M&A; Activity Around The Globe: FNFG, KEY, Samsung Electronics, Olympus, Paladina Health, Modernmed
Thursday, January 12, 2022 10:50 AM



As the US stocks trade lower on Thursday, mainly due to disappointing economic data, several M&A activities took place around the world. Some notable M&A activities are discussed here.

First Niagara to Sell 37 HSBC Locations to KeyCorp

As a part of the antitrust approval given by the US Justice Department to First Niagara Financial Group (Nasdaq: FNFG), the bank has reached an agreement with KeyCorp (NYSE: KEY) to sell its previously acquired 37 HSBC locations to KeyCorp's wholly-owned subsidiary KeyBank N.A. Under the terms of the deal, KeyBank will acquire 37 locations and assume approximately $2.4 billion in deposits and approximately $400 million in loans in the Buffalo and Rochester markets. Further, KeyCorp will pay First Niagara a deposit premium of 4.6 percent, or approximately $110 million, based on August 2011 deposit balances. In July, HSBC had shed nearly half of its underperforming U.S. branch network, selling 195 branches to First Niagara for about $1 billion. FNFG is trading higher by 1.35 percent to $9.40 a share, and KEY is trading up by 0.43 percent to $8.23 per share.

Samsung may Alliance with Olympus: Sources

The leading electronic products maker Samsung Electronics is said to be open for an alliance with Japan's troubled Olympus Corporation, in a move to join other electronics firms in bid to join hands with one of the biggest names in the medical equipment companies. The report published by Reuters showed, that companies like Sony and Panasonic have also shown interest in the troubled Japanese company. Olympus is in need of capital after being swamped by a $1.7 billion accounting scandal over the past three months. Olympus which is well known for its cameras, but makes most of its profits from the medical equipments business. The electronic companies will focus in its healthcare business, as it is considered to be high-tech, profitable and stable business. Samsung has ruled out any interest in Olympus' loss-making camera business, but a company source said on Thursday that it might consider an alliance with Olympus in other areas. Samsung has been focusing on healthcare business lately, as it diversifies away from businesses where it commands leading positions such as electric components, mobile phones and TVs. It has said it will aggressively pursue investments and acquisitions in new areas such as healthcare and renewable energy.

Paladina Health Acquires ModernMed Paladina Heath LLC said on Thursday that it has acquired ModernMed, a healthcare service firm providing direct primary care in twelve states through employer-based on-site clinics and private physician practices. The acquisition took effect January 1, 2012. ModernMed's employer-based on-site clinics and physician practices were originally created with the same goals and operating principles as Paladina Health and complement the Paladina Health care model. ModernMed currently operates 16 physician practice/clinic locations and eight on-site corporate locations. ModernMed's current CEO will remain with the company and provide leadership in fulfilling Paladina Health's direct primary care strategy.


 

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