6 big deal reports: Microsoft-Activision likely to be greenlit by EU | Pro Recap

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Microsoft (NASDAQ:MSFT) is likely to receive approval from the European Commission for its $69 billion acquisition of Activision Blizzard (NASDAQ:ATVI) by offering licensing agreements to competitors, according to a Reuters report on Thursday.

The European Commission, which is scheduled to decide on the deal by April 25, will not require Microsoft to divest any assets to obtain approval, according to the sources familiar with the matter. Microsoft may need to provide additional measures to address concerns raised by parties other than Sony (NYSE:SONY), in addition to offering licensing agreements to competitors. These measures typically relate to the way the merged company will behave in the future.

Activision Blizzard shares rose more than 2% on Thursday following the report and closed the week with more than a 3% gain.

Broadcom (NASDAQ:AVGO) will soon receive an antitrust warning from the European Union regarding the potential anti-competitive impact of its $61B bid for VMware (NYSE:VMW), according to a Reuters report on Monday, citing people familiar with the matter. The warning is expected to be issued in the coming weeks.

In December, the European Commission opened an investigation, stating that the deal would enable Broadcom to limit competition in the market for particular hardware components that interoperate with VMware’s software.

According to the sources, the commission will articulate its concerns in a statement of objections. Following this, companies can request a closed hearing to defend their deals in front of senior commission and national competition officials, as well as rivals and the commission’s lawyers.

Broadcom is anticipated to propose remedies only after receiving the charge sheet from the EU and not beforehand, with no asset sale expected.

While the acquisition has received the green light in Brazil, South Africa, and Canada, the U.K.’s competition watchdog is scrutinizing the deal.

Both Broadcom and VMware climbed higher for the week – by 7.9% and 4.7%, respectively – on better-than-expected earnings.

Pfizer (NYSE:PFE) is exploring the possibility of acquiring Seagen (NASDAQ:SGEN) in a deal that could exceed $30B, according to a Wall Street Journal report on Monday, which cited sources familiar with the matter.

The talks are in their early stages, and the WSJ reported that there is no guarantee the acquisition will occur. Additionally, any potential transaction would likely require regulatory review and approval due to antitrust concerns.

Last year, Seagen was in advanced acquisition discussions with Pfizer’s rival Merck (NYSE:MRK), but the parties failed to reach a formal agreement.

Seagen shares jumped 10% on Monday following the report and closed the week with more than a 12% gain.

Arconic (NYSE:ARNC) shares jumped more than 19% on Tuesday after The Wall Street Journal reported that private equity firm Apollo Global Management is in talks to acquire the company, citing people familiar with the matter. They are also said to have debt financing in place.

Arconic has also contacted other potential suitors, although the report says there is no guarantee a deal will be made with any of them.

EQT Active Core Infrastructure fund together with Public Sector Pension Investment Board announced on Wednesday they had agreed to acquire Radius Global Infrastructure (NASDAQ:RADI) for $15.00 per share in cash in a transaction valued at a total enterprise value of approximately $3B.

Radius Global shares surged more than 24% this week.

OneSpan (NASDAQ:OSPN), which has become the target of activist hedge funds such as Legion Partners Asset Management, is exploring options that include a sale of the company, according to a Reuters report on Thursday.

The company is working with investment bank Evercore on a sale process that could attract interest from other companies and private equity firms, sources familiar with the matter said.

OneSpan shares closed the week with a 40% gain.