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Frontier Communications Shareholders Approve Merger with Verizon in $38.50/Share All-Cash Deal

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Frontier Communications (NASDAQ: FYBR) announced that its shareholders have approved the acquisition by Verizon Communications Inc. (NYSE, NASDAQ: VZ) in a recent vote, with approximately 63% in favor. This merger agreement, first revealed on September 5, 2024, values Frontier at $38.50 per share in cash—a 37% premium above its pre-announcement share price. Pending regulatory approvals, the transaction is expected to close by Q1 2026. Frontier CEO Nick Jeffery expressed confidence in the combined entity’s potential to expand premium fiber services nationwide, benefiting millions more consumers through the expanded network. Frontier, the U.S.’s largest pure-play fiber provider, continues its commitment to “Building Gigabit America®,” delivering high-speed broadband connectivity to drive productivity for homes and businesses. Frontier shareholders’ positive vote and Verizon’s strategic acquisition align both companies’ goals in providing reliable, high-speed internet access to underserved areas. The forward-looking statements included in Frontier’s communication highlight factors that could impact the merger’s completion, including regulatory and shareholder approval, potential competing acquisition offers, and the transaction’s effect on business operations. As of now, the combined expertise of both companies is expected to accelerate fiber network reach and meet growing demands for high-speed connectivity across the U.S. Source: Business Wire Photo Credit: Business Wire

Air India-Vistara Merger Finalized; New Entity to Operate Over 5,600 Weekly Flights

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Air India has announced the completion of its merger with Vistara, creating a unified full-service airline that will now operate over 5,600 weekly flights across more than 90 destinations. This merger is a significant milestone for India’s aviation industry, strengthening Air India’s domestic and international presence with services on 103 domestic and 71 international routes. The integration grants Singapore Airlines a 25.1% stake in the expanded Air India. This move comes on the heels of the October 1, 2024, merger of Air India’s low-cost carriers, Air India Express and AIX Connect (formerly AirAsia India), marking the completion of Air India Group’s restructuring post-privatization. “This merger represents the end of our restructuring and consolidation phase,” remarked Campbell Wilson, CEO of Air India, who acknowledged the extensive planning and teamwork that ensured a seamless transition for customers. As part of the integration, Vistara’s final flight departed from Delhi to Singapore, marking the end of its nearly decade-long journey as a joint venture between Tata Group and Singapore Airlines. The new entity’s inaugural international flight, designated ‘AI2286,’ traveled from Doha to Mumbai, while the first domestic flight, ‘AI2984,’ linked Mumbai and Delhi. To streamline booking, former Vistara flights are now identified with the code ‘AI2XXX’ under Air India’s operations. Initially announced in November 2022, the merger follows Tata Group’s acquisition of Air India from the government in January 2022. With Air India, Vistara, and AIX Connect, the conglomerate now controls a 29% share of India’s domestic market as of September, signifying Tata’s growing influence in reshaping Indian aviation. Source: Business Times Photo Credit: Business Times

GTRI Report Urges India to Enhance Local Vaccine Production and Safety Monitoring

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India should expand its domestic vaccine manufacturing and research to ensure greater control over vaccine safety and meet public health needs, according to a recent report from the Global Trade Research Initiative (GTRI). Released on Monday, the report advocates for bolstering India’s vaccine capabilities, emphasizing that locally produced vaccines could be better tailored to the specific health requirements of India’s population. GTRI also recommended that the Indian government establish a comprehensive system to track and investigate all adverse health events following vaccinations. Such a system would not only enhance transparency but also improve public trust in future vaccine rollouts by ensuring a clear record of potential health impacts. The report gained added significance with the recent release of The Pfizer Papers: Crimes Against Humanity, a publication that has sparked international dialogue regarding vaccine safety and ethical transparency in the pharmaceutical industry. GTRI noted that this development has brought renewed attention to the importance of ethical practices and prioritizing public health over profit. Ajay Srivastava, GTRI’s founder, highlighted the potential of The Pfizer Papers insights to guide future global health strategies. “As the world prepares for future pandemics, the insights from The Pfizer Papers provide a foundation for building safer, more effective, and more trustworthy vaccination strategies,” Srivastava stated. He emphasized that the lessons learned can ensure that public health remains at the forefront of global vaccine responses, reinforcing the need for countries like India to prioritize self-sufficiency in vaccine development and safety standards. Source: Business Standard Photo Credit: Business Standard  

