M&A; Activity Around The Globe: CAG, Del Monte Canada, TGT, Fujifilm Holdings Corp., Olympus Corp.
Wednesday, January 18, 2022 9:44 AM

As the US stock futures trade higher on Wednesday, with shares of Goldman Sachs Group Inc. leading the market, several M&A activities took place around the world. Some notable M&A activities are discussed here.

ConAgra Plans to Acquire Canada’s Del Monte

ConAgra Foods Inc. (NYSE: CAG), a US-based food company, said that it has agreed to acquire Toronto-based Del Monte Canada Inc., a leading provider and marketer of packaged fruits, fruit snacks and vegetables in Canada, from an affiliate of Sun Capital Partners. The agreement includes the acquisition of all Del Monte branded packaged fruit, fruit snacks and vegetable products in Canada, as well as Aylmertomato products. Del Monte fresh produce, juices, and Aylmer soups will remain under separate ownership. The acquisition of Del Monte Canada is considered to a strategic step by ConAgra in order to grow its core businesses, expand into strategic adjacencies and build its international presence. ConAgra had recently acquired National Pretzel Company, maker of a variety of private-label pretzel products and also announced last November that it increased its ownership share of Agro Tech Foods Ltd. in India. CAG last traded at $26.90 a share on Tuesday.

Target Delays Sale of its Credit card receivables Portfolio

Target Corporation (NYSE: TGT) on Wednesday said that it has temporarily suspended its efforts to sell its credit card receivables portfolio. Target remains committed to selling the portfolio on appropriate terms, but based on discussions with potential partners the company has determined that it is not in its best interests to finalize a transaction at this time. Now the company expect to sell its portfolio in late 2012, after it re-engage in discussions with a limited number of potential partners and be in a better position to streamline the conversation. Also the company announced today that it intends to retire the 2008 receivables financing provided by Chase Card Services, a subsidiary of JPMorgan Chase. Target will pay Chase approximately $2.8 billion to retire this financing, along with a make-whole premium that will reduce fourth quarter 2011 earnings per share by approximately 8 cents.

Fujifilm Considers Equity Alliance with Olympus

Japan-based provider of imaging, information, and document solutions for individual consumers and commercial enterprises, Fujifilm Holdings Corp. said on Wednesday that it is considering supporting scandal-hit endoscope maker Olympus Corp although neither side looks likely to move quickly on an equity alliance that Olympus needs to shore up its finances. The scandal hit Olympus Corp. is in serious need for an alliance which could help it recover from the $1.7 billion accounting fraud which has severely depleted its net assets. Its flexible diagnostic endoscope business, which boasts a 70 percent market share, is seen as a jewel of profitability in Japan's lackluster electronics industry. The flexible diagnostic endoscope business is the main reason why company’s like Fujifilm, Sony Corp. and Panasonic have shown interest in a strategic partnership with Olympus according to media reports in Japan.