Category: M&A

Credit Suisse is in talks to buy Brazilian investment bank Hedging-Griffo in a deal reported to be worth $300-$400 million. The Brazilian house, created in 1986 from the merger of two brokerage companies, has enjoyed huge success in recent years. It currently has around $6.6 billion under management.

Mexican mobile phone operators Iusacell and Unefon, both owned by local businessman Ricardo Salinas Pliego, are preparing to merge. The move aims to knock Spanish-owned Telefónica Movistar off the number two spot and will compete with the country’s largest operator, América Móvil, owned by Carlos Slim. The move to merge, which had been flagged as far back as three years ago, was prompted by the near-completion of Iusacell’s debt restructuring and Salinas’ move to take control of Unefon by buying out his partner in the venture, Moisés Saba Masri, for $300 million. Salinas also plans to buy the remaining 10% of the company’s stock, listed on the Mexican Exchange, via a public offering within the next 60 days to take the company private.

US mining concern Phelps Dodge Corporation has ended its acquisition agreement with Canadian nickel producer Inco, thus clearing the way for a hostile takeover by the world’s largest iron-ore producer, Brazilian firm Companhia Vale do Rio Doce (CVRD). Last month CVRD offered around $17.9 billion in cash for Inco, while Phelps Dodge made a similar friendly offer but payable in cash and stock. Despite a recommendation from Inco’s board to accept the Phelps Dodge offer, investors indicated they would reject it in favor of the cash option. They had been due to vote today on a course of action. Inco has paid Phelps Dodge a $125 million break-up fee and may be required to pay a further $350 million.

Chilean anti-monopoly commission (TDLC) has ruled that the country’s second-largest retail chain, Cencosud, can proceed with its acquisition of smaller supermarkets Economax and Infante, following a suspension of the deals last month. The Commission ruled that Cencosud, which operates the supermarket chains Jumbo and Santa Isabel, can proceed with its $60 million offer to buy 12 Economax stores in the metropolitan region as well finalizing a deal for $34 million to buy four Infante stores in Chile’s II Region, in the north.

Honduran Banco del País (Banpaís) has become the country’s third-largest bank following its merger with local savings and loan bank La Constancia. The merger gives the Bank a total of 250,000 accountholders, and loans worth $471 million, or 13% of total loans in the market. Banpaís was set up in Honduras in 1992. It embarked on a strategy of growth via acquisition three years ago when it took over failing Banco Sogerin and Banco de las Fuerzas Armadas, a bank owned by the military.

Brazilian Companhia Vale do Rio Doce (CVRD), the world’s largest iron-ore producer, has offered to buy Canadian nickel producer Inco for $15.3 billion in cash. The acquisition would make CVRD the world’s largest nickel miner by 2010, according to projections, and would turn it into one of the leading global mining companies. However, CVRD is facing competition for Inco from North American companies Phelps Dodge and Teck Cominco. The acquisition of Inco will be financed by loans from Credit Suisse, UBS, ABN AMRO and Banco Santander Central Hispano.

Brazil’s largest beverage company, brewer AmBev, completed its acquisition Tuesday of a further 35% stake in Argentine drinks group Quinsa to take its share in the company up to 91%. AmBev agreed in April to buy the holding from Beverage Associates Corporation (BAC) for $1.2 billion. Earlier this month the Brazilian brewer raised $949 million via the sale of local bonds to help fund the acquisition. Quinsa is the leading brewer in Argentina, Uruguay, Paraguay and Bolivia, and also has a share of the Chilean market.

Colombian food company Alpina has said it will start a push for acquisitions, both within the region and in North America, in its bid to become a Colombian multinational. It plans to raise funds via a local bond issue, although no details have been finalized. Acquisition of a US dairy, probably in California, for up to $100 million would be top of the list, followed by acquisitions in the Dominican Republic, Puerto Rico and Panama. Alpina already has operations in Ecuador and Venezuela.

Argentine high-growth, private bank Macro Bansud has received approval from Argentina’s central bank for its acquisition of Nuevo Banco Bisel, which it agreed to buy for $268 million. Macro Bansud outbid local bank Hipotecario in April for the Rosario-based bank that specializes in the agriculture sector. Banco Bisel, formerly a subsidiary of France’s Credit Agricole, was taken over by the government in the wake of the 2001 economic crisis in Argentina and Credit Agricole’s pull-out from the country.

US steel-maker Wheeling-Pittsburgh Corporation is reported to be in merger talks with Brazil’s Companhia Siderurgica Nacional (CSN). The agreement under negotiation would result in the combination of CSN’s North American assets with those of Wheeling-Pittsburgh to create a new company. Under the terms of the arrangement, CSN would contribute its steel-processing facility in Indiana and make a cash investment of $225 million through financing that would be convertible into about 11.8 million shares of the new Wheeling-Pittsburgh within a three-year period. CSN will receive a 49.5% stake in a new holding company, Wheeling-Pittsburgh Corporation, which intends to seek a listing on NASDAQ.