Latest M&A News:
- 10/26/20: Lion Equity Partners Completes Acquisition of T-Y Group and Harbor Linen From Bed Bath & Beyond
DENVER--(BUSINESS WIRE)--Lion Equity Partners, a Denver-based private equity firm specializing in acquiring corporate carve-outs, announced that its affiliate, Lion Equity Holdings II, LLC, acquired T-Y Group and Harbor Linen (“TY-Harbor”) from Bed Bath & Beyond Inc. TY-Harbor distributes quality linens, terry, amenities, case goods and apparel to world-class businesses in the global hospitality and healthcare industries. TY-Harbor will be merged with Lion Equity Partners’ existing portfoli - Source: Business Wire Merger/Acquisition News - 10/26/20: M&A Wrap: Thoma Bravo, Dunkin' Brands, Roark, Inspire, Bayer, Blackstone, AEI
Acceleration of digital transformation leads Thoma Bravo to raise three technology and software-focused funds. Dunkin' owner confirms it is in buyout talks with Roark-backed Inspire Brands. More deal news from Bayer, Blackstone and AEI. - Source: The Latest - 10/26/20: TractManager Agrees to Be Acquired by symplr
DALLAS--(BUSINESS WIRE)-- #acquisition--symplr, a leading global healthcare governance, risk management, and compliance (“GRC”) software-as-a-service (“SaaS”) platform, backed by Clearlake Capital Group, L.P. (together with its affiliates, “Clearlake”) and SkyKnight Capital (together with its affiliates, “SkyKnight”), has signed a definitive agreement to acquire TractManager (or the “Company”) from Arsenal Capital Partners (“Arsenal”). Financial terms were not disclosed. “We have long recognized the synergies - Source: Business Wire Merger/Acquisition News - 10/26/20: Edgemont Partners Announces H.I.G. Capital Has Signed a Definitive Agreement to Acquire St. Croix Hospice from The Vistria Group
NEW YORK--(BUSINESS WIRE)--Edgemont Partners acted as financial advisor to H.I.G. Capital on its acquisition of St. Croix Hospice. - Source: Business Wire Merger/Acquisition News - 10/26/20: Dunkin’ Brands has done well in the pandemic. Now it’s a $9 billion takeover target.
Dunkin’ Brands, the parent of Dunkin’ and Baskin Robbins, is negotiating with a private equity-backed company for a sale that values the restaurant chain at nearly $9 billion. The potential takeover, reported first by The New York Times on Sunday, would come at a 20 percent premium to Dunkin’s share price on Friday, which was already trading near a high. - Source: Mergers, Acquisitions and Divestitures - 10/26/20: Garrett Motion Preserves $2.6 Billion Stalking Horse Bid for Business
ROLLE, Switzerland--(BUSINESS WIRE)--Garrett Motion Inc. (“Garrett”) today announced that on Friday, October 23, 2020, it secured Court approval of bidding procedures for a competitive process to either sell the business of Garrett or raise equity capital for a stand-alone plan of reorganization. The competitive process will continue over the next seven weeks and is expected to conclude at an auction on or about December 18, 2020. The bidding procedures permit Garrett to explore all options, in - Source: Business Wire Merger/Acquisition News - 10/26/20: Bayer Spends Up to $4 Billion for AskBio’s Gene Therapies
Drugmakers including Novartis, Roche Holding and Bristol-Myers Squibb have snapped up makers of gene therapies because they offer potential to cure a wide range of often-rare diseases by replacing or repairing errors in the body’s instruction manual. - Source: The Latest - 10/26/20: Spectrum Brands Acquires Pet Treat and Toy Company, Armitage Pet Care
ST. LOUIS, Mo.--(BUSINESS WIRE)--Spectrum Brands Acquires Pet Treat and Toy Company, Armitage Pet Care - Source: Business Wire Merger/Acquisition News - 10/26/20: Dunkin’ Brands Says It’s in Talks to Be Acquired by Inspire
Inspire Brands, the owner of Buffalo Wild Wings and Jimmy John’s, is backed by the Atlanta-based private equity firm Roark Capital. - Source: The Latest - 10/26/20: Kerrigan Advisors Represents Continental Motors of Naperville in Sale of Dealerships
IRVINE, Calif.--(BUSINESS WIRE)-- #blueskyreport--Kerrigan Advisors, a leading sell-side advisory firm to auto dealers in the U.S., represented and advised Continental Motors of Naperville on its recent sale of Continental Acura, Continental Audi and Continental Mazda. Continental Audi and Mazda were sold to Chicago, Illinois-based Bill Napleton Auto Group, while Continental Acura was sold to Desmond Roberts, owner of Advantage Chevrolet of Hodgkins, Advantage Chevrolet of Bolingbrook and Advantage Toyota of Ri - Source: Business Wire Merger/Acquisition News - 10/26/20: Why Dunkin’ is Worth Nearly $9 Billion
The restaurant chain is a pandemic success story. - Source: Mergers, Acquisitions and Divestitures - 10/26/20: First American and ServiceMac Announce Agreement for First American’s Acquisition of ServiceMac
