M&A

M&A Roundup

Chevron and Cnooc and PetroChina and China Petroleum and Chemical Corp.; General Electric and Apollo Management; Canadian Natural Resources Limited...
Helen ShawSeptember 14, 2006

•Chevron, the second-largest oil company in the U.S., is in talks with Cnooc, PetroChina, and China Petroleum and Chemical Corp. to join forces on exploration and production projects both inside and outside of China. Last year, Chevron trumped Cnooc in a bid for Unocal Corp.

•General Electric has agreed to sell its advanced materials unit, which produces adhesives and sealants, to private equity firm Apollo Management for $3.8 billion. The move is part of GE’s strategy to shed low-growth units. GE will retain a 10 percent stake in the new company. The deal is expected to close by the end of 2006.

•Canadian Natural Resources Limited has agreed to purchase Anadarko Canada Corp., a subsidiary of Anadarko Petroleum Corp., an energy exploration and production company, for approximately $4.22 billion. Anadarko expects to reduce debt by selling its Canadian unit. The transaction is expected to close by the end of October.

•Actavis, one of the largest generic pharmaceuticals producer worldwide, may raise its bid for Croatian drug manufacturer Pliva in the next two weeks. It is competing against Barr Pharmaceuticals, whose bid values Pliva at $2.5 billion. The bidding will be allowed to continue until October 27. The merger is expected to be completed in early November.

•Stanley Leisure, a U.K. casino operator, has agreed to a $1.2 billion takeover by the Malaysian gambling company Genting International. Stanley Leisure owns 45 casinos in London, Bristol, Liverpool, and Birmingham.

•Ipsco, a Lisle, Illinois-based steel producer, has agreed to acquire NS Group, a steel pipe maker based in Newport, Kentucky, for $1.46 billion in cash. The deal, which is subject to shareholder and regulatory approval, is expected to close by the end of the year.

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