Oil Prices Fall As Investors Assess SVB Fallout
HSBC UK Bank Buys Silicon Valley Bank UK
HSBC Holdings Plc (HSBA.L,HSBC) said on Monday that its ring-fenced unit, HSBC UK Bank Plc, is acquiring Silicon Valley Bank UK Limited, for 1 pound with immediate effect.
The acquisition, funded from existing resources, excludes the assets and liabilities of the parent companies of SVB UK.
For 2022, SVB UK posted a profit before tax of 88 million pounds. As of March 10, SVB UK had loans of around 5.5 billion pounds and deposits of around 6.7 billion pounds.
Noel Quinn, HSBC Group CEO, said: “This acquisition makes excellent strategic sense for our business in the UK. It strengthens our commercial banking franchise and enhances our ability to serve innovative and fast-growing firms, including in the technology and life-science sectors, in the UK and internationally.”
LyondellBasell To Buy Mepol Group; Financial Terms Not Disclosed
Dutch chemical company LyondellBasell Industries N.V. (LYB) announced Monday its agreement to acquire Mepol Group, a manufacturer of recycled, high-performing technical compounds located in Italy and Poland. The financial terms of the deal were not disclosed.
The acquisition consists of Mepol S.r.l. and its subsidiaries Polar S.r.l. and Industrial Technology Investments Poland Sp.z.o.o. The company noted that facilities in Poland and Italy will produce recycled and polymer compounds for diverse markets.
The transaction closing is subject to regulatory approval and other customary closing conditions. During this period, Mepol Group will continue to operate on a standalone basis.
In the deal, Jones Day and Wardynski & Partners served as LyondellBasell’s legal advisor, while Special Affairs S.r.l. served as Mepol Group’s financial advisor and Gitti & Partners is acting as its legal advisor.
Torkel Rhenman, executive vice president of Advanced Polymer Solutions, said, “With Mepol Group’s expertise in sustainable compounds and LyondellBasell’s scale, we will enhance our CirculenRecover and other sustainable solutions for our customers.”
Pfizer To Acquire Seagen For $229/shr
Pfizer Inc. (PFE) and Seagen Inc. (SGEN) have entered into a merger agreement under which Pfizer will acquire Seagen, a global biotechnology company that discovers, develops and commercializes cancer medicines, for $229 per Seagen share for a total enterprise value of $43 billion. The companies expect to complete the merger in late 2023 or early 2024.
Seagen expects to generate approximately $2.2 billion of revenue in 2023, from its four in-line medicines, royalties and collaboration and license agreements. Pfizer believes Seagen could contribute more than $10 billion in risk-adjusted revenues in 2030, with potential significant growth beyond 2030.
Pfizer expects to finance the transaction substantially through $31 billion of new, long-term debt, and the balance from a combination of short-term financing and existing cash. Pfizer expects the acquisition to be neutral to slightly accretive to adjusted earnings per share in the third to fourth full year post close. Pfizer expects to achieve nearly $1 billion in cost efficiencies in the third full year after the completion of the deal.
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Gold Rallies On Safe-haven Demand Amid US Bank Worries
Gold prices hit over five-week highs on Monday and the dollar weakened as investors fretted over the largest U.S. bank failure since the 2008 financial crisis.
Spot gold was up 1.1 percent at $1,888.42 per ounce, after having hit its highest since Feb. 3 earlier in the session at $1,893.96. U.S. gold futures were up 1.4 percent, at 1,891.95.
The U.S. dollar index tumbled amidst a decline in bond yields, making bullion cheaper for buyers holding other currencies.
The market turmoil from the Silicon Valley Bank collapse led traders to pare bets on the scope for further Fed policy tightening.
Goldman Sachs analysts said they no longer expect the Federal Reserve to raise rates by 25 basis points at its next policy meeting on March 21-22.
In economic releases, U.S. consumer inflation expectations data for February is due to be released later in the day.
The spotlight is firmly on Tuesday’s U.S. inflation data and Thursday’s ECB meeting. The central bank is all set to raise interest rates by another 50 basis points at the meeting.
The Federal Reserve’s policy meeting is scheduled to be held on March 21-11, while the Bank of England meets a day after the FOMC meeting on March 23.
Bluegreen Vacations Holding Corp Reveals Fall In Q4 Bottom Line
Bluegreen Vacations Holding Corp (BVH) revealed a profit for fourth quarter that decreased from the same period last year
The company’s bottom line totaled $7.649 million, or $0.41 per share. This compares with $13.130 million, or $0.63 per share, in last year’s fourth quarter.
The company’s revenue for the quarter rose 17.2% to $237.966 million from $203.003 million last year.
Bluegreen Vacations Holding Corp earnings at a glance (GAAP) :
-Earnings (Q4): $7.649 Mln. vs. $13.130 Mln. last year.
-EPS (Q4): $0.41 vs. $0.63 last year.
-Revenue (Q4): $237.966 Mln vs. $203.003 Mln last year.
Oil Prices Fall As Investors Assess SVB Fallout
Oil prices fell around 2 percent on Monday as investors fretted about contagion effects to other banks and the tech and start-up industry post the collapse of Silicon Valley Bank (SVB) and Signature Bank.
Brent crude futures fell a little over 2 percent to $81.11 per barrel, while WTI crude futures were down 2 percent at $75.12.
Markets continue to worry about contagion effects despite U.S. regulators rushing to contain the fallout.
Investors are waiting to see whether the SVB collapse was a systematic event, or a one-off.
The U.S. dollar yield slid, and global bond yields collapsed as new concerns surrounding the U.S. banking sector raised expectations for a potential pause in further interest-rate hikes by the Federal Reserve.
Investors were also reacting to reports suggesting that Argentina’s state oil company YPF will double oil output and pump-up natural gas by 30 percent in the next five years.