With SunEdison failing to consummate the deal, Vivint Solar Inc. has said that it has terminated an agreement with the said company under which it would have acquired SunEdison Inc., a solar energy company.
 
The cash-and-stock deal was announced last July was worth $2.2 billion at the time of its announcement had faced a volley of flak from investors and hedge funds as SunEdison’s finances and share price had weakened substantially.
 
With the information hitting the news circuits, SunEdison shares shot up by 41% to $2.68 in premarket trading. Vivint's shares showed little movement and stood at $5.20.
 
Vivint has now disclosed that it intends to "seek all legal remedies available" as a result of the "willful breach" of the merger agreement by SunEdison.
 
"We believe both companies will be better off on their own," wrote analysts from Cowen and Co in a note to clients while noting that U.S. lawmakers had extended solar investment tax credits beyond 2016, which are designed to breathe new life into the industry.
 
Analysts have noted that the Vivint deal, which was set to expire on March 18, is likely to add more than the breakup fee of $34 million to SunEdison’s liabilities.
 
SunEdison was not immediately available for comment.
 
The company has faced a growing criticism of gobbling down more than it could chew. SunEdison has been trying to grow too quickly using the M&A route for acquisitions it just could not afford. With a market value of $600 million, SunEdison has a long-term debt of $9.77 billion as of Sept. 30 Furthermore, on March 1 it has said that it will delay the filing of its annual report citing an internal investigation into its financial position.
 

In the series of divestment taking places in the wake of Anheuser-Busch InBev’s acquisition of SABMiller, China Resources Beer will now buy SABMiller’s $1.6 billion stake in its China Resources Snow Breweries venture. The sale of the 49% stake will help AB-InBev get regulatory approval from Beijing.
 
This deal is godsend for the Chinese-state backed company as the asking price was much lower than it expected it to be, thus sending its shares soaring by a quarter in value.
 
As per Jeremy Yeo, an analyst with Mizuho Securities Asia, the price of $1.6 billion was significantly low than the market expectation of $3 to 3.5 billion.
 
Additionally, this deal will now give China Resources Beer (Holdings) Co Ltd, 100% control over Snow, which happens to be the world’s top selling beer company by volume.
 
"This news, in itself is positive for CR Beer's shareholders, from the standpoint of better-than-expected potential near-term EPS accretion," wrote Yeo in a note to clients.
 
The Snow deal is obviously contingent of the AB InBev-SAB Miller deal going through. The Snow deal will position China Resources as the largest brewer in the country with a market share of 30%. China Resources Beer has disclosed that the AB InBev deal is in the processing of being settled, using a combination of funding options including debt and/or equity options.
 
With this news reaching the markets, shares of China Resources Beer surged by 25% to their five year high, regaining lost grounds after the stock was dropped from the main constituents in the Hang Seng Index following a regular review by the index compiler.
 
"The deal will definitely bring in some positive impact to the company, both in enhancing its market share and prospects in the local beer industry," said Leung, sales director at UOB Kay Hian, Hong Kong. He went to add that the deal came much earlier than was expected.
 
As per data from Euromonitor, China Resources had captured 23.3% of the Chinese beer market with Tsingtao Brewery coming in second at 18.4%, in 2014.
 
Last April, China Resources Enterprise became China Resources Beer after selling its non-beer related assets to China Resources (Holdings) Co., a controlling shareholder, for $3.6 billion.
 
As per its statement, China Resources Snow Breweries had a net asset value of HK$27.2 billion ($3.5 billion) at the end of last year. Its net profits had fallen by 21% to HK$1.51 billion in 2014 in comparison to the previous year.