Air India Pilots Frustrated Ahead of Vistara Merger Over Retirement Age Discrepancy

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As Tata Group prepares to merge Air India and Vistara, a growing number of Air India pilots are reportedly dissatisfied due to differences in retirement age policies between the two airlines. While Air India mandates a retirement age of 58 for its pilots and other staff, Vistara allows its pilots to work until 60. This disparity has raised concerns about equal treatment for employees within the merged entity, as the management has yet to address this issue. The merger, set for completion on November 11, is part of Tata Group’s strategic move to consolidate its aviation interests. Although efforts were made to align salary structures and working conditions for employees across both airlines, sources say the retirement age discrepancy remains unresolved, leaving Air India pilots feeling at a disadvantage. “Air India pilots are losing out on two years of service compared to their Vistara counterparts, and with no clear resolution in sight, frustration is mounting,” said an insider who wished to remain anonymous. Under India’s Directorate General of Civil Aviation (DGCA) regulations, pilots are eligible to work up to the age of 65, providing airlines flexibility in setting retirement ages. In response to growing concerns, Air India introduced a policy in August allowing retired pilots to be re-employed on contract for up to five years, with the option of extension until 65. However, employees argue that this solution does not address the underlying disparity between the airlines. The retirement age difference adds to an existing sense of inequity, as some Air India pilots have reportedly found themselves ranked lower in the seniority list compared to less-experienced Vistara pilots in the unified seniority structure. Tata Group’s acquisition of Air India in January 2022 aimed to streamline operations, but these unresolved issues underscore the complexities of integrating two established airlines with differing policies and cultures. As the merger approaches, Air India pilots hope for a resolution that ensures fairness and equal opportunities for all employees within the combined entity. Source: thehindubusinessline Photo Credit: thehindubusinessline

Veefin Acquires GenAI Startup Walnut in Major Expansion Move

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In a strategic international expansion, digital supply chain finance platform Veefin has acquired Singapore-based GenAI startup Walnut in an all-cash deal—its fourth acquisition this year and first overseas. Known for its innovative data management solutions for banks and financial institutions, Walnut will continue operating independently post-acquisition. Veefin’s purchase of a 50% stake solidifies its footprint in GenAI, integrating Walnut’s Vegaspread technology, which rapidly converts complex financial data into actionable insights. This acquisition not only enhances Veefin’s GenAI offerings but also aligns with its mission to advance credit decisioning and working capital management for its extensive client base of over 500 global banks and institutions. Walnut’s Co-Founder & CEO, Bala Iyer, expressed excitement, noting that Walnut’s products are “a perfect fit for Veefin’s SaaS ecosystem,” as they work to expand globally and within India. Chairman Raja Debnath emphasized the importance of GenAI for Veefin’s ecosystem, pointing to the burgeoning demand for AI solutions. This acquisition follows Veefin’s recent domestic purchases, including GST compliance firm Regime Tax Solutions, tech solutions provider Nityo Infotech’s India arm, and the loan platform EpikIndifi. Veefin is well-positioned in the rapidly growing GenAI market, projected to reach $17 billion in India by 2030. Source: startupstorymedia Photo Credit: startupstorymedia  

Phibro Completes Acquisition of Zoetis’ Medicated Feed Additive Business, Expanding Animal Health Portfolio

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Phibro Animal Health Corp. has successfully acquired Zoetis Inc.’s medicated feed additive and certain water-soluble product lines, strengthening Phibro’s global animal health and nutrition portfolio. This acquisition introduces over 37 product lines used in cattle, swine, and poultry across 80 countries, backed by manufacturing facilities in the U.S., Italy, and China, and a workforce of 300 supporting operations. Jack C. Bendheim, Phibro’s chairman, president, and CEO, highlighted the strategic alignment, emphasizing that the products will enable Phibro to meet high standards in animal care, disease prevention, and nutrition. The acquisition complements Phibro’s core competencies in vaccines, nutritional specialties, and mineral nutrition, and will likely enhance Phibro’s EBITDA margin and adjusted EPS, with more financial details expected in the Q1 earnings call on November 7. Phibro COO Larry Miller called the deal a “win-win-win,” expanding solutions for customers, supporting safe and sustainable food production, and increasing revenue diversification. This acquisition provides a robust foundation for future investments in Phibro’s fast-growing animal health categories, driving long-term sustainability and growth. Source: Feed Strategy. com Photo Credit: BigStock. com