SANTA ANA, Calif.--(BUSINESS WIRE)--First American Financial Corporation (NYSE: FAF), a leading global provider of title insurance, settlement services and risk solutions for real estate transactions, and ServiceMac, LLC, an innovative mortgage subservicing company, announced today the signing of an agreement for First American’s acquisition of ServiceMac. As a part of the transaction, First American has acquired a minority interest in ServiceMac’s parent company. That interest will convert int - Source: Business Wire Merger/Acquisition News - 10/26/20: iCapital Network® Leverages U.S. Success to Accelerate International Growth
NEW YORK--(BUSINESS WIRE)-- #HNW--iCapital Network leverages US success to accelerate international growth; hires two European industry veterans; acquires 65-strong Lisbon tech team - Source: Business Wire Merger/Acquisition News - 10/26/20: Accenture Acquires Cloud-Native Provider Enimbos, Bolstering Cloud-First Capabilities in Spain and Portugal
MADRID--(BUSINESS WIRE)--Accenture acquired Enimbos, a Madrid-based provider of cloud migration and related services. - Source: Business Wire Merger/Acquisition News - 10/26/20: Bayer Acquires Asklepios BioPharmaceutical to Broaden Innovation Base in Cell and Gene Therapy
BERLIN--(BUSINESS WIRE)--Bayer AG today announced the acquisition of Asklepios BioPharmaceutical, Inc. (AskBio), a US-headquartered biopharmaceutical company specialized in the research, development and manufacturing of gene therapies across different therapeutic areas. AskBio’s development portfolio includes investigational pre-clinical and clinical stage candidates for the treatment of neuromuscular, central nervous system, cardiovascular and metabolic diseases. Bayer will own full rights to - Source: Business Wire Merger/Acquisition News - 10/26/20: New Mountain Capital to Acquire Natrol from Aurobindo Pharma
NEW YORK--(BUSINESS WIRE)--New Mountain Capital announced that it has reached a definitive agreement with Aurobindo Pharma to acquire Natrol and combine it with Jarrow Formulas, another New Mountain Capital portfolio company. The transaction is expected to close by January 2021 subject to customary closing conditions and regulatory approvals. Headquartered in Los Angeles, CA, Natrol is a leading vitamins, minerals and supplements brand focused on vital human health areas including sleep, mood & - Source: Business Wire Merger/Acquisition News - 10/25/20: Dunkin’ Brands Is in Talks to Sell Itself and Go Private
The parent of Dunkin’ and Baskin Robbins is negotiating with a private-equity-backed company for a takeover that values the coffee company at nearly $9 billion. - Source: Mergers, Acquisitions and Divestitures - 10/23/20: Canyon Bicycles Said to Draw Takeover Interest From Carlyle, KKR
Consumers have taken up cycling as a means of keeping fit and healthy during lockdowns. - Source: The Latest - 10/23/20: Ares Weighs Sale of Paint Maker Farrow & Ball, Say Reports
Demand for decorating supplies has been robust during the coronavirus crisis, which has kept people indoors and many focused on home improvements. The broader construction industry, another key market for paint manufacturers, is expected to play an important role in a post-pandemic recovery. - Source: The Latest - 10/23/20: PayPal in Talks to Buy Crypto Firms Including BitGo, Reportedly
PayPal Holdings Inc. is exploring acquisitions of cryptocurrency companies including Bitcoin custodian BitGo Inc., according to people familiar with the matter, a move that would expand its embrace of digital coins. - Source: The Latest - 10/22/20: Alexandra Korry, 61, Dies; Pushed to End Solitary for Juveniles
A corporate lawyer who gave time for public service in New York, she also criticized police stop-and-frisk tactics and school funding that harmed Black and Hispanic people. - Source: Mergers, Acquisitions and Divestitures - 10/22/20: M&A Wrap: Presidential Election, Riverside, Sun Life, Adidas, Reebok, Levine Leichtman, HarbourVest, Summit
Mergers & Acquisitions talks to Riverside Co.s' Pam Hendrickson about the election from a PE perspective. Sun Life buys a majority stake in Crescent. Adidas is reportedly looking to sell Reebok. HarbourVest and Summit make education technology deals. - Source: The Latest - 10/22/20: Sun Life Buys Majority Stake in Crescent Capital to Bolster Asset Management Business
The deal for Crescent comes as many companies are struggling to stay alive through the coronavirus pandemic, and are turning to alternative lenders for money they can’t get from banks. - Source: The Latest - 10/22/20: Adidas Reportedly Prepares Sale of Reebok Brand
Since taking over as CEO of Adidas in 2016, Kasper Rorsted has repeatedly denied rumors that he was looking to sell the brand. - Source: The Latest - 10/22/20: Competition watchdog intervenes in Viagogo's $4bn takeover of StubHub
Regulator says deal between controversial ticket resale firms would harm consumers
The takeover of the ticket resale website StubHub by its rival Viagogo has been provisionally blocked by the competition watchdog, throwing the future of the controversial $4bn (£3bn) tie-up into doubt.
