What's Going On With Some Of These Major M&A Deals?
Low borrowing costs have driven a surge in M&A activity in recent years. Even some of the biggest companies in the world have been on spending sprees. However, when massive companies agree to join forces, ironing out the details of the deal and gaining regulatory approval can be a long and arduous process.
Here’s a status update on some of the largest M&A deals announced in the past year.
A Perfectly Chilled Deal
Anheuser Busch Inbev SA (ADR) (NYSE: BUD)’s massive $100 billion merger with SABMiller is officially a done deal as of Monday. The deal closed almost exactly one year after Anheuser-Busch announced its bid for SABMiller on October 13, 2015.
Drug Stores Still Waiting
On December 11, 2015, the companies were asked for more information from the Federal Trade Commission, which still hasn’t made an official ruling. The companies still expect the deal to close at some point prior to 2017.
The News Stand
As of October 4, Gannett Co Inc (NYSE: GCI) and tronc Inc (NASDAQ: TRNC) were working out the details of a potential buyout agreement. Gannett will reportedly pay between $18.50 and $19/share for tronc if/when a deal is announced.
Delays Continue In Tech
Oracle Corporation (NYSE: ORCL)’s $9.3 billion buyout of NetSuite Inc (NYSE: N) seems to have hit a bump in the road. The buyout was announced on July 28, but Oracle recently extended the deadline for completing the deal from October 4 to November 4.
As of October 6, QUALCOMM, Inc. (NASDAQ: QCOM) and NXP Semiconductors NV (NASDAQ: NXPI) were only $10 apart in their buyout negotiations. NXP was reportedly asking for $120/share, while Qualcomm was offering $110.
... Or Are Dead In The Water
The potential KLA-Tencor Corp (NASDAQ: KLAC) merger with Lam Research Corporation (NASDAQ: LRCX) is officially dead. After nearly a year of opposition from the U.S. Justice Department on antitrust grounds, the two companies announced earlier this month they are throwing in the towel on the deal.
St. Jude's Buyout Waiting On Approval
EU regulators have until November 9 to rule on Abbott Laboratories (NYSE: ABT)’s potential $25 billion buyout of St. Jude Medical, Inc. (NYSE: STJ). Regulators can decide to green-light the deal or open a full-scale investigation.
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