Deals: We're Already Topping $1 Trillion

The year's North American dealmaking edged over $1 trillion last week, 10 weeks ahead of when that mark was reached in 2006. At this point last year, there had been $682 billion in M&A, on the way to a final year-end tally of $1.47 trillion.

Last week's $40.65-billion total did not include the biggest private-equity deal of the year so far: the $32.6-billion buyout of Canadian telecommunications giant BCE Inc. It was announced Saturday, falling just outside our "official" June 29 week.

The top ten transactions featured a familiar mix of foreign companies purchasing U.S. assets, and mid-sized private-equity buyouts, according to data provided to CFO.com by mergermarket . Leading the top ten was Basell NV of the Netherlands purchasing Salt Lake City chemical company Huntsman Corp. for $9.15 billion, followed by Madrid-based energy concern Iberdrola SA buying Energy East Corp. for $8.51 billion. Holding company Energy East, of New Gloucester, Maine, has interests in transmission, distribution, and generation operations, along with natural gas businesses in the Northeast.

The leading private equity deal was the $5.57-billion purchase of Allison Transmission from General Motors Corp. by Carlyle Group LLC and Onex Partners LP, which helped buyout activity account for $380.2 billion of the year-to-date total.

Basell NV to buy Huntsman for $9.15 billion
The definitive agreement, unanimously approved by both boards, calls for Huntsman holders to get $25.25 a share, a premium of 33.6% for the maker and marketer of differentiated, inorganic, and commodity chemical products. Basell produces polypropylene and advanced polyolefins products, supplies polyethylene and catalysts, and develops and licenses polypropylene and polyethylene processes. Entities controlled by Matlin Paterson and the Huntsman family, who collectively own 57% of Huntsman's common stock, have agreed to approve the transaction, expected to close in the fourth quarter. Conditions: HSR (USA), EC (Europe), and Huntsman shareholder approval. Expected
Seller financial advisor: Merrill Lynch; Cowen & Co.
Bidder financial advisor: Citigroup
Seller legal advisor: Vinson & Elkins; Sherman & Sterling
Bidder legal advisor: Skadden Arps Slate Meagher & Flom; Curtis, Mallet-Prevost, Colt & Mosle

Iberdrola to buy Energy East for $8.5 billion
Both boards have approved the definitive agreement, offering $28.50 a share, for a premium of 20.9 percent. Regulatory approvals must be received, and Iberdrola will analyze different financing alternatives for the transaction. After the close, expected in 2008, Energy East's utility subsidiaries will continue to operate under their current names (Berkshire Gas Co., Central Maine Power Co., Connecticut Natural Gas Corp., New York State Electric & Gas Corp., Rochester Gas and Electric Corp., and Southern Connecticut Gas Co.)
Seller financial advisor: Greenhill & Co; JPMorgan
Bidder financial advisor: ABN AMRO; Banc of America Securities
Seller legal advisor: Davis Polk & Wardwell (Advising Greenhill & Co and JPMorgan); LeBoeuf, Lamb, Greene & MacRae
Bidder legal advisor: Latham & Watkins; Uria Menendez

Carlyle Group and Onex Partners to buy Allison Transmission from GM for $5.57 billion
Buyers are Carlyle Partners IV LP, the U.S.-based Carlyle fund, along with the Canadian Onex Partners II fund that is part of the Canadian private-equity arm of the listed Onex Corp. Canadian conglomerate, with Carlyle and Onex making equal contributions for an equity investment of approximately $1.5 billion. The agreement covers substantially all of Allison Transmission, including its distribution network, sales offices, and seven manufacturing facilities in Indianapolis. The transaction is in line with GM’s strategy of strengthening liquidity and supporting investment in developing new products and technology. It expects to expand through the financial resources of Carlyle and Onex. Completion is expected by the third quarter, and is subject to union and customary regulatory approvals.
Seller financial advisor: Merrill Lynch
Bidder financial advisor: Citigroup
Seller legal advisor: Jenner & Block
Bidder legal advisor: Latham & Watkins

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