As forecast, the higher central banks raise interest rates, the lower the Merger and Acquisition trend… which hit record highs during the COVID war when interest rates sank and governments pumped in countless trillions to artificially prop up sinking economies. 

Now M&A activity has slowed to a trickle as we have continued to detail… here are the latest ones.

APOLLO NEARS PURCHASE OF MANUFACTURER ARCONIC

Apollo Global Management is finalizing its purchase of Arconic Corp., which makes parts for aerospace, auto, building, and energy companies, The Wall Street Journal reported.

The deal, which we first flagged in “Apollo Wants to Buy Arconic” (7 Mar 2023), would value the parts maker at $30 a share, or around $3 billion, according to people familiar. 

The stock closed at $22.55 on 3 May.

Apollo had shown interest in Arconic in 2018 and came close to buying it then for $10 billion. The negotiations ultimately were unsuccessful.

Apollo made another bid for Arconic in February. Arconic then went shopping for better offers among other buyers but is now ready to turn itself over to Apollo.

Apollo’s partner in the deal is Irenic Capital Management, which is headed by Adam Katz, a noted activist shareholder.

Elliott Capital Management bought a stake in Arconic in 2017 when Katz was an Elliott executive. From that position, Katz led a shareholder insurrection that forced out Arconic’s CEO and reshuffled the board’s membership.

DARDEN RESTAURANTS ADDS ANOTHER BRAND TO ITS PORTFOLIO

Darden, which owns the Longhorn Steakhouse, Olive Garden, and Seasons 52 restaurant chains, has agreed to buy Ruth’s Hospitality for $21.50 a share in an all-cash deal worth $715 million.

Ruth’s Hospitality owns Ruth’s Chris Steak House, a 154-location chain of eateries employing about 5,000 workers across the U.S., Canada, and Mexico.

Ruth’s share price closed at $21.48 on 3 May, while Darden’s fell a fraction to $151.47.

Darden said the acquisition would create $5 million to $10 million in synergies between the organizations in the first year of the merger and as much as $20 million thereafter.