M&A; Activity Around the Globe: Lonza Group, ARJ, BTU, MT, Macarthur Coal, SWC, Peregrine Metals
Monday, July 11, 2011 11:53 AM

As the US stocks move fall sharply after reports show a possible Euro-zone debt crisis spreading in countries like Italy and Spain surfaced, several M&A activities took place around the world. Some notable M&A activities are discussed here.

Lonza Group to Acquire Arch Chemicals for $1.2 Billion in Cash

Switzerland-based Lonza Group Ltd. one of the world's leading suppliers to the pharmaceutical, healthcare and life science industries, said Monday that it has agreed to acquire Arch Chemicals Inc. (NYSE: ARJ) for $1.4 billion in cash to create the global leader in the business of killing bacteria and fungi. Lonza offered a price of $47.20 a share to acquire 100 percent of Arch Chemical’s outstanding shares of its common stock. Lonza's offer represents a 36.7 percent premium to Arch Chemicals' average closing price over the last 30 trading days. Lonza expects to commence the tender offer by 15 July 2011 and to complete the tender offer later in 2011. The acquisition is expected to allow Lonza to expand its non-pharma life science business to achieve a well-balanced profile based upon two world leading growth businesses - pharmaceutical contract manufacturing and microbial control. It will further strengthen its position in the attractive microbial control market. ARJ was trading at $46.87, up 11.15 percent on Monday.

Peabody, ArcelorMittal to Acquire Macarthur for $5 Billion

Peabody Energy Corp. (NYSE: BTU) and AmrcelorMittal (NYSE: MT) said Monday that they have jointly submitted an indicative proposal to the board of directors of Macarthur Coal Ltd. to acquire up to 100 percent of its issued securities. Under the proposal by a newly formed company, owned 60 percent by Peabody and 40 percent by ArcelorMittal, Macarthur shareholders would be offered a cash price of $15.50 AUD per share through an off-market takeover offer.  The new company has a relevant interest of about 16 percent in Macarthur's shares. The proposal price implies a value for the equity in Macarthur of approximately $5 billion and represents a 40 percent premium to its Monday’s closing price of $11.08 AUD. Any resulting offer to Macarthur shareholders would be conditional only on a minimum of 50.01 percent acceptance by Macarthur shareholders, approval from Australia's Foreign Investment Review Board and other customary conditions and approvals, ArcelorMittal said. Share of BTU were down 3.65 percent to $57.76 and MT was down 3.66 percent to $33.14 on Monday.

Stillwater Mining to Acquire Peregrine Metal for $487 Million

Stillwater Mining Company (NYSE: SWC) said Monday that it has agreed to buy Peregrine Metal Ltd. for $487.1 million, to boost its copper-gold deposits. Under the terms of the Agreement, Stillwater will exchange 0.08136 shares of Stillwater common stock and $1.35 in cash for each common share of Peregrine. Based on the closing share price of Stillwater common stock as of July 8, 2011, which was US$23.72, the agreement places a value on Peregrine common shares of US$3.28 ($3.16 CDN) per share. After the completion of this transaction, Stillwater plans to further delineate, develop and operate Peregrine's Altar porphyry copper-gold deposit ("Altar"), a large, undeveloped open-pit resource located in the San Juan province of Argentina. The transaction has been unanimously approved by the boards of directors of both companies and is expected to be completed by September 30, 2011, pending regulatory and exchange approvals, customary closing conditions and the approval of Peregrine shareholders. SWC is trading lower by 15.13 percent to $20.13 today.