The Competition and Markets Authority (CMA) found the combined business would dominate the market for resold tickets, giving it the power to hike up fees in the absence of any meaningful competitor.
Related: 170,000 jobs in UK's live music sector 'will be lost by Christmas'
Continue reading... - Source: Mergers and acquisitions | The Guardian - 10/22/20: Forget Antitrust Laws. To Limit Tech, Some Say a New Regulator Is Needed.
Even as the Justice Department sued Google, some antitrust experts wondered whether a different government response would be more effective. - Source: Mergers, Acquisitions and Divestitures - 10/21/20: Google Has Edge in Antitrust Fight
The federal government’s lawsuit isn’t likely to derail the company’s market dominance. - Source: Mergers, Acquisitions and Divestitures - 10/21/20: Bilfinger Is Said to Attract Buyout Firms Including CD&R
CD&R is on the lookout for new German targets, reports Bloomberg News. The PE firm sold Mauser Group, a packaging company with roots in the Black Forest, and acquired Kalle Group, a supplier of industrially produced casings for meat, in 2016. - Source: The Latest - 10/21/20: Google Antitrust Fight Thrusts Low-Key C.E.O. Into the Line of Fire
Sundar Pichai, chief executive of Google’s parent company for less than a year, already faces the internet giant’s biggest threat in its 22 years. - Source: Mergers, Acquisitions and Divestitures - 10/20/20: Intel Casts Off More Memory Chip Business in $9 Billion Deal
The sale to SK Hynix of South Korea includes a major factory in China and follows the company’s decades-long shift into microprocessors. - Source: Mergers, Acquisitions and Divestitures - 10/19/20: Oil Industry Turns to Mergers and Acquisitions to Survive
With the price of a barrel stuck around $40 and no recovery in sight, companies are combining to cut costs and ride out the pandemic. - Source: Mergers, Acquisitions and Divestitures - 10/14/20: Berkshire Hathaway Says Blue Chip Law Firm Aided Fraud
A lawsuit claims Jones Day helped trick Warren Buffett’s organization into buying a German company for five times what it was worth. - Source: Mergers, Acquisitions and Divestitures - 10/14/20: Ranjit Singh Boparan buys Gourmet Burger Kitchen in rescue deal
Purchase of 35 sites saves more than 660 jobs, but 26 other sites to close, with loss of 362 jobs
Gourmet Burger Kitchen has been bought out of administration by the food industry tycoon Ranjit Singh Boparan in a deal that will save more than 660 jobs.
Boparan, who bought Carluccio’s in May, has bought 35 of the burger restaurant’s sites. However, under the pre-pack administration deal, 26 other sites will close, with the loss of 362 jobs.
Continue reading... - Source: Mergers and acquisitions | The Guardian - 10/13/20: DOJ Issues Merger Remedies Manual as Both DOJ and FTC Step Up Efforts to Enforce Consent Decrees
The U.S. Department of Justice (DOJ) Antitrust Division issued a new Merger Remedies Manual on September 3, clarifying the analytical framework it is using to evaluate remedies that may address competitive harms stemming from proposed mergers and acquisitions, as well as from consummated mergers. In announcing the modernized Manual, Assistant Attorney General Makan Delrahim said […] - Source: Cooley M&A - 10/08/20: TalkTalk agrees to discuss £1.1bn takeover bid
Shares surge after news of hedge fund interest in buying UK’s fourth-largest broadband provider
Shares in Charles Dunstone’s TalkTalk surged by 16% after the telecoms company agreed to discuss a £1.1bn takeover bid.
The bid has come from Toscafund, the telecoms company’s second-largest shareholder. The TalkTalk board have agreed to negotiations but the hedge fund would have to get the backing of the executive chairman and founder, Dunstone.
Continue reading... - Source: Mergers and acquisitions | The Guardian - 10/05/20: SBA Issues Guidance for Borrower Changes of Ownership
Over the last few months, dealmakers have worked creatively in M&A transactions to give borrowers of PPP loans the benefit of their bargain with the government—forgiveness of the loan—rather than treat the PPP loan as outstanding debt requiring discharge at closing (which would typically result in a further reduction in the purchase price). One piece of […] - Source: Cooley M&A - 10/02/20: Rishi Sunak: UK needs to protect tech secrets from foreign investors
New state aid rules required to stop hostile countries getting access to firms, says chancellor
Britain needs new state aid rules in order to be able to protect itself against hostile states intent on stealing technological secrets and jobs, Rishi Sunak has said.
