Merger and Acquisition

FTC Files Order in US Court to Restrain Microsoft From Acquiring Blizzard

The Federal Trade Commission (FTC) has filed an order in a U.S. court to restrain Microsoft’s proposed $69 billion acquisition of Activision Blizzard from going through.

Published

1 year ago

June 13, 2023

Investors King

The Federal Trade Commission (FTC) has filed an order in a U.S. court to restrain Microsoft’s proposed $69 billion acquisition of Activision Blizzard from going through.

The FTC’s recent filing is coming after it had filed a legal challenge in December last year to block Microsoft’s acquisition of Activision Blizzard and is now seeking a temporary restraining order and injunction from a US Federal District Court.

The 34-page lawsuit filed by the FTC, reads in part, “Both a temporary restraining order and a preliminary injunction are necessary because Microsoft and Activision have represented that they may consummate the proposed acquisition at any time without any further notice to the commission.

“A preliminary injunction is necessary to maintain the status quo and prevent interim harm to competition during the pendency of the FTC’s administrative proceeding to determine whether the proposed acquisition violates U.S antitrust law. A temporary restraining order is necessary to maintain the status quo while this court decides whether to grant the requested preliminary injunction”.

Reports reveal that the FTC filed for an injunction in an attempt to halt the deal before the July 18 deadline, as it is concerned Microsoft may be preparing to close its acquisition regardless of the block. It is understood that European regulators have given the deal a go-ahead last month, which suggests that Microsoft could continue with its acquisition despite an injunction in the U.S. preventing the deal from closing.

Following the filing, the US judge will now need to decide on issuing a temporary restraining order to restrict Microsoft from closing the deal for two weeks and a preliminary injunction that would prevent Microsoft from closing until the result of the FTC legal challenge. An evidentiary hearing is scheduled for August 2nd, shortly after Microsoft’s appeal hearing is scheduled.

Investors King understands that if the FTC’s injunction is unsuccessful, Microsoft will not hesitate to fast-track the deal

Speaking on the lawsuit filed by the FTC, Activision Blizzard CEO Bobby Kotick emailed his employees Monday, describing the FTC’s action as “a positive development in our merger process.” Moving the case to federal court “accelerates the legal process,” he wrote, noting that the company’s excellent legal team has been, preparing for this move for more than a year.

Kotick suggests the merger will support its hundreds of millions of players, protect American workers, increase shareholder value, and enable the two companies to more effectively compete against the global competitors that dominate the video game industry around the world.

Why is the FTC Against Microsoft From Acquiring Blizzard

It is a well-known fact that Microsoft and Sony control the market for high-performance video game consoles. The number of independent companies capable of developing standout video games for those consoles has contracted, with only a small group of firms commanding that space today.

Microsoft now proposes to acquire Activision, one of the most valuable of those developers, in a vertical merger valued at nearly $70 billion that will increase Microsoft’s already considerable power in video games. Therefore, the FTC suggests that if the deal goes through, would give the computer giant an unfair advantage over rivals.

With control of Activision’s content, Microsoft would have the ability and increased incentive to withhold or degrade Activision’s content in ways that substantially lessen competition- including competition on product quality, price, and innovation. This loss of competition according to the FTC, would likely result in significant harm to consumers in multiple markets at a pivotal time for the industry.

Meanwhile, Microsoft insists that taking over Activision would be advantageous for both the gaming industry and gamers and has even offered to put its name to a legal document that promises the availability of games like Call of Duty to other consoles for a decade.

Up Next

IBM Poised to Expand Software Empire with $5 Billion Apptio Acquisition

Don't Miss

Nigerian Breweries Mulls Acquisition of 80% Shareholding in Distell Wines and Spirits

Investors King

Comments

Merger and Acquisition

Flour Mills Receives Regulatory Approval for Minority Shareholder Buyout

Published

3 weeks ago

September 26, 2024

Bassey Marshall

The Flour Mills of Nigeria Plc (FMN) has perfected plans to buy out minority shareholders to focus on strengthening its position as the future of African food businesses.

Boye Olusanya, the group managing director, stated that the company has received approval from the Nigerian Exchange Limited (NGX) and the Securities and Exchange Commission (SEC) to proceed with the purchase.

FMN disclosed on Tuesday that the buyout would be executed through a scheme of arrangement, supervised by relevant regulatory bodies.

According to Olusanya, this move aligns with FMN’s goal to become the leading Pan-African food business, improving its ability to innovate and grow, while focusing on long-term value for stakeholders.

He said the buyout would enhance FMN’s operational efficiency and decision-making agility.

