Here are five things you must know for Monday, April 30:
1. -- Wall Street Points Higher
U.S. stock futures were rising Monday, April 30, as Wall Street processed a mega-merger between Sprint Corp. (S) and T-Mobile US Inc. (TMUS) and as Walmart Inc. (WMT) said it would sell its supermarket business in the U.K.
Contracts tied to the Dow Jones Industrial Average
The U.S. economic calendar on Monday includes Personal Income and Outlays for March at 8:30 a.m. ET. Later in the week, the Federal Reserve will make an announcement on interest rates and the Labor Department will release the jobs report for April.
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2. -- Sprint Slides After Agreeing to $26.5 Billion Merger With T-Mobile
Shares of Sprint fell 12.6% in premarket trading to $5.68 on Monday, suggesting investors may be cautiously approaching the company's proposed $26.5 billion merger with T-Mobile amid concerns regulators could block a deal that would reduce competition in the country's wireless network space.
Sprint was valued at $6.62 a share in the blockbuster deal with T-Mobile, based on a ratio of 0.10256 a Sprint share for each T-Mobile US share, which the companies said was based on Friday's closing prices of $6.50 and $64.52, respectively. However, Bloomberg said the ratios were based on April 9 closing levels, suggesting the tie-up values Sprint at $6.12 a share.
The proposed deal will certainly face scrutiny from both the Federal Communications Commission and the U.S. Department of Justice, the latter of which rejected T-Mobile's $39 billion sale to AT&T Inc. (T) in 2011.
"This isn't a case of going from four to three wireless companies," T-Mobile CEO John Legere, who is tabbed to lead the combined company, insisted on a conference call Sunday, April 29. "There are now at least seven or eight big competitors in this converging market."
- Sprint Slides as Investors Await Regulators' Reply to $26 Billion T-Mobile Deal
- Sprint and T-Mobile Boards Agree on Blockbuster Merger
3. -- Walmart Sells Its U.K. Supermarket Business
J Sainsbury PLC (JSAIY) agreed to buy Walmart Inc.'s U.K. unit, Asda Group Ltd., for £7.3 billion ($10.1 billion) in cash-and-stock in a deal that will create Britain's largest supermarket chain.
The deal would mark a major change in strategy for Walmart in the United Kingdom after years of declining market share.
Walmart will own 42% of the combined company, and will receive a cash payment of £2.975 billion that ultimately values Asda, the third of the so-called "Big Four" U.K. supermarkets, at £7.3 billion . A combined Sainsbury's and Asda will have annual revenue of around £51 billion, the companies said, with 2,800 stores and 47 million customer transactions per week.
"This is a transformational opportunity to create a new force in U.K. retail, which will be more competitive and give customers more of what they want now and in the future," said Sainsbury's CEO Mike Coupe. "It will create a business that is more dynamic, more adaptable, more resilient and an even bigger contributor to the U.K. economy."
The merger combines the U.K.'s second- and third-largest supermarket chains, giving the combined company 31.4% of the market and putting it ahead of the current leader, Tesco PLC (TSCDY) , which has 27.6%, according to data from Kantar Worldpanel.
4. -- Marathon Petroleum to Buy Andeavor
The Wall Street Journal had reported the deal could be announced on Monday.
Under the deal, Andeavor shareholders can choose 1.87 shares of Marathon Petroleum stock, or $152.27 in cash, which represents a premium of 24.4% to Andeavor's closing price on Friday of $122.38.
Marathon is the second-largest refiner in the U.S., according to its website. Andeavor, formerly known as Tesoro, operates 10 refineries in the western U.S. with total capacity of more than 1.2 million barrels a day.
5. -- Prologis Buys Rival DCT for $8.4 Billion
The deal values DCT at $67.91 a share. The stock closed Friday at $58.75.
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