India’s M&A Activity Surges 14% in 2024’s First Nine Months, Led by Major Transactions

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India’s mergers and acquisitions (M&A) market rebounded strongly in 2024, with transactions rising by 13.8% to reach $69.2 billion in the first nine months, up from $60.8 billion in the same period in 2023. A total of 2,301 deals were executed between January and September, marking a notable increase over the 1,855 deals recorded during the same time last year, as per Bloomberg data. Leading this surge was Bharti Airtel’s acquisition of a stake in the British telecom giant BT Group for $4.08 billion, marking the largest M&A transaction in India so far this year. Other major deals included a family settlement within the Godrej Group and Gujarat Gas’s $3 billion acquisition of Gujarat State Petronet. Bhavin Shah, Partner and Leader (Private Equity and Deals) at PwC India, attributes this uptick to India’s attractive growth potential and market resilience compared to developed regions such as North America and Europe. “High GDP growth and a strong stock market in India have driven valuations upward, appealing to both domestic and foreign investors,” he noted. Interest rate fluctuations and inflation have also influenced M&A activities, as shifting financing terms and equity stakes impact transaction structures and valuations. Additionally, variations in cross-border real exchange rates have shaped global dealmaking patterns. Vishal Agarwal, Partner at Grant Thornton Bharat, observed that investors are increasingly turning to the Middle East as it focuses on capital attraction, while Western investors appear cautious toward China. Meanwhile, India remains appealing, particularly for early-stage deals and full buyouts. Private equity has played a significant role in India’s M&A landscape, with PE funds involved in transactions totaling $24.2 billion so far, reflecting an 8.9% rise over the previous year. Investors are also increasingly eyeing IPOs for growth-stage deals, viewing them as more cost-effective than private equity funding. This sustained interest in the Indian market underscores its stability and potential as a global investment hub amid shifting economic dynamics. Source: Business Standard

US Court Blocks Tapestry’s $8.5 Billion Acquisition of Capri, Marking FTC Win

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A US federal judge blocked Tapestry’s $8.5 billion acquisition of rival Capri on Thursday, delivering a major win for the Federal Trade Commission (FTC) and the Biden administration ahead of the November 5 presidential election. Rising consumer prices are a primary concern for voters, making this ruling a strategic victory for the administration. The FTC argued that merging two of the biggest US handbag and accessories brands would stifle competition, allowing the new entity to unfairly raise prices on popular brands. After an eight-day trial, US District Judge Jennifer Rochon ruled against Tapestry and Capri, rejecting the companies’ argument that handbags are nonessential and that consumers could choose not to purchase them if prices rose. Capri’s shares dropped sharply by 47% following the decision, while Tapestry shares saw a modest increase of 13% in after-market trading. The proposed acquisition would have combined six high-profile brands: Tapestry’s Coach, Kate Spade, and Stuart Weitzman with Capri’s Versace, Jimmy Choo, and Michael Kors. The FTC’s Henry Liu praised the decision as “a victory for consumers across the country seeking access to quality handbags at affordable prices.” Judge Rochon, emphasizing handbags’ significance in fashion and daily life, indicated the ruling effectively ends the merger, as the required additional FTC review would stretch beyond the deal’s February 10 termination date. Tapestry expressed disappointment, stating its belief that the merger is “pro-competitive and pro-consumer” and indicated plans to appeal. While Tapestry and Capri argued the merger was needed to combat European competitors like Gucci, the judge ruled that Capri has the resources to sustain its brands independently, deeming the merger unnecessary. This case adds a notable precedent to FTC intervention in the fashion industry, where mergers are rare due to its fragmented nature, setting a benchmark in consumer protection within accessible luxury markets. Source: Business Standard

