Business leaders are always hunting for the most profitable deals in order to boost their business empires. Here is a quick look at the most significant business deals in our world.
Sabic in the US
Saudi Basic Industries Corp., the world’s second-biggest chemicals manufacturer, embarks on expanding its investment in the US through joint ventures, according to acting Chief Executive Officer Youssef al Benyan.
Al-Benyan said that Sabic signed an agreement with Houston to get shale gas. He added,“The main areas in the US we are looking to invest in are the northeast and the south as they fit our overall expectations including government support, labour laws and unions.”
Sabic invests in the US since the company cannot grow its business home in Saudi Arabia due to lack of gas.
The most ambitious trade deal in Hawaii
Negotiators from the US, Japan and 10 other Pacific Rim countries could put the finishing touches on the most ambitious trade and investment deal in decades when they meet this week in Hawaii.
However, with the details of the Trans-Pacific Partnership (TPP) hidden in intense secrecy, the talks have fueled suspicion that whatever they achieve would benefit powerful corporations but not economies and people generally.
In addition, with China deliberately excluded, it remains to be seen if a 12-country deal would be enough to coax Beijing toward further opening its economy and embracing more international business standards.
By most accounts, TPP negotiators have narrowed their focus to a number of key issues and are under pressure from Washington to finalize a deal in the coming months.
That would advance the US agenda for a new international framework for trade in services, investment and protection of intellectual property. Such a framework could also become a model for the even larger Transatlantic Trade and Investment Partnership (TTIP) Washington is negotiating with the EU.
The talks between trade ministers beginning tomorrow on the Hawaiian island of Maui come only after US President Barack Obama won a bruising battle in US Congress for the power to reach a final agreement without interference from the legislators.
The deal would help a whole range of US industries, from farms to shoemakers to movie studios, Obama has said.
Anthem Inc combines with Cigna Corp.
Meanwhile, Anthem Inc. has reached an agreement to buy rival Cigna Corp. for $48.4 billion after a year of negotiations and speculations. Despite debates that merging the two US health care giants is a health industry game, it is a step that could transform the U.S. health-insurance industry. In other words, the deal will most likely promote the largest health insurer in the US. Anthem said it will pay $188 a share in cash and stock for Cigna. The merged company is expected to have about $115 billion in annual revenue and meet the needs of about 53.2 million people.
Meiji Yasuda buys the StanCorp Financial Group
What is more, the Meiji Yasuda Life Insurance Company of Japan has agreed to buy the StanCorp Financial Group, an American provider of insurance and retirement products, for $5 billion in cash.
Akio Negishi, the Meiji Yasuda president, said in a statement, “We are very pleased to welcome The Standard to the Meiji Yasuda family and to make them a key pillar of our international operations.” He adds, “We have been studying opportunities in the U.S. market for some time and The Standard stood out as our ideal partner.”
Greg Ness, StanCorp’s chairman, president and chief executive, and his management will continue to lead the business. “While we were not looking for a buyer, Meiji Yasuda’s proposal presented a tremendous opportunity to create value for all of our stakeholders − providing a substantial cash premium to our shareholders while enabling us to maintain our current operations and valued employees,” Ness said in a news release.
This deal is projected to widely expand the scale of Meiji Yasuda in the United States, the world’s largest insurance market. Meiji Yasuda also runs businesses in other countries including China, Indonesia, Poland and Thailand.
Deutsche Boerse buys 360T
In addition, Deutsche Boerse will buy the Germany-based foreign exchange trading platform 360T for 725 million euros ($796 million).
360T is a pioneer multi-bank and multi-user platform which has reshaped foreign exchange trading over the past decade. Deutsche Boerse beats US commodities and currency exchange operator CME Group in the auction.
The deal is the biggest acquisition by Deutsche Boerse since the Frankfurt-based stock-exchange operator bought US derivatives exchange ISE in 2007 for $2.8 billion. It is also the first large deal by the new Chief Executive Carsten Kengeter.
Talks are underway with Swiss Six Group to reach an agreement and buy the other stakes in their index joint ventures Stoxx and Indexium.
