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Market Update

Petrobras Asset Sale to Raise $8 B, Playtech to Buy Plus500

Author: Nigel Thomas
Last Update: 11:01 AM ET June 01 2015

4:00 PM Frankfurt – British American Tobacco agreed to acquire TDR for €550 million. Petrobras plans to divest part of its assets in the Gulf of Mexico to rise $8 billion. British government reduced its stake in Lloyds Banking by another 19%. Playtech agreed to acquire Plus500 for £460 million.

In London trading, FTSE 100 index fell 0.3% or 20.97 to 6,963.53 and in Frankfurt the DAX index rose 0.2% or 19.06 to 11,432.88.

In Paris, CAC 40 index gained 0.5% or 27.89 to 5,035.78.

British American Tobacco Plc rose 0.3% to 3,617 pence after the U.K.-based tobacco products maker agreed to acquire cigarette manufacturer TDR d.o.o. and other tobacco and retail assets from Croatia-based Adris Grupa d.d. for €550 million or $600 million and expand in Croatia, Bosnia and Serbia.

The transaction is expected to close in October.

Petroleo Brasileiro Petrobras SA jumped 2.1% to 12.59 Brazilian real after the Brazil-based integrated oil and gas producer intends to sell some of its assets in the Gulf of Mexico to raise $8 billion, reported local Brazilian newspaper, Folha de S. Paulo.

The divestment is a part of planed assets sale worth $13.7 billion by the end of this year.

Holcim Ltd fell 0.5% to 73.75 Swiss francs and the Switzerland-based cement maker launched public offerings for all shares of France-based Lafarge SA at an exchange ratio of 9 Holcim shares for every 10 Lafarge shares held.

The exchange offer will be open for 25 trading days up to July 3.

Holcim received clearance from the Autorité des Marchés Financiers on May 28.

The merger process is expected to close in July.

Lloyds Banking Group Plc gained 1.2% to 88.83 pence after the British finance ministry reduced its stake in the bank by another 18.99% and reduce from its current stake of 39% in the troubled bank.

Playtech Plc fell 0.4% to 827 pence after the Isle of Man-based online gaming software supplier agreed to acquire retail forex trading company Plus500 for about £459.6 million or $703.52 million in cash to strengthen the position in online trading platform business.

Under the terms, shareholders of Plus500 will receive 400 pence in cash per share.

Ultra Electronics Holdings Plc jumped 2.7% to 1,880 pence after the U.K.-based defense and security contractor plans to acquire Kratos Defense and Security Solutions'' U.S. and U.K. electronics operations unit for $265 million in cash.

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