Category: M&A

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.

The food and beverages arm of Colombia’s largest conglomerate, GEA – Nacional de Chocolates – has completed the acquisition of Pozuelo, the Costa Rican cookie and juice subsidiary of Spain’s Ebro Puleva. Chocolates, together with local firm Florida Ice & Farm (Fifco) made an offer in May to pay $205 million for Pozuelo. The acquisition gives the buyers around 28% of the Costa Rican cookie market. Pozuelo distributes its products throughout Central America and the acquisition by Chocolates fits with the latter company’s strategy of consolidating its distribution base in the region.

Brazil’s largest beverage company, brewer AmBev, raised $949 million via the sale of local bonds to help fund the acquisition of a 35% stake in Argentine drinks group Quinsa from Beverage Associates Corporation (BAC) for $1.2 billion. The non-convertible debentures were issued in two series: one maturing in three years and paying annual interest of 1.75% over the local interbank (CDI) rate and the other maturing in six years and paying an annual rate of 2.5% over CDI. AmBev’s stake in the Argentine company rises to 91% as a result of the purchase.

HSBC, one of the world’s largest banks, has agreed to pay $1.77 billion for Grupo Banistmo, 2.89 times the book value of the Panamanian bank as of the end of March. The acquisition would be the largest in the region and will allow the UK bank to consolidate its position in Central America. The purchase will be carried out via a public share offering on the Panama Securities Exchange. Banistmo, Central America’s largest financial institution, has operations in Panama, Costa Rica, Honduras, Nicaragua, Colombia and El Salvador.

One of Chile’s anti-trust regulators, the National Economic Prosecutor (FNE) has asked the Court of Fair Competition to temporarily suspend recent acquisitions by local supermarket chains Cencosud and D&S. The regulator is worried about the concentration within the sector and possible lack of competition. Last week Cencosud said it was to spend $60 million to buy local supermarket chain Supermercados Economax.

The central bank of Guatemala, Banguat, has approved the merger of the country’s largest bank – Banco Industrial – with Banco de Occidente, the sixth largest in terms of assets. Approval had already been given by Guatemala’s bank regulator, SIB. Banco Industrial bought 72% of Banco de Occidente in March for $136 million, taking its share of domestic banking assets to 26% of the total market.

US technology company Sykes has bought Argentine call center operator Apex for $27.4 million. The acquisition will be funded 80% by cash and 20% by stock. Apex is headquartered in the city of Córdoba and has two other call centers in Argentina, serving clients in Argentina, Mexico and the US. Sykes plans to manage its Spanish business from its new base in Argentina.

Mexico’s competition commission rejected the merger of two railroads owned by Grupo Mexico, the country’s largest copper producer. Kansas City Southern Industries, which owns the third of the country’s main railroad networks, had complained the merger would hurt competition. Grupo Mexico bought Ferrosur, which operates mainly in the south, from magnate Carlos Slim, to merge it with operations in northern Mexico. The company said it will examine its options now.