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Market Update

MPLX in $20 B Deal with Markwest, Black Hill to Buy SourceGas

Author: Mukesh Buch
Last Update: 12:45 PM ET July 13 2015

12:00 PM New York – MPLX plans to buy Markwest Energy for $20 billion. BorgWarner agreed to buy Remy Intl for $950 million. Black Hills agreed to acquire SourceGas for $1.9 billion. Jarden plans to acquire U.K.-based Waddington for $1.4 billion.

Tollbooth Index increased 0.9% or 104.74 to 10,830.30.

Earnings Review

Ascena Retail Group Inc (ASNA) plunged 14.8% or $2.42 to $13.95 after the women’s specialty retailer lowered its full-year adjusted earnings forecast for the year between 57 cents and 60 cents compared to earlier estimated range of 70 cents to 75 cents.

The retailer estimated goodwill and intangible asset impairment charge in the fourth quarter between $275 million and $325 million.

ARRIS Group, Inc (ARRS) fell 9 cents to $30.76 after the entertainment and communication provider lowered its revenues guidance for the second-quarter ending in June in the range of $1.25 billion to $1.26 billion from the previous guidance between $1.27 billion to $1.31 billion.

The company estimated earnings per share for the quarter between 51 cents to 55 cents from earlier estimated range of 53 cents to 58 cents.

American Airlines Group Inc jumped 3.2% or $1.15 to $42.36 after the airline company said total passenger-revenue-miles in June increased 2.8% to 20.4 billion from 19.9 billion. Total available-seat-miles increased 2.4% to 23.9 billion and total passenger load factor was 85.4%, up 0.4 percentage points compared to year ago month.

The airline company forecasted consolidated passenger revenue per available seat mile for second-quarter decline between 6% and 8% ad pretax margin excluding special items between 16% and 18% from a year ago period.

BorgWarner Inc (BWA) rose 37 cents to $54.01 after the auto parts maker agreed to acquire electrical components maker Remy International Inc. for $29.50 per share or about $950 million in cash.

Shares of Remy International Inc soared 41.9% to $29.13.

Black Hills Corp (BKH) decreased 1.8% or 79 cents to $46.05 after the energy company signed an agreement to acquire natural gas utility provider SourceGas Holdings LLC for about $1.9 billion.

The deal is expected to close in the first-half of 2016.

Jarden Corp (JAH) jumped 4.6% or $2.41 to $54.73 after the consumer products maker said it plans to acquire the U.K.-based disposable tableware maker Waddington Group, owned by private equity firm Olympus Partners for $1.35 billion or £869 million.

MPLX LP (MPLX) tumbled 16.1% or $11.05 to $58 after the petroleum product transportation and storage services provider sponsored by Marathon Petroleum Corp plans to buy Markwest Energy Partners LP for about $20 billion, including the assumption of debt of approximately $4.2 billion.

Marathon Petroleum will contribute $675 million of cash to MPLX to fund the one-time cash payment.

The deal is expected to close in the fourth quarter.

Shares of Marathon Petroleum Corp soared 9.2% to $59.48.

Platform Specialty Products Corp (PAH) gained 22 cents to $25.36 after the specialty-chemicals maker agreed to acquire its U.K.-based small rival Alent Plc for about $2.09 billion or £1.35 billion to expand the business in the region and reduce the inventories.

Seagate Technology Plc slipped 1.5% or 70 cents to $45.25 after the Ireland-based hard disk drives maker lowered its fourth-quarter sales forecast of about $2.9 billion from an earlier guidance between $3.2 billion and $3.3 billion and gross margin to drop to 27% from previous estimate of about 28.5%.

The company is scheduled to release its financial results for the fourth-quarter and for the year before the market opens on July 31.

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