Weekly Highlights: Deals

Microsoft’s $69 billion acquisition of Activision Blizzard has provisionally been found by the UK’s Competition and Markets Authority (CMA) to be harmful to competition in the UK gaming market. The CMA believes that the deal could result in reduced competition, higher prices, limited choices and reduced innovation. 

Meanwhile, private equity firm Carlyle is in talks to buy healthcare technology firm, Cotiviti, for close to $15 billion from Veritas Capital. 

BP may pursue acquisitions to expand its oil and gas portfolio as the company scales back its commitment to cutting fossil fuel output this decade due to rising prices and limited supplies. 

On the other hand, Hudson Bay has been lined up as an anchor investor for a cash infusion for Bed Bath & Beyond. 

The Japanese banks are going to issue commitment letters for a $10.6 billion loan to back a consortium led by Japan Industrial Partners’ takeover offer for Toshiba. 

CVS has agreed to buy Oak Street Health for an enterprise value of $10.6 billion, making this its second major acquisition in the healthcare sector in as many years.

Private equity firm Epiris is working with JPMorgan as it considers selling Bonhams, which is estimated to be worth around $1 billion in a sale. 

Goldman Sachs is investing more than €1 billion, including debt, into Verdalia, a new company that plans to acquire, build and operate biomethane plants in Europe. 

CVC Capital Partners has emerged as the leading bidder to buy a minority stake in PT Samator Indo Gas, an Indonesian industrial gas company. 

Dutch power operator, TenneT, is exploring the possibility of selling its German business to the government of Berlin to shore up energy security following Russia’s invasion of Ukraine.

General Motors is competing for a stake in Brazilian mining giant Vale SA’s base metals unit, highlighting the automakers’ desire for easy access to materials needed for electric vehicle batteries. 

Meanwhile, Fox has declined unsolicited offers of more than $2 billion for its Tubi streaming service, over four times what the company paid for the business. 

SoftBank Group is considering selling its stake in the holding company of Raine Group, the merchant bank that has advised on some of the company’s biggest deals. The company has also offered to buy all shares in robot maker Berkshire Grey it does not already own in a $218 million deal, as part of its foray into logistics automation.

SM Entertainment’s stock price rose to a record high after the K-pop agency’s founder vowed to block a share sale to internet giant Kakao. The move has sparked speculation that the agency’s board and allies will face off with the founder, Lee Soo-Man, in a race to buy up shares to secure a controlling stake. 

Australian start-up, Recharge Industries, has been selected as the preferred bidder to acquire the majority of Britishvolt’s business and assets. 

Meanwhile, Duck Creek Technologies will stick with its $2.6 billion deal to be taken over by Vista Equity Partners after a go-shop period ended without a rival offer materializing.

The medical device maker Masimo has changed its bylaws to eliminate changes that its board previously approved to enhance transparency in director elections. This decision was made after a lawsuit and is considered a victory for the activist Politan Capital. 

A representative for Masimo stated that the board believed the additional transparency would benefit investors, but it wanted to “eliminate any suggestion that Masimo is seeking to preclude shareholders from nominating directors.”

In other news, former Goldman Sachs Co-President Harvey Schwartz has been chosen as the new CEO of private equity firm Carlyle. He takes over from co-founder Bill Conway, who has been serving as interim CEO since August.

The IPO market appears to be recovering with the biggest week since October, led by Nextracker. This week includes two Chinese companies, which have been scarce on US exchanges. Chip design firm Arm, owned by SoftBank, reported a 28% increase in revenue for the latest quarter and is preparing for an IPO in 2023.

Credit Suisse is delaying a highly anticipated compensation day for some of its investment bankers, which is straining its relationship with employees as it restructures its Wall Street operations. 

Guizhou Guotai Liquor Group and Bounty Agro Ventures are both considering IPOs that could raise more than $500 million and $400 million to $500 million, respectively.

Traditional UK asset management companies are trying to sell the idea of private equity funds to affluent Brits. Ben Schwerin, Senior Vice President at Snap, has joined venture firm Coatue Management, while Warburg Pincus has hired Goldman Sachs partner Gaurav Seth. 

Credit Suisse is granting its top executives $380 million worth of awards that will pay out if its restructuring succeeds.

Medical device maker Globus Medical has agreed to buy competitor NuVasive in an all-stock transaction worth over $3 billion. 

First Abu Dhabi Bank is working on a possible bid for Standard Chartered valued at up to $35 billion. 

Japanese convenience store operator Lawson is exploring strategic options for its China operation, and Toshiba has received an offer from Japanese group JIP. 

South Korea’s Hybe is acquiring Quality Control, the Atlanta-based label behind Lil Baby and Migos, to bolster its presence in the US music market.

Disclaimer: The information provided in this deals summary article is for informational purposes only and should not be considered as investment advice. The deals and investments discussed in this article are subject to change and may not be representative of the overall market. The deals data is based on publicly available information and should not be taken as a guarantee of future performance. The information provided in this article is not intended to be a substitute for professional advice and readers should always conduct their own research and due diligence before making any investment decisions.
MSc Finance graduate from the London School of Economics and Political Science (LSE)
Avatar for Ria Vaghela

Ria V Vaghela is an M&A Executive at RSM UK and an MSc Finance graduate from the London School of Economics and Political Science (LSE). She has worked at Jefferies, Dial Partners and 7i Capital prior to RSM UK gaining an experience of about 1.5 years. She has also worked as an Editor and Content Writer for The Representative Media. Apart from finance, she is interested in reading books on psychology and economics and also likes to paint and play lawn tennis

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