Mergers & Acquisition
A merger and acquisition (M&A) is a transaction where two or more businesses combine their assets or operations to create a new entity:
The goal of an M&A is to create a more efficient and effective company than the original two. M&As can be beneficial for the owners of both the original companies and the new entity. For example, some shareholders may receive cash for their shares, while others may keep their shares and profit from higher dividends.
M&A deals can be friendly or hostile, depending on the approval of the target company's board. Mergers and acquisitions can be time-consuming, and some can take years to complete. The size of the businesses involved and the urgency of the acquiring company can impact the timeframe. Companies may choose to merge or acquire other companies to increase revenue, lower costs, grow market share, or acquire new product lines
Octobers Mergers & Acquisition News
Justice Chigiti has referred a petition against Adani's proposed takeover of Jomo Kenyatta International Airport (JKIA) to Chief Justice Martha Koome for bench empanelment.
The petition, filed by the Kenya Human Rights Commission (KHRC) and the Law Society of Kenya (LSK), claims the deal violates good governance principles and lacks accountability. They argue that JKIA is a crucial national asset and that the 30-year lease for upgrades is irrational and financially burdensome. KHRC and LSK maintain that Kenya can independently raise the funds needed for expansion without leasing. Concerns include potential job losses, fiscal risks, and inadequate value for taxpayers. For more details, click here
Amnesty Hails FG’s Rejection Of $1.3bn Sale Of Shell’s Onshore Assets
Amnesty International has commended the Nigerian government's rejection of Shell's $1.3 billion sale of its onshore oilfields to the Renaissance Group, citing the buyer's lack of qualifications. Mark Dumett from Amnesty emphasized the need for Shell to address historical human rights abuses and environmental damage in the Niger Delta. He urged the government to ensure Shell is held accountable for oil spills and fund cleanup efforts. Despite Shell's intentions to pursue the sale, Dumett called for strict adherence to environmental responsibilities. For more details, click here.
Uber’s Exploration of Takeover Bid
Expedia shares climbed on Thursday after reports that Uber Technologies is considering acquiring the travel booking company. This potential acquisition aligns with Uber's goal of becoming a "super app," as highlighted by the Financial Times. While Expedia's stock rose, Uber's shares fell following the news. The report indicates that a third party suggested the idea to Uber, which has not yet made any official approach or offer to Expedia. For more details, click here
TFG Acquires UK Fashion Brand White Stuff to Boost London Operations South African retailer
TFG has acquired UK-based fashion and lifestyle brand White Stuff, enhancing its London operations and achieving "critical mass." The deal, made through TFG's London subsidiary, adds nearly 50% to its turnover and introduces its first lifestyle brand to the womenswear portfolio. TFG CEO Anthony Thunström highlighted this acquisition as a continuation of their growth strategy since acquiring Phase Eight in 2015. White Stuff generated £154.8 million in revenue and £8.6 million in core profit last year. The brand operates 113 UK stores and several locations in Europe, with a strong online presence. TFG will retain White Stuff's senior management, including CEO Jo Jenkins. For more info, click here
