4 Merger and Acquisitions Stock Stories Making the Scene Monday

The Blackstone Group (NYSE:BX): Current price $21.92

Blackstone and its Brazilian partner Patria Investimentos Ltda. will acquire an interest in that country’s biggest residential land developer, gambling that the appeal of its gated communities will survive a slump in home prices. The firms will purchase 70 percent of Gafisa’s Alphaville Urbanismo residential-development business at $651 million. The transaction is the first real estate deal to emerge from Blackstone’s 2010 investment in Patria, as it banks on increasing demand for housing and Alphaville’s brand enticing buyers as Brazil’s home-price growth eases.

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BX

Smithfield Foods (NYSE:SFD): Current price $32.76

Some extremely old statutes that disallow foreign ownership of farmland in Iowa, Missouri and other Midwest states could complicate Shuanghui International’s $4.7-billion planned acquisition of the pork major. The transaction would be the largest buy in the United States by a Chinese firm, and will be examined by a federal government panel that assesses national security risks, but that should not block the sale. Some politicians have raised fears in regards to food safety, and farmers groups are dubious concerning consolidation and potential damage to small farmers. The land laws could be employed by those who oppose the deal, and at a minimum could lead to complex legal maneuvering by the parties.

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SFD

AstraZeneca Group (NYSE:AZN): Current price $51.44

AstraZeneca said on Monday that it is acquiring the privately held firm Pearl Therapeutics, which concentrates upon the development of inhaled small-molecule therapeutics for respiratory disease, at a price up to $1.15 billion. AstraZeneca will buy the entirety of Pearl’s shares for initial consideration of $560 million payable on completion; deferred consideration of as much as $450 million becomes payable on achievement of specified development and regulatory milestones in respect of any triple combination therapies and selected future products that AstraZeneca develops employing Pearl’s tech platform. The transaction should close in the third quarter.

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AZN

The Travelers Companies (NYSE:TRV): Current price $83.32

On Monday, Travelers said that it will acquire The Dominion of Canada General Insurance Company from E-L Financial Corporation Limited, for roughly $1.1 billion in cash, subject to adjustment. The Dominion and Travelers Canadian operations will be joined, and the combined entity will remain headquartered in Toronto. The deal should close in the fourth quarter.

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TRV

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