The chancellor said the UK had benefited from foreign investment but the government had to keep its eyes wide open to possible threats.
Continue reading... - Source: Mergers and acquisitions | The Guardian - 10/02/20: New Asda owners Mohsin and Zuber Issa - the Blackburn billionaire brothers
The Issas once worked at their parents’ petrol station. Now they own 6,000 forecourts in 10 countries
Mohsin and Zuber Issa were cleaning the toilets at their parents’ petrol station, they say, when they hit upon the idea of transforming the filling station into a “shopping destination”.
It turned out to be quite a big idea … their petrol station empire has since expanded to nearly 6,000 forecourts across 10 countries. It has turned the brothers into billionaires and on Friday it provided them with the firepower to take control of the vast Asda supermarket chain.
1965 Asda comes into being when the entrepreneurial Asquith family, which started out with a chain of butcher’s shops in West Yorkshire, joined forces with the listed company Associated Dairies to launch a new business.
Continue reading... - Source: Mergers and acquisitions | The Guardian - 10/02/20: Asda sold to billionaire Issa brothers in £6.8bn deal
The pair and TDR Capital acquire majority ownership stake in supermarket chain
Asda has been sold to two billionaire brothers from Blackburn and the private equity firm TDR Capital in a deal that values the supermarket chain at £6.8bn.
Asda, which was bought from the US retail giant Walmart, confirmed the sale to Mohsin and Zuber Issa, who made their fortunes building the EG Group petrol station empire, and TDR.
1965 Asda comes into being when the entrepreneurial Asquith family, which started out with a chain of butcher’s shops in West Yorkshire, joined forces with the listed company Associated Dairies to launch a new business.
Continue reading... - Source: Mergers and acquisitions | The Guardian - 09/30/20: US casino operator Caesars agrees £2.9bn William Hill takeover
Deal is unanimously recommended by UK bookmaker’s directors
The US casino operator Caesars Entertainment has agreed a £2.9bn takeover of the British bookmaker William Hill.
The companies announced on Wednesday that Caesars would pay £2.72 per William Hill share in cash, a premium of more than a quarter compared with the price before the US company’s interest was first reported last week.
Continue reading... - Source: Mergers and acquisitions | The Guardian - 09/29/20: Investment Funds Beware: Proposed HSR Amendments Would Increase Reporting Obligations
The US Federal Trade Commission and Department of Justice announced proposed changes to the rules governing Hart-Scott-Rodino (HSR) filings that, if implemented, would significantly increase the number of transactions that must be reported to the antitrust agencies – primarily by private equity, venture capital and other investment funds – as well as greatly expand the […] - Source: Cooley M&A - 09/28/20: Asda takeover: TDR-backed EG Group in pole position for £6.5bn deal
Billionaire owners of British petrol forecourts operator are Walmart’s preferred bidder
The billionaire owners of the British petrol forecourts operator EG Group have taken pole position in the race for control of Asda after being named the preferred bidder by the supermarket’s US owner.
Mohsin and Zuber Issa, who are working with the private equity firm TDR Capital, have pushed out a rival offer from the private equity firm Apollo Global Management with a bid that values the UK’s third largest grocery chain at £6.5bn.
Continue reading... - Source: Mergers and acquisitions | The Guardian - 09/28/20: Caesars in advanced talks on £2.9bn William Hill takeover bid
US hotel and entertainment company makes offer for one of UK’s biggest bookmakers
The operator of the Las Vegas casino Caesars Palace has confirmed it is in “advanced discussions” about a possible £2.9bn takeover bid for the UK bookmaker William Hill.
Caesars Entertainment said it had offered 272p a share in cash after scrutinising the company’s books.
Continue reading... - Source: Mergers and acquisitions | The Guardian - 09/25/20: Pandemic-Related Deal Litigation Highlights Buyer Leverage in Transactions Requiring Debt Financing
In a May blog post we discussed several initial observations regarding the dozens of M&A transactions that were signed prior to March 2020 and that were in jeopardy as a result of COVID-19. Since that post, the Delaware Chancery Court has had the opportunity to consider some preliminary issues relating to certain of those jeopardized […] - Source: Cooley M&A - 09/25/20: Caesars approaches UK's William Hill over potential takeover
One of the UK’s largest high street bookmakers at the centre of a possible US bidding war
William Hill, one of the UK’s largest and best-known high street bookmakers, is at the centre of a possible US bidding war that could mean it is bought by the operator of the Las Vegas casino, Caesars Palace.
Shares in the British gambling company surged by more than 40% on Friday after the bookie said it had received “separate cash proposals” from a private equity firm, Apollo Management International, which is currently in the running to buy Asda, and from the hotel and entertainment group, Caesars Entertainment.
