Investing.com — Here is your Pro Recap of 4 head-turning deal dispatches you may have missed this week: Occidental Petroleum to acquire CrownRock, Brigade Capital Management makes a buyout offer to Macy's, Hollysys Automation Technologies to be acquired by Ascendent Capital Partners, and Star Bulk Carriers and Eagle Bulk Shipping to combine in an all-stock deal.
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Occidental Petroleum to acquire CrownRock for $12 billion
Occidental Petroleum (NYSE:OXY) announced its acquisition of CrownRock LP, a Midland-based oil and gas producer, in a deal worth around $12 billion, which includes cash, and stock, and involves assuming CrownRock's existing debt.
Occidental's CEO, Vicki Hollub, highlighted the strategic importance of the acquisition for expanding in the Midland Basin and driving shareholder value with immediate cash flow benefits. The company expects to generate $1 billion in the first year after acquisition, assuming a $70 per barrel WTI crude oil price.
CrownRock LP is a joint venture between CrownQuest Operating and Lime Rock Partners.
Macy's shares jump 20% on $5.8 billion buyout offer
Macy’s (NYSE:M) shares surged nearly 20% on Monday after Arkhouse Management and Brigade Capital Management made a buyout offer for $5.8 billion, proposing $21 per share, as reported by the Wall Street Journal.
Following this, Citi downgraded Macy’s stock from Neutral to Sell, setting a price target of $14.00, expressing skepticism about the deal's materialization. Citi noted Macy's significant real estate assets but cautioned that monetizing them is challenging. “And with the stock at close to $21/sh (and now an EV of ~$8.6BN), considering structural challenges in their core business, it is hard to see enough real estate value to justify the current EV,” commented the analysts.
Hollysys Automation Technologies to be acquired for $1.66B
Hollysys Automation Technologies (NASDAQ:HOLI) agreed to be acquired by Ascendent Capital Partners, a Hong Kong-based private investment firm, in an all-cash deal valued at around $1.66B. Following the announcement, Hollysys shares gained more than 9% on Monday.
As per the deal, Ascendent will buy all outstanding Hollysys shares it doesn't already own for $26.50 each. Hollysys' Board, following a recommendation from the Special Committee of Independent Directors, unanimously approved the transaction.
Star Bulk Carriers and Eagle Bulk Shipping to combine in an all-stock deal
Star Bulk Carriers (NASDAQ:SBLK) and Eagle Bulk Shipping (NYSE:EGLE) announced a definitive agreement for an all-stock merger, creating a combined entity with a pro forma market capitalization of about $2.1B.
Under the agreement, unanimously approved by both companies' boards, Eagle shareholders will get 2.6211 Star Bulk shares for each Eagle share they own. This equals about $52.60 per share, a 17% premium over Eagle's closing price of $44.85 on Dec 8. Post-merger, Star Bulk and Eagle shareholders will own approximately 71% and 29% of the new company, respectively.
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