Renesas Electronics Sells to Government Fund, McGraw-Hill Divests Unit: Merger and Acquisitions Recap

A government-backed fund is poised to spend in excess of ¥180 billion, or $2.2 billion, for two-thirds of the struggling Japanese chipmaker Renesas Electronics Corp. (RNECY.PK) as shareholders mull the transaction, according to an inside source, who adds that the firm’s three largest shareholder groups, NEC Corp. (NIPNF.PK), Hitachi, and Mitsubishi Electric Corp., are nearing agreement on an interest divestiture to Innovation Network Corp. of Japan. In all, eight companies, among which include Toyota Motor Corporation (NYSE:TM), will spend more than ¥10 billion in total for minority stakes under the proposal which might yet be modified.

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In a Monday press release, McGraw-Hill Companies (NYSE: MHP) said it will divest its McGraw-Hill Education unit to investment funds affiliated with Apollo Global Management (NASDAQ:APO) for $2.5 billion. For its part, McGraw-Hill will receive $250 million in senior unsecured notes issued by the buyer at an annual interest rate of 8.5 percent. The deal should close in late 2012 or early 2013.

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