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Saturday, January 2, 2010

Reliance – RPL merger: February 27, 2009

Mukesh Ambani-promoted Reliance Industries merged its group firm Reliance Petroleum with itself. Reliance-RPL merger ratio was at 1:16
Reliance Industries Ltd (RIL), India’s largest company by market capitalisation, has offered one share for every 16 held in Reliance Petroleum (RPL) to merge its refinery subsidiary.

RIL will issue 69.2 million new shares to shareholders of RPL in order to buy back the company and will have 3.7 million shareholders after the merger. RIL’s equity capital will rise to Rs 1,643 crore and the promoter’s holdings will fall by 2 per cent to 47 per cent, the company said in a statement issued today.

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Fortis buys Wockhardt Hospital chain:

Fortis Healthcare, the leading private healthcare chain promoted by the erstwhile owners of Ranbaxy, acquired eight running hospitals and two green field projects of Wockhardt Hospital for Rs 909 crore.
The acquisition will see Fortis inching closer to the country's largest hospital network Apollo on total bed strength. Post this deal, Fortis will rank as the leading private healthcare provider in several key states in India.
The deal, biggest ever in Indian healthcare space, will provide Fortis with a mix of big and small hospitals, including two multi-specialty hospitals.

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ArcelorMittal acquires stake in Uttam Galva:

The world's largest steel maker ArcelorMittal owned by London-based NRI billionaire LN Mittal made an entry in India by picking a significant minority stake in Mumbai-based speciality steel products maker Uttam Galva Steels.
The deal would entitle ArcelorMittal to become a co-promoter in the Indian steel maker. ArcelorMittal is expected to purchase 5% stake for Rs 69.6 crore at Rs 120 a share in the first stage and thereafter ArcelorMittal will make an open offer to purchase a 30% stake at the same price valuing the company at Rs 1,384.3 crore.

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JSW, JFE Steel alliance:

JSW Steel announced tie-up with JFE Steel Corporation, Japan's second biggest steel manufacturer, to co-operate in the domestic market to make high quality steel for automobiles.
The prospects of stake sale is very much on and in fact, both JSW and JFE are expected to buy into each other. The valuation and pricing of the transaction would get finalised over the next few months.
JFE's entry will not only help JSW to step up its automative steel play, but will also lead to joint bidding for mining resources worldwide.

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Tech Mahindra acquires Satyam Computer:

Tech Mahindra won the bid for Satyam Computer Services beating rival bidders Larsen & Toubro and billionaire Wilbur Ross who were in the race for buy Satyam
Tech Mahindra bid at Rs 58/share while L&T bid at Rs 49.50/share and Wilbur Ross bid at Rs 20/share. Tech Mahindra paid Rs 1757 crore for 31% at Rs 58/share

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Pfizer buys Wyeth:

World's biggest pharmaceutical firm Pfizer announced the planned merger in January and the European Commission approved the merger on July 17.
Pfizer bought Wyeth, a US rival, for $68 billion valued at $50.19 a share. The deal appears to be the biggest takeover in the global pharmaceutical sector since Pfizer acquired Warner-Lambert Co for $93.4 billion in 2000.
The deal created a pharmaceuticals group with annual sales of about $75 billion.

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Oracle, Sun merger:

Oracle and Sun announced in April 2009 a deal in which Oracle would acquire Sun common stock for $9.50 per share in cash, putting the value of the transaction at about $7.4 billion. Though the US Department of Justice recently cleared the merger, the European Commission could delay its decision on the Sun-Oracle deal beyond the stipulated deadline to further investigate anti-trust issues.
The merger is facing trouble because of concerns that Oracle might be able to eliminate Sun's MySQL database product as a competitor.

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Time Warner spins-off AOL:

Time Warner announced the spin-off of US net service provider AOL into a separate company. One share of AOL common stock was distributed for every eleven shares of Time Warner common stock.
No payment was required by Time Warner stockholders to receive the shares of AOL common stock. Stockholders who held Time Warner common stock on the record date received a book-entry account statement reflecting their ownership of AOL common stock.
The move was aimed at generating steady and attractive financial results and improving returns to Time Warner stockholders. AOL on the other hand received greater operational and strategic flexibility as a standalone company.

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Volkswagen buys stake in Suzuki:

Volkswagen, Europe's largest carmaker, agreed to buy a 19.9% stake in Suzuki for $2.5 billion and the latter would invest half the amount to pick up a stake in the German carmaker. The move could make both companies a powerhouse in India in the coming years.
The stake buy could also boost Volkswagen's fortune in India. The companies also reached a common understanding to meet the growing challenges and develop hybrids and electric vehicles under both car brands.

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Volkswagen takes over Porsche:

Europe's auto major Volkswagen is set to become the world's number one, pushing Japan's Toyota to the second place, by taking over sports car manufacturer Porsche. The acquisition ended years of takeover struggle between the two German automobile giants.
Porsche, which made an unsuccessful bid to take over Volkswagen earlier this year, is now the 10th brand of the VW family.
Volkswagen took 49.9% stake in Porsche for â‚3.9 billion and the merger will be completed by 2011. Porsche will continue to operate as an independent company within the VW family.

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Chrysler, Fiat merger:

US carmaker Chrysler and Italian carmaker Fiat merged to create world's sixth largest global auto giant. The non-cash accord called for Fiat to take a 35% stake in the No 3 American carmaker Chrysler in exchange for Fiat's platforms for its fuel-efficient, small and medium-sized compact cars, which will fill a gap in Chrysler's range of models. Fiat in turn would gain access to American auto plants and service centers as well as the reintroduction of several of their models back into America. Fiat like Chrysler was also in a terrible state after a failed merger with General Motors, but is now on its road to recovery.

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