Strategic deals have continued into September after a busy summer, with firms rallying to get deals over the line before a Brexit cliff-edge threatens to become a reality.
Slaughter and May has landed a mandate to advise Hong Kong Exchanges and Clearing (HKEX) on a bid which, if successful, would see it acquire the London Stock Exchange (LSE) for £32bn. Partner David Watkins is leading the Slaughters team.
The proposed transaction has already sparked controversy around competition concerns as well as HKEX’s condition that any takeover would be conditional on LSE scrapping its planned $27bn acquisition of financial data business Refinitiv, a deal that was abnnounced in July.
The board of LSE yesterday (11 September) issued a statement describing the proposed acquisition by HKEX as ‘unsolicited, preliminary and highly conditional,’ confirming it continued to make good progress on the Refinitiv deal. A Freshfields Bruckhaus Deringer team led by partners Andrew Hutchings and Stephen Hewes are advising LSE on the Refinitiv deal and is likely to be mandated on this latest transaction.
Meanwhile Weil, Gotshal & Manges is advising Campbell’s Soup Company on the sale of its European chips business which includes Kettle Chips and Metcalfe’s skinny popcorn to Dublin-based Valeo Foods for $80m.
The Weil team was led by corporate partners Michael Aiello, James Harvey and Mike Francies. Partners Joe Pari, Chayim Neubort and Oliver Walker are advising on the tax while partner Barry Fishley is advising on intellectual property and technology.
CapVest and its portfolio company Valeo Foods were advised by a Willkie Farr & Gallagher team led by David Arnold and included associates Andrew Gray, Amelia Doughty, Michael Grant and Gabriella Denlew. Partner Jane Scobie led on the tax aspects.
In 2017, Campbell’s bought Kettle Chips producer Snyder’s-Lane for $4.87bn. The transaction is part of the company’s strategy to focus on its core products of canned soup and snacks. This deal follows Campbell’s sale of Danish manufacturer of baked snacks Kelsen Group to Belgian holding company CTH Invest for $300m.
Campbell’s will retain the Kettle brand business in the US and other area, while Valeo takes control of its UK, Europe and Middle East operation.
Weil has advised Campbell’s on a number of transactions this year, namely the recent sale of KKR to Arnott’s. The deal is subject to customary closing conditions, regulatory approvals and consultations and is expected to close at the end of this year.
Elsewhere, Paul Hastings advised private equity firm Oakley Capital on its investment in the Italian high-end homeware business Alessi.
The Paul Hastings team was led by Anu Balasubramanian and included corporate associates David Prowse and Aimée Fabri from the London office and Juljan Puna and Giulia Fiorelli from the Milan office while Gatti Pavesi Bianchi advised on the financing aspects of the transaction.
Balasubramanian told Legal Business: ‘Given the macroeconomic climate in Europe and the political environment across the board with Brexit, I think there is concern that both the capital line as well as potential opportunities may not dry up necessarily but everything is going to potentially become a little more difficult. People are trying to get deals over the line which is probably why we had the busiest summer.’
Alessi was advised by a team from Italian firm Gattai, Minoli, Agostinelli Partners led by corporate partner Bruno Gattai and includes partners Federico Bal, Riccardo Agostinelli, Andrea Taurozzi and associates Jacopo Bennard and Jacopo Ceccherini.