Dr. Reddy’s Labs to acquire eight U.S. drugs from Teva & Allergan for $350m

India-based pharma firm drugmaker Dr Reddy’s Laboratories Ltd has reached an agreement to acquire eight generic brands of drugs from Teva Pharmaceutical Industries and Allergan Plc for $350m in cash to bolster its U.S. business.

The deal is part of Teva Pharma’s plan to divest certain brands of generics in the U.S. market to gain regulatory approval for its $40.5bn merger with Allergan.

The deal consists of generic drugs awaiting U.S. approval, and some that are already on the market, including “complex generic products across diverse dosage forms”.

The branded versions of drugs under the deal had U.S. sales of about $3.5bn in the year to April 2016 (Source: IMS Health).

Dr Reddy’s plans to finance the deal with cash on hand and available borrowings under existing credit facilities.

Source: Reuters

Symantec to acquire Blue Coat Systems Inc. for $4.6bn in an all-cash transaction

Symantec Corp. plans to acquire Blue Coat Systems Inc. for $4.65bn in an all-cash transaction to beef up its cyberdefense technology and fill its vacant chief executive officer position.

Blue Coat’s CEO Greg Clark would become CEO of the combined company after the deal closes by 3Q 2016 in September.

Synergies from the deal would result in additional cost savings of $150m annually, over an expected $400m.

As part of the deal, PE sponsor Bain Capital LLC, which controls Blue Coat, will put $750m of its proceeds from the sale into the combined company. Private equity firm Silver Lake will double its investment to $1bn.

Source: Bloomberg

AB INBev’s acquisition of SABMiller close to winning Chinese approval

According to sources, Anheuser-Busch InBev NV’s $107bn acquisition of rival SABMiller Plc was nearing regulatory approval from China’s Ministry of Commerce, seen to come as soon as this month based on typical review timelines, thus, clearing one of the final hurdles for the deal.

Previously, the deal had secured regulatory clearance from the European Union.

One of the conditions put forth by the regulatory body which asked for the divestiture of operations of the Snow beer, was accepted by the two companies.

The companies agreed to sell SABMiller’s 49% stake in its joint venture with China Resources Beer (Holdings) Co., which controls Snow beer, back to its partner for $1.6bn, a deal which was also nearing approval from China’s commerce ministry.

Following divestitures, the deal will keep Budweiser, Beck’s and Stella Artois under AB InBev’s roof, while ceding control of brands including Miller in the U.S. and Peroni and Pilsner Urquell in Europe.

In the U.S., AB InBev has agreed to sell SABMiller’s stake in the MillerCoors joint venture.

Source: Bloomberg

 

 

Monsanto rejects Bayer’s $62bn offer

According to Monsanto Chief Executive, stated that the company’s proposal significantly undervalued the company and did not adequately address or provide reassurance for some of the potential financing and regulatory execution risks related to the acquisition.

Source: Bloomberg

Bayer makes $62bn cash offer for Monsanto

German drugs and crop chemicals company Bayer AG made a $62bn cash offer to acquire U.S. seeds company Monsanto, in a bid to grab the top spot in a fast-consolidating farm supplies industry. Monsanto said it would review the proposal.

The unsolicited proposal would be the largest all-cash takeover globally, ahead of InBev’s $60.4 billion offer for Anheuser-Busch in June 2008.

The cash offer made was $122 per share, a 37% premium to Monsanto’s stock price before rumors of a bid surfaced.

Monsanto, which said last week, it had received an approach from Bayer but gave no details, and declined to comment.

Antitrust experts see an overlap in the seeds business, particularly in soybeans, cotton and canola. Bayer’s LibertyLink line of weed killers, plus crops that are resistant to it, are an important alternative for farmers suffering from weeds that have grown resistant to Monsanto’s Roundup herbicide.

Source: Reuters

Sumitomo likely to acquire 44% stake in Excel Crop Care

Japan-based conglomerate Sumitomo is looking to acquire a 44% stake in India-based agrochemical firm Excel Crop Care for a consideration price between INR 12 – 13bn.

Sumitomo plans on buying out a 24.7% equity stake held by owners, the Shroff family, and a 19% stake held by two other shareholders Ratnabali Investments.

Meanwhile, Australia-based shareholder Nufarm, a seeds manufacturer, which holds c.14% stake in Excel, would retain its stake in the company.

Excel is engaged in the export of agrochemicals to the U.S and Europe.

Source: Economic Times

 

Moody’s assigns a Baa3 rating to Dell’s proposed secured notes

Moody’s assigned a provisional rating of Baa3 to Dell Inc.’s proposed senior secured notes.

The debt is being issued by Diamond 1 Finance Corporation (“Finco 1”) and co-issuer Diamond 2 Finance Corporation (“Finco 2”), which are entities that will merge into Dell International LLC (a debt issuing subsidiary of Dell Inc.) and EMC Corporation (“EMC”), respectively, upon closing of the Dell EMC merger.

Post closing of the transaction, Dell International and EMC will assume all of Finco 1’s and Finco 2’s obligations under these notes.

The Dell – EMC merger is expected to close by the end of October 2016.

Source: Moody’s

Multiplan Inc. to be acquired by private equity-backed consortium

The consortium’s members comprise of GIC, Singapore’s sovereign wealth fund and Leonard Green & Partners.

According to sources involved in the deal, Multiplan could valued at about $7.5bn.

As per the company’s statement, Starr Investment Holdings and Partners Group will retain minority investments in MultiPlan.

Barclay’s Plc, Goldman Sachs and Simpson Thatcher & Bartlett are advising the buyers whilst JP Morgan Chase and Kirkland & Ellis LLP are advising Multiplan.

Source:  Bloomberg

 

Baker Hughes to use breakup fee to repurchase stock and cut debt

Baker Hughes Inc. sought to reassure investors on Monday by announcing a $2.5bn plan to buy back stock and pay down debt, using the breakup fee it will receive following the collapse of its long-stalled takeover by oilfield services provider Halliburton Inc.

Baker Hughes stated that proceeds from a $3.5bn breakup fee from Halliburton would fund its $1.5bn share buyback and repayment of $1bn of debt.

Baker Hughes also stated its plans to refinance it’s $2.5bn credit facility maturing in September 2016.

Separately, the company also announced a further 2,000 job cuts as part of its attempts to cut costs by $500m this year.

Source: Reuters

 

Halliburton and Baker Hughes call off $28bn deal

Oil giants Halliburton Co. and Baker Hughes Inc. terminated their $28bn merger deal amid regulatory pressures.

The companies had announced the deal in November 2014 to compete with no. 1 firm Schlumberger Ltd. The companies had set a deadline by end of April 2016, to either come up with an outcome or end the deal.

Baker Hughes would receive a termination fee of $3.5bn from Halliburton by 4 May 2016.

The U.S. Justice Department filed a lawsuit in early April to stop the merger, saying it threatened to eliminate head-to-head competition in 23 products and services used in oil exploration.

Source: Bloomberg

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