Global mergers and acquisitions activity is gearing up for a spring renaissance, with more than $20 billion of potential transactions emerging since the weekend.
(Bloomberg) — Global mergers and acquisitions activity is gearing up for a spring renaissance, with more than $20 billion of potential transactions emerging since the weekend.
The latest charge is being led by Merck & Co., which agreed Sunday to buy Prometheus Biosciences Inc. for about $10.8 billion — continuing a theme of large biotechs looking for ways to boost pipelines and portfolios of new drugs. It’s the latest boost for dealmakers in health care, which is one of the few sectors that’s defied the global slump in M&A.
Transaction values are still down 47% this year at $687 billion, according to data compiled by Bloomberg. But dealmakers could now start to claw back some meaningful ground as investor sentiment and conditions in financing markets improve following March’s mini-banking crisis. There are a number of possible big-ticket deals across a range of sectors that would go some way to helping them do that.
A booming video game market continues to throw up some headline-grabbing transactions. Sega Sammy Holdings Inc., creator of Sonic the Hedgehog, announced an offer Monday to buy Rovio Entertainment Oyj for about €706 million ($776 million). The challenge for Sega will be addressing what some investors worry is Finland-based Rovio’s overreliance on its flagship Angry Birds franchise.
Another area of activity showing signs of a comeback is take-privates, with buyout firms’ desire to deploy capital starting to be met with more realistic price expectations from sellers. Gulf payments firm Network International Holdings Plc said Monday it would likely accept a £2.1 billion ($2.6 billion) bid from CVC Capital Partners and Francisco Partners, confirming an earlier Bloomberg News report on the advanced talks.
Scottish engineering firm John Wood Group Plc indicated it’s becoming more receptive to Apollo Global Management Inc. after deciding to engage with the buyout firm on its latest £1.66 billion ($2 billion) offer. London-listed e-commerce firm THG Plc also said Monday it had received takeover interest from Apollo, while Aliaxis SA announced plans to acquire Finnish plumbing equipment maker Uponor Oyj for €1.8 billion.
Looking ahead, investors are keeping a close eye on Canadian miner Teck Resources Ltd., which is trying to fend off an unsolicited $23 billion takeover proposal from Glencore Plc. Instead, it’s looking to forge ahead with a restructuring that could in itself lead to asset sales. US gold giant Newmont Corp. last week sweetened its bid for Australian rival Newcrest Mining Ltd. to A$29.4 billion ($19.7 billion), bringing closer the prospect of a new precious metal behemoth.
In the sports world, a Qatari bidding group remains locked in a multibillion-dollar battle with British businessman Jim Ratcliffe for English Premier League football team Manchester United Plc. There’s also the chance of more large take-privates, with $5.4 billion Swiss banking software maker Temenos AG and $4 billion game developer Playtika Holding Corp. both attracting fresh interest from buyout firms, Bloomberg News has reported.
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