Key transactions & industry news Weekly Update 10/11/2024
Recent M&A Transactions
Metals & Mining
Oct 10, 2024 – Rio Tinto said it would acquire Arcadium Lithium for $6.7 billion that would make it one of the world’s largest lithium producers. The global miner would gain access to Arcadium’s wide range of mines, processing facilities and deposits along with a customer base that includes automakers Tesla, BMW, and General Motors. (Reuters)
Oct 8, 2024 – Wieland acquires Morgan Bronze Products, Inc., a family-owned, well-established manufacturer of precision machined finished parts in Lake Zurich, Illinois. The 77-year-old company supplies its long-term customer base with bushings, bearings and washers as well as customized industrial ready-to-mount parts and components. (Wieland)
Oct 7, 2024 – McDermott International announced it has entered into an agreement to sell its CB&I storage business to a consortium of financial investors led by Mason Capital Management. McDermott expects to receive $475 million of proceeds before taxes and transaction expenses. (PRNewswire)
Building Products
Oct 9, 2024 – SupplyOne, Inc., a leading distributor of custom corrugated and value-added packaging solutions in North America, is strengthening its presence in the Southeast with the acquisition of Gulf Packaging. Gulf is a premier converter and supplier of custom corrugated boxes and displays serving Alabama, Florida, Georgia, Tennessee, Mississippi, and Louisiana. (PRNewswire)
Energy
Oct 7, 2024 – Canadian Natural Resources Limited announces that it entered into an agreement to acquire from Chevron Canada Limited its 20% interest in the Athabasca Oil Sands Project, which includes 20% of the Muskeg River and Jackpine mines, the Scotford Upgrader and the Quest Carbon Capture and Storage facility. This acquisition brings Canadian Natural’s total current working interest in AOSP to 90%. (YahooFinance)
Oct 4, 2024 – Waskahigan Oil & Gas Corp announced that it entered into a non-binding letter of intent with Terra Metals Inc and two subsidiaries: Zamsort Limited, a Zambian corporation and Central African Renewal Energy Ltd., a Zambian corporation for the acquisition of the aforementioned parties. (AccessWire)
Others
Oct 8, 2024 – Ares Management Corporation announced that it has entered into a definitive agreement to acquire the international business of GLP Capital Partners Limited in a transaction valued at $3.7 billion. (GCP)
Oct 7, 2024 – Barnes Group said that private equity Apollo Funds would acquire the aerospace parts maker in an about $3.6 billion deal. As part of the deal, Barnes shareholders will receive $47.50 per share in cash, representing about a 5% premium to the last close. (Reuters)
Top News Stories
Metals & Mining
Global alumina markets tighten as Guinea bauxite export disruption looms. Alumina futures on the Shanghai Futures Exchange soared to a new record, driven by bauxite supply disruptions from Guinea and sustained demand from China. On Friday, alumina prices surged by as much as 6.4 per cent, reaching RMB 4,630 ($655) per tonne on the Shanghai Futures Exchange, marking the highest level since the contract’s debut in June 2023.
Nippon Steel to sell Calvert JV to ArcelorMittal if U.S. Steel deal completed. Nippon Steel said it will sell its entire 50% stake in a joint-venture steel plant it has in Calvert, Alabama, with ArcelorMittal if the top Japanese steelmaker succeeds in a buyout bid for United States Steel. The world’s fourth-largest steelmaker believes the move is needed to clear antitrust concerns and would hasten U.S. authorities’ review of the U.S. Steel deal.
Aluminium demand in North America marks a positive growth trend in H1 2024 with a 5.2% rise Y-o-Y. Aluminium demand in North America (US and Canada) has demonstrated an upward movement through the first half of 2024, marking a 5.2 per cent year-on-year growth, as shown by the Aluminum Association in its monthly Aluminium Situation report.
United Airlines promotes sustainability: Switches from plastic wine bottles to aluminium cans. United Airlines has made a major transition from plastic wine bottles to aluminium cans, igniting a sustainable shift in response to the growing demand for eco-friendly packaging. United has also introduced an updated wine list for its domestic economy cabin, offering passengers more options, including a new rosé and a brut bubbles wine exclusively available on United flights.
Transportation & Logistics
Norfolk Southern line into Asheville to be closed at least 3 months. Norfolk Southern says its line between Asheville, North Carolina, and Newport, Tennessee — heavily damaged by Hurricane Helene — will be out of service until at least late January, while assessment of the route between Asheville and Old Fort, North Carolina, is ongoing.
CSX, short lines in recovery mode after Hurricane Milton. Freight railroads from the Gulf Coast to Miami are still assessing damage and making repairs after Milton made landfall near St. Petersburg late Wednesday as a Category 3 hurricane. According to CSX’s most recent customer advisory, all routes north of Jacksonville are open with no anticipated issues, as is the railroad’s mainline to Callahan and south to near Anthony on the railroad’s Wildwood Subdivision.
Amazon airline sells excess cargo capacity to third-party shippers. Amazon has officially entered the for-hire air cargo market, making capacity on its large fleet of cargo jets broadly available for the first time to freight forwarders and other businesses after previously providing airlift to a limited set of companies. The creation of a direct sales channel for heavy shipments beyond Amazon’s parcel ecosystem puts the e-commerce platform in position to challenge FedEx and UPS for a greater share of domestic airfreight.
Energy
US drillers add oil and gas rigs for first time in four weeks, Baker Hughes says. U.S. energy firms this week added oil and natural gas rigs for the first time in four weeks, energy services firm Baker Hughes said in its closely followed report on Friday. The oil and gas rig count, an early indicator of future output, rose by one to 586 in the week to Oct. 11. Baker Hughes said the total count was still down 36 rigs or 6% from this time last year. Baker Hughes said oil rigs rose by two to 481 this week. Gas rigs fell by one to 101.
Others
Hurricane Milton leaves path of destruction across Florida, at least 16 dead. Hurricane Milton made landfall near Siesta Key, Florida, Wednesday night as a Category 3 storm. At least 16 people died from the storm, officials confirmed to CBS News. Milton moved across the Florida peninsula Thursday and over the Atlantic Ocean. More than 2 million customers were without power in Florida on Friday, according to utility tracker Find Energy.
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RJM & Company is a specialized M&A and capital markets advisory investment bank. We provide boards and management teams of public and private companies with independent advice and expertise in a variety of sectors including road, rail and marine transportation, infrastructure, chemicals, energy, metals and mining, manufacturing, building materials, and other coverage areas of the industrial complex. RJM advises clients on all aspects of transactions including timing, structure, and pricing. RJM originates opportunities and helps negotiate and execute transactions already under evaluation.