The company plans to apply to the Federal High Court for approval to convene a shareholders’ meeting, where the resolution to buy out minority shareholders will be discussed.

Olusanya said the resolution would pass if at least 75% of shareholders, either in person or by proxy, approve it at the Court-Ordered Meeting (COM). FMN’s board has already recommended the offer to shareholders, citing the buyout’s potential advantages for innovation and sustainable growth.

Merger and Acquisition

FBN Holdings Clarifies Merchant Banking Divestment, Retains Other Subsidiaries

Published

1 month ago

September 11, 2024

Samed Olukoya

FBN Holdings has sought to clarify the recent divestment from its Merchant Banking business.

According to the lender, all its businesses and entities apart from the Merchant Banking business are not included in the divestment deal.

It said, “We wish to clarify that all other entities and businesses listed below are not included in the divestment, and they remain subsidiaries of FBNH and are well integrated into the Group’s strategic focus.”

The subsidiaries are FBNQuest Capital Limited, FBNQuest Asset Management Limited, FBNQuest Trustees Limited, FBNQuest Funds Limited, and FBNQuest Securities Limited.

“We reiterate that the divestment pertains solely to FBNQuest Merchant Bank Limited, with no impact on the continued operations or strategic positioning of our other subsidiaries within the Group,” the bank stated in a release signed by Adewale L.O. Arogundade, Acting Company Secretary.

Merger and Acquisition

Aradel Energy Seals $16M Acquisition of Olo and Olo West Marginal Fields

Published

2 months ago

August 30, 2024

Samed Olukoya

Aradel Holdings Plc, an indigenous energy company, has announced the successful acquisition of a 100 percent interest in the Olo and Olo West marginal fields, located in the Eastern Niger Delta, through its subsidiary, Aradel Energy Limited.

The deal, which was completed in collaboration with TotalEnergies EP Nigeria and the Nigerian National Petroleum Company Limited (NNPC), is valued at $16 million, with an additional $3.5 million in deferred and conditional payments.

The Olo and Olo West Fields were formerly part of Oil Mining Lease (OML) 58, and the acquisition marks a significant milestone in Aradel’s strategic plan for growth in Nigeria’s oil and gas sector.

The deal is a major step towards enhancing energy security and bolstering Aradel’s commitment to providing sustainable energy solutions that drive economic development.

In a statement on Thursday, Aradel confirmed that the necessary regulatory processes are underway for the issuance of the Petroleum Mining Lease (for Olo) and the Petroleum Prospecting License (for Olo West).

This will follow the payment of relevant ministerial consent fees and the completion of the field development plans within designated timelines.

Aradel’s Chief Executive Officer and Managing Director, Adegbite Falade, expressed enthusiasm over the acquisition, emphasizing its importance in advancing the company’s vision of promoting energy security in Nigeria.

“The addition of Olo and Olo West marginal fields to Aradel’s portfolio is a significant inorganic growth milestone in furtherance of our long-term strategy to provide sustainable energy solutions that support economic growth,” Falade said.

Falade also praised the collaboration between the Ministers of Petroleum Resources and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for their support throughout the acquisition process.

He acknowledged the role of NNPC and TotalEnergies in facilitating the deal, highlighting their commitment to boosting Nigeria’s oil and gas production from marginal fields.

Marginal fields are oil or gas fields that have been discovered but left unattended for a decade or more.

Their development is seen as a crucial opportunity for indigenous companies like Aradel to step in and maximize Nigeria’s untapped energy resources.

Olo and Olo West, located 80 kilometers northwest of Port Harcourt, hold considerable potential for increasing Nigeria’s oil output.

Falade noted that the acquisition aligns with Aradel’s ambition to pursue both organic and inorganic growth in the energy sector.

He reiterated that Aradel is dedicated to expanding its footprint in Nigeria’s energy industry, and this transaction reflects the company’s ongoing efforts to achieve that goal.

The acquisition is particularly significant in light of Nigeria’s ongoing push for self-sufficiency in energy production.

The government has encouraged private sector investments in marginal fields as part of its broader efforts to increase the country’s oil and gas output, reduce reliance on imports, and create job opportunities for Nigerians.

Aradel’s acquisition of the Olo and Olo West fields underscores the company’s resolve to be a key player in the country’s energy future.

As the fields move towards development and production, Aradel will be playing a critical role in advancing Nigeria’s energy sector and contributing to the nation’s overall economic stability.

The energy firm has built a reputation for its innovative and responsible approach to energy production, and the Olo and Olo West acquisition is expected to further cement Aradel’s standing in the industry.