Confirms to be acquired by CME for £10/shr in cash and stock valued at £3.9B
- Produces $200 million in run-rate cost synergies annually by end of 2021.
CME Group Inc. (Nasdaq: CME) and NEX Group plc (NXG.L) today announced that they have reached an agreement in which CME Group will acquire NEX in a transaction valued at £10 per share, consisting of 500 pence in cash and 0.0444 CME Group shares (based on CME's closing share price of US$158.84 on March 28, 2018 and the exchange rate of US$1.4101:£1, on March 28, 2018). The proposed transaction has been approved unanimously by the board of directors of both companies and is expected to close, pending approvals by regulators and NEX shareholders, in the second half of 2018.
This acquisition brings together two trading-industry trailblazers to create a leading, client-centric, global markets company that will deliver better ways to trade and manage risk across futures, cash and OTC products.
Combining NEX's leading electronic FX and fixed income cash execution platforms with CME Group will improve trading technology and streamline access by reducing the number of touchpoints that clients need to trade across products. In addition, NEX's premier OTC post-trade products and services complement CME Group's derivatives clearing services. Combining these solutions will strengthen the NEX compression, reconciliation and processing businesses. The combination will also facilitate the development of innovative post-trade services and data offerings to further enhance cost-effective trading and risk management.
Terms of the Transaction
- NEX shareholders will be entitled to receive, for each NEX share: 500 pence in cash and 0.0444 shares of CME Group Class A common stock. - The transaction is expected to be immediately accretive to adjusted cash earnings per share, with run-rate cost synergies of $200 million annually by the end of 2021, assuming deal completion in 2018.
Stocks in Asia were mixed on Thursday as heightened equity volatility and a slide in megacap U.S. technology shares gave investors pause. The dollar headed lower after days of gains. Equities reversed initial gains in Japan as the yen retraced some of its big slide overnight. Shares fluctuated throughout the region in subdued trading, with many traders wrapping up ahead of the Easter holiday. The surge in volatility and the sell-off in tech shares showed no signs of letting up in the U.S., and the S&P 500 Index held just above its average price for the past 200 days -- a level that’s set a line in the sand in the recent selloffs. Ten-year Treasury yields remained below 2.80 percent. US After Hours PRGS +6.5%, PVH +3.1%, GME +2% following earnings/guidance
Nikkei +0.05% Hang Seng +0.25% CSI +0.88% Shanghai +0.76% Shenzen +0.63%
Eur$ 1.2332 CNH 6.2830 CNY 6.2933 JPY 106.50 GBP 1.4091 CHF 0.9556 RUB 57.6187 WTI$ 64.66 +0.43%
S&P +0.01% EuroStoxx +0.25% Dax +0.16% SMI +0.06%
Macro :
- U.K. Debt Chief Wary of Shocks After 20 Years of Falling Yields
Keep an eye on :
_ AMBA US : Ambarella Rallies After Demonstrating Fully Autonomous Vehicle
- AAPL US : Apple’s Asia Suppliers May Fall as Goldman Cuts iPhone Estimates
- BAR BB : Barco Sells Digital Signage Unit X20 to Stratacache; No Terms
- BYW6 GY : BayWa Targets 2018 Ebit At Least on 2017 Level
- BAYN GY : Bayer Loses Bid to Block Competing Pet Flea-and-Tick Treatment
- BG US : Corbion in Pact to Buy Bunge’s Stake in SB Renewable Oils JV
- CVR LN : Conviviality Didn’t Get Enough to Repay Debt; Got Sale Enquiries
- CRBN NA : Corbion in Pact to Buy Bunge’s Stake in SB Renewable Oils JV
- KER FP : Stella McCartney to Buy Kering’s 50% Stake in Her Brand
- LHA GY : Lufthansa to Add Routes to Chengdu, Guangzhou, Vranckx Says
- M5Z GY : Manz Sees 2018 Revenue Up 10-14%, Slightly Positive Op. EBIT
- MTGB SS : MTG’s Nordic Entertainment Unit Targets Growth of About 7%: DI
- NEM GY : Nemetschek Full Year Dividend Per Share Beats Estimates
- NESN VX : Nestle Is Said to Mandate Goldman for Gerber Sale: Ins. Insider
- OBEL BB : *ORANGE IS SAID TO SEE M&A OPPORTUNITY WITH NETHYS: L'ECHO
- RHK GY : Rhoen-Klinikum Proposes Div of EU0.22/Share; BDVD Est. EU0.25
- RIB GY : RIB Software Sees Full Year Revenue EU117 Mln To EU127 Mln
- RIO LN : Rio Not Currently Target in Mongolia Inquiry, Swiss OAG Says
- SHP LN : Sarissa’s Denner Says Could Potentially Be Shire Activist: CNBC
- SHP LN : Takeda Considering Shire Bid May Be Negative for Credit: R&I
--> Takeda (4502 JP) -7.25% --> Volume 2X Daily Average
- SW FP : Sodexo Cuts 2018 Guidance After 2Q Miss, To Review Cost Base
- SREN SW : Japan’s SoftBank Is Said to Eye $9.6 Billion Stake in Swiss Re
- SWEDA SS : Swedbank Will Make Accounting Standard Changes Due to IFRS 9
- TC1 GY : Tele Columbus FY Normalized Ebitda View Midpoint Meets Est.
