M&A at ASML
ASML Holding NV (ADR) (NASDAQ:ASML) is in the spotlight after agreeing to purchase Taiwanese company Hermes Microvision for 100 billion New Taiwan dollars ($3.1 billion). The acquisition is just the latest M&A deal in the consolidating semiconductor industry and should help ASML realize better margins with its existing business. ASML will finance part of the deal with debt and the transaction is expected to close in the fourth quarter. The number of funds tracked by us with holdings in ASML Holding NV (ADR) (NASDAQ:ASML) fell by one quarter-over-quarter to eight at the end of March.
M&A Deal Among Two Leading Energy Independents
Devon Energy Corp (NYSE:DVN) has pulled the trigger on the sale of a combined $858 million in non-core assets, with $435 million of those assets going to fellow independent, Pioneer Natural Resources (NYSE:PXD). According to the terms of the deal, Pioneer will acquire around 28,000 net acres in the Midland Basin for $435 million, subject to normal closing adjustments. Current net production in the acreage is around 1,000 BOE per day, with oil comprising around 70% of production. The vast majority of acreage is held by production. Following the transaction, Pioneer expects to increase its horizontal rig count to 17 rigs from 12 in Northern Spraberry/Wolfcamp and to raise its 2016 capex by $100 million to $2.1 billion. For 2017, Pioneer expects production growth ranging from 13% to 17% year-over-year. Devon now expects fiscal year 2016 upstream capex of $1.1 billion to $1.3 billion and full year production from core assets of 540,000-560,000 BOE per day, up $200 million and 7,000 BOE respectively from the previous guidance. Shares are Devon are up by 2%, while shares of Pioneer are down by 3% in the pre-market. Overall, 58 investors tracked by Insider Monkey had a long position in Devon Energy Corp (NYSE:DVN), while 61 funds were bullish on Pioneer Natural Resources (NYSE:PXD) at the end of March.