When reports surfaced of Lehman Brother’s bankruptcy and the fall of Merrill Lynch, Fannie Mae and Freddie Mac in the US, it seemed like market activity had slowed. But figures released by Mergermarket show otherwise, indicating a flurry of strategic North American M&A activity.

There were 28 deals totalling US$15.4bn in the week ending on 14 September 2008. By comparison, the week before had 55 M&A deals valued at just US$4.3bn. The largest deals included Altria Group's acquisition of UST (US$11.5bn), Conoco's acquisition of Origin Energy’s coal steam gas assets (US$7.8bn), Coca-Cola’s acquisition of China Huiyuan Juice Group (US$2.4bn) and King Pharmaceuticals’ acquisition of Alpharma (US$1.2bn).

US Altria Group UST takeover US$11.5bn • Altria maintains a portfolio of leveraged and direct finance leases and as of 31 December 2007 it held a 28.6% stake in SABMiller • Equity value of the transaction is about US$10.3bn before assumption of debt. • Terms call for Altria to pay US$69.5 per share, a premium of 2.9% Bidder financial advisers: Centerview Partners, Goldman Sachs, JPMorgan Bidder legal advisers: Arnold & Porter, Hunton & Williams, Sutherland Asbill & Brennan Seller financial advisers: Citigroup, Perella Weinberg Partners Seller legal advisers: Skadden Arps Slate Meagher & Flom, Sullivan & Cromwell, Weil Gotshal & Manges (advising Citigroup)

Source: Mergermarket