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21 Aug 2019, Stella Zlatareva, EMIS M&A Team

July's Top Deals per region

Emerging Europe

The Central European commercial property market continued to lure investors in July. In the largest deal in the region, Israeli real estate investor Gazit-Globe decided to acquire the remaining 40% stake in its subsidiary Atrium European Real Estate for EUR 565mn (USD 634mn). The target manages 33 food and fashion anchored shopping centres in Central and Eastern Europe, mostly in Poland and the Czech Republic, with a GLA of 975,000 m2. The deal supplements Gazit-Globe’s goal to own mixed-use assets in densely populated urban areas with growth potential.

Africa and the Middle East

U.S. consumer goods major PepsiCo was behind the top deal in Africa in July with its purchase of South African food and beverage maker Pioneer Foods for nearly USD 1.7bn. Pioneer Foods, which is currently listed on the Johannesburg Stock Exchange and posted USD 1.54bn in sales in 2018, has a complementary product portfolio of cereals, juices, and bread, PepsiCo said. The deal will provide the buyer with a production and distribution foothold in sub-Saharan Africa. An Israeli-led investor consortium is acquiring another South African consumer goods group, namely Clover Industries.

Latin America and the Caribbean

Brazil’s state-owned oil giant Petrobras keeps selling assets in a drive to deleverage and reduce its cost of capital. This time around, the company struck the sale of two shallow-water clusters in the prolific Campos basin to UK upstream company Trident Energy for USD 851mn. The hubs are known as Pampo and Enchova, comprise ten oil fields off the coast of Rio de Janeiro, and produce about 25.5 thousand barrels per day. The divestiture comes exactly two years after Petrobras revealed plans to sell seven sets of shallow-water fields. Also in July, the giant said it would sell the shallow-water Bauna field in the Santos basin to Australian peer Karoon Gas for USD 665mn.

Emerging Asia

As part of the largest-ever M&A deal in the Southeast Asian life insurance industry, Hong Kong-based insurer FWD Group agreed to take over the life insurance unit of Thai lender Siam Commercial Bank (SCB) for USD 3.03bn. As a result, SCB will distribute FWD‘s life insurance products to its customers in Thailand, where currently the government is mulling the introduction of compulsory insurance for foreign visitors. The move is aligned with FWD Group’s zealous expansion strategy and follows a June deal, estimated at up to USD 500mn, for the Hong Kong operations of U.S. sector giant MetLife.

Original source: EMIS - DealWatch