Asia-Pacific

Japan can afford to keep quiet on 7-Eleven bid

27 Aug 2024

Convenience stores play a special role in the country, so the government must approve any takeover of parent Seven & i by Canada’s Couche-Tard. A veto would undercut an official governance push. Still, the bidder must clear big hurdles before it puts politicians on the spot.

China steel woes will recast miners’ M&A desires

27 Aug 2024

Buying copper-heavy Anglo American would have helped BHP CEO Mike Henry reduce the $140 bln miner's dependence on iron ore. With the steel industry facing a "harsh winter", deals must look ever-more appealing to BHP, Rio and others. But stock price drops make tie-ups more costly.

KKR bank sale will gauge India’s fee-paying power

26 Aug 2024

The sponsor is looking for a buyer for Avendus, an investment bank rising up league tables and advising on hot deals, possibly including Swiggy's $1.2 bln IPO. It's a good time to push a sale of the tech sector's banker of choice after an earlier attempt to offload it stalled.

China’s big ball of money has nowhere else to go

23 Aug 2024

Beijing's warnings slowed a rush into government debt sparked by moribund stocks and falling home prices. With US rates set to fall, investing more abroad would be an option if it weren't for capital controls. Unless they're relaxed, the bond-buying frenzy is likely to restart.

Cheap labour fuels India’s newest e-commerce boom

23 Aug 2024

Quick commerce, which promises deliveries of everything from milk to phones in 10 minutes, is growing five times as fast as traditional groceries. That's due to an army of low-earning workers. Amazon and Reliance want in but the market will be tough for new entrants to crack.

AIA loosens tight Chinese purse strings

22 Aug 2024

The $70 bln insurer reported a 25% increase in new business value in the first half, led by rapid growth in mainland China. Demand for the group's savings products is driving sales as the economy sputters. AIA's aggressive expansion onshore is paying off.

China’s PwC slap may yet pack a punch

22 Aug 2024

The auditor may get a record fine and a six-month ban for its role in the Evergrande scandal, per the FT. It'll sting, but won't kill the business. Yet hobbling a big foreign player can speed up Beijing's push to have domestic accounting firms take on a more prominent role.

Walmart’s JD sale displays derisking smarts

21 Aug 2024

The US retail giant has offloaded the stake held in its Chinese partner since 2016 for $3.6 bln. With 400 stores of its own in the People’s Republic, Walmart isn’t leaving. But the move reduces its exposure to a shifting economy and may put a cap on JD’s stock price turnaround.

Price may be Couche-Tard’s lowest Seven & i hurdle

21 Aug 2024

The Canadian suitor may be able to cut enough costs to offer a 40% premium for its rival, valuing it at $59 bln. But antitrust concerns might require selling some US assets. And the target's status in Japan as a quasi-national asset will complicate attempts to seal a deal.

Missing Chinese spenders deal Macau a losing hand

20 Aug 2024

Mainlanders are tightening their purse strings amidst a sluggish economy and preferring to stay closer to home. That’s weighing on the $23 bln casino enclave and companies such as SJM and Sands, which are relying on middle-class holidaymakers for a long drawn-out Covid recovery.

Bharti sets strange tone for India’s global push

20 Aug 2024

Tycoon Sunil Bharti Mittal's purchase of a $4 bln stake in BT suggests he sees better use for his capital in a mature UK firm than in India's fast-growing economy. New Delhi may be encouraging firms to go overseas; unfortunately, the first big buy in years barely looks rational.

Couche-Tard may find 7-Eleven bid more convenient

19 Aug 2024

The Circle K owner’s preliminary offer sent shares of the retailer’s $38 bln Japanese parent Seven & i up. The target is plotting its own rejig, with support of activist ValueAct. But fair M&A guidelines ensure the bidder a warmer initial reception than the one it got in France.

China’s ammo export curb is more a green defence

19 Aug 2024

Beijing is restricting overseas sales of antimony, a metalloid it dominates production of that's also a key ingredient for weapons. Realpolitik alone would explain it. But the People’s Republic also needs the supply-constrained element for its rapid production of solar panels.

Alibaba and JD reveal two ways to cope in downturn

16 Aug 2024

China's $190 bln e-commerce group relies on ad sales and is betting on new tech for a turnaround. Its rival sells to shoppers and is focusing on supply chains to boost earnings. The diverging fortunes rest on who spends more: cash-strapped firms or cost-conscious consumers.

Short seller sharpens a divide in India’s market

16 Aug 2024

Hindenburg Research says Madhabi Puri Buch’s past stake in an Adani-linked fund makes the chair of the securities regulator unfit to probe the tycoon’s empire; her response kept stocks calm. Locally, she is seen as tough. Outsiders watching the saga will be more sceptical.

Apple begins delicate dance with Tencent in China

15 Aug 2024

The iPhone-maker wants a share of revenue from games played on the $450 bln tech giant's WeChat platform. For Apple boss Tim Cook, it's a lucrative opportunity as handset sales cool. Yet if the US company pushes too hard, it may jeopardise its hard-earned appeal in China.

Swire can afford to be optimistic about China

15 Aug 2024

The Anglo-Asian conglomerate is doubling down on airline and property investments in the country while others de-risk. While its options to diversify appear limited, $11 bln Swire Pacific is outperforming peers. Plus Beijing finally has a reason to embrace the trading house.

India convincingly overcomes its IPO demons

14 Aug 2024

Cautious pricing is paying off. E-bike maker Ola surged on its debut and e-commerce platform Brainbees jumped 46%. The success by the unprofitable SoftBank-backed firms clears the way for big deals that will help the country retain Asia's IPO crown as other venues falter.

Hong Kong faces China’s other consumption slump

14 Aug 2024

Spending is weak on the mainland, but retail sales in the financial hub have fallen for four months in a row. That's due to a double whammy of locals and tourists buying less. The city's once resilient landlords are cutting dividends - an ominous sign of more pain to come.

China bond frenzy puts central bank in quandary

13 Aug 2024

Beijing is meddling in the market to stop long-term yields plunging even though strong demand for safe-haven government debt reduces the cost of borrowing more. Trouble is, the PBOC is worried about excessive speculation and other risks. That leaves it facing an uphill battle.