Week in Review: Shuanghui, Meeker, and Banking Crises

Whether it was the Memorial Day holiday, or the hangover from last week’s deal frenzy, M&A seemed fairly quiet this week. Probably the biggest story was Shuanghui’s acquisition of Smithfield Foods for $4.7 billion. If approved, the deal would make history as the largest Chinese takeover of an American company. The existing record is the $4.2 billion acquisition of AIG.

In other news, Yahoo’s buying spree continues with a bid for Hulu, the Empire State Building is going public, and we may be in store for another banking crisis.

Shuanghui International buys Smithfield Foods for $4.7 Billion: Attention all moo shu pork lovers — Shuanghui International announced on Wednesday it plans to acquire Smithfield Foods for $4.7 billion. The deal, which is pending review by the CFIUS, would rank as the largest Chinese takeover of an American company.

Yahoo’s Bid for Hulu in $600M-$800M Range: Yahoo is looking to make another acquisition. Yes, another. Supposedly the internet giant plans to make a bid for Hulu. The exact price depends on the nature of the deal. How much cash is Yahoo sitting on?

Facebook Acquisition Talks with Waze Fall Apart: After months of negotiations and a possible $1 billion price tag, an acquisition of Waze by Facebook seems unlikely. Apparently the two sides could not agree on a few post-close factors, namely where the primarily-Israeli Waze team would be headquartered. Good news for Google.

Mary Meeker’s 2013 Internet Trends: A major takeaway from Mary Meeker’s annual presentation was the growth of mobile users. Apparently there are over 1.5 billion of them — representing a 30% growth from last year — and roughly 15% of internet traffic is sourced from mobiles. The rise may be bad news because apparently no one has a clue how to value a mobile business. You can see her full presentation here.

Are We at Risk of Another Banking Crisis? According to Anat Admati, professor at Stanford’s GSB, we are at risk of another banking crisis. Because banks are so intertwined and indebted to one another, when one struggles, the shockwave can be enormous. Her suggested fix: greater reliance on equity funding.

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Encore Consumer Capital is a private equity investment firm with nearly $400 million in committed capital that is focused exclusively on making investments in the food and consumer packaged goods industry. The firm partners with leading consumer products companies to utilize its own consumer experience and the expertise of its operating partners at Encore Associates, a leading strategic advisory firm to the consumer products industry, to accelerate their growth.

Encore’s consumer focus includes sectors such as food & beverage, personal care, household products, pet products, private label, contract manufacturing, food ingredients and foodservice products. Companies typically have revenue of $10 million – $100 million and have a history of strong performance, attractive growth prospects, and sustainable competitive advantages. The firm has been a Member of Axial since 2011.

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