CCI’s M&A Overhaul: Stricter Scrutiny, Faster Approvals Under New Rules

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India’s merger and acquisition (M&A) landscape has undergone a significant transformation with the recent amendments stemming from the Competition (Amendment) Act, 2023. Notified on September 9, 2024, these changes introduce stricter regulatory scrutiny while aiming to enhance ease of doing business. The new framework sets clear deal value thresholds, accelerates decision-making processes, and broadens the definition of control, aligning India’s regime with global standards. Key Highlights of the Revised M&A Framework: Deal Value Thresholds: Under the revised rules, any M&A valued above Rs 2,000 crore ($240 million) must be notified to the Competition Commission of India (CCI), provided the target has “substantial business operations” in India. This includes if the target’s Indian turnover or gross merchandise value (GMV) exceeds Rs 500 crore ($60 million) or constitutes at least 10% of global figures. Expedited Timelines: The CCI’s timeline for reviewing mergers has been shortened. The initial review period has been reduced from 30 working days to 30 calendar days, and the overall review period has been shortened from 210 to 150 days. This move promises faster clearances, benefiting businesses looking for speedier consolidation. Expanded Definition of ‘Control’: The new framework expands the definition of control to include the “ability to exercise material influence” over the management or strategic decisions of another entity. This change may bring more M&A transactions under CCI’s purview, ensuring that influential stakeholders are properly scrutinized. Exemptions for Minority Acquisitions: Acquisitions involving less than 25% of shares or voting rights that do not result in a change of control are now exempt from pre-merger notifications, easing the regulatory burden for smaller or unsolicited acquisitions. Higher Filing Fees: The filing fee for Form I has increased from Rs 20 lakh to Rs 30 lakh, while Form II fees have gone up from Rs 65 lakh to Rs 90 lakh, reflecting the more stringent review processes. Appointment of Monitoring Agencies: To ensure compliance with CCI’s orders, monitoring agencies such as accounting firms and management consultancies can be appointed. These agencies will be responsible for reporting any non-compliance with CCI directives. India’s revamped M&A regime signifies a new era of accountability, oversight, and efficiency. The introduction of deal value thresholds, expedited timelines, and enhanced exemptions point to a more sophisticated regulatory landscape. While these changes introduce additional compliance layers, they also promote transparency, making India an attractive destination for global and domestic investments. Businesses must adapt to these new rules, navigating both challenges and opportunities to benefit from the more streamlined M&A process. Source: Business Standard

M&A Surge Marks Economic Recovery as 2025 Promises Further Growth

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In a year marked by rising interest rates and a slowdown in initial public offerings (IPOs), mergers and acquisitions (M&As) have gained renewed momentum, signaling a robust recovery for 2025. According to Dealogic data, M&A deals in Brazil reached R$195 billion as of October 2024, a 56% increase compared to the same period last year, surpassing 2023’s total of R$117 billion. Notable transactions include Prio’s acquisition of the Peregrino and Pitangola oil fields, the sale of Santos Brasil’s controlling stake to France’s CMA CGM for R$6.3 billion, and Oi’s fiber broadband portfolio sold to V.tal for R$5.7 billion. The year’s largest deal so far was Auren’s acquisition of AES for $3 billion. Sectors like infrastructure and oil and gas have seen significant activity, with upcoming concessions expected to boost deal flow through year-end. Agribusiness is also contributing, as restructuring in the sector drives M&A opportunities. Anderson Brito, director at UBS BB Investment Bank, notes that private equity funds are increasingly active, while foreign investors are showing renewed interest in Brazilian acquisitions. “We’re seeing investors comfortable with Brazil’s risk,” he said. Meanwhile, Bank of America’s Diogo Aragão points out that many deals that stalled in 2023 are now moving forward, reflecting a rebound from a low base. Despite the increase in volume, activity is still below the peak years of 2021 and 2022. However, banks are optimistic about 2025, with stronger pipelines and a positive outlook, bolstered by U.S. interest rate cuts and Brazil’s credit rating upgrade. Key sectors driving M&A activity include consumer goods, retail, and infrastructure, with a strong performance expected in the first half of 2025. Source: valorinternational.globo.com