percent of Compania Logistica de Hidrocarburos SA from Enbridge Inc. for $1.38 billion

The buyers are Zeist, Netherlands-based pension fund Stichting Pensioenfonds; Canadian pension fund Public Sector Pension Investment Board, Hessen; Germany-based investment bank Deutsche Bank; and Australia-based private equity firm AMP Capital Investors. The seller, Enbridge, is a Calgary, Alberta-based provider of natural gas and crude oil transportation services. The 25-percent stake is in Madrid-based Compania Logistica de Hidrocarburos, which is engaged in the transportation and storage of oil products. Terms call for the investors to pay buy $78.67 per share, a premium of 0.09 percent. Closing is expected in mid-June.
Seller financial advisor: Citigroup
Bidder financial advisor: Deutsche Bank
Seller legal advisor: Cuatrecasas – Goncalves Pereira, Castelo Branco
Bidder legal advisor: Uria Menendez; Uria Menendez; Uria Menendez; Uria Menendez

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