Here's a quick overview of today's main events:
ONEOK is acquiring Brazos Midstream for $4.43 billion
Apollo is investing $9 billion in ONEOK
Aon is in talks to acquire USI Insurance for $17 billion
KKR is planning another major sale of a portfolio company
GM is investing over $1 billion in Canada
Jadian has received $277 million from Apollo
Oil prices have risen following a new escalation involving Iran
Foreign Investments
The American energy group ONEOK announced the acquisition of Brazos Midstream's natural gas assets in the Permian Basin for $4.425 billion in cash. According to a company announcement on August 30, the transaction will be facilitated by a major capital agreement with Apollo Global Management, whose funds will invest $9 billion in ONEOK in the form of a minority investment without voting rights. Approximately $5 billion of this amount is expected to be used to reduce debt. Brazos brings hundreds of kilometers of pipelines and processing capacity to one of America's most active oil-producing regions.
An even larger deal is emerging in the insurance sector. According to The Wall Street Journal, Aon is close to acquiring the American brokerage firm USI Insurance Services from the investment group KKR for approximately $17 billion, including debt. The transaction could be announced as early as Monday. KKR acquired USI along with the Canadian pension fund CDPQ in 2017 for $4.3 billion and later invested additional capital in the company. USI has annual revenues of around $3 billion and specializes in insurance, employee benefits, and risk management for mid-sized companies.
Capital is also flowing into industrial real estate. The investment platform Jadian Industrial Outdoor Storage, associated with Jadian Capital, received $277 million in funding from entities managed by Apollo Global Management, according to an announcement on August 30. The funds are intended to support further acquisitions of outdoor storage facilities used by logistics, construction, and industrial companies.
The automotive group General Motors has also confirmed a significant investment. Members of the Canadian union Unifor have approved a new collective bargaining agreement that, according to the union, will secure over $1 billion in investments for GM's facilities there. The Oshawa plant will receive $144 million for the production of a new generation of GMC Sierra pickup trucks, while the St. Catharines plant will receive $215 million for a new generation of transmissions. The company had previously announced an additional $691 million for the production of V8 engines.
Significant Events with Global Impact
Global markets entered the new week under pressure from further escalation between the United States and Iran. According to Reuters, Brent crude oil rose by more than two percent above $90 per barrel after U.S. forces attacked Iranian missile facilities near the Strait of Hormuz. American WTI was trading above $85. Higher energy prices have increased concerns that inflationary pressures will once again impact monetary policy at major central banks.
The tension was also reflected in stock markets. The Japanese Nikkei, South Korean KOSPI, and Hong Kong Hang Seng all weakened on Monday. At the same time, investors increased their bets on further increases in U.S. interest rates after Fed Chairman Kevin Warsh emphasized the need to continue fighting inflation.
gnews.cz - GH