Top Stories
RIL to buy BP's Malaysian petrochemical plant
Reliance Industries agreed to buy BP Plc's Malaysian petrochemical plant for $230 mn, according to reports.
Reliance Industries Limited had acquired Recron (Malaysia) Sdn Bhd in 2007 and has been operating it since then. BP Chemicals (Malaysia) Sdn Bhd (BPCM) has been the largest supplier of purified terephthalic acid (PTA) to this facility.
BP Chemicals (Malaysia) Sdn Bhd (BPCM) has announced that Reliance Global Holdings Pte. Ltd (an associate of Reliance Ports and Terminals Limited) has acquired BPCM’s 100 % equity in purified terephthalic acid (PTA) production.
It is anticipated that the Kuantan PTA plant of BPCM will continue to supply PTA to Recron (Malaysia) Sdn Bhd after the acquisition.
The all-cash deal is planned to be completed in 2012, BP reportedly said.
EdServ acquires e-learninq businesses in Middle-East
Chennai based Education Services Company EdServ Softsystems Limited has announced that it has acquired the businesses and contents of a UAE based firm as an on-going entity. This is pan of its strategy to expand its overseas business providing online learning and career solutions through mobile and tablet platforms.
The company has now various contents for K-12 and UG / Skill development in Arabian Middle-east friendly languages post this acquisition and is planning to get these contents sold and serviced in the Middle East through mobile platforms as part of its overseas business operations.
EdServ has already signed up Apps relationship with Blackberry, Samsung, Nokia and post this acquisition the company is confident of moving the contents for the users of mobile phones in Middle cast and other foreign countries.
In Focus Stories
Global M&A Q3 2012 down 20%
Global M&A in the first three quarters of 2012 added up to US$ 1,426.5bn, down by 19.4% on the same period in 2011 (US$ 1,769.3bn), and representing the second lowest total since Q1-Q3 2009 (US$ 1,142bn). Q3 2012 totaled US$ 433.5bn, down 20.2% from Q2 2012 (US$ 543bn), resuming the freefall briefly paused by a rally in Q2.
European deals in Q3 2012 had a total value of US$ 99.2bn, down 46.1% from Q2 2012 (US$ 183.9bn) and a 40% decrease on Q3 2011 (US$ 165.2bn). It was the lowest quarterly total for Europe since Q3 2009 (US$ 78.8bn), and the third lowest quarter on mergermarket record (since 2001).
US M&A in Q3 2012 amounted to US$ 178.3bn, down 3.4% on Q2 2012 (US$ 184.6bn). The Q1-Q3 2012 US total of US$ 483.6bn was down by 23.1% on the same period in 2011 (US$ 628.8bn), and was the lowest Q1-Q3 period since Q1-Q3 2010 (US$ 476.4bn).
The Asia-Pacific region has seen M&A deals in 2012 adding up to US$ 241.8bn, down 14.8% on Q1-Q3 2011. For Q3 2012 Asia-Pacific was the only region to show an increase in activity, by 20.8% from the previous quarter (US$ 73.4bn).
Q3 2012 saw US$ 192.2bn-worth of cross-border deals, down 23% from the previous quarter (US$ 249.6bn) and 14.7% from the same period last year (US$ 225.3bn). Cross-border deals accounted for 44.3% of all global M&A in Q3. Deals between regions added up to US$ 140.3bn in Q3 2012 and accounted for 32.4% of all global M&A. They were down 20.5% from Q2 2012 (US$ 176.5bn), and 9.7% from the same period last year.
Deals in the Energy, Mining & Utilities sector have contributed the lion’s share of overall deal value so far this year, accounting for 26.6% of total global deal value in Q1-Q3, more than the next two sectors combined. The sector contributes four of the ten largest deals announced since the beginning of 2012.Goldman Sachs continues to lead the global financial adviser league tables and all regions except Europe. All US-based financial adviser firms in the top ten global ranking registered lower total deal value compared to the same period in 2011.
Domestic News
BHPV-BHEL merger likely to get delayed: reports
The merger of Bharat Heavy Plate and Vessels Ltd (BHPV) with BHEL is is likely to get delayed by six months as it requires a Union Cabinet's approval, according to reports.
Reports stated that merger, has been recently approved by the BHEL Board which is scouting for a legal firm to facilitate the merger.
The formal procedures for the merger have been completed and the file has been forwarded to the Prime Minister’s Office, reports said.
