Merger and Acquisition

Barclays Plc to Acquire Tesco Plc’s Banking Business in £600 Million Deal

Published

7 months ago

February 9, 2024

Barclays Plc has announced its acquisition of Tesco Plc’s banking business in a £600 million deal.

The transaction marks Barclays’ endeavor to strengthen its presence in consumer finance and retail banking services across the United Kingdom.

According to the terms of the deal, Barclays will pay approximately £600 million upon the completion of the acquisition.

This includes the acquisition of £4.2 billion worth of credit-card receivables, £4.1 billion in unsecured personal loans, and £6.7 billion in customer deposits from Tesco Bank.

Tesco Plc, in a separate statement, revealed that it anticipates receiving around £1 billion in cash from the sale, considering the release of regulatory capital and an earlier dividend payment by Tesco Bank.

The majority of these funds are slated for a share buyback program, demonstrating Tesco’s strategic financial planning post-sale.

The acquisition, subject to regulatory approvals, is expected to conclude in the latter half of 2024. As part of the agreement, Barclays and Tesco will enter into a 10-year partnership allowing Barclays to utilize the Tesco brand for marketing and distributing credit cards, unsecured personal loans, and deposits.

Barclays’ CEO, C.S. Venkatakrishnan, expressed enthusiasm about the strategic collaboration with the UK’s largest retailer, emphasizing its potential to create new avenues for distributing unsecured lending and deposit products.

While the deal is projected to slightly impact Barclays’ common equity tier 1 ratio, the bank does not anticipate significant alterations in financial returns or shareholder distributions due to the acquisition.

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Merger and Acquisition

FBN Holdings Clarifies Merchant Banking Divestment, Retains Other Subsidiaries

Published

1 week 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

3 weeks 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.

Merger and Acquisition

Thomas Etuh and Theophilus Danjuma Acquire Notore Chemicals, Pledge Industry Transformation

Published

3 weeks ago

August 29, 2024

Samed Olukoya

Thomas Etuh, founder of Tak Agro, and Theophilus Danjuma’s TY Holdings have successfully acquired Notore Chemical Industries Plc for $150 million.

The acquisition, which includes 60 percent ownership and management control, is expected to revitalise Notore’s operations and boost Nigeria’s agricultural sector.

The deal, structured as a special placement by Kwararafa Africa Limited, follows a competitive bid process that concluded with Etuh and Danjuma taking the reins of Notore Chemicals, which is based in Onne, Rivers State.

Notore, known for producing urea, NPK, and ammonia, has been struggling financially, reporting a group loss after tax of N34.6 billion in the first quarter of 2024.

In an exclusive interview, Etuh expressed his optimism for Notore’s future under new management. “I am excited about Notore, which is a major source of raw material,” Etuh said. “Notore’s products are exportable, and the company has its own power plant and jetty. The potential we see is huge.”

Etuh highlighted that the acquisition would bring much-needed capital to overhaul Notore’s complicated process plant, with plans to commence production next year.

Currently, efforts are underway to secure gas to power turbines capable of generating 30 to 40 megawatts, some of which will be sold to local electricity distributors.

Once the plant is fully operational, the new management intends to expand production capacity over the next three to four years, including the construction of a second production train that could double output to two million tonnes of fertiliser annually.

Since the acquisition, significant management changes have been made. Seven non-executive directors and the group’s deputy managing director have resigned, making way for Etuh’s appointment as chairman and the inclusion of six new non-executive directors on the board.

Danjuma Etuh has been appointed as deputy managing director.

With this acquisition, the Etuh-Danjuma partnership aims to turn around the fortunes of Notore Chemicals and transform it into a leading force in Nigeria’s fertiliser sector.

As production ramps up, the investment is expected to not only generate profits for shareholders but also contribute to the country’s agricultural self-sufficiency by increasing the availability of fertiliser for local farmers and supporting the export market.

The acquisition of Notore Chemicals comes at a crucial time for Nigeria’s economy, where the agriculture sector plays a key role in diversification efforts.

The revitalisation of Notore is seen as a step toward ensuring a steady supply of fertiliser, which is essential for increasing crop yields and supporting food security initiatives.