M&A; Around The Globe: ESRX, MHS, TTEK, Proteus, MET
Thursday, July 21, 2021 12:54 PM

As the US stocks add to early gains on Thursday after encouraging corporate earnings and jobless claims data, several M&A activities took place around the world. Some notable M&A activities are discussed here.

Express Scripts to Acquire Medco for $29 Billion

Express Scripts Inc. (Nasdaq: ESRX) said Thursday that it has entered into a definitive agreement, under which it will acquire MedcoHealth Solutions Inc. (NYSE: MHS) for a total of $29.1 billion. Under the terms of the agreement, Medco shareholders will receive $71.36 per share in cash and stock. Medco shareholders will receive $28.80 in cash and 0.81 shares for each Medco share they own upon closing of the transaction.  The agreement has been unanimously approved by the boards of directors of both companies. The merger will combine the expertise of two complementary pharmacy benefit managers (PBMs) to accelerate efforts to lower the cost of prescription drugs and improve the quality of care for Americans. The merger is subject to regulatory clearance and Express Scripts' and Medco's shareholder approvals and other customary closing conditions. The transaction is expected to close in the first half of 2012. ESRX is trading higher by 6.41 percent to $55.91, while MHS gained 14.81 percent to trade at $64.04 on Thursday.

Tetra Tech to Acquire Australian Mining Firm Proteus

Tetra Tech Inc. (Nasdaq: TTEK) said Thursday that it has agreed to acquire Australian mining services firm Proteus EPCM Engineers. The company said that it has entered into a definitive agreement for the acquisition. Proteus has about 150 employees primarily located in Western Australia and has annual revenue of approximately $30 million. The acquisition is expected to close in early August 2011. The deal is expected to close early next month, Tetra Tech said. However, the terms of the deal were not disclosed by the company. Tetra Tech officials said the acquisition will serve as a gateway for Pasadena, Calif.-based Tetra Tech to new markets across Asia and Africa. TTEK added 1.08 percent to $22.55 a share today.

MetLife Exploring Sales Options for its Bank Unit

MetLife Inc. (NYSE: MET) said today that it is exploring the sale of MetLife Bank, N.A.’s depository business, which includes savings accounts, certificates of deposit and money market accounts. MetLife plans to continue to offer residential mortgages through its MetLife Home Loans business. The sale of its banking unit is a strategic move to sell off its non-core units. Given MetLife’s focus as a global insurance and employee benefits leader, the company has decided that a bank holding company structure is no longer appropriate. As of June 30 MetLife was the seventh-largest bank holding company in the United States by total assets, according to the Federal Reserve. The bank generated about 2 percent of the company's operating earnings in the first quarter. MET is trading higher by 2.74 percent to $42.01.