Duncan HoodFred Lum/The Globe and Mail
Given that the markets were closed for Canada Day yesterday, you won't be surprised that there aren't many deals to report today. But what the deals lack in number, they make up for in size, with Brookfield's $6.8-billion offer for Australia rail freight firm Asciano making headlines on both sides of the globe. A big deal, but not big enough for some of Asciano's shareholders, who worry it undervalues the company. To some, it could even be considered robbery.
DEAL OF THE DAY: Brookfield makes $6.8-billion play for Australian rail freight firm
Canada's Brookfield Asset Management Inc. has approached Australia's Asciano Ltd. with a $6.8-billion (U.S.) takeover bid, but uncertainty about whether the deal would go through capped gains in the stock price of the rail freight firm. If successful, the deal would be the seventh-largest inbound takeover of an Australian company, and would follow the A$6.5-billion ($5-billion) purchase of Asciano's former parent company, Toll Holdings, by Japan Post this year, underscoring huge international appetite for Australia's infrastructure. Full story
Asciano investors worry Brookfield's bid undervalues the company
Asciano investors are cautious about Brookfield's offer succeeding without a higher bid because they believe it undervalues Australia's largest ports and rail company. After weeks of speculation about it selling its Patrick ports division, Asciano has revealed that Toronto-based Brookfield Infrastructure pitched a cash-and-scrip offer on Friday that valued the company at $9.05 (Australian) a share, a 36 per cent premium to its closing price on Tuesday. Full story
MERGERS AND ACQUISITIONS
Insurer Ace buying Chubb in $28.3-billion deal Insurer Ace Ltd. is buying the Chubb Corp. for about $28.3-billion in cash and stock in a deal that will create one of the world's largest insurers. The deal, one of the largest so far this year, will add diversity to Ace's global business and give it a strong brand name in the U.S., where Chubb is known for insurance tailored to the needs of wealthy individuals that covers items such as valuable jewellery or art. It also sells a variety of business insurance. Full story
StorageVault to acquire Storage For Your Life for $52.5-million
StorageVault Canada Inc. has signed a purchase agreement with Storage For Your Life Solutions Inc. and Carousel Ventures Ltd. valued at $52.5-million. StorageVault has agreed to buy all of the self storage assets, property and business used in the operation of the four Vancouver self storage stores owned by Storage For Your Life and Carousel. Press release
U.S. Justice Department lawyers oppose GE unit's sale to Electrolux U.S. Justice Department antitrust lawyers have opposed Electrolux AB's plan to buy General Electric Co's household appliance business, a source familiar with the investigation told Reuters. Lawyers have disapproved of the $3.3-billion deal as proposed, the source said. The decision to file a lawsuit to block the deal ultimately rests with senior officials in the antitrust division. Full story
ANALYSIS AND INSIGHT
Canadian market for deals surges in first half of year Canadian deal flow surged in the first half of the year, with large financings and acquisitions contributing to a hike in business for investment banks. New equity issuances flew high in the first six months, as investment banks raised more than $30-billion for companies, according to data from Thomson Reuters. That was a 45-per-cent jump over the first half of last year, when $20.8-billion was raised. It's also roughly double the amount raised in 2013, when activity reached just $14.5-billion in the first half of the year. Full story
A venture capital giant says: Bubble? What bubble?
The unicorns are multiplying, but if Andreessen Horowitz is right, the high flying venture capital community will have cause for concern when the inevitable thinning of the herd takes place. Full story
Willis-Towers Watson: A merger of equals – not exactly When Willis Group Holdings PLC and Towers Watson & Co. announced plans to form an $18-billion global professional services firm, they billed it as a merger of equals. But their investors don't see it that way.
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Know of any upcoming deals we should cover? Have suggestions for making the Daily Deal Roundup more useful? E-mail me at deals@globeandmail.com. I'll respond personally to every e-mail.