EU Deals Face Growing Scrutiny and New Bids

The European Commission is examining Paramount Skydance Corp's proposed $110 billion takeover of Warner Bros Discovery under the EU Foreign Subsidies Regulation. The review focuses on whether foreign state support backing the transaction might distort competition in the European Union.

The deal is supported by several Gulf sovereign wealth investors, including Saudi Arabia's Public Investment Fund, Abu Dhabi-based L'imad Holding Company, and Qatar Investment Authority. These backers provide significant financial firepower to the buyer group.

Under the current timetable, the Commission must decide by July 14 whether to clear the transaction at this stage or to open a full-scale, 90 working day in-depth investigation. The acquisition is also being assessed under the EU's standard merger control rules.

UniCredit (UCGm) has reported further progress in its voluntary exchange offer for Commerzbank (CBKd), with acceptances reaching about 10.9% of Commerzbank's share capital. This level of tenders increases UniCredit's overall holding in Commerzbank to roughly 37.7%.

When including derivatives positions that can be settled through the delivery of Commerzbank shares, UniCredit's economic interest rises to about 40.9%. The bank has said that its other derivatives are intended to hedge downside risks on its Commerzbank exposure.

Commerzbank has challenged the reported take-up of the offer, stating it has not identified a single institutional investor that has tendered shares. The German lender has asked financial regulator BaFin to review the acceptance data, arguing that tendering appears uneconomic while the offer's implied value is below prevailing market prices.

Irish energy distributor DCC has signalled that it would support a revised takeover approach from a consortium led by KKR and Energy Capital Partners if a formal bid is made. The indicative proposal values DCC at about £5.7 billion.

The sweetened offer comprises cash consideration of £65.25 per share, in addition to DCC's proposed final dividend of 147.22 pence per share. Following the new proposal, DCC's shares rose to £62 apiece.

The deadline for the consortium to submit a firm offer has been extended to July 8, giving the bidders more time to finalise terms. DCC's stated willingness to support the revised proposal underscores ongoing strategic interest in the company from private equity buyers.