M&A; Activity Around the Globe: CLX, Icahn Enterprises, Sihuan Pharma, Shandong Pharma, ENER
Tuesday, July 19, 2021 11:37 AM

As the US stocks rally on Tuesday after encouraging corporate earnings, several M&A activities took place around the world. Some notable M&A activities are discussed here.

Clorox Rejects Icahn’s Takeover Offer

Clorox Company (NYSE: CLX) said that its board of directors, in consultation with its independent legal and financial advisers, has unanimously determined that the continued implementation of the company's strategic plan is the best way to generate significant value for all Clorox stockholders. The board also determined that the unsolicited, conditional proposal from Icahn Enterprises L.P. to acquire Clorox substantially undervalues the company. On Friday, Icahn Enterprises LP offered to buy the outstanding shares of Clorox for $76.50 apiece. Rather than urge the company to take the unsolicited offer, Icahn said Clorox should shop itself to competitors, saying it could get a better offer from U.S. competitors like Procter & Gamble, Colgate-Palmolive Co., and Kimberly-Clark Corp., or from overseas rivals like Unilever PLC, Reckitt Benckiser and Henkel AG. CLX is currently trading lower by 0.30 percent to $72.82 a share.

Sihuan Pharmaceuticals to Sell Unit Stake for $99 Million

China’s drug maker Sihuan Pharmaceuticals Group Ltd. said Tuesday that it has agreed to sell a 50 percent stake in a wholly owned pharmaceutical products distributor to Shandong Buchang Pharmaceutical Co Ltd for $98.55 million (637.5 million yuan). The drug maker added that it would cooperate with Shandong Buchang to broaden its product portfolio to include traditional Chinese medicines for chronic treatment of CCV diseases. Shandong Buchang, a CCV drug and traditional Chinese medicine researcher and producer, has established an extensive network for sales and distribution of pharmaceutical products in China.

Energy Conversion to Divest Battery Unit

Energy Conversion Devised Inc. (Nasdaq: ENER), a leading global manufacturer of thin-film flexible solar laminate products and systems for the building-integrated and commercial rooftop markets, said Tuesday that it is initiating a process to divest its Ovonic Battery Company (OBC) subsidiary. OBC's principal activities are licensing its advanced battery technologies (including nickel-metal-hydride ("NiMH") and lithium-ion technologies), participating in joint development programs to support application of these technologies, and manufacturing mixed-metal hydroxide cathode materials for sale to its licensees for use in battery production. OBC has demonstrated great value through sustainable profitability, a strong and growing royalty and license-fee revenue stream, and high-potential growth opportunities. Shares of Energy Conversion were trading lower by 1.77 percent to $1.11 a share on Tuesday, after the announcement.