October 1st, 2023
Welcome to the latest edition of MergerDomo's Weekly Newsletter for October’s first week, your trusted source for staying updated on the most exciting mergers and acquisitions (M&A) deals that transpired in the corporate landscape this week. In the fast-paced world of business, strategic alliances and mergers continue to reshape industries, redefine market dynamics, and open doors to new opportunities. Our team of experts diligently combs through the latest developments to bring you a curated selection of M&A deals, providing insights into the deals that are making waves and driving innovation across various sectors. Join us as we explore the strategic moves, noteworthy partnerships, and transformative acquisitions that are shaping the future of business.
Reliance Retail, India's leading retail giant, is set to acquire Superdry's intellectual property assets in South Asia for $48 million, marking a significant move in the M&A landscape. In a joint venture, Reliance will hold a 76% stake, with Superdry retaining 24%. This strategic agreement covers India, Sri Lanka, and Bangladesh, where Superdry has been collaborating with Reliance Retail since 2012. The deal provides Superdry with much-needed funds to bolster its liquidity during a challenging period. For Reliance Retail, this acquisition adds to its extensive portfolio of international brand partnerships, further solidifying its position as a dominant player in the retail industry.
Read more lessFantasy sports giant Dream11 has made a strategic move by acquiring Delhi-based startup Sixer, known for its fantasy cricket stocks game. The acquisition marks Dream11's commitment to enhancing its offerings in the rapidly evolving sports and gaming landscape. Sixer's platform allows users to trade cricket players' fantasy stocks, with prices reflecting real-life performances. Dream11's backing is expected to propel Sixer's growth and innovation. This acquisition comes amidst challenges in India's gaming industry, including the imposition of a 28% GST on real-money gaming. Sixer's founder, Amay Makhija, announced the partnership in an email, highlighting the potential for elevating the fantasy sports experience to new heights.
Read more lessJSW Cement, the building materials division of the JSW Group, is reportedly in preliminary discussions to acquire the Indian operations of Heidelberg Materials, a German cement company with an annual production capacity of 13.4 million tonnes. The talks were initiated after JSW Group made an unsolicited offer for Heidelberg's local entities primarily operating in peninsular India. India, the world's second-largest cement market, relies heavily on regional logistics, influencing valuation multiples in M&A deals. Heidelberg's exit strategy in India is yet to be determined, with the possibility of competitive bidding for its assets. JSW Cement aims to boost its capacity and become one of India's top five cement producers. Increased competition in the Indian cement market is driving consolidation among mid-sized players.
Read more lessViatris Inc., a product of the merger between Mylan NV and Pfizer Inc.'s Upjohn unit in 2020, is divesting two businesses in India for $1.2 billion as part of its global strategy to exit non-core operations. Viatris has sold its Indian active pharmaceutical ingredients (API) business to local pharma firm IQuest Enterprises, marking the founder Nimmagadda Prasad's return to the API industry. Additionally, Viatris has offloaded its women's healthcare business to Spain's Insud Pharma. These transactions include various manufacturing sites and research labs. The move follows Viatris' earlier sale of its local biosimilar business to Biocon Biologics for $3.35 billion in 2022, aligning with its strategic plan to simplify the organization and achieve financial goals.
Read more lessMining billionaire Anil Agarwal's Vedanta Group is set to break up its conglomerate into six separate entities after merging them a decade ago. The move aims to reduce the company's substantial debt load and unlock shareholder value. The six listed companies will cover aluminum, oil and gas, power, steel and ferrous, base metals, and Vedanta Limited. Vedanta plans to file for regulatory approval in October and rename its main promoter group entity to Vedanta Inc. This restructuring will create independent "pure play" companies, attracting investments for growth. Shares surged after the announcement.
Read more lessThe Godrej Group, a massive conglomerate worth INR 1.76 lakh crore, is currently in the advanced stages of negotiating a formal split of its diverse businesses. The two factions, led by Adi and Nadir Godrej, and cousins Jamshyd Godrej and Smitha Godrej Crishna, are working to divide business verticals such as engineering, appliances, security solutions, agriculture, real estate, and consumer products. Key issues being addressed include the usage of the Godrej brand name post-split, potential royalty payments, and the valuation of around 3,400 acres of prime land held by Godrej & Boyce Manufacturing Company. While these discussions are challenging, the split aims to accommodate the aspirations of the future generation and adapt to evolving perspectives within the family. Top investment bankers and legal firms are advising the respective factions in this amicable endeavor, ensuring that the impending division will not impact the operating companies.
Read more lessGlobal private equity firm Advent International has announced the acquisition of a substantial stake in Suven Pharmaceuticals from the Jasti family, with plans for an open offer to acquire an additional 26% stake from public shareholders. Additionally, Advent intends to merge Suven Pharmaceuticals with Cohance Lifesciences, a portfolio company. This merger aims to create a leading Contract Development and Manufacturing Organization (CDMO) and Active Pharmaceutical Ingredient (API) player serving the pharmaceutical and specialty chemical markets. Suven Pharmaceuticals, a leader in the Indian pharma CDMO sector, has shown impressive growth and profitability in recent years, with a strong pipeline of projects. The move seeks to unlock synergies and drive significant growth in the healthcare industry.
Read more lessFintech startup Slice is set to make history with its merger with Guwahati-based North East Small Finance Bank (NESFB), marking the first instance of a fintech startup merging with a small finance bank. This move has received approval from the Reserve Bank of India (RBI), making Slice the first fintech to transform into an SFB. While specific shareholding details are undisclosed, it's likely that Slice's shareholders will hold the majority stake. This strategic merger enables Slice to combine its digital capabilities with NESFB's grassroots banking foundation, reinforcing their commitment to financial accessibility. Slice had previously acquired a 5% stake in NESFB, valuing it at around $68 million. As fintechs continue to pursue banking aspirations, Slice's transformation promises to deliver a unique digital banking experience to a wider audience, overcoming the recent challenge posed by RBI's circular against credit-loaded prepaid cards.The merger will transition Slice from a non-banking finance company (NBFC) to a small finance bank, aligning with the trend of fintechs pursuing banking ambitions.
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