DealZone

Japan’s Nippon Steel and Sumitomo Metal plan to merge to create the world’s second-largest steelmaker in an effort to fend off tough competition from Asian rivals and offset shrinking demand from domestic automakers.

Sanofi-Aventis could announce a deal to buy Genzyme early next week if final negotiations between the companies go smoothly, Le Figaro reported.

The quote of the day goes to Infineon’s CEO explaining why the chipmaker is not at risk of a hostile takeover. “We are more of a shark and the others are the goldfish,” he told reporters.

Nomura is evolving into a global investment bank, even if it doesn’t yet look like one, writes columnist John Foley.

The usual flurry of brokerage firm traders seeking to join hedge funds after the payout of annual bonuses could be more of a blizzard this year, with compensation shrinking on Wall Street and a regulatory crackdown in the offing.

A break-up sale could be looming for niche auto designer and producer Pininfarina SpA, creator of almost every Ferrari sportscar since the early 1950s.

Expect to see bolt-on acquisitions in construction services and materials firms across Europe as the industry heats up.

News Corp may have to raise its BSkyB bid as much as 20 percent as its 7-month-old offer gets tied down in a phone-hacking scandal that may undermine the deal. The deal will likely overshadow the company’s quarterly earnings, which are due after the market closes on Wednesday.

Russian companies could have mere weeks to seize a short window to launch IPOs as investor confidence remains fragile and the state mulls a privatization plan that could swamp capital markets.

“If anyone needs proof the tech sector has entered extra-frothy, double-latte territory, it’s best to look past the immense valuations discussed for Groupon or Facebook,” reports The Wall Street Journal.

Shares of coal miner Massey Energy surged in trading on Monday, the first trading day after rival Alpha Natural Resources agreed to buy it in a $7 billion deal.

AMB Property Corp has struck a deal to buy rival ProLogis for $5.7 billion in stock, combining the two largest U.S. owners of warehouse and distribution centers around the world in one of the biggest real-estate deals since the financial crisis.

U.S. biotechnology company Genzyme Corp and French drugmaker Sanofi-Aventis SA have reached an agreement in principle on the outlines of a merger deal, sources familiar with the situation said on Monday. Earlier in the day, the two companies said they had entered into a nondisclosure agreement, allowing Genzyme to open its books to Sanofi.

Investors have written to BHP Billiton and Rio Tinto to say the miners should ditch ambitions for mega deals in favor of multi-billion pound share buyback schemes, The Sunday Telegraph reported.

Dealmaking is back on the agenda as CEOs step up the hunt for ways to put a multitrillion-dollar cash pile to work, triggering the busiest January for M&A in 11 years.

If ProLogis and AMB Property’s recently announced talks on a “merger of equals” pan out, AMB Property is likely to be the real buyer and ProLogis the target, investors and Wall Street analysts said.

Sara Lee plans to split into two separate public companies focusing on North American meats and international coffee after takeover bids it received were not enough to entice it to sell the company.

There’s a new swagger among the bosses of emerging market companies as they sign checks for a growing list of acquisitions in both the developed and developing world. And this is just the start.

Strong demand for broadband and high-definition TV lifted first-half profits at bid target BSkyB by 26 percent, increasing pressure on Rupert Murdoch‘s News Corp to secure its takeover deal without delay.

Veteran banker John Kanas gets to cash in big time on one of the most profitable bank buyouts in years when BankUnited goes public on Thursday. Kanas’ expected profits are in stark contrast to the FDIC’s losses from BankUnited.

Nielsen’s IPO raised more than expected and could set the tone for a rush of big private equity-backed IPOs anticipated in 2011.

Rupert Murdoch has opted to travel to London instead of Davos as News Corp’s $12.5 billion bid for British satellite broadcaster BSkyB hangs in the balance, two sources familiar with his plans said.

Icahn Enterprises extended its tender offer to buy Dynegy, a day after the power producer said it did not receive any competing bids to top Carl Icahn’s $665 million takeover offer.

BlackRock reported a big jump in fourth-quarter profit and revenue, topping analysts’ estimates. With markets on an upswing, the $3.6 trillion behemoth created when Chief Executive Laurence Fink bought Barclays’s investment unit for $15 billion just over a year ago finally appears to be paying off for investors.

Cross border deals are providing an opportunity for boutique investment banks to shine, reports NYT.

“An unusual burst of trading ahead of a $3.5 billion takeover for cardboard box maker Smurfit-Stone Container Corp left some analysts remarking on the timing,” reports WSJ.

Warner Music Group is looking for potential buyers and Goldman Sachs is advising on the process, a source familiar with the matter said.

Rumbles of shareholder dissent show drugmaker Sanofi-Aventis is walking a tightrope as it enters the endgame in its drawn-out bid for biotech Genzyme.

A group of companies led by Brazilian beef processor JBS has arranged a financing package to bid for all or parts of Sara Lee, a source with direct knowledge of the situation told Reuters.

Morgan Stanley’s surge in fourth-quarter profit indicates its strategy of diversifying its businesses to reduce a reliance on traditional investment banking operations may be paying off.

Wendy’s/Arby’s Group plans to sell its struggling Arby’s roast beef sandwich chain to focus on the Wendy’s hamburger business. The move comes at a time when other fast-food companies are trying to shed assets or even sell themselves.

The Carlyle Group’s back-to-back sell-downs worth $2.6 billion of China Pacific Insurance, put the U.S. buyout fund on course for its best exit ever.