Merger and Acquisition Activities Taking Place Around the Globe: El Paso Corp, Kinder Garden, Brigham Exploration Company, Statoil ASA, G4S, ISS, AmeriGas, Energy Transfers
Monday, October 17, 2021 12:25 PM

Amidst fading hopes for a concrete action plan to counter the euro-zone debt crisis and a declining U.S. market, a host of merger and acquisition activities are taking place around the globe.  


El Paso Corp. to be Purchased by Kinder Morgan


Kinder Morgan Inc. (NYSE: KMI), which owns and operates energy infrastructure in the U.S. and Canada, plans to buy El Paso Corp. in a $20.7 billion deal that will create America’s largest natural gas operator. The deal will also make the combined entity the largest transporter of diesel, gasoline and other petroleum products. The company is said to have valued the deal at around $26.87 per El Paso share to be paid in cash, shares and warrant. Each shareholder will take $14.65 cash per share, 0.1487 Kinder Morgan Inc. shares and 0.640 of Kinder Morgan’s share warrants.


Brigham Exploration Co. to Merge with Statoil ASA


Brigham Exploration Co. (Nasdaq:BEXP) announced, it has entered into a definitive merger agreement with Statoil ASA (NYSE: STO) where Statoil will pay $36.50 per share in a cash-tender offer to all issued and outstanding shares of the company, fully endorsed by the directors of the Brigham Company. The acquisition will be made on the terms and conditions laid down in the agreement, including a condition that at least a majority of outstanding shares should be tendered, while all remaining un-tendered shares of Brigham Co. will be converted into the right to receive the same  $36.50 per share price paid in the tender offer. The tender offer begins October, 31 2011, and will likely to end this year or early 2012.


Britain’s G4S to Buy Denmark’s ISS for $8.2 billion


G4S, the world’s biggest security company, announced Monday its plans to buy Denmark’s ISS, a facility management company, in a deal worth 5.2 billion pounds, or $8.2 billion. G4S said it will pay 1.53 billion pounds, of which half will be paid in cash and half in shares, funded by a 2 billion pounds rights issue. G4S will also assume 3.67 billion pounds in ISS debt. The deal has come up in an uncertain economic environment and tightening credit markets. ISS, which is owned by private equity investor EQT and Goldman Sachs, made the decision after a failed IPO offering. 


AmeriGas to Buy Energy Transfer’s Propane Unit


AmeriGas Partners LP (NYSE: APU), the world’s largest propane distributor, announced on Monday plans to buy Energy Transfer’s propane operations for a deal in which $1.5 billion will be  given in cash and $1.3 billion in common stock. AmeriGas will also acquire $71 million in debt in Energy Transfer’s two propane units, Heritage Opening LP and Titan Energy Partners LP.  Post-deal, Energy Transfer will hold 34 percent of AmeriGas common stock, which it intends to hold till 2013. Post-acquisition, AmeriGas will add more then 1 million retail propane customers and about 500 million gallons of propane operations.