In March 2021, global corporate mergers and acquisitions were relatively active. Sinochem Group and China National Chemical Corporation were approved to implement joint reorganization, and General Electric merged its aircraft leasing department with AerCap, the world's largest aircraft leasing company.
Large-scale mergers
Sinochem Group and China National Chemical Corporation were approved for joint reorganization
Upon approval by the State Council, China Sinochem Group Co., Ltd. and China National Chemical Corporation implemented a joint reorganization. According to the reorganization plan, a new company will be established with the State-owned Assets Supervision and Administration Commission performing investor duties on behalf of the State Council, and Sinochem Group and ChemChina will be integrated into the new company as a whole. The new company will cover life sciences, materials science, basic chemicals, environmental sciences, rubber tires, machinery and equipment, urban operations, industrial finance and other business fields. After the merger of the two companies, the total assets will exceed 1.4 trillion yuan. In 2020, Sinochem Group and ChemChina merged their respective agrochemical sectors to form Syngenta Group, the world's largest agrochemical company.
General Electric spins off aircraft leasing unit
General Electric (GE) confirmed that it will merge its aircraft leasing unit GE Capital Aviation Services with AerCap Holdings, the world's largest aircraft leasing company. The company said it will receive more than $30 billion in consideration for the transaction. General Electric will transfer GE CAS's net assets worth $34 billion to AerCap, including its engine leasing and helicopter leasing businesses. In addition, more than 400 employees of GE CAS will be transferred to AERCAP upon completion of the transaction. The combined company will retain the AerCap name and GE CAS will become an AerCap business. GE plans to use proceeds from the deal and existing cash to reduce debt by about $30 billion after the deal closes. The deal would create a leasing giant with more than 2,000 aircraft at a time when global travel is hampered by the coronavirus pandemic.
Canada's two major communications operators will merge
Canadian telecommunications operator Rogers (Rogers) has signed an acquisition agreement with Shaw Communications totaling 26 billion Canadian dollars (about 20.8 billion U.S. dollars). Rogers will acquire Shaw in a $16 billion structure. In addition, Rogers will assume approximately $4.8 billion of Shaw's debt. If the acquisition can be completed, Rogers will become Canada's second-largest communications operator. However, the agreement faces strict scrutiny from three regulatory agencies and requires approval from shareholders. Both Rogers and Shaw have network resources ranging from wired to wireless.
Canadian Pacific Railway acquires Kansas City Southern Railway in the United States Kansas City Southern Railway
Canadian Pacific Railway has agreed to acquire Kansas City Southern Railway in the United States. The transaction is worth approximately US$25 billion. If it goes through, it will create The first freight rail network connecting Mexico , the United States and Canada. The merger is a long-term bet on economic interconnection in North America and the deal faces lengthy regulatory scrutiny.
Other large-scale mergers and acquisitions
Swiss property insurance giant Chubb has issued a US$23.24 billion acquisition offer to the Hartford Financial Services Group of the United States, but no agreement has yet been reached. Chubb Insurance is the world's largest listed property and casualty insurance company, operating in 54 countries and regions. Hartford Financial is one of the largest insurance and financial services companies in the United States. Chubb Insurance believes this combination is strategically and financially attractive to the shareholders of both companies and others and looks forward to constructive private discussions with a view to consummating the transaction expeditiously and fairly.
Apollo Global Management will merge with Athene Holding, the life insurance company it founded, transforming the alternative asset manager into a financial conglomerate with a market capitalization of nearly $30 billion. The deal comes weeks after Leon Black announced he would step down as Apollo CEO.The deal also ends a generous fee arrangement between the two companies, with private equity firm Apollo, which founded Athene in 2009, seeing the insurer as an opportunity to deploy client capital and buy the company at a fire sale price. Debt and other credit assets have fallen out of favor.
Hitachi Manufacturing Co., Ltd. (Hitachi) will acquire American information technology company GlobalLogic. The total value of acquisitions reached US$9.6 billion, a record high in the electronics industry. GlobalLogic is an emerging company established in 2000 based in Silicon Valley, USA. It is involved in the development of systems used by enterprises promoting digital transformation. It has more than 20,000 employees in 14 countries around the world and has a rich development system in India. Hitachi will acquire all shares from existing shareholders before July and incorporate it into Hitachi Global Digital Holdings, which is responsible for the US IT business.
