M & A

K+S: fertiliser manufacturer acquires Chinese rival

The salt and fertiliser manufacturer K+S has further strengthened its position with another acquisition. For a euro amount in the low double-digit millions range the company is acquiring the activities of Huludao Magpower Fertilizers Co., Ltd. The Kassel-based company, which last year fended off a hostile bid from its Canadian rival Potash, recently spoke of an "important step in our expansion into Asia". According to K+S, Magpower is among the leading manufacturers of synthetic magnesium sulphate (SMS), which is used as a fertiliser for oil palms, and soybeans.

Infineon goes shopping again

Germany's largest semi-conductor manufacturer has further strengthened its position in the US, with CEO Reinhard Ploss agreeing to pay USD 850 million – approximately EUR 765 million – for its rival Wolfspeed Power. Wolfspeed Power is currently owned by the LED producer Cree. "The business activities and know-how of Wolfspeed and Infineon are highly complementary," said Ploss in July. Both companies produce power management chips. This is not the first time that Ploss has gone shopping on the other side of the pond. Infineon will fund the deal with bank financing of USD 720 million. In the twelve months to the end of March 2016 Wolfspeed generated revenues of USD 173 million (EUR 155 million), Infineon disclosed recently. For comparison purposes: Infineon posted first quarter revenue of EUR 1.6 billion. In a press release, Infineon said that the transaction would be immediately accretive to the company's margin and adjusted earnings-per-share. The deal is expected to be closed by the end of 2016.