GSPC to buy BG's 65% stake in Gujarat Gas
Gujarat State Petroleum Corporation (GSPC) will acquire 65.12% in Gujarat Gas Company Ltd (GGCL) for Rs 24.64bn, according to reports.
Reports stated that GSPC, along with its affiliates in the Group, signed definitive agreements for buying the stake from the BG Group.
The acquisition is being made at Rs 295 a share, says report.There are reports that the deal would expand GSPC Group’s presence in Gujarat.
Global News
HDFC declines as Carlyle sells 3.7% stake at discount
Shares of lender HDFC declined as U.S. private equity firm Carlyle Group sold its remaining 3.7% stake in the former to raise as much as $841 million, reports said.The sale marks the firm's exit from HDFC after nearly doubling its original 2007 investment of $650mn with this latest sale and one in February that raised $270mn.
The US fund, which currently holds its stake in HDFC through its arm CMP Asia, has mandated Citigroup's India arm to offload 5.7 crore shares through block deals at a price of Rs 760-781 per share.Reports said citing a source that Carlyle sold 57 million HDFC shares at Rs.761.42 each. The sale price represents a discount of 3.5% to its Thursday close.
There were about 49 buyers for the HDFC stock, the sale of which was managed by Citigroup. Buyers included a clutch of overseas and Indian institutional investors.Reports said that Carlyle Group had raised Rs. 43.4bn though its HDFC share sale.
Separate reports stated that the flash crash of 900 points witnessed by the NSE Nifty cash segment on Friday morning was due to a freak trade in the HDFC counter.Shares of HDFC were trading at Rs.751.50 down 4.7% over the previous close. It had touched a day’s high of Rs.775.55 and a day’s low of Rs.738.10. The total traded quantity of the shares stood at 205.98 lakh shares on the BSE.
Mitsubishi Heavy denies interest in L&T shipbuilding unit
Mitsubishi Heavy Industries Ltd has denied reports to buy a controlling share in a shipbuilding unit of Larsen & Toubro Ltd.
Earlier reports stated that Japanese shipbuilder and heavy machinery maker plans to buy at least a 51% stake in L&T Shipbuilding by 2015 as part of efforts to increase cost competitiveness.
In December, Mitsubishi signed a pact to provide technical assistance to L&T Shipbuilding.
Accor completes sale of budget US hotels to Blackstone
Accor has announces the completion of the sale of its Motel 6 / Studio 6 hotels in North America to an affiliate of Blackstone Real Estate Partners VII, for an amount of US 1.9 billion dollars. This transaction allows Accor to reduce its adjusted net debt by 780mn euros.
Following the divestment, Accor operates 17 Sofitel and Novotel hotels in North America, of which 9 in the United States and 8 in Canada.
Hindujas eyes Houghton International for US$1.15bn: report
Hinduja Group is in race to acquire Houghton International, a U.S. producer of metalworking fluids and other chemicals, for $1.15 bn bid, according to reports.
Reports said that the terms of the deal were not disclosed.
AEA Investors LP, the investment firm that owns Houghton, could still decide to sell to another party or not at all, reports said.
Nippon Steel plans to merge with Sumitomo Metal: reports –
Nippon Steel and Sumitomo Metal Industries are planning to formally merge tomorrow, according to reports.
Reports stated that the two companies had announced an agreement to integrate and reorganise their business operations on the scheduled date of April 1, 2013.
Nippon Steel & Sumikin Logistics will be wholly owned by Nippon Steel and Sumitomo Metal Corporation, says report.
Deutsche Telekom confirms MetroPCS deal: reports
T-Mobile's parent company, Deutsche Telekom, has reportedly signed an agreement to "combine" T-Mobile and MetroPCS.
Reports asaid that this transaction will create the leading value carrier in the U.S. wireless marketplace, which will deliver an enhanced customer experience through a wider selection of affordable products and services,Deutsche Telekom reported.
Under the deal, MetroPCS will make a cash payment of $1.5 billion to its shareholders for a 26% ownership in the combined company.
Posco shows interest in ThyssenKrupp steel mills: reports
South Korean steel maker Posco has submitted a letter of intent for the acquisition of ThyssenKrupp AG's steel mills in Brazil and the U.S., according to reports.
Reports stated that ThyssenKrupp spokesman merely confirmed talks with interested parties from the industry.
Credit Suisse Group AG is an advisor on the deal, reports said.
Qatar plans to acquire stake in Brazil's AUX: reports
MSCI in talks to acquire IPD Group: reports