Dominion in $8 B Deal with SCANA, U.S. Blocks MoneyGram Purchase

Mukesh Buch
03 Jan, 2018
New York City

Commercial Metals net and revenues surged. Dominion Energy to acquire troubled rival Scana in $7.9 billion deal. The U.S. government agency rejected sale of MoneyGram to China-based Ant Financial. UniFirst beats first-quarter forecasts.

[R]11:15 AM New York City, New York – Commercial Metals net and revenues surged. Dominion Energy to acquire troubled rival Scana in $7.9 billion deal. The U.S. government agency rejected sale of MoneyGram to China-based Ant Financial. UniFirst beats first-quarter forecasts.[/R]

Tollbooth Index advanced 88.65 or 0.6% to 13,999.02.

Earnings Review

Commercial Metals Company ((CMC)) jumped 5.4% or $1.23 to $23.97 after the steel and metal products recycler said revenues in the first-quarter ending in November soared 20% from a year ago to $1.2 billion.

Net income in the quarter surged to $36.8 million or 31 cents per diluted share from $6.3 million or 5 cents in the same quarter last year.

Dominion Energy Inc ((D)) declined 3.9% or $3.09 to $77.19 after the energy producer agreed to acquire troubled rival Scana Corporation in an all-stock transaction valued at about $7.9 billion, including of debt, the value of the transaction of about $14.6 billion.

Upon closing of the deal the combined company will pay $1.3 billion to residential customers of South Carolina Electric & Gas will get an average of $1,000 within 90 days of the deal to offset previous and future costs.

The transaction is expected to close in this year.

SCANA Corporation stock in the pre-market surged 23.8% to $48.10.

Moneygram International Inc ((MGI)) plunged 8.7% or $1.16 to $12.15 after the Committee on Foreign Investment in the United States rejected proposals from China-based Ant Financial Services Group to acquire the U.S.-based money transfer services provider for up to $1.2 billion on national security concerns.

""Despite our best efforts to work cooperatively with the U.S. government, it has now become clear that CFIUS will not approve this merger,"" said MoneyGram chief executive officer Alex Holmes.

UniFirst Corp ((UNF)) gained 60 cents to $168.40 after the workplace uniforms provider reported revenues in the first-quarter ending on November 25 jumped 7.7% from a year ago to $415.8 million.

Net income in the quarter soared 21.3% to $34.2 million or $1.67 per diluted share from $28.2 million or $1.38 in the same quarter last year.

The work wear provider forecasted fiscal 2018 revenues between $1.63 billion and $1.65 billion and diluted earnings per share in the range of $5.10 to $5.30.