M&A; Activity Around The Globe: NBL, CNX, Asahi Group, Independent Liquor, PEP, OSUR, DNA Genotek
Thursday, August 18, 2021 11:51 AM

As U.S. stocks tumble on disappointing economic data and debt fears, several M&A activities took place around the world. Some notable M&A activities are discussed here.

Noble in $3.4 Billion Marcellus JV with Consol

Noble Energy Inc. (NYSE: NBL) said Thursday that it has signed definitive agreements that create a joint venture partnership with CONSOL Energy Inc. (NYSE: CNX) for the development of their Marcellus Shale properties in southwest Pennsylvania and northwest West Virginia. Under the agreement, Noble Energy will purchase a 50 percent interest in 663,350 net undeveloped acres for $1.07 billion, payable in three equal annual installments beginning at closing.  In addition, the company will fund $2.13 billion of CONSOL's future drilling and completion costs. Consol said it will double its Marcellus well rig count from 4 to 8 this year, with plans to increase to 12 rigs by 2013 and 16 by 2015. Despite splitting its drilling interests with Noble, Consol still expects to meet its production target of 350 billion cubic feet by 2015.  The payments are anticipated to be funded from cash on hand and the company's currently undrawn revolving credit facility.  The effective date of the transaction is July 1, 2021.  Closing is expected to occur by the end of September 2011. NBL was trading lower by 4.66 percent to $83.84, while CNX was trading higher by 3.94 percent to $44.09 on Thursday.

Asahi Buys NZ Liquor Firm for $1.3 Billion

Asahi Group Holdings has agreed to buy a New Zealand beverage group Independent Liquor for $1.3 billion, giving the Japanese brewing giant a ready-to-drink cocktail maker to add to its stash of assets in the Oceania market. Japan-based Asahi Group has been on buying spree of overseas units, mainly in Asia and Oceania due to their proximity and growth prospects, as they look to make up for a contracting home market. In its biggest acquisition Asahi said it will buy all outstanding shares of Flavoured Beverages Group, the parent company of Independent Liquor known for its "Woodstock Bourbon" and "Vodka Cruiser" brands, from private equity firms Unitas and Pacific Equity Partners for $1.3 billion. Asahi has also announced plans to buy Permanis, the Malaysian bottler for beverage giant PepsiCo (NYSE: PEP) for $275 million and the mineral water and juice business of Australia's P&N Beverages for about $200 million. To help build its position in the Oceania region, the firm, over a quarter owned by foreign investors, unveiled plans last month to buy out New Zealand fruit juices and soft drinks producer Charlie's Group.

OraSure Completes DNA Genotek Acquisition

OraSure Technologies Inc. (Nasdaq: OSUR), a medical instrument maker and supplier, said Thursday that it has completed its previously-announced acquisition of DNA Genotek Inc., a leading provider of oral fluid sample collection, stabilization and preparation products for molecular diagnostic applications, for C$50 million ($50.7 million). The acquisition was funded by OraSure with cash on hand. The acquisition of DNA Genotek strengthens OraSure's leadership in oral fluid diagnostics, by providing OraSure with a complementary portfolio of products that enable easy and reliable collection, stabilization, transportation and storage of high quality nucleic acid (DNA and RNA) samples. These samples can then be used for a wide range of diagnostic and research applications. Based in Ottawa, Canada, DNA Genotek serves over 3,000 customers in over 100 countries worldwide, including many of the top research universities and hospitals in the United States. DNA Genotek is the leading provider of oral fluid collection devices to the direct-to-consumer personal genetics testing market. DNA Genotek will operate as a wholly-owned subsidiary of OraSure. OSUR was down 4.70 percent to $6.89 a share.