Continue reading... - Source: Mergers and acquisitions | The Guardian - 09/22/20: Private-equity group Apollo leads £6.5bn race to buy Asda
Two bidders in running to snap up Walmart-owned chain as Lone Star drops out
The private-equity firm Apollo Global Management is thought to have edged into the lead in the £6.5bn bidding war for Asda after its rival Lone Star Funds dropped out.
It is believed that a third bid from private equity firm TDR Capital remains in the running – the group is understood to have been working on a deal with the billionaire Issa brothers, who are behind the British forecourts operator EG Group.
Continue reading... - Source: Mergers and acquisitions | The Guardian - 09/18/20: MPs to debate Arm Holdings $40bn sale despite Nvidia boss's guarantees
Jensen Huang’s offer of legally binding guarantees to safeguard UK interests fail to allay doubts
MPs are to debate the controversial $40bn (£31bn) sale of the UK’s biggest tech company, Arm Holdings, after assurances from its US buyer failed to quell lingering concern that the deal will harm British interests.
Jensen Huang, the founder and chief executive of California-based tech firm Nvidia, moved to allay fears about the transaction on Friday, publicly declaring himself willing to offer legally binding guarantees on jobs and investment.
Continue reading... - Source: Mergers and acquisitions | The Guardian - 09/16/20: China could be stumbling block in Arm sale to Nvidia
Article in Chinese state-backed Global Times calls for intervention in deal
China is emerging as a potential stumbling block to the controversial $40bn (£31bn) sale of the UK’s largest technology firm, Arm Holdings, as the British government wavers on whether to intervene in the deal.
Labour, unions and Arm’s co-founder have urged ministers either to block the sale of the chip designer by the Japanese investment firm SoftBank to the US firm Nvidia, or insist upon legally binding conditions to ensure British interests are not harmed.
Continue reading... - Source: Mergers and acquisitions | The Guardian - 09/15/20: Cambridge staff 'fobbed off' at meeting over Arm sale to Nvidia, says union
UK government urged to intervene in SoftBank’s $40bn deal with US tech firm
Opposition to the $40bn (£31bn) sale of the UK’s largest tech firm, Arm Holdings, is mounting, as the trade union Unite said staff concerned about their future had been “fobbed off” and the company’s local MP urged the government to act.
The US software company Nvidia said on Monday it had agreed to buy Arm, a global leader in designing chips for smartphones, computers and tablets, from the Japanese tech investment business SoftBank.
Related: Arm's sale to Nvidia makes sense but we need binding guarantees | Nils Pratley
Continue reading... - Source: Mergers and acquisitions | The Guardian - 09/14/20: Markets lifted by deal-making frenzy - as it happened
A flurry of M&A activity sees Nvidia buy Arm for $40bn, Gilead acquire Immunomedics for $21bn, GardaWorld fight for G4S and TikTok team up with Oracle
- Breaking: Takeover bid for troubled G4S
- Introduction: Three important deals
- TikTok: ByteDance ‘to partner with Oracle’ in US
- Job cut fears as Nvidia buys ARM
- ARM founder: It’s a disaster
- Stocks jump in Asia and Europe amid vaccine hopes
That’s all for today, I think. Here’s our latest news stories on the M&A frenzy, and more:
Related: Arm co-founder: deals like Nvidia sale may undermine UK's tech vision
Related: Arm Holdings: what is it and does its sale to Nvidia matter?
Related: US government to review deal between TikTok and Oracle
Related: G4S rejects £3bn takeover bid from Canadian rival
Related: London City airport to make more than a third of staff redundant
Related: Wetherspoons says 66 staff have tested positive for Covid-19
Related: Bulb Energy increases electricity prices for second time this year
Although European markets started the day with healthy gains, that rally stumbled by the end.
Markets have just closed for the night, with the Europe-wide Stoxx 600 index up just 0.18%. The UK’s FTSE 100 and the German DAX were basically flat, while France’s CAC gained 0.4%.
JD Wetherspoon has said 66 employees out of its workforce of more than 41,000 have tested positive for Covid-19 as it maintained that its pubs are safe for drinkers and diners.
The firm’s announcement came after concerns were raised last month that the chain was failing to prevent overcrowding in its pubs, which are popular with young people due to their comparatively low prices for alcohol and food.
Related: Wetherspoons says 66 staff have tested positive for Covid-19
Although Wall Street is rallying, the London stock market has fallen back.
The FTSE 100 has lost its earlier fizz, and is now down 11 points at 6019, with half an hour’s trading left.
Related: Brexit: growing number of Tory MPs expected to abstain or vote against bill
Technology stocks are continuing to rally, pushing the Nasdaq index up by over 2%.
The Mega Tech firms are leading the way, with Tesla up over 6%, Apple gaining 2.2% and Amazon rising 1.8%. Nvidia is holding its early gains too, still up over 6%.
Shares in Oracle are also rallying, up 4%, following confirmation that it is part of a proposal submitted to the US government by TikTok’s parent company ByteDance.