- TKA GY : Thyssenkrupp Is Said to Oppose Dutch Plant Plan in Tata Merger
- TIT IM : Elliott Welcomes Telecom Italia’s Move to Carry Its Requests
- TOM2 NA : TomTom Shares Rise 10.4%; Reuters Reports It Seeks Possible Sale
--> Tomtom Denies Has Engaged Adviser to Look for Potential Buyers
>>> Up
* BASF Upgraded to Buy at HSBC; PT 92 Euros
* Bauer Upgraded to Hold at Independent Research; PT 21 Euros
* Cineworld Upgraded to Buy at Citi
* Electrocomponents Upgraded to Add at Peel Hunt
* SIG Raised to Equal-weight at Barclays; Price Target 1.55 Pounds
>>> Down
* Allianz Downgraded to Neutral at JPMorgan; PT 217 Euros
* Lindt & Spruengli Downgraded to Hold at Berenberg
* Provident Downgraded to Sell at Berenberg
* REN Downgraded to Neutral at Goldman
* Scor Downgraded to Sell at Goldman
* Takkt Downgraded to Hold at Commerzbank
* Ted Baker Downgraded to Hold at Jefferies; PT 27 Pounds
>>> Initiation
* Boeing Rated New Overweight at Barclays; PT $388
* Colonial Rated New Buy at Natixis; PT 10.10 Euros
* Heidelberger Druck Rated New Buy at Berenberg; PT 4 Euros
* Koenig & Bauer Rated New Buy at Berenberg; PT 89 Euros
* Merlin Rated New Buy at Natixis; PT 14 Euros
* OCI Rated New Buy at Berenberg; PT 25 Euros
>>> Call
Stella McCartney founder acquires 50% stake from Kering, takes full control of brand
Ms. Stella McCartney and Kering [EPA: KER], the listed French luxury retailer, jointly announced that they have entered into an agreement for the sale and purchase of Kering's 50% stake in the UK-based luxury lifestyle brand Stella McCartney Ltd to Ms. Stella McCartney, who will thus become the sole owner of her brand in its entirety.
The cooperation between Stella McCartney Ltd and Kering will continue over time with the aim of guaranteeing a smooth transition in order to minimize disruptions and maintain the brand’s momentum in the market. Ms. Stella McCartney will remain a Board member of the Kering Foundation, which is dedicated to stopping violence against women and improving women’s lives. Kering and Stella McCartney will continue to collaborate closely in the field of sustainable fashion.
According to the latest accounts Stella McCartney posted a GBP 41.7m turnover, and a profit of GBP 9.5m in 2016.
Stella McCartney commented: “It is the right moment to acquire the full control of the company bearing my name. This opportunity represents a crucial patrimonial decision for me. I am extremely grateful to Francois-Henri Pinault and his family and everyone at the Kering group for everything we have built together in the last 17 years. I look forward to the next chapter of my life and what this brand and our team can achieve in the future.”
Francois-Henri Pinault, Chairman and CEO of Kering, added: “It is the right time for Stella to move to the next stage. Kering is a luxury group that empowers creative minds and helps disruptive ideas become reality. I am extremely proud of what Kering and Stella McCartney have accomplished together since 2001. I would like to thank Stella and her team wholeheartedly for everything they have brought to Kering - far beyond business. Stella knows she can always count on my friendship and support.”
Les obsèques des quatre victimes de Trèbes célébrées ce jeudi
After Hours Summary: PRGS +6.5%, PVH +3.1%, GME +2% following earnings/guidanceAfter Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: VRNT +7.5% (light volume), PRGS +6.5%, PVH +3.1%, GME +2%
Companies trading higher in after hours in reaction to news: ARA +7.9% (ticking higher -- withdraws common stock offering announced on March 26, 2018; believes that current market conditions are not conducive for an offering), CJ +5.2% (to join S&P SmallCap 600), EXC +1.6% (upgraded to Neutral at Goldman), LFIN +1.2% (after seeing third day decline -- down more than 50% on the week), LITE +0.6% (to join S&P MidCap 400)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: OXM -2% (light volume)
Companies trading lower in after hours in reaction to news: HRTX -5.1% (announces proposed public offering of common stock), CLD -3.7% (downgraded to Underweight from Neutral at JPMorgan), OPBK -2% (after closing near highs on first day of Nasdaq IPO), DUK -1.2% (downgraded to Sell from Neutral at Goldman), TCO -0.9% (indicated lower on block trade pricing)