Panasonic (Panasonic) will buy American software company Blue Yonder for 700 billion yen ($6.45 billion), which is Panasonic's largest acquisition since 2011. Panasonic acquired a 20% stake in Blue Yonder in 2020, and the process of purchasing the remaining equity from shareholders such as Blackstone Group is currently in the final stage. Panasonic plans to expand its hardware business that integrates software, sensors and other devices that help companies improve operational efficiency. Blue Yonder is involved in software that makes full use of artificial intelligence (AI) to predict product demand and delivery dates, helping to adjust the supply chain of client companies and improve profits.
Identity management company Okta has agreed to acquire identity platform Auth0 in an all-stock transaction valued at approximately $6.5 billion. The deal will accelerate Okta's growth in the $55 billion identity management market. Okta's cloud products can help verify and protect the identity of an organization's employees or customers before they can access specific applications or websites. Auth0 also helps manage employee and customer identities across a wide range of applications. The transaction is expected to be completed in the second quarter of this year.
Las Vegas Las Vegas Sands agrees to sell its Las Vegas properties to Apollo Global Management and Vici Properties for $6.25 billion, refocusing the company on its successful Resorts in Asia and other potential opportunities in the United States. Real estate investment trust Vici will own the properties and Apollo will operate them. In its capital expenditure plan, Sands has identified $5 billion in investment in resorts over the next five years, with the majority concentrated in Macau and Singapore, which contributed 85% of revenue in 2019, while the U.S. business contributed only Less than 15%.
Extended Stay America has reached an agreement to be acquired by Blackstone Group and Starwood Capital Group in an all-cash deal valued at approximately $6 billion.
Health technology company Philips (Philips) has signed an agreement to sell its home appliance business to investment firm Hillhouse Capital for a transaction value of approximately 3.7 billion euros. Philips' home appliance business will still be headquartered in the Netherlands. Its products include fully automatic espresso machines, air purifiers, vacuum cleaners, etc. In 2020, related business sales were 2.2 billion euros. In addition, Philips will license home appliances to continue to use the Philips brand. The authorization period is 15 years and can be extended subject to conditions. The estimated net present value of brand licensing is approximately 700 million euros, which will total approximately 4.4 billion euros after including the total transaction value.
M&A progress
U.S. chipmaker Analog Devices' $21 billion acquisition of rival Maxim Integrated has received unconditional approval from the European Union. This will be Analog Devices' largest ever transaction.
South Korean semiconductor manufacturer SK hynix’s acquisition of Intel’s NAND flash memory unit has been approved by the Committee on Foreign Investment in the United States (CFIUS). After SK Hynix signed a US$9 billion NAND flash memory business acquisition agreement with Intel in October last year, it submitted a merger declaration to the antitrust law enforcement agencies of major countries such as the United States and China.
The U.S. Federal Trade Commission (FTC) filed a lawsuit in an attempt to block Illumina's plan to acquire blood testing company Grail for $7.1 billion.The case poses a major test for U.S. antitrust enforcement because Illumina's proposed acquisition of Grail is a vertical merger between two companies that do not directly compete. Most merger litigation involves challenges to so-called horizontal transactions, which involve mergers between direct competitors.
has completed the merger
Japanese mobile communications giant SoftBank (SoftBank Corp.) Yahoo Japan parent company Z Holdings (Z Holdings) and LINE Company (LINE) completed the operational merger on March 1, and the new company became Japan's largest Internet company One of the enterprises. The post-merger operating system is that SoftBank and LINE's parent company NAVER of South Korea each contribute 50% of the capital and establish an intermediate holding company as a merged subsidiary of SoftBank, placing Z Holdings under it. Then, LINE and Yahoo, which became fully subsidiaries under Z Holdings, developed their businesses separately.
Fujifilm (FUJIFILM) completed the acquisition process of the imaging diagnosis-related business of Hitachi Manufacturing Co., Ltd. on March 31, marking that "Fujifilm Healthcare", a new company established by Hitachi to inherit related businesses, has officially become the entire Fujifilm Group. capital subsidiary. Through this acquisition, Fujifilm's medical business has expanded to a wide range of product lines such as CT, MRI, X-ray photography systems, ultrasonic diagnostic equipment, endoscopes, in vitro diagnostic systems and PACS, and will be able to provide a range of products based on the actual needs of medical institutions. A one-stop comprehensive solution.
Microsoft (Microsoft) announced the completion of the acquisition of US game publisher ZeniMax Media. Because of this acquisition, a total of eight game studios including Bethesda Game Studios, id Software, and ZeniMax Online Studios under ZeniMax have joined the Xbox team.
