Pfizer Offers $14 B for Medivation, Couche-Tard to Buy CST Brands

Mukesh Buch
22 Aug, 2016
New York City

Pfizer agreed to acquire prostate-cancer drug maker Medivation for $14 billion in cash. Intersil surged after the company is in final stages of merger negotiations with Renesas for about $3 billion. CST Brands agreed to be acquired by Canada-based Couche-Tard for $4.4 billion.

[R]2:00 PM New York – Pfizer agreed to acquire prostate-cancer drug maker Medivation for $14 billion in cash. Intersil surged on the news that Renesas Electronics Corp is in final stages of negotiations to acquire the company for about $3 billion. CST Brands agreed to be acquired by Canada-based Couche-Tard for $4.4 billion.[/R]

Tollbooth Index fell 20.89 or 0.2% to 11,100.27.

Deal Review

CST Brands Inc ((CST)) rose 7 cents to $47.58 after the Canada-based retail gas stations operator Parkland Fuel Corporation signed an agreement with Alimentation Couche-Tard Inc to acquire fuel convenience stores operator for $48.53 per share in cash or $4.4 billion.

The transaction is expected to close in early 2017.

Intersil Corp ((ISIL)) surged 20.6% or $3.21 to $18.86 after the Nikkei business daily reported that the domestic semiconductor maker Renesas Electronics Corp is in the final stages of negotiations to acquire the U.S.-based integrated circuits maker for as much as $2.99 billion or 300 billion yen.

Renesas is expected to finalize the preliminary deal as early as this month.

Pfizer Inc ((PFE)) rose 3 cents to $35.01 after the healthcare products maker offered to acquire prostate-cancer drug maker Medivation Inc for $81.50 per share in cash or $14 billion.

The offer is significantly higher than $52.50 initial offer from Sanofi SA in April.

Medivation’s Xtandi drug reported yearly sales of about $2 billion and is estimated to and second-quarter net sales in the U.S. were $330.3 million.

Medivation Inc stocks surged 19.8% to $80.49.