M&A; Activity Around The Globe: SABMiller, Foster’s, Gores Group, Alpheus Communications, APA, XOM, Mobil North Sea LLC
Wednesday, September 21, 2021 10:40 AM

As the US stocks waver on Wednesday as investors took a tentative stance ahead of the Federal Reserve’s monetary policy statement later in the day, several M&A activities took place around the world. Some notable M&A activities are discussed here.

SABMiller Agrees to Acquire Foster’s for $10.15 Billion

UK-based brewing giant SABMiller said Wednesday that it has agreed to buy Australia-based Foster’s Group for an increased price of A$5.10 a share valuing the company for $10.15 billion, ending a four-month long hostile takeover battle. Under the terms of the deal, the giant global brewing company will pay 5.10 Australian dollars a share, an increase from its previous bid of 4.90 Australian dollars. Foster’s investors will also receive a special cash payout of 30 Australian cents per share, part of a previously announced capital initiative. Also, as part of the deal announced on Wednesday, Foster's will also return A$0.30 a share as well as a final dividend for year to June 30 2011. The total value of the deal, including debt, is A$11.5 billion. The Foster’s deal is the latest for the acquisitive SABMiller. In an effort to thwart the acquisition, Foster’s said in late August that it would return at least $525 million to shareholders, possibly through a share buyback. With an acquisition of Foster’s, SABMiller will gain exposure to market with high margins, albeit sluggish growth.

Gores Group to Acquire Alpheus Communications

The Gores Group, a leading Los Angeles-based private equity firm, today announced that through an affiliate it has signed an agreement to acquire Alpheus Communications, one of the largest fiber network and data center operators in Texas. The Gores Group intends to combine Alpheus with First Communications, an existing Gores portfolio company. Genesis Park, L.P. and El Paso Corporation are the sellers. Terms of the transaction were not disclosed. The acquisition includes more than 2,800 route miles of long-haul fiber and nearly 3,250 metro route miles, bringing the total of the First Communications network to over 10,500 fiber route miles. The acquisition of Alpheus Communications provides Gores with a tremendous opportunity to expand upon our current telecommunications holdings, particularly our fiber and high bandwidth transport services businesses. The financial details of the deal were not disclosed by the companies.

Apache to Acquire Exxon’s North Sea Assets for $1.75 Billion

Apache Corporation (NYSE: APA) said today that its subsidiary Apache North Sea Limited has agreed to acquire Exxon Mobil Corporation's (NYSE: XOM) Mobil North Sea LLC assets – including the Beryl field and related properties – for $1.75 billion. The fields have current net production of approximately 19,000 barrels of oil and natural gas liquids and 58 million cubic feet (MMcf) of natural gas per day. At year-end 2010, estimated proved reserves totaled 68 million barrels of oil equivalent. The transaction, with a planned close at year-end 2011, is expected to increase Apache's North Sea production by 54 percent and proved reserves by 44 percent. Following the completion of the transaction, Apache will take on the ExxonMobil employees currently supporting the former Mobil North Sea LLC assets. The transaction is subject to regulatory approvals and preferential rights. Apache intends to fund the acquisition with cash. APA was trading up by 0.23 percent to $94.74, and XOM was trading higher by 0.11 percent to $74.09 on Wednesday.