Mergers and Acquisitions Update: EADS & BAE Back Again, ABM Buys Air Serv
The proposed $45 billion merger between European Aeronautic (EADSY.PK) $45B and BAE Systems (BAESY.PK) has caused weeks of contention between at least four countries, but it appears that France and the United Kingdom have narrowed their dispute in regards to the wording of guarantees on state shareholdings, say sources to Reuters, although France remains opposed to a 10 percent limit on its future stakes in the new entity. The chief executives of the two companies are set to meet with their respective boards to decide whether to apply to extend Wednesday’s deadline for a decision on going forward with the deal.
ABM Industries Incorporated (NYSE:ABM) acquires Air Serv Corp. for about $158 million in cash as it wishes to enlarge its service offerings to airlines and airport authorities. According to ABM, Air Serv, when combined with its own facility solutions, janitorial, security and parking airport units, will form an integrated aviation vertical integration having approximately $650 million in yearly revenues.
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UnitedHealth Group’s (NYSE:UNH) $4.9 billion purchase of its Brazilian peer Amil “is a big deal” that will increase the buyer’s “growth profile for years to come,” according to SA author Robert Broens. In addition, Amil will add $5 billion in annual revenues, which affords UnitedHealth “access to the enormous Brazilian market.” Even though shares rose only 0.8% Monday, Broens anticipates that “shares to take out all time highs in the next year.”