M&A Weekly Recap: Amazon Absorbs TeachStreet, Walgreen Picks Up Kmart Scraps

Monday

Exxon (NYSE:XOM) will sell its Japanese refining and marketing business to TonenGeneral Sekiyu for $3.9 billion, in a deal that underscores a larger trend of oil companies shedding refining businesses and turning to exploration in hopes of boosting profits.

Don’t Miss: Airline Consolidation.

ABB (NYSE:ABB) will buy Thomas & Betts Corp. (NYSE:TNB) for $3.9 billion to expand its North American distribution network. It will aslo add low-voltage equipment. The $72/share offer is a 24% premium to TNB’s Friday close.

U.S. Steel (NYSE:X) sells U.S. Steel Serbia to the Republic of Serbia. The company expects to record a loss of $400 million-$500 million in the first quarter on the deal.

Don’t Miss: Meredith to Spend $175 Million on Allrecipes.com.

International Paper (NYSE:IP) and Temple-Inland (NYSE:TIN) have created concerns for he Department of Justice over the pending transaction and have agreed to a second extension of the Justice Department’s period for reviewing the proposed acquisition of TIN. The extension now runs until Feb. 13.

Walgreens (NYSE:WAG) is set to “acquire the prescription files and inventory” of thirty-three Kmart (NASDAQ:SHLD) pharmacies in sixteen states a number of which are due to be closed.

Deutsche Boerse (DBOEY.PK) and NYSE Euronext (NYSE:NYX) are hopeful their merger will go through with help from European Union financial regulator Michel Barnier. Not only hopeful that Barnier will go to bat for them, but the exchanges also hope Angela Merkel will lobby for the deal at the European Union meeting today.

Wednesday

Georgia Gulf (NYSE:GGC) rejects an offer from Westlake Chemical (NYSE:WLK). The offer consisted of buying it out right for $35 per share. The answer “no” is part of GGC’s repertoire.

Dillard’s (NYSE:DDS) buys a $4 million stake in an ecommerce startup. Acumen Brands is now looking to enhance its own online presence after the deal.

Savient Pharmaceuticals (NASDAQ:SVNT) shares nosedive right after Dendreon (NASDAQ:DNDN) cuts its Chief Executive Officer. John Johnson will take the helm at DNDN on June 30 after only one year at SVNT. Deutsche Bank AG (NYSE:DB) says Johnson has a history of M&A and his new perspective might benefit DNDN’s near-term strategy. DB noted his success in selling Imclone to Eli Lilly and his attempts at selling SVNT.

Praxair (NYSE:PX), a gas supplier, is selling its advanced components business. This business makes products for chip equipment gear, for a subsidiary of Japan’s NGK Insulators. Separately, the Wall Street Journal reports Praxair sold $600 million in ten-year notes at a yield of just 2.5%.

Don’t Miss: Barnes and Noble Move Protests Amazon’s Exclusivity Agreement.

Thursday

Walgreen Co. (NYSE:WAG) and BioScrip (NASDAQ:BIOS) announced that they have entered into a definitive agreement under which Walgreens would acquire certain assets of BioScrip’s community specialty pharmacies and centralized specialty and mail service pharmacy businesses and BioScrip would receive a total deal value of approximately $225M. This includes approximately $170M in cash at closing and retention by BioScrip of associated accounts receivable and working capital liabilities of approximately $55M, based on BioScrip’s balance sheet values at Dec. 31. Up to an additional $60M in purchase price may be payable based on events related directly or indirectly to Walgreens retention of certain business included in the transferred businesses.

Don’t Miss: Walgreen Acquires BioScrip Assets.

Barclays PLC (NYSE:BCS) would consider acquisitions outside of the U.K., including targets like Royal Bank of Canada (NYSE:RY), PNC (NYSE:PNC) and TD Bank (NYSE:TD), but U.K. regulators would prefer it to preserve capital and might block it from making any buys, according to Fox Business Network’s Charlie Gasparino.

Amazon.com Inc. (NASDAQ:AMZN) has acquired TeachStreet, an online marketplace linking class instructors and teachers with would-be students. TeachStreet writes on its blog that it’s shutting down and will become part of Amazon Local, the e-commerce giant’s daily deals aggregation product.

Don’t Miss: Survey Says: Kindle Fire Losing Its Allure.

Friday

BB & T Corp. (NYSE:BBT) reached an agreement to acquire the life and property and casualty insurance operating divisions of Roseland, N.J.,- based Crump Group Inc. Crump is the largest independent wholesale distributor of life insurance and one of the largest providers of wholesale commercial insurance brokerage and specialty programs in the U.S. Under the terms of the agreement, BB&T will acquire Crump Life Insurance Services and Crump Property & Casualty Insurance Services for $570M in cash.

BBT shares recently traded at $29.09, up $1.07, or 3.82%.

FedEx Corporation (NYSE:FDX) now is the leading contender for World Courier — a clinical trial logistics company, according to a source familiar with the situation, according to The Deal Pipeline.

FDX shares recently traded at $94.38, up $1.59, or 1.71%.

The Blackstone Group (NYSE:BX) is looking at a leveraged buyout of Brocade Communications Systems (NASDAQ:BRCD), sources say, which has a market value of $2.65B, Bloomberg reports.

BX shares recently traded at $16.81, up $0.13, or 0.78%.

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To contact the reporter on this story: Tanya Harding at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com