Inbound M&A Transactions and Investments in the News
Ben Bernanke’s now-famous green shoots may be sprouting in the inbound M&A and investments garden. During May, some inbound deals appeared in the financial press:
- On May 11 Covidien Ltd. of Dublin, Ireland announced its offer to acquire San Jose, California-based VNUS Medical Technologies Inc. for $440 million in cash. According to Medical Devices Today, the deal is the largest acquisition that Covidien has made since its 2007 split off from Tyco.
- Agrium Inc. continued its bidding for U.S. fertilizer maker CF Industries Holdings Inc., offering $40 per share. Agrium is based in Calgary, Alberta. CF Industries is headquartered in Deerfield, Illinois.
- In a small but prominent transaction involving both a Swedish buyer and seller, Seabay Media is acquiring U.S. newspapers group from Metro International SA.
- The Wall Street Journal of May 13 reported that Peter Gray, a managing director with KPMG Corporate Finance LLC, expects international companies with cash reserves, especially from India, China and Korea, to more aggressively hunt for coal operators in North America.
- May also brought developments in the ongoing attempted takeover by CSL Ltd. of Talecris Biotherapeutics Inc. According to Dealscape, the FTC announced that
"it would go to court to stop a merger between the Victoria, Australia-based suitor and its Research Triangle Park, N.C., target because the agency believes the deal would further consolidate an already small pool of competitors."
This development shows that CFIUS is not the only regulatory obstacle to non-U.S. buyers as they focus on U.S. targets. Updated June 10. Talecris has withdrawn its offer for CSL because of regulatory hurdles.
- Showing that all aspects of the U.S. economy--even leisure industries--are fair game for inbound buyers, a Chinese investment group acquired a 15% minority position in the Cleveland Cavaliers, according to the China Economic Review. Could last night’s defeat at the hands of the Magic be a material adverse change in the transaction? Hopefully, the lawyers for the Cavaliers drafted carefully around that point.
- Updated: One more May deal. DRS Technolgies, headquartered in Parsipppany, New Jerse, and a subisidry of Italy's Finmeccanica SpA, agreed to acquire privately-held Soneticom, Inc. of West Melbourne, Florida. Price and other deal terms were not available. Soneticom is a leading provider of precision geolocation systems and communications products. The transaction is expressly subject to CFIUS approval.
USAInboundDeals looks forward to providing our readers monthly reports that show continuing vitality in inbound deals. If any readers are tracking inbound deals that we’ve overlooked, please send a comment.
