Nomura Faults Recent PetroChina Deals, First Quantum Ups Inmet Offer: Merger and Acquisition Update

The Laclede Group (NYSE:LG), Energy Transfer Equity (NYSE:ETE), and Energy Transfer Partners said that Monday that two newly created subsidiaries of Laclede have reached definitive purchase and sale arrangements with Southern Union Company, an affiliate of ETE and ETP, through which Laclede will purchase the assets of Southern Union’s Missouri Gas Energy and New England Gas Company units. The transaction is valued at $1.035 billion and is divided into $1.015 billion in cash and almost $20 million of assumed NEG debt.

Analysts at Nomura are not impressed by the two recent natural gas deals in Canada and Australia by PetroChina Company Limited (NYSE:PTR), writing in a note that though the two deals are minor in size compared to PetroChina’s, they still broadcast  the need for the oil firm to take a “more disciplined approach” in its overseas purchasing strategy. Last week, PetroChina said it would buy 49.9 percent of Encana Corp.’s Duvernay shale gas project at a price of $2.2 billion and also agreed to acquire BHP Billiton’s interest in the planned Browse gas-export project in Western Australia for $1.63 billion in cash.

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First Quantum Minerals (FQVLF.PK) hikes its unsolicited offer for Inmet Mining Corp, which now values the smaller competitor at approximately $5.17 billion, and commented that the combined entity could potentially become one of the top copper producers in the world. The new bid offers as much as C$2.5 billion in cash and would issue up to 115.9 million shares,  subsequent to an initial bid of C$62.50 in October, which was later raised to C$70.

NRG Energy (NYSE:NRG) and GenOn Energy finalize their merger effective Monday, creating the biggest competitive power generator in the United States. The former presently has a diverse fleet of nearly 100 generation assets having an aggregate capacity of around 47,000 megawatts concentrated in three domestic regions: East, Gulf Coast and West.

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