M&A activity was pretty significant this week with a few major deals announced, but there was a lot of speculation as well!
Here’s your Cheat Sheet to mergers and acquisitions completed last week:
- After a couple of weeks of posturing, Deutsche Boerse will finally buy NYSE Euronext (NYSE:NYX) for a ten percent premium to the share price before deal talks were announced. Deutsche Boerse shareholders will own 60 percent of the combined company, which will be the largest global exchange. The deal still needs to be approved by regulators, but any nationalistic concerns may be overblown, as the companies issued a statement that assured us national exchanges will keep their names in local markets. However, investors are skeptical of the supposed $133 million in annual synergies. Don’t Miss: Is the NYSE-Deutsche Boerse Merger a Win for Traders and Investors? >>
- EchoStar (NASDAQ:SATS), the brainchild of Charlie Ergen, announced that it plans to continue expanding by acquiring broadband satellite network provider Hughes Communications (NASDAQ:HUGH) for approximately $1.35 billion, a 31 percent premium to the unaffected share price. Apollo, the private equity firm that owns much of Hughes, is certainly licking its lips now, since it bought in at a much lower price in 2004, when the firm was valued at $360 million. Based on its 57.4 percent disclosed stake, Apollo could net about $750 million.
- GE (NYSE:GE), on the forefront of every product and service imaginable (particularly dishwashers), plans to acquire the John Wood Group’s well-support business for $2.8 billion. This deal will allow GE to improve and expand its deepwater oil and unconventional natural gas production services, which, given supply forecasts by the International Energy Agency, is a clever move.
- The whole Sanofi-Aventis (NYSE:SNY)/Genzyme (NASDAQ:GENZ) fiasco was getting old, fast. The two companies were bickering over the price, and their opinions only differed by $1 or $2 per share. Now it’s old news! Sanofi agreed to acquire Genzyme after nine months of negotiations. Sanofi agreed to pay over $20.1 billion, or $74 per share, in addition to performance-based payments based on the performance of Genzyme’s MS drug, Lemtrada, and two other products. Sanofi must be relieved about this, because it will allow the company to recover from revenue losses due to increased competition from generic brands.
Not all deals get done. Don’t Miss: The Rumor Mill: Mergers & Acquisitions in Question >>