Blockbuster M&A Week Led by Permian-Basin Consolidation Deal

​Last week, there were numerous multi-billion-dollar deals across a variety of industries. Major consolidation efforts occurred within oil & gas, retail REITS, and snack foods. The specialty chemicals and technology industries witnessed near-billion-dollar deals as well. 

• Last Wednesday, RSP Permian (NYSE: RSPP) reached a definitive agreement to be acquired by Concho Resources (NYSE: CXO) for $9.5 billion, including the former's net debt. The Dallas-based oil & gas company provides unconventional oil and gas exploration services in the Permian Basin of West Texas. According to Oil and Gas Investor, the merger of these two exploration and production (E&P) companies would create the largest unconventional shale producer of oil and natural gas within the Permian basin. It will be the largest deal between two public companies operating in the Permian Basin since the $3.2 billion-dollar merger of Noble Energy (NYSE: NBL) and Clayton Williams Energy in 2017.

• Last Monday, General Growth Properties (NYSE: GGP) entered into a definitive agreement to be acquired by Brookfield Asset Management for $9.25 billion cash. The Chicago-based real estate investment trust (REIT) is already partially owned by Brookfield Asset Management, who has sought takeover bids on multiple occasions, including an $18-billion bid this past fall.

• Last Monday, Campbell Soup (NYSE: CPB) completed its acquisition of Charlotte-based Snyder's Lance. With the acquisition, Campbell's Soup hopes to expand its portfolio of leading snack brands and to access more fast-growing distribution channels within the convenience and natural food markets. Campell's snack takeover includes brands such as Snyder's Hanover pretzels, Lance's sandwich crackers, Cape Cod potato chips, and Pop Secret popcorn.

• This past weekend, Nestle's US Confectionery Business (SWX: NESN) was officially acquired by Ferrero International, the Italian confectionery business, for $2.8 billion. Nestle's US confectionery unit includes brands such as Butterfinger, 100Grand, Baby Ruth, Oh Henry!, Laffy Taffy, and Nerds. Hershey (NYSE: HSY) and Rhone Group were previously contending to acquire Nestle's confectionery unit, before Ferrero, the manufacturer of Nutella, sealed the deal earlier this year.

• Last Wednesday, Polycom agreed to be acquired by Plantronics (NYSE: PLT) for $2.0 billion. The San Jose-based communications equipment company offers secure video, voice, and content solutions that increase productivity and enhance customer service. In 2016, the firm had been previously taken private by Xura for $2 billion.

• Last Wednesday, the Fire Safety and Oil Additives business units of Israel Chemicals (TAE: ICL) were acquired via a $1.0 billion-dollar LBO led by SK Capital Partners, a private investment firm focused on the chemicals, specialty materials, and pharmaceutical sectors. The new company, subsequently named Perimeter Solutions, moved its headquarters to St. Louis.

• Last Monday, Belkin International reached a definitive agreement to be acquired by FoxConn Technology Group, a subsidiary of Hon Hai Precision Industry Co. (TAI: 2317) for $866 million. FoxConn looks to expand its portfolio of premium consumer products and its influence within the smart home market.

• Last Thursday, Irvine Scientific Sales Company reached a definitive agreement to be acquired by FUJIFILM Holdings (TYO: 4901) for $800 million. Irvine Scientific (IS) focuses on cell therapy and regenerative medicines, assisted reproductive technologies, and cytogenetics. According to Irvine Scientific's public announcement, Fujifilm believes the acquisition will maximize synergies with its pre-existing bio-medical businesses, including its recent acquisitions of Cellular Dynamics International and Wako Pure Chemical Industries.