VideoA surge in North American deals, capped by the $58.9-billion InBev agreement to buy Anheuser-Busch, carried the week's total to the highest level since last July 9, when more than $100 billion of transactions were struck.
That 12-figure week, of course, came near the end of the greatest first-half ever for mergers and acquisitions — when companies signed $1 trillion worth of them. But dealmaking of the past seven days was hardly a slouch.
After the InBev deal came a $9.39-billion acquisition by iron-ore mining company Cleveland-Cliffs Inc. for coal producer and steam marketer Alpha Natural Resources. Weighing in at $8.74 billion was the purchase of Barr Pharmaceuticals by Israeli pharma giant Teva Pharmaceutical Industries, followed by Royal Dutch Shell's $5.36-billion purchase of Calgary, Canada-based Duvernay Oil Corp.
Newsmakers also made M&A news among the top ten North American deals recorded in data provided to CFO.com by mergermarket. In the largest private transaction, Bloomberg Inc. agreed to pay Merrill Lynch $4.42 billion for 20 percent of New York City-based media company Bloomberg LP.
In all, 42 deals worth a total of $93.19 billion were struck in the week, up from 40, worth $29 billion, in the prior seven days. Dealmaking so far this year — totaling $570.82 billion — is now about half the $1.14 trillion that had been recorded as of July 20, 2007.
InBev SA to buy Anheuser-Busch Cos. for $58.9 billion
The St. Louis-based brewing giant signed a definitive agreement to be acquired by Leuven, Belgium-based InBev, with both boards approving a merger at $70.00 a share, a premium of 5.26 percent. Before including assumed debt, the transaction is worth about $49.9 billion. It is expected to close by Dec. 31.
Seller financial advisor: Citigroup Inc; Goldman Sachs; Merrill Lynch; Moelis & Company; UBS
Bidder financial advisor: BNP Paribas; Deutsche Bank; JPMorgan Cazenove; Lazard
Seller legal advisor: Latham & Watkins; Simpson Thacher & Bartlett ; Skadden Arps Slate Meagher & Flom ; Weil Gotshal & Manges
Bidder legal advisor: Allen & Overy; Clifford Chance; Linklaters; Paul Weiss Rifkind Wharton & Garrison; Sullivan & Cromwell
Cleveland-Cliffs Inc. to buy Alpha Natural Resources Inc for $9.39 billion
Abingdon, Va.-based coal supplier Alpha Natural Resources, which produces, processes, and sells steam and metallurgical coal, definitively agreed to be acquired by Cleveland-Cliffs, Ohio's international mining company — a producer of iron ore pellets and supplier of metallurgical coal to steelmakers globally. Both boards approved the merger at a price of 0.95 of a Cleveland-Cliffs share and $22.23 cash for each Alpha share, making the total $128.12 per share. Not including debt, the value is $9 billion for the transaction, which is expected to close by the end of 2008.
Seller financial advisor: Citigroup
Bidder financial advisor: JPMorgan
Seller legal advisor: Latham & Watkins; Cleary Gottlieb Steen & Hamilton
Bidder legal advisor: Jones Day; Davis Polk & Wardwell
Teva Pharmaceutical Industries Ltd. to buy Barr Pharmaceuticals Inc. for $8.74 billion
Woodcliff Lake, N.J.-based Barr, with specialty pharmaceutical operations in more than 30 countries, definitively agreed to be acquired by Teva, of Petach Tikva, Israel, which develops, produces, and markets generic drugs covering all major treatment categories. Both boards approved the merger at a price of $39.90 per share in cash and 0.6272 of a Teva share, a total per-share value of $66.50 and a premium of 42 percent. Not including assumed debt, the value of the transaction, expected to close later this year, is about $7.2 billion.
Seller financial advisor: Banc of America Securities
Bidder financial advisor: Lehman Brothers
Seller legal advisor: Simpson Thacher & Bartlett
Bidder legal advisor: Willkie Farr & Gallagher; Tulchinsky Stern & Company; Goodwin Procter
Royal Dutch Shell plc to buy Duvernay Oil Corp. for $5.36 billion
Calgary-based Duvernay, which explores for and develops natural gas and crude oil, with an emphasis on the deeper, western portion of the Western Canadian Sedimentary Basin in Alberta and Northeastern British Columbia, definitive;u agreement to be acquired by Royal Dutch Shell. Based in the Hague, Shell engages globally in the aspects of the oil and natural gas industry. Both boards approved the merger at a price of $82.06 per share, a premium of 42.03 percent. Not including debt assumed, the deal is valued at about $4.9 billion.
Seller financial advisor: Peters & Co
Bidder financial advisor: Goldman Sachs
Seller legal advisor: Burnet Duckworth & Palmer
Bidder legal advisor: Osler Hoskin & Harcourt
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