Mergers and Acquisitions Recap: Universal Music BLUES, Johnson and Johnson APPROVED
Johnson & Johnson’s (NYSE:JNJ) cash and stock acquisition of Synthes is approved by U.S. regulators, and the deal, valued at $19.7 billion should close on Thursday. Financing the purchase was aided by a J&J subsidiary, which set approximately $12.9 billion in buyback agreements in motion. This acquisition is expected to add between 3 and 5 cents to the current year earning per share, which represents an improvement to the prior projection of a 22-cent decrease. For 2013, it will increase the earnings by between 10 and 15 cents per share, excluding certain items.
Universal Music (VIVHY.PK) might receive the European Commission’s “statement of objections” against its proposed $1.9 billion acquisition of the recorded music unit of EMI within some five days, says Reuters. The lobbying group Impala, and Warner Music are asking the Commission to reject the transaction, as it could greatly add monopoly conditions to the already concentrated market.
United Tech (NYSE:UTX) has sold $1 billion worth of convertible notes, or 20 million equity units at $50 each, which is considerably less than the $1.5 billion the company said it would raise to help finance its $16.5 billion purchase of Goodrich (NYSE:GR). However, UTX reports that it has located alternatives sources of cash, which might include the divestiture of three units, one of which is said te be imminent.
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