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Petroleum industry

Major Corporate Deals and Bankruptcies: A Comprehensive Analysis

Strategic Insights

— 2 min read

Electronic Boutique Holdings Corp. has announced its plans to acquire Funco Inc. for $110 million, or $17.50 a share, in a deal expected to close this spring. This acquisition combines two video game retailers, focusing on complementary businesses. Electronics Boutique operates 628 stores, generating $728.7 million in sales in its fiscal year ended January 29, while Funco has 400 stores and had $206.7 million in sales last year. The companies plan to keep Funco's stores under their existing name. Exxon Mobil Corp. has agreed to sell its gas-marketing unit, Mobil Europe Gas Inc., to Duke Energy International, while Bayer Corp. has completed the purchase of Lyondell Chemical Co.'s polyols business for $2.45 billion. Additionally, Anadarko Petroleum Corp. is buying Union Pacific Resources Group Inc. in a $4.4 billion stock swap, and Mattel Inc. is putting its money-losing Learning Company division up for sale.

Key Takeaways:

  • The acquisition of Funco Inc. by Electronics Boutique Holdings Corp. will create a video game retailer with a strong presence in regional shopping malls and strip malls, combining two complementary businesses.
  • The transaction will see Funco's stores operating under their existing name, and the combined company will benefit from the complementary strengths of both businesses.
  • Exxon Mobil Corp. is selling its gas-marketing unit, Mobil Europe Gas Inc., to Duke Energy International, pending approval from the European Commission.
  • Bayer Corp. has completed the purchase of Lyondell Chemical Co.'s polyols business for $2.45 billion, making it the world's largest producer of polyurethane raw material.
  • Anadarko Petroleum Corp. is buying Union Pacific Resources Group Inc. in a $4.4 billion stock swap, creating one of the largest independent oil and gas exploration and production companies.
  • Mattel Inc. is putting its money-losing Learning Company division up for sale, citing the need to shed the burdensome software unit that led to significant losses and debt.
  • The unsecured creditors of Iridium LLC have won court approval to file a $2 billion lawsuit on the company's behalf against its principal backer, Motorola Inc.

Statistics:

  • The acquisition of Funco Inc. by Electronics Boutique Holdings Corp. is valued at $110 million, with Electronics Boutique offering $17.50 per Funco share.
  • Electronics Boutique operates 628 stores, generating $728.7 million in sales in its fiscal year ended January 29.
  • Funco has 400 stores, and had $206.7 million in sales last year.
  • Bayer Corp.'s purchase of Lyondell Chemical Co.'s polyols business is valued at $2.45 billion.
  • Anadarko Petroleum Corp.'s acquisition of Union Pacific Resources Group Inc. is valued at $4.4 billion.
  • Mattel Inc.'s Learning Company division had losses of $206 million in 1999.
  • The unsecured creditors of Iridium LLC are seeking to file a $2 billion lawsuit against Motorola Inc.

Sources:

  • The Morning Call, Electronics Boutique to buy Funco for $110 million
  • The Morning Call, Exxon sells European gas unit
  • The Morning Call, Bayer completes purchase of Lyondell Chemical's polyols business
  • The Morning Call, Anadarko buying Union Pacific Resources for $4.4 billion
  • The Morning Call, Mattel puts Learning Co. up for sale
  • The Morning Call, Iridium creditors win lawsuit approval

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