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Market Update

Bayer Offers $62 B for Monsanto, GE to Invest $3 B in Saudi Arabia

Author: Mukesh Buch
Last Update: 6:17 PM ET May 23 2016

12:00 PM New York – Ares Capital intends to acquire American Capital for $3.4 billion. GE agreed to invest $3 billion in Saudi Arabia with $2 billion in the same sectors after next year. General Atlantic agreed to buy majority stake in the oil price reporter Argus Media for $1.45 billion.

Tollbooth Index edged up 0.65 to 10,417.92.

Earnings Review

Ares Capital Corporation (ARCC) slumped 2.6% or 39 cents to $14.80 and the investment company intends to acquire American Capital Ltd. in a transaction valued at about $3.43 billion in cash and stock.

In a separate transaction, American Capital also announced that it is selling American Capital Mortgage Management, LLC to American Capital Agency Corporation for $562 million.

The transaction is expected to close within a year.

General Electric Co (GE) slid 6 cents to $29.50 after the diversified industrial conglomerate agreed to invest about $3 billion in Saudi Arabia’s state-owned oil company Saudi Aramco and second partner to build manufacturing facility for the energy and marine sectors with an estimated cost of $400 million.

GE also plans to invest additional $2 billion in the same sectors after next year, as part of the Saudi Vision 2030. GE will manufacture heavy duty gas turbines for the Saudi Electricity Company.

General Atlantic LLC, the privately-held investment company agreed to acquire a majority stake in the London, U.K. based oil price reporting company Argus Media worth about $1.45 billion or £1 billion.

KLX Inc (KLXI) tumbled 14.9% or $5.22 to $29.77 after the aerospace equipment provider reported revenues in the first-quarter ending in April plummeted 14.7% from a year ago to $368.2 million.

Net income in the quarter declined 65.4% to $6.2 million or 12 cents per diluted share compared to $17.9 million or 34 cents per share from the same quarter last year.

Last week, the aerospace fasteners and consumables provider agreed to acquire aftermarket consumables hardware distributor Herndon Aerospace & Defense LLC for undisclosed financial terms.

Monsanto Company (MON) jumped 4.7% or $4.74 to $106.26 after the Germany-based industrial conglomerate Bayer AG offered $122 per share or $62 billion in cash to acquire its U.S. rival to create the world’s largest agrochemicals supplier, despite the criticism from some of its own shareholders.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc