Looming Qualcomm Deal Headlines Busy Week for M&A

Last week presented a strong week of multi-billion-dollar deals within the food/retail and energy industries. Negotiations continue between Broadcom and Qualcomm, a proposed merger that would be the largest in history, currently valued at $121 billion. 

• Last Monday, 8Point3 Energy Partners LP (NASDAQ: CAFD), the growth-oriented and solar energy-focused partnership between First Solar (NASDAQ: FSLR) and SunPower (NASDAQ: SPWR), entered into a definitive agreement to be bought out by private equity firm Capital Dynamics. Pending approval of the various Boards of Directors and other closing conditions, the proposed transaction values 8Point3 at approximately $1.7 billion.

• At the beginning of last week, Arby's Restaurant Group, Inc., completed its $2.9 billion acquisition of Buffalo Wild Wings (NASDAQ: BWLD). Arby's parent operator, food services investor Roark Capital Group, then established the merger as a multi-food service operator, called Inspire Brands. Roark operates roughly 1,700 restaurants and franchises another 2,900 restaurants, such as Arby's, Buffalo Wild Wings, and R Taco. Inspire’s three brands include quick service, casual dining, and fast casual.

• This past Monday, Euro Garages (EG Group), a British convenience store retailer, reached a definitive agreement with Kroger Co. (NYSE: KR) to become the new owner of its conveniences stores for $2.15 billion. EG Group will establish a new U.S. headquarters in Cincinnati, Ohio, the home of Kroger Co. The pending transaction will not include the supermarket fuel centers or Turkey Hill Dairy.

• On Wednesday, NRG Energy Inc. (NYSE: NRG), a U.S. power company, reached an agreement to sell its renewables division, NRG Yield Inc. (NYSE: NYLD.A), to Global Infrastructure Partners (GIP) for an all-cash price of $1.38 billion.

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• On Thursday, Qualcomm (NASDAQ: QCOM) rejected Broadcom's (NYSE: AVGO) $121 billion acquisition offer. The two firms are planning to meet next week to discuss potential revisions to the bid price. At the coming meeting, Qualcomm looks to bring up issues involving the anti-trust regulatory clearances, its licensing business, and potential customer loss.