Danone Lowers Forecast, SCA to Acquire BSN for

Sarla Buch
19 Dec, 2016
New York City

Braas Monier Building agreed to be acquired by the U.S.-based Standard Industries for $1.2 billion. Danone lowered fiscal sales forecast. Parkdean Resorts agreed to be acquired by Canada-based Onex for

[R]4:00 PM Frankfurt – Braas Monier Building agreed to be acquired by the U.S.-based Standard Industries for $1.2 billion. Danone lowered fiscal sales forecast. Parkdean Resorts agreed to be acquired by Canada-based Onex for £1.35 billion. SCA is nearing to acquire BSN Medical for €2.7 billion.[/R]

In London trading, FTSE 100 index rose 10.79 or 0.2% to 7,022.18 and in Frankfurt the DAX index edged up 5.43 to 11,409.09.

In Paris, CAC 40 index fell 10.43 or 0.2% to 4,822.84.

Braas Monier Building Group SA soared 6.6% to €28.10 after Germany-based pitched roof maker agreed to be acquired by the U.S.-based privately held rival Standard Industries, Inc for about $1.2 billion.

Danone SA dropped 2.4% to €59.76 after France-based dairy and nutritional products maker offered weak sales forecast in fiscal 2016 without specifying new guidance. Dairy products maker said sales may be lower than the previous estimate between 3% and 5%.

Danone blamed the weakness on tough market conditions and weak sales in Spanish market and problems with the relaunch of Activia in the Europe.

""This is a very ambitious transformation for the brand. We have overestimated the speed at which the turnaround would occur,"" in a conference call, chief financial officer Cecile Cabanis said.

Parkdean Resorts, the U.K.-based privately held holiday parks operator agreed to be acquired by Canada-based private equity firm Onex Corporation for about £1.35 billion or C$2.25 billion.

SCA Group jumped 4.3% to 10.40 Swedish kronor after Financial Times reported Sweden-based consumer goods maker is close to buying Germany-based privately held bandage and plaster cast maker BSN Medical for about €2.7 billion or $2.82 billion on a debt- and cash-free basis from private equity firm EQT.

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

Vale SA slipped 1.7% to 23.92 BRL after Brazil-based iron ore producer agreed to sell part of its fertilizer business to the U.S.-based Mosaic Co for about $2.5 billion and will receive $1.25 billion in cash and $1.25 billion in newly issued shares.

Vale estimate the transaction is expected to close in late 2017.