Back in London, G4S has hit back at Garda World’s takeover bid, saying it “significantly undervalues” it.
In a statement to the City, G4S says it unanimously rejected the three approaches from GardaWorld, and adds that “the timing of the proposal is highly opportunistic, coming as it does at a time of severe turbulence in global financial markets.
Shares in Nvidia have jumped sharply in early trading, up over 6% at $517.
They’re now up over 120% since the start of the year, lifted by the wider rally into tech stocks.
Nvidia shares up 8% so that pays for most of the Arm deal
Ding ding! Shares are rallying at the start of trading in New York, lifted by takeover fever.
The Dow Jones industrial average has gained 185 points, or 0.6%, at the open, lifting it to 27,851.
“Along with US pharma giant Gilead buying a cancer specialist for north of $20 billion, Japanese investor Softbank announced it would sell UK microchip designer ARM to US-based Nvidia for $40 billion – just four years after snapping up the business in the wake of the Brexit vote for around $10 billion less. That’s a very tidy profit, although it is likely to have invested a lot in the business during its ownership.
“The biggest deal in terms of market sentiment was Oracle’s reported partnership with Chinese social media platform TikTok which helped ease concerns over the on-off trade war between the US and China
Nvidia’s $40bn takeover of Arm means 2020 has been the biggest year for technology deals since the bursting of the dot-com bubble 20 years ago.
That’s according to data provider Refinitiv, who explains:
Conservative MP Tom Tugendhat puts his finger on the problem with Nvidia’s takeover of Arm:
The sale of @Arm raises questions of sovereignty. Control of tech is an essential element of independence and @UKParliament will have no say on the CIFIUS decisions that go to the US President alone.
Back in Westminster, Boris Johnson’s spokesman has said that the UK government will scrutinise Nvidia’s purchase of Arm closely.
The deal was announced earlier this morning and we will scrutinising it in close detail including exactly what it means for the Cambridge HQ.”
“The enterprise act provides the government with powers to intervene in mergers where they raise concerns about national security, financial stability, media plurality and maintaining in the UK the capability to combat and to mitigate the effects of public health emergencies.”
US Treasury secretary Steven Mnuchin has just told CNBC that Committee on Foreign Investment in the United States will examine Oracle’s tie-up with TikTok this week.
Mnuchin on CNBC confirms Oracle has made a proposal to be Tik Tok's "trusted technology partner" to create a US headquartered company with 25,000 new jobs. CFIUS will review the proposal this week and make a recommendation to Trump.
Treasury Sec. Mnuchin on TikTok: “the deadline is Sept. 20th. I know there’s a little confusion, but it is the 20th ... I will confirm we did get a proposal over the weeekend with Oracle as the trusted technology partner.”
Over in the eurozone, the surge in factory output as lockdown measures were eased has faded.
New figures show that industrial production rose by 4.1% during July in both the euro area and EU, compared with June 2020. That’s a notable slowdown on June, when industrial production surged by 9.5% in the euro area and by 9.6% in the EU.
Euro area #IndustrialProduction +4.1% in July over June, -7.7% over July 2019 https://t.co/kS5ioYZLdR pic.twitter.com/7zaEusYP5n
In the euro area in July 2020, compared with June 2020, production of capital goods rose by 5.3%, durable consumer goods by 4.7%, intermediate goods by 4.2%, non-durable consumer goods by 3.9% and energy by 1.1%.
In the EU, production of capital goods rose by 5.6%, durable consumer goods by 4.8%, intermediate goods by 3.9%, non-durable consumer goods by 2.8% and energy by 1.3%.
Here’s our news story on the battle for G4S:
Related: G4S receives £3bn hostile takeover bid from Canadian rival
Back in the UK, we have more bad unemployment news.
“It is with huge regret that we are announcing this restructuring programme today and our thoughts are with all of our highly valued staff and their families.
“The aviation sector is in the throes of the biggest downturn it has ever experienced as a result of the pandemic.
The M&A developments keeps coming!
G4S has experienced a swathe of problems over the years.... and GardaWorld claims it would do a better job of running the firm.
Notoriously, G4S did such a bad job of running HMP Birmingham that the prison was eventually taken back into public ownership. It also lost its contract to run Medway Secure Training Centre, amid allegations of mistreatment of children, and the contract to run Rainsbrook STC after a very critical inspection.
Related: G4S to leave immigration sector after Brook House scandal
“G4S needs an owner, not a manager. GardaWorld has 25 years of experience in the sector and we know how to improve and repurpose this business. As owner-operators, we believe that the combined business’s operations will offer a better future for all those who depend on G4S. We will turn G4S around, ensuring it delivers for its customers, its people and the public.
“The combination of GardaWorld and G4S is an important part of our strategy to create the world’s leading security services business. If successful, our commitment to the UK will be for the long-term.
“We understand G4S’s importance as a UK employer and as a significant provider to public and private sector institutions. In addition, significant steps would be taken to address the company’s persistent underfunding of UK pension obligations.