Siemens (Siemens) has completed the sale of its mechanical transmission and electrical transmission company Flender to Carlyle Group (Carlyle Group), with an enterprise value of 2.025 billion euros.
has failed to acquire
Applied Materials, the largest semiconductor manufacturing equipment company in the United States, said on March 29 that it had given up the acquisition of KOKUSAI ELECTRIC, a former Hitachi Manufacturing company (now owned by the U.S. investment fund KKR). The reason was the failure to obtain approval from China’s antitrust authorities. Applied Materials previously planned to acquire KOKUSAI for US$3.5 billion. Due to the breakdown, it will pay KKR a termination fee of US$154 million.
Chinese-funded M&A
South Korean semiconductor manufacturer MagnaChip Semiconductor will accept an acquisition proposal from Chinese investment fund Wise Road Capital, with an estimated acquisition value of US$1.4 billion. Magna mainly operates display driver semiconductors and general power management semiconductors. Magna does not own production equipment and specializes in semiconductor design. Its sales in fiscal 2020 were US$507.1 million. Zhilu Capital plans to complete the acquisition in 2021.
WuXi Biologics, an open biopharmaceutical technology platform company, has reached an acquisition agreement with Pfizer China. WuXi Biologics will acquire Pfizer China's advanced biopharmaceutical production base in Hangzhou, and relevant employees will also be taken over by WuXi Biologics. . The transaction is expected to close in the first half of 2021. The biopharmaceutical production base acquired this time covers an area of 50,000 square meters and was put into GMP production in 2018, including one original solution production line and two preparation production lines.
WuXi AppTec completed its acquisition of British gene therapy technology company OXGENE. Through this acquisition, OXGENE will become a wholly-owned subsidiary of WuXi AppTec, which specializes in cell and gene therapy CTDMO WuXi BioGen. At the same time, OXGENE will retain the original company name and become WuXi BioGen's first R&D and production base in Europe. .
Other small and medium-sized M&A
US professional security technology company McAfee will sell its enterprise business to a consortium led by Symphony Technology Group for US$4 billion in cash. McAfee said its enterprise business recorded net revenue of $1.3 billion in fiscal 2020. Over the past few years, McAfee has strengthened its main business of cybersecurity software focused on retail customers through price increases, new partner programs and good retention rates.
Japanese Pioneer has decided to sell its map information subsidiary IncrementP to Polaris Capital Group. Sales are expected to be around 30 billion yen.Pioneer will secure investment funds for commercial vehicle operation management services and accelerate business reconstruction. Cision, the parent company of
PR Newswire, announced a US$450 million final acquisition agreement with Brandwatch. Brandwatch is a leading provider of digital consumer insights and social media listening services. This strategic investment brings together two leaders in their respective industries. Their complementary capabilities will bring tangible benefits to clients and shape PR, marketing and marketing. and the future of digital consumer engagement.
Industrial materials maker DuPont (DuPont) will acquire Laird Performance Materials from Advent International for $2.3 billion. Laird Performance Materials is engaged in the fields of high-performance electromagnetic shielding and thermal management, providing comprehensive performance components and solutions including thermal management and electromagnetic interference shielding materials.
Swiss pharmaceutical giant Roche has agreed to acquire US molecular diagnostic testing company GenMark Diagnostics for $1.8 billion, acquiring a provider of rapid testing tools for infectious diseases including Covid-19. GenMark's test strips can detect multiple pathogens from a single patient sample. The coronavirus pandemic has fueled demand for tests that can quickly diagnose Covid-19 and other diseases, triggering a wave of deals in the diagnostics space.
Cardinal Health has entered into a definitive agreement to sell its Cordis business to Hellman & Friedman (H&F) for approximately $1 billion, including certain obligations assumed by the buyer and certain retained by the seller. Working Capital Account. As one of the market's leading cardiovascular medical device manufacturers, Cordis has a long history of innovation in minimally invasive cardiovascular technology.
French retailer Carrefour has agreed to buy Brazilian retailer Grupo BIG Brasil SA from Advent International and Walmart for about 1.1 billion euros. The French retailer will strengthen its position in Brazil by merging with the country's third-largest food retailer.
Bank of East Asia (Bank of East Asia) agreed to sell its insurance business to AIA Group. Hong Kong-based Bank of East Asia said it would sell its BEA Life unit for $650 million and sign an exclusive 15-year agreement to distribute it through its more than 140 branches in Hong Kong and mainland China. AIA’s life and long-term savings products.
Square has agreed to acquire majority ownership of Tidal, the music and entertainment platform owned by rapper Shawn “Jay-Z” Carter and other artists, for $297 million in cash and stock.
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