Welcome to the first weekly report of 2018 – even though the year has barely started, the first two weeks have proven to be as eventful as usual in the financial world.
Starting with an acquisition in the United States - Dominion Energy took over Scana Corp in a $7.9 billion deal. The target company is an energy-based holding company, while the acquirer is an energy utility company, operating in 18 states.
SS&C has acquired DST Systems in a $5.4 billion deal – a deal that allows the company to expand its financial technology software. The acquisition will allow the firm to have a go intoenter the healthcare information technology market.
Moving on to another M&A deal that took place recently – Lucid II was taken over by Riverstone Holdings and Goldman Sachs Merchant Bank in a $1.6 billion deal. Lucid II is a service company, based in the Delaware Basin, thatbasin, which gathers and processes information.
General Motors Financial Company has undertaken $1.65 billion notes issue. The issue consisted of $400 million floating-rate notes due 2023, $850 million 3.25% notes due 2023 and $400 million 3.85% notes due 2028. Guarantor was AmeriCredit Financial Services. The issuer provided financial solutions in the automotive sector.
Scion Student Communities has acquired US student housing portfolio for $1.1 billion. The student house joint venture took over 24 US student housing properties. The venture consists of the Canada Pension Plan Investment Board (CPPIB), Singapore wealth fund GIC and property owner Scion Group.
Outside of the US, IFM Investors has acquired OHL Concesiones for $3.34 billion in a cross-border deal between Peru, Mexico and Colombia. The target company is a manager of highways, ports, railways and airports in Spain, Chile, Mexico, Colombia and Peru.
Moving on to another M&A deal that took place recently – Lucid II was taken over by Riverstone Holdings and Goldman Sachs Merchant Bank in a $1.6 billion deal. Lucid II is a service company, based in Delaware Basin, that gathers and processes information.
Also in Colombia, Concesión Ruta al Mar has secured a $708 financing package for the construction of the 4G Antioquia-Bolívar highway by Construcciones El Cóndor. The project is the country’s first private initiative project to be financed internationally.
Capital markets transactions have also started strongly in 2018, one example seeing the General Motors Financial Company undertaking a $1.65 billion notes issue. The issue consisted of $400 million floating-rate notes, $850 million 3.25% notes and $400 million 3.85% notes. The guarantor was AmeriCredit Financial Services. The issuer provides financial solutions in the automotive sector.
Moving to the Middle East, the Abu Dhabi National Oil Company has received a $3 billion syndicated loan. It is the latest string in a series of financing deals. Proceeds will enable Japanese companies to secure oil supplies from Abu Dhabi.
The State of Israel has issued $2 billion bonds in two tranches. Barclays, Citigroup and Goldman Sachs acted as lead managers. Proceeds will be used to roll over debt as the country does not need foreign currency.
In Europe, Finnish group Fortum has acquired a 45.65% stake in Germany-based Uniper for $4.5 billion. The acquisition will allow the company to focus more on promising networks and renewables.
Moving on to Belgium and Denmark - Novo Nordisk took over Ablynx in a €2.6 billion deal. Caplacizumab - an anti-vWF nanobody used to treat acquired Thrombotic Thrombocytopenic Purpura – will be globally developed and commercialised as a result of merging both companies’ expertise.
Finally, Bayer has sold Covestro shares, valued at €1.5 billion, in a deal taking place in Germany. The company is aiming to dispose all shares in Covestro. The target company is a chemical manufacturer of polymer materials.