Newsflash: We have another potential deal.
Canadian private security group GardaWorld has just announced that it wants to take over UK rival G4S.
GARDA WORLD SECURITY MADE ALL-CASH OFFER OF 190P/SHARE FOR G4S
Shares just shot up 20%ARM has tried to calm fears (including from its founder!) that the Nvidia deal will crush its business model.
ARM CEO Simon Segars has told analysts that its independence wouldn’t be threatened by America’s CFIUS security rules if it was sold by Softbank, insisting:
“We will maintain our neutral business model, and will keep a level of independence.”
Nvidia boss Jensen Huang says it is starting a conversation with the UK government about its takeover of ARM, pledges that a world class AI research lab will be built in Cambridge
A government source tells me there will not be a move to block the sale of ARM to Nvidia - "four years too late since it's Softbank's to sell" - but it is possible that conditions could be imposed on the takeover
Germany’s government has warned that its economy probably won’t recover all its Covid-19 losses until 2022.
The trough of the recession was reached in the second quarter and the easing of lockdown measures since May led to a rapid recovery in industry and in some service sectors, the ministry said in its monthly report on Monday, adding that the revival has lost some steam lately though.
“The German economy is continuing to pick up, albeit at a more moderate pace,” the ministry said
Elsewhere in the markets, sterling is strengthening as opposition to the UK’s efforts to undermine the Brexit withdrawal agreement mounts.
MPs are due to start debating the Internal Markets bill today. There are signs of a backbench rebellion building, against the provisions which breach the Northern Ireland protocol (over state aid rules and checks on goods moving between NI and GB).
“Passing an act of parliament and then going on to break an international treaty obligation is the very, very last thing you should contemplate.”
.@David_Cameron has just said this about @BorisJohnson’s decision to legislate and break the international treaty that is the Brexit Withdrawal Agreement: “Passing an act of parliament and going on to break an international treaty obligation should be the very...
Related: David Cameron joins ex-PMs warning against Boris Johnson's Brexit bill
Nvidia are best known for their range of graphics chips which power its graphics cards. The GeForce and Quatro range are popular with gamers, and also used creative workers such as graphic designers. Nvidia also provides the processor for the Nintendo Switch games console.
While NVIDIA is best known for its gaming graphics chips and Arm for its smartphone chips, this deal is being predicated on Artificial Intelligence – an area where NVIDIA has expertise but which is really in its infancy.
By drawing on Arm’s huge pool of active devices, as well as its technical knowhow, NVIDIA’s hoping it can crack a technology with potential applications in cloud, smartphones, PCs, self-driving cars, robotics and the Internet of Things. It’s a big and uncertain bet, and comes at a high price. Fortunately the two groups have core businesses which are very cash generative, and together they should be able to quickly pay down any financial hangover from the deal.
M&A action and vaccine hopes are going to drive the US stock markets higher, when it opens in five hours.
The tech-focused Nasdaq, which has suffered some chunk losses recently, is up 1.7% in the futures market.
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NASDAQ FUTURES UP ABOUT 1.7%, S&P 500 E-MINI FUTURES UP 1.4%, DOW FUTURES UP 1.1%Back in the markets, shares in airline group IAG have jumped 7% to the top of the FTSE 100 leaderboard.
IAG, which owns British Airways, is being lifted by relief that the Oxford Covid-19 vaccine trials are underway again.
John Colley, associate dean of Warwick Business School, is also concerned that ARM could be damaged if Nvidia takes control of the UK tech star.
“Some might argue that the increase in value of Arm during Softbank’s tenure of ownership is more about running down the clock on undertakings to government.
“Now that they are almost released, obligations to increase U.K. employment and retain a U.K. head office mean much more flexibility for a new owner.
The UK government is pondering whether to launch a competition probe into the Nvidia/ARM deal, says the Financial Times:
UK ministers can call in mergers under four different grounds — financial security, media plurality, public health or national security — in a process that would trigger a CMA review taking up to several months.
If culture secretary Oliver Dowden proceeds with a formal intervention it would be on national security grounds, because the group is a major supplier to the defence industry, according to officials.
Overnight, Microsoft announced that it had been rebuffed by TikTok’s owner (in favour of that tie-up with Oracle).
In a sharply written statement, MS questioned whether TikTok’s service would be trustworthy, saying:
“ByteDance let us know today they would not be selling TikTok’s U.S. operations to Microsoft.
We are confident our proposal would have been good for TikTok’s users, while protecting national security interests. To do this, we would have made significant changes to ensure the service met the highest standards for security, privacy, online safety, and combatting disinformation, and we made these principles clear in our August statement.
Here’s my colleague Martin Farrer on the ARM/Nvidia deal:
One of Britain’s most successful tech companies, Arm Holdings, is being sold by its Japanese owners for $40bn (£31m) in a deal that could reshape the semiconductor landscape.
