Galliford Rejects Bovis Deal, Syngenta Merger Won EU and U.S. Approvals

Sarla Buch
05 Apr, 2017
New York City

Allied Minds to book write-down and cuts the funding for seven subsidiaries. Galliford Try rejected

[R]4:00 PM Frankfurt – Allied Minds to book write-down and cuts the funding for seven subsidiaries. Galliford Try rejected £1.2 billion Bovis Homes bid. John Wood plans to save 36% after the proposed merger with Amec Foster Wheeler. Syngenta wins approval from the U.S. and EU antitrust.[/R]

In London trading, FTSE 100 index rose 16.69 or 0.2% to 7,338.51 and in Frankfurt the DAX index slipped 40.01 or 0.3% to 12,242.35.

In Paris, CAC 40 index gained 9.40 or 0.2% to 5,110.53.

Allied Minds Plc tumbled 17.7% to 214.90 pence after the U.K.-based diversified investment company said it will discontinue funding of its seven subsidiaries and may book write-down of $146.6 million on the value of seven subsidiaries as part of restructuring in its 2016 results.

The company estimated to save $14 million from the restructuring in the next year.

Alfa Laval AB soared 3.6% to 173.50 Swedish kronor after Sweden-based heat transfer, separations products maker won an order worth 125 million kronor to supply several marine exhaust gas cleaning systems to the Boiler & Gas Systems of Marine Division unit.

The delivery is scheduled for 2018 and 2019.

Bovis Homes Group Plc jumped 4.7% to 886.50 pence after the U.K.-based home-builder today said that rival Galliford Try had withdrawn its £1.2 billion acquisition proposal. Bovis appointed its former chief executive and chairman Greg Fitzgerald as its new chief executive officer.

Galliford said it is """"no longer considering a combination"""" with Bovis concluding that it is not possible to secure the support of the Bovis board.

BHP Billiton Plc gained 1.9% to 1,279.50 pence after the U.K.-based coal and metal miner said force majeure had declared for shipments from its coal mines in Australia’s Queensland state as railway tracks to repair damage after tropical cyclone destructed in the last week.

BT Group Plc fell 0.2% to 313.41 pence after the U.K.-based telecom operator said that it had sign a new power purchase agreement with a Scottish wind farm for about £185 million or $231 million over 15 years.

John Wood Group Plc advanced 2.2% to 777.50 pence after the U.K.-based energy services provider said it is expected to save approx 36% cost savings from its proposed merger with Amec Foster Wheeler Plc for £2.2 billion.

The energy services provider estimated to increase cost synergies by £40 million to at least £150 million per year by the end of the third year after the deal closes.

Syngenta AG increased 1.2% to 452.90 Swiss francs after the U.S. antitrust officials gave conditional clearance on Tuesday to acquire the pesticide maker and asked it to divest its three crop businesses.

Separately, today the pesticides and seeds maker also received approvals from the EU antitrust for its $43 billion deal with ChemChina or China National Chemical Corp.

After the deal was approved by the both anti-trusts, Syngenta said that it set to close in the second-quarter, as it still need regulatory clearance from China, India and Mexico.

""It is important for European farmers and consumers that there will be effective competition in pesticide markets, also after ChemChina''s acquisition of Syngenta,"" European Competition Commissioner Margrethe Vestager said.