M&A; Activity Around The Globe: SPG, Groupe Auchan SA, CMC, Icahn Enterprises, Hypermarcus
Wednesday, January 11, 2022 9:41 AM

As the US stocks trade lower on Wednesday, mainly due to European debt concerns, several M&A activities took place around the world. Some notable M&A activities are discussed here.

Simon Property Group Sells Stake in Italy’s 46 Shopping Malls

The US-based largest shopping mall owner, Simon Property Group Inc. (NYSE: SPG) has sold its stake in a venture that owns 46 Italian shopping centers for an undisclosed sum to its partner, French supermarket chain Auchan’s property arm, according to a report published by Bloomberg. Simon Property is on a sprint to sell of its assets in Europe that includes selling malls in France and Poland as well. The company recently sold seven malls in France and Poland that were held in a venture with Caisse de Depot et Placement du Quebec to Unibail-Rodamco SE for 715 million euros. For the latest deal, the company said in a statement that its partner Groupe Auchan SA’s Immochan unit has acquired the company’s 49 percent stake in Gallerie Commerciali Italia SpA, or GCI, to own the business outright. SPG was trading lower by 0.55 percent to $126.78 a share on Wednesday.

Commercial Metals Company’s Takeover Offer Expires

Carl Icahn, the billionaire investor’s takeover offer for all outstanding shares of common stock of Commercial Metals Company (NYSE: CMC) for $15.00 per share or $1.73 billion in cash expired at midnight, Tuesday, January 10 , 2012.  At the end of the period only 23 percent of the shares were tendered. Icahn had needed 40.1 percent of the shares to complete the takeover. Icahn first launched his fight for Commercial Metals last year. His investment company bought a nearly 10 percent stake in by July 2011. Days after his stake was revealed, the company adopted a poison pill to defend itself against a hostile bid. After the offer expired, Mr. Icahn stated, "Since we commenced our proxy fight and launched our tender offer, the Company has made a number of promises to shareholders, which shareholders appear to believe will be beneficial to the stock.  We respect the views of the shareholders and hopefully their decision not to tender will prove to be the right one." CMC was trading lower by 4.00 percent to $14.17 today.

Hypermarcus Could Face Hostile Takeover Bid: Report

The Brazilian disposable consumer goods maker, Hypermarcus, is vulnerable to takeovers after its shares fell more than 50 percent in the last one year. Reuters reported, that it may face a flurry of unsolicited takeover offers from private equity and banking firms seeking to turn around the company’s fortune. The report said that a independent securities firm in Brazil is on a buying spree of Hypermarcus shares from investors after talks to enter the company's controlling bloc foundered, O Estado de S. Paulo said, citing people familiar with the situation. In the last three years Hypermarcus has created a large pool of debt, mainly due to its 23 acquisition during this period.