Notable Mergers and Acquisitions of the Day 6/24: SNP, AAUK, CSR, PEP

June 24, 2009 9:38 AM EDT

• Asia's largest oil company Sinopec (NYSE: SNP) agreed to acquire Addax Petroleum Corporation, one of the largest independent oil producers in West Africa, for $7.2 billion in cash.
  
  Sinopec said the acquisition of Addax is "transformational." Sinopec said the acquisition will help it "achieve its strategic objective to build a stronger presence and operations in West Africa and Iraq, accelerating its international growth strategy as well as optimizing its offshore oil and gas asset portfolio."
  
  The deal marks China's aggressive push into West Africa and the Middle East. Addax Petroleum is one of the largest independent oil producers in West Africa and also has a strong presence in the Middle East. The company has increased its crude oil production from an average of 8.8 Mbbl/d for 1998 to an average of 134.7 Mbbl/d for the first quarter of 2009.
  
  
• Xstrata said it "remains convinced of the undeniable logic of a merger of equals" with Anglo American plc (Nasdaq: AAUK).
  
  Xstrata said it will continue to seek to engage Anglo American about a combination.
  
  Earlier in the week, Anglo American rejected the proposal from Xstrata calling in "unattractive."
  
  
• China Security & Surveillance Technology (NYSE: CSR) announced it has signed a letter of intent to purchase 100% ownership in Santachi Video Technology Co., Ltd, a leading security solutions provider for highways and railways in China for approximately $21.9 million. Completion of the transaction is subject to negotiation of a definitive equity transfer agreement that will be subject to a number of closing conditions, including regulatory approval.
  
  In addition to its leading position in highway and railway security, Santachi has also won various key government projects including Safe City projects throughout China.
  
  
• PepsiCo (NYSE: PEP) announced today that it will form a strategic alliance with Calbee Foods Company to jointly produce and sell a wide range of food products in Japan, such as potato chips, vegetable snacks, breakfast cereal and prawn crackers.
  
  The agreement was approved today by shareholders of Calbee, Japan's largest snack company. Under the agreement, PepsiCo will contribute its Frito-Lay Japan business plus an undisclosed amount of cash to Calbee. Calbee in turn will issue new stock to PepsiCo, which will result in PepsiCo owning 20 percent of the expanded company and having a seat on the Calbee board of directors. Together, the businesses currently generate annual revenues of approximately $1.4 billion. The strategic alliance is subject to approval of Japanese government authority.
  
  Click here for the full report.

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