US-based Johnson Controls and Japan’s Hitachi Appliances have formalised their agreement to form a joint venture that will acquire Hitachi Appliances’ global air-conditioning business. The deal was announced in December 2013 and was to have started operations in 2014, but its closure has stretched all the way till 2015. This transaction has a local effect, as it will change the ownership of India’s Hitachi Home & Life Solutions (India), a 74.25% subsidiary of Hitachi Group. Its share rose by 20% on Thursday, as investors are jumping in, to make a quick buck in open offer. If the transaction does necessitate an open offer, there are exemptions available depending on the structure of the transaction, the offer price will determine if shareholders get a windfall. Continue Reading →
M&A
Recent Posts
Fulford’s parent Dashtag rethinks delisting, stock falls by 20%
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Fulford (India)’s parent Dashtag, a subsidiary of Merck & Co. has postponed its delisting plans, a decision it has attributed to a sharp rise in Fulford’s share. But a reference to Sebi’s decision to amend the delisting regulations indicates some influence from that side as well. Shareholders reacted with dismay, sending the stock down by 20%on Tuesday to Rs 1,417.3–locked at the lower end of the circuit filter. Dashtag informed Fulford in a letter that it has received all approvals needed for it to make an open offer. Continue Reading →
Filed under: Companies, Finance+Markets, Pharmaceuticals & Healthcare, Top News, Delisting, Fulford India, M&A, Sebi
United Spirits shareholders reject UB group-related transactions
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The relationship between Diageo-controlled United Spirits and the UB group has taken a curious turn. A company meeting called last week to put to vote a number of related material party transactions, saw minority shareholders vote against all UB group-related transactions except for one. Link. In another development, shareholders rejected a postal ballot for a related party transaction, in which United Spirits was to enter into an arrangement with Diageo, to make and sell products under license and also market products made by Diageo. This resolution required three-fourths of non-promoter shareholders to vote in favour, but it got only 70.2% votes in favour. Continue Reading →
Filed under: Beverages, Companies, Top News, Diageo, M&A, UB, UB Holdings
M&M to take over trucks from Mahindra Trucks and Buses
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Mahindra and Mahindra (M&M) is planning to take over the trucks business of its subsidiary Mahindra Trucks & Buses. The business will be transferred to M&M through a scheme of arrangement, after being approved by M&M’s board .
Filed under: Companies, Quick News, Commercial Vehicles, Light commercial vehicle, M&A, Mahindra & Mahindra
Asian Paints buys 51% in kitchen company Sleek for Rs 120 crore
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Asian Paints had announced in March that it plans to acquire a 51% stake in privately-held Sleek International but had not disclosed the consideration. It had said it will do a due diligence exercise before finishing the deal. That seems to have gone off well, as it has said it will be investing Rs 120 crore in two instalments, by August 10, 2013.
Filed under: Companies, Quick News, Asian Paints, M&A, Sleek
Vivimed acquires Actavis drug facility for Rs 122 crore, gets US generic entry
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Vivimed Labs is acquiring a drug-making facility in India, that comes with regulatory approval from the US Food and Drug Administration (US FDA), giving it acess to the US market. It will get two products as part of the deal and some outsourcing contracts that will give it access to quicker revenue streams. In the longer run, it plans to file to sell new drugs from this facility.
Filed under: Companies, Top News, Generic Medicines, M&A, Pharmaceutical, USFDA, Vivimed Labs
Holcim’s Ambuja-ACC deal: have investors got it all wrong?
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The stock market verdict on Holcim’s restructuring of its India is an unequivocal thumbs-down. Both Ambuja Cements and ACC are down on Thursday, a day after the merger was announced. Ambuja Cements took a bigger hit and fell by 10.5% while ACC was down by 3%.
Filed under: Companies, News Analysis, ACC, Ambuja Cements, Companies International, M&A, Valuation
Holcim stops short of merging ACC and Ambuja, makes a cash windfall
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A merger of Ambuja Cements and ACC has been long speculated upon, since both are owned by the same parent company Holcim. On July 24, Ambuja Cements declared its results and also announced a rather complex restructuring to bring ACC into its fold.
Filed under: Companies, Top News, ACC, Ambuja Cements, Companies Mergers & Acquisitions, M&A
Tech Mahindra acquires 51% in Comviva for Rs 260 crore, is in a rush to buy growth
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The story in short:
Continue Reading →
Filed under: Companies, Telecom, Top News, Comviva, M&A, Mahindra Satyam, Tech Mahindra, VAS
Infosys acquires Lodestone, investors want more
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It was inevitable, one could say. Infosys Technologies’ acquisition of IT consulting firm Lodestone Management Consultants finally answers a question journalists and analysts have never tired of asking the company. The company has a mountain of cash that keeps growing over the years; at last count it had reached $3.2 billion or Rs 17,760 crore as of June 30, 2012. But it has never made a large acquisition, leading to questions on whether it is being too conservative. Those questions have some answers now. Continue Reading →