A look at some must-read news on deals and deal makers around the world
It's official, BHP walks
Three months after launching its bid for Potash Corp. of Saskatchewan Inc., BHP Billiton Ltd. is walking away.
What did we learn from the whole affair? Plenty, as it turns out. Among the lessons:
The bar for net benefit under the Investment Canada has suddenly gotten a lot higher. That's likely to mean less trading in Canadian takeover stocks as Investment Canada risk is suddenly real. It's not clear where the stock will go from here, but if it doesn't hold up, here is a look at some of the arbitrageurs who risk getting caught on the wrong side.
Marius Kloppers, the head of BHP, has so much trouble getting deals done that he has spent close to a billion dollars on transactions that haven't gone anywhere.
Brad Wall, the premier of Saskatchewan, has the secret sauce. More people, having seen him on a national stage, are talking about the possibility of his running for even higher office.
Government relations are just as important as financing ability and merger structuring when it comes to getting a buyout this big done.
China's ravenous appetite for commodities notwithstanding, the country has trouble competing on big, fast-moving deals.
And of course, that when it comes to Investment Canada, the decision is purely that of the minister of industry. For more analysis on that, we'll leave it to Rick Mercer.
Caterpillar to buy Bucyrus for $8.6-billion (U.S.) to get bigger in mining
Caterpillar Inc. is betting on growth in mining and emerging markets, kicking off another merger Monday by announcing it will buy Bucyrus International for $8.6-billion. The plan is to "to capitalize on the robust long-term outlook for commodities driven by the trend of rapid growth in emerging markets which are improving infrastructure, rapidly developing urban areas and industrializing their economies," Caterpillar said. J.P. Morgan is advising Caterpillar. Deutsche Bank and UBS are on for Bucyrus.
UBS faces a tough choice
It's a win to be on board for Bucyrus, but in general the firm's investment bank is having a tough go of it. UBS AG is facing a tough call -- return to growth and risk or risk having its investment bank left behind the competition, Bloomberg News reports.
E.ON's big asset sale
Transmission assets that investors such as Canada Pension Plan Investment Board like are coming to the market in a big way as E.ON looks to get out of the business.