News

Divestments

General Mills To Sell Stake in European Yoplait Operations for Full Ownership of Canadian Business

Kimberly Redmond | Equities.com |

Under the terms of the deal announced Tuesday, Sodiaal, a leading French dairy cooperative, would acquire General Mills's 51% stake in Yoplait SAS, and General Mills would buy Sodiaal’s 49% interest in Yoplait Canada Holding Co.

Following the transaction, Yoplait SAS would operate yogurt businesses in markets including France and the UK and manage a network of 28 franchisees that manufacture and distribute Yoplait products in more than 40 countries.


Exxon Mobil To Sell Certain UK and North Sea Assets to HitecVision for More Than $1 Billion

Reuters | Equities.com |

Exxon Mobil Corp said on Wednesday it would sell its non-operating interest in its UK and North Sea exploration and production assets to private-equity fund HitecVision for more than $1 billion.

Exxon has been looking to sell its oil and gas assets since late 2019, seeking to free up cash to focus on a handful of mega-projects.


Nestlé Agrees on Sale of North American Water Business for $4.3 Billion

Kimberly Redmond | Equities.com |

Nestlé S.A. will sell its struggling North American bottled water business to two private equity firms for $4.3 billion, the Swiss food and beverage giant announced Wednesday.

The sale, to One Rock Capital Partners and Metropoulos & Co, includes brands such as Deer Park, Pure Life, Poland Spring, Ozarka, Arrowhead and Splash, along with US beverage delivery service ReadyRefresh.


AmerisourceBergen To Acquire Walgreens Boots Alliance's Distribution Business for $6.5 Billion

Reuters | Equities.com |

U.S. drug wholesaler AmerisourceBergen Corp said on Wednesday it would buy Walgreens Boots Alliance’s distribution business for $6.5 billion to expand in Europe as well as to compete better in the U.S. healthcare sector.

The deal will help Walgreens focus more on core pharmacy unit and its retail business, where sales have tanked due to the COVID-19 pandemic, resulting in a nearly 30% slump in shares in 2020.

AmerisourceBergen will get access to Alliance Healthcare, one of the largest distributors in Europe that has weathered the impact of the global health crisis.


Carl Icahn Sells Majority of Herbalife Nutrition Stake to Company for $600 Million, Cedes Board Seats

Reuters | Equities.com |

Activist investor Carl Icahn has sold more than half his stake in Herbalife Nutrition back to the company for $600 million at $48.05 a share and has given up the five seats on the firm’s board held by his representatives, Herbalife said in a statement.

Icahn had a 15.5% stake in Herbalife as of Sept. 30. The latest deal is expected to close by Jan. 7, after which Icahn Enterprises will hold about 8 million of Herbalife’s shares, representing a stake of about 6%, the statement added.

The Wall Street Journal reported on Sunday that in recent days Icahn had sold about 10% of his stake back to the multi-level marketing company, whose products include dietary supplements.


Shell Agrees To Sell Minority Stake in Queensland Curtis LNG Facilities for $2.5 Billion

Reuters | Equities.com |

Shell said on Monday it has agreed to sell a 26.25% stake in its Queensland Curtis LNG (QCLNG) facilities to Global Infrastructure Partners Australia for $2.5 billion, helping the oil major meet its annual target for divestments.

Shell, advised by Rothschild & Co, put a minority stake in the asset up for sale earlier this year, after infrastructure investors expressed interest in the asset which has a guaranteed earnings stream for 15 years.

The sale price was in line with analysts’ expectations.


Uber Sells Autonomous Driving Unit, Uber Advanced Technologies Group, to Aurora

Reuters | Equities.com |

Uber Technologies Inc is selling its autonomous driving unit, Uber Advanced Technologies Group (ATG), to self-driving car startup Aurora, the companies said on Monday, in a move that would accelerate the ride-sharing company’s goal to achieve profitability.

The equity deal valued the ATG at $4 billion, according to people familiar with the matter. This marks a major drop in valuation for ATG, as it raised $1 billion from a consortium of investors including Toyota Motor Corp and SoftBank Group Corp at a valuation of $7.25 billion last year.


Merck Announces Sale of Direct Equity Investment in Moderna

Equities Staff | Equities.com |

Merck announced today that it divested its direct holding in Moderna in the first half of the fourth quarter of 2020. The pharmaceutical giant, which had invested $50 million in Moderna in 2015 and an additional $125 million in 2018, said it would retain indirect exposure through its venture fund investments.

Merck said it had "achieved a substantial gain" on its investment, "particularly in 2020 given the substantial appreciation" in Moderna's stock pr...


AIG Considers IPO or Sale of 20% of Life and Retirement Business

Reuters | Equities.com |

Insurer American International Group Inc said on Friday it is considering an initial public offering or a private sale of nearly 20% of its life and retirement business to separate the unit from the rest of the company over the coming year.

The comments during AIG’s third-quarter earnings call offered further detail on how it might carry out the long-discussed divestiture, which it announced last week.

“We currently contemplate either an IPO or a private sale of up to 19.9% of Life and Retirement, followed by one or more dispositions of our remaining ownership interest over time,” President Peter Zaffino said on the call. AIG last week named Zaffino to take over as chief executive officer in March.


Uber Misses Estimates; Sees Strong Demand for Food Delivery But Rides Business Slow To Recover

Reuters | Equities.com |

Uber Technologies Inc said on Thursday that demand for its food-delivery service expanded in the latest quarter, but its global rides business was seeing its slowest recovery rate in the United States, its most important market.

Uber executives cautioned that ride demand in Europe, which recovered faster than any other region in the quarter, was likely to decline as several countries on the continent reimposed lockdown measures.

The company’s shares were down 1% in after-hours trading as Uber recorded greater adjusted losses before interest, taxes, depreciation and amortization in the third quarter than Wall Street expected.


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