Duncan HoodFred Lum/The Globe and Mail
Interesting fact: Ahold NV received the designation "Royal" from Dutch Queen Beatrix in 1987. Another interesting fact: After yesterday's $12.9-billion merger with Belgium's Delhaize Group, Royal Ahold is now one of the world's largest supermarket giants, and once its U.S. operations are merged, the Dutch company will own one of the largest grocery chains in the states.
DEAL OF THE DAY: Ahold to buy Delhaize in biggest grocery deal in a decade
Royal Ahold NV has agreed to acquire Delhaize Group for about €9.32-billion ($12.9-billion) in shares, creating the fifth-biggest U.S. supermarket retailer in the industry's biggest transaction for almost a decade. The deal, which follows more than a month of talks between the European owners of the Stop & Shop and Food Lion chains, will create a company based in Ahold's Dutch homeland and run by its chief executive officer Dick Boer. Ahold investors will own 61 per cent of the enlarged group. Full story
MERGERS AND ACQUISITIONS
Toronto private equity firm scores big on Mobilicity sale
Catalyst Capital Group Inc. has cut a deal with Rogers Communications Inc. to sell its debt holdings in Mobilicity at a "substantial profit," according to a source who spoke to The Globe and Mail on condition of anonymity. The agreement with Catalyst is separate and distinct from another deal that was announced on Tuesday that will see Rogers buy Mobilicity and its debt – excluding the first lien debt that Catalyst does not own – for $465-million. Full story
Redknee to acquire Orga Systems for $53-million
Redknee Solutions Inc., a Mississauga-based provider of subscriber management software will acquire privately held German company Orga Systems for €38-million ($53-million). Orga's technology will be integrated with Redknee's subscriber management platform for communication service providers and the Internet of Things. Press release
Tweed Marijuana to buy Bedrocan Cannabis in $61-million merger of medical pot producers
Tweed Marijuana is offering to buy Bedrocan Cannabis Corp. in a friendly deal that would combine the two companies into what they say would be Canada's largest licensed pot producer. Bedrocan's shareholders will receive a total of 33.9 million common shares of Tweed, worth about $61-million as of the close of business on Tuesday. Full story
Espial announces acquisition of Bluestreak Technologies
Ottawa-based Espial will acquire Bluestreak Technologies, a Montreal-based software and services provider of video solutions for connected devices including set-top boxes, smart TVs, smartphones and tablets. Press release
Sierra Wireless to acquire MobiquiThings for $19-million
Richmond, B.C.-based Sierra Wireless has agreed to purchase MobiquiThings, a mobile virtual network operator based in France, to expand its wireless connectivity to Europe. Sierra Wireless has agreed to purchase all of the shares of MobiquiThings for €14-million ($19-million) in cash, plus a performance-based earn out formula that extends into 2017. Press release
Monsanto beats expectations, continues to pursue rival Syngenta
Monsanto Co., the world's largest seed company, reported a better-than-expected profit for the third quarter on Wednesday but warned of market challenges ahead, and said it continues to pursue the acquisition of Swiss rival Syngenta AG. Full story
Pacific Rubiales investors told by ISS to reject Alfa deal
Pacific Rubiales Energy Corp. shareholders should vote against the proposed takeover of the company, Institutional Shareholder Services Inc. recommended. ISS, the proxy advisory service based in Rockville, Md., said the $6.50 per share offer price contradicts statements by management as recently as March that the company was worth $9.22 per share. Full story
INITIAL PUBLIC OFFERINGS
Vale looks to sell up to 30 per cent of metals unit in possible IPO
Vale SA, the world's largest nickel producer, is considering selling about 25 per cent to 30 per cent of its base metals business in an initial public offering. Work on the transaction continues, although the Rio de Janeiro-based miner will only proceed if nickel and copper prices reach "appropriate" levels, Investor Relations Director Rogerio Nogueira said in Sao Paulo Wednesday. Full story
PRIVATE EQUITY AND VENTURE CAPITAL
Highland Therapeutics announces closing of $50-million financing
Toronto-based pharmaceutical company Highland Therapeutics Inc. has announced it has completed a $50-million (U.S.) financing, consisting of a $25-million offering of Class A Common Shares and a $25-million credit facility provided by Citibank NA. The equity financing was led by Eastern Capital Ltd. Press release
ANALYSIS AND INSIGHT
Williams deal would hasten Energy Transfer's dominance in natural gas market
Williams Cos. Inc. has spurned Energy Transfer Equity's $48-billion (U.S.) takeover offer for now, but a tie-up would give the company a dominant position in the fastest-growing natural gas market in the United States: the Northeast's Marcellus Shale. The deal, which would be one of the largest pipeline acquisitions to date, also would give Energy Transfer chief executive Kelcy Warren a new foothold in the deep-water Gulf of Mexico. Full story
Green shoots emerge in withered gold mining sector
The global gold mining industry is showing signs of life as merger activity picks up and industry veterans set up new companies and hunt for projects, taking advantage of weak prices to lay the groundwork for a rebound. Almost four years after the price of gold began tumbling, cash-starved and debt-ridden miners are selling, merging or closing shop, pushing the value of completed gold mining mergers and acquisitions in the first five months of this year to $3-billion – twice what it was in the same period in 2014. Full story
M&A talk rescues Canadian oil patch bonds from distressed heap
Canada's bond market is signalling that formerly distressed energy firms such as Teine Energy Ltd. may soon become takeover targets as oil prices stabilize. Teine, a Canadian oil and gas producer majority-owned by the Canada Pension Plan Investment Board, has become the best performer in Canada's junk-bond market this year, returning 30 per cent. Full story
Know of any upcoming deals we should cover? Have suggestions for making the Daily Deal Roundup more useful? E-mail me at deals@globeandmail.com. I'll respond personally to every e-mail.