Siemens in $4.5 B Deal with Mentor Graphics; Greencore, RWE Net Decline

Sarla Buch
14 Nov, 2016
New York City

Greencore net declined 18% and the food maker plans to acquire the U.S.-based Peacock Foods. Intrum Justitia agreed to buy Norway-based rival for $2 billion. RWE net tumbled 99% after the utility financed a state nuclear-waste fund. Siemens agreed to buy Mentor Graphics $4.5 billion.

[R]4:00 PM Frankfurt – Greencore net declined 18% and the food maker plans to acquire the U.S.-based Peacock Foods. Intrum Justitia agreed to buy Norway-based rival for $2 billion. RWE net tumbled 99% after the utility financed a state nuclear-waste fund. Siemens agreed to buy Mentor Graphics $4.5 billion.[/R]

In London trading, FTSE 100 index rose 23.96 or 0.4% to 6,772.60 and in Frankfurt the DAX index increased 44.15 or 0.4% to 10,709.40.

In Paris, CAC 40 index gained 20.29 or 0.5% to 4,508.26.

Greencore Group Plc surged 13.1% to 330 pence after Ireland-based convenience food producer said group revenues in the year ending in September jumped 10.6% from a year ago to £1.5 billion.

Net income in the year declined 17.8% from a year ago to £48.5 million compared to the £59 million and diluted earnings per share decreased to 11.4 pence from 14 pence.

The convenience food producer said comparable sales in the year advanced 5.9% and revenues in the convenience foods segment soared 11.2%.

Separately, Greencore plans to acquire the U.S.-based privately held frozen breakfast sandwiches and convenience food manufacturer Peacock Foods for about £594.3 million or $747.5 million on a debt free and cash free basis.

Intrum Justitia AB soared 10.1% to 306.40 Swedish kronor after Sweden-based credit management services provider agreed to acquire Norway-based rival for about $1.96 billion.

In 2015, Lindorff reported net revenue of €534 million and employed 4400 employees in 13 countries.

The transaction is expected to close in the second-quarter of 2017.

RWE AG declined 3.2% to €11.94 after Germany-based gas, coal, nuclear and renewable energy producer reported revenues in the nine-month ending in September plunged 5.2% from a year ago to €33.2 billion.

Net profit in the quarter tumbled 99.4% from a year ago to €11 million compared to the €1.9 billion and diluted earnings per share slumped to €0.02 from €3.15.

The power utility provider said operating profit in the period slumped 20% to €2.12 billion and said profit decline was mainly from the sale of long-term finance to a state nuclear-waste fund.

Siemens AG gained 1.3% to €11.94 after Germany-based industrial conglomerate agreed to acquire the U.S.-based automation and industrial software provider Mentor Graphics Corp for $37.25 per share, representing an enterprise value of about $4.5 billion in cash.

William Hill Plc increased 1.5% to 288.30 pence after the U.K.-based mobile sports betting services provider forecasted group revenues in the second-half to increase about 6%.

The gambling services provider reaffirmed full-year operating profit estimated at the top end of the earlier estimated range between £260 million to £280 million after double-digit net revenue growth in Australia, the US and Italy and Spain.