Nvidia, a US company, will pay SoftBank $21.5bn in shares and $12bn in cash for the chip designer although the deal is still subject to regulatory approval in the UK and could face opposition from its new owners’ rivals.
Related: UK tech giant Arm Holdings to be sold to US company Nvidia in $40bn deal
Unions fears that the promises on jobs and investment which Softbank made when it bought ARM four years ago are now at risk.
Prospect, which represents engineers and scientists, is urging the government to probe the sale of the business to Nvidia.
“This government has made much of its industrial strategy and ambition to make the UK a superpower in science and technology. These are ambitions we share, but they cannot be achieved if the fate of companies like Arm and its thousands-strong workforce is left to the market alone to dictate.
“The creation of a UK ARPA is a welcome development, especially if it is accompanied by a ramping up public sector science spending, but we cannot get to where we need to be on R&D spending without significant action from the private sector.
European stock markets have also begun the week brightly, with gains across the board.
In London, the FTSE 100 index has jumped by 42 points or 0.7% to 6037 points, its highest level in nearly three weeks.
M&A appears to be the main focus as we start a new week with US pharma company Gilead Sciences buying cancer drug maker Immunomedics for $21bn, while Softbank appears to have finally agreed a price with US graphics chip maker NVidia, for UK chip company ARM Holdings of $40bn, as it seeks to bolster its balance sheet after a rather troubled 2019, as well as the recent scrutiny of its big derivative bets on some big US tech shares.
Softbank shares have moved sharply higher in Asia trading this morning on news of the sale, however this optimism needs to be tempered.
Stock markets across the Asia-Pacific region rallied today, with Softbank leading the way.
Shares in Softbank jumped by 9%, as traders applauded the $40bn sale of ARM to Nvidia [Softbank paid $32bn four years ago].
ARM founder Hermann Hauser adds that Boris Johnson’s government should block Nvidia’s acquisition:
“This is a UK company, it’s clearly in the national interest that it stays a UK company, so the government clearly has the power to prevent that [the deal]”
Hermann Hauser, ARM’s co-founder, says the sale of ARM to a US firm was an “absolute disaster for Cambridge, the UK and Europe”.
He warned that it would lead to job losses in the UK, destroy the UK firm’s business model and impinge on UK economic sovereignty. Any promises made on jobs are “meaningless unless they are legally enforceable,” pointing to the takeover of Cadbury by US company Kraft in 2010.
“The headquarters [will] move to the United States as they inevitably will when ARM becomes a division of Nvidia. This will lead to job losses in Cambridge, Manchester, Belfast, Warwick where ARM employs thousands of people.
Secondly, Nvidia will destroy ARM’s business model… which is being the Switzerland of the semiconductor industry of dealing with over 500 licensees, most of which are competitors of Nvidia.
“Which means that if hundreds of UK companies that incorporate ARM in their products want to export it to anywhere in the world including to China which is a major market, this decision on whether they are allowed to export it will be made in the White House, and not in Downing Street.”
https://t.co/3husABs2lg ARM, crown jewel of UK tech, sold on by Softbank to Nvidia for $40billion. Deal described by cofounder Hermann Hauser as a disaster - he's writing to 10 Downing Street warning it will destroy the firm's business model and make Britain "a US vassal state."
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
The City has woken up to an dealmaking frenzy this morning, with three tie-ups with serious ramifications well beyond the markets being announced.
The Washington Post reported that Oracle had been chosen by ByteDance as a ‘“technology partner” to allay US concerns, and Reuters quoted a source as saying it would be a restructuring rather than a sale, with Oracle handling TikTok’s US user data. The source did not disclose how much of TikTok’s US operations ByteDance and its investors would continue to own.
ByteDance will need approval for the deal from both Washington and Beijing. It is not clear whether Trump, who wants a US technology company to own most of TikTok in the United States, will approve the proposal.
Related: TikTok: ByteDance 'to partner with Oracle' in US after rejecting Microsoft bid
https://t.co/3husABs2lg ARM, crown jewel of UK tech, sold on by Softbank to Nvidia for $40billion. Deal described by cofounder Hermann Hauser as a disaster - he's writing to 10 Downing Street warning it will destroy the firm's business model and make Britain "a US vassal state."
“Trodelvy is an approved, transformational medicine for a form of cancer that is particularly challenging to treat.
We will now continue to explore its potential to treat many other types of cancer, both as a monotherapy and in combination with other treatments.
Gentle recovery as trials resume.
Continue reading... - Source: Mergers and acquisitions | The Guardian
European Opening Calls:#FTSE 6059 +0.45%#DAX 13278 +0.57%#CAC 5068 +0.68%#AEX 554 +0.42%#MIB 19938 +0.59%#IBEX 6986 +0.62%#OMX 1805 +0.18%#STOXX 3335 +0.58%#IGOpeningCall
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