Monday's Mergers and Acquisition in Line with Annual Report

Brittney Barrett |

The number of global and domestic mergers and acquisitions were up to their highest levels since 2011 in the first quarter of the year, according to a mergermarket report released over the weekend. For the year, Global M&A climbed 28.9% over the first quarter of last year, while the U.S. experienced an 85.1% surge for the period. The announcement prompted more of the same sort of activity, with the day closing rich with new Mergers and Acquisitions reports.

The most publicized of today’s mergers was Texas Instruments decision to acquire National Semiconductor for $6.5 billion in cash. The deal would join two leaders in analog semiconductors, a $42 billion market last year.  This year, chips have been struggling somewhat, especially in the wake of the Japanese Earthquake. Japan has traditionally been the largest consumer of semiconductors. Beneath the agreement, stockholders will collect $25 in cash per share or a premium of 78 percent to Monday’s National Semiconductor’s closing stock price.



Also today, China’s Minmetals Resources, the nation’s largest metals trading firm, offered $6.5 billion to purchase Equinox Minerals in an effort to obtain the company’s considerable copper assets.

Shares of Vodafone Group PLC slumped on Monday after the company announced plans to  sell its 44% stake in SFR to France’s Vivendi for about $11.3 billion. Vodafone, a U.K. company intends €4.5 billion of the net proceeds to be returned to shareholders via a share buyback with the remainder devoted to reducing net debt.

Elsewhere, Pfizer Inc pushed up 1.1 percent to $20.60 following news that the company would sell its Capsugel unit, the world's largest producer of hard capsules, to KKR & Co, a private equities firm, for close to $2.4 billion.

The involvement of the privaty equity firm in the Pfizer deal is consistent with a trend over the past year of a growing number of buyouts being funded by private equity firms.

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
AXG.WS Atlas Acquisition Holdings Corp n/a n/a n/a 0

Comments

Emerging Growth

NABUfit Global Inc

NABUfit Global Inc develops online fitness portal and a mobile app with the option of connecting existing and future monitoring devices (wearables etc.).

Private Markets

Knightscope

Autonomous security robots providing advanced detection capabilities at $7 per hour - aiming to define the future of security. Help #StopTheViolence.

MyForce, Inc.

As parents, we constantly worry about the safety of our loved ones. The media bombards us with incidents from across the nation school shootings, frequent assaults on campuses, and crimes…