Mergers and Acquisitions

Kimberly Redmond | |

China’s antitrust regulator approved Cisco Systems' acquisition of Acacia Communications, just days after the deal almost fell apart.

On Tuesday, the State Administration for Market Regulation (SAMR) said it granted conditional approval for the $4.5 billion dollar merger, saying that the companies must ensure fair market competition and continue supplying certain products without discrimination or unreasonable terms. 

Reuters | |

Goldman Sachs Group Inc dwarfed estimates with a 153% jump in fourth-quarter profit on Tuesday, powered by another blowout performance at its core bond trading and underwriting business and an uptick in merger and acquisition activity.

The bank’s net earnings applicable to common shareholders rose to $4.36 billion in the quarter ended Dec. 31 from $1.72 billion a year ago. Earnings per share rose to $12.08 from $4.69 a year earlier.

Analysts had expected a profit of $7.47 per share on average, according to the IBES estimate from Refinitiv.

Reuters | |

Stellantis, the carmaker created by combining Fiat Chrysler and Peugeot-owner PSA, enjoyed a positive start on Monday, its shares rising 8% on their European market debut and valuing the business at around 42 billion euros ($51 billion).

With annual production of around 8 million vehicles and revenues of more than 165 billion euros, the world’s fourth largest auto company is expected to play a key role in the industry’s jump into the new era of electrification.

Stellantis will have 14 brands, from FCA’s Fiat, Maserati and U.S.-focused Jeep, Dodge and Ram to PSA’s traditionally Europe-focused Peugeot, Citroen, Opel and DS.

Kimberly Redmond | |

Qualcomm announced it will acquire NUVIA, a chip start-up, for $1.4 billion, to help it “meet the demands of next-generation 5G computing.”

In an announcement Wednesday, the wireless technology company said it plans to integrate NUVIA’s CPUs across its entire portfolio of products, including smartphone chips, laptop processors and advanced driver assistance systems.

The acquisition is expected to give Qualcomm fresh ideas for chip designs as it faces growing competition from other chipmakers like Intel as well as from companies that used to be core partners like Apple.

Reuters | |

Office supplies retailer Staples on Monday said it made an offer to buy Office Depot owner ODP Corp for $2.1 billion in cash, nearly five years after its second takeover effort was rejected.

The U.S. Federal Trade Commission blocked Staple’s $6.3 billion offer in 2016, saying a merger between the two could reduce competition for nationwide contracts for office supplies.

The two companies agreed to merge in 1996, but the deal was put to rest as a government lawsuit argued the move would have meant higher prices for pens, paper and other office supplies.

Reuters | |

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.

Reuters | |

Health insurer UnitedHealth Group on Wednesday agreed to buy Change Healthcare for $7.84 billion in an all-cash deal, as it looks to expand its fast-growing healthcare technology business.

UnitedHealth will pay $25.75 per Change Healthcare share, a premium of 41.2% to Tuesday’s closing price. Shares of Change, which will merge with UnitedHealth unit Optum, were trading near the offer price at $23.88.

Change Healthcare, which is 20% owned by Blackstone Group, provides billing and payment process services to more than 2,000 payers and 1 million providers, according to Citi.

Reuters | |

Ladbrokes owner Entain said on Monday an $11 billion takeover approach from U.S. casino operator MGM Resorts significantly undervalued its business, as companies move to capitalize on an expected boom in U.S. sports betting.

The United States is widely viewed as the next big growth market following a 2018 Supreme Court ruling that lifted a ban on sports betting. U.S. companies have sought partnerships to tap European expertise, including Caesars Entertainment’s 2.9 billion pound deal for Britain’s William Hill in September.

Reuters | |

Italian healthcare company Angelini said on Monday it would buy Swiss-based private equity-backed Arvelle Therapeutics in an all-cash transaction valuing the biopharmaceutical company up to $960 million.

The deal is the biggest acquisition ever for the 100-year old privately-held Italian group, which aims to become a leading player among companies focused on central nervous system and mental health disorder treatments.

The accord will allow Angel...

Reuters | |

Shareholders in Fiat Chrysler (FCA) and Peugeot owner PSA gave their blessing on Monday to a $52 billion mega-merger, one of the last steps towards creating Stellantis, the world’s fourth largest automaker.

With annual production of around 8 million vehicles worldwide and revenues of more than 165 billion euros ($203 billion), Stellantis is expected to play a key role in the auto industry’s jump into the new era of electrification.

Stellantis will have 14 brands, from FCA’s Fiat, Maserati and U.S.-focused Jeep, Dodge and Ram to PSA’s traditionally Europe-focused Peugeot, Citroen, Opel and DS.