EMEA

CVC may have guard rails against choppy IPO waters

20 Oct 2023

The European buyout firm is prepping a float valued at over 10 bln euros. Market jitters make it an odd time to do so. Yet securing a share-based M&A currency may matter as much as the IPO price, and the buyers could be sovereign funds that can live with post-listing price dips.

German auto ram-raid warrants careful driving

20 Oct 2023

Schaeffler is buying car-parts maker Vitesco, both controlled by the same family, for $4 bln. Minority shareholders can choose between a low price now or an uncertain future in a conglomerate. Schaeffler can probably get away with its smash and grab, but it might backfire later.

Gaza turmoil’s repercussions extend far and wide

19 Oct 2023

Among other consequences, Israel’s new war complicates the path to friendlier relations between itself and Saudi Arabia. In this Viewsroom podcast, Breakingviews columnists discuss the possible scenarios for the region, but also its implications for the US government.

Capital Calls: Merck aims at targeted cancer drugs

19 Oct 2023

Concise views on global finance: Merck’s giant deal for rights to three Daiichi therapies, which could be worth up to $22 bln, illustrates the frenzy around drugs that can deliver toxins directly into cancerous cells. A stampede into the area may lead to lower returns.

Israel’s fossil fuel boon becomes less clear-cut

19 Oct 2023

The country’s rapidly rising gas exports were billed as a way to replace 10% of the Russian supplies lost by Europe. UAE oil giant ADNOC has also bid to buy local fossil fuel assets amid improving relations with the Gulf state. Israel’s war with Hamas complicates both objectives.

EU-US steel unity may come at a high cost

19 Oct 2023

Europe could soon join the United States in whacking tariffs on other alloy producers. EU leaders and Joe Biden may want to shield firms like ArcelorMittal from Chinese imports. But helping the 130 bln euro industry could weaken global trade rules, and the bloc’s climate policy.

Capital Calls: P&G’s pricing power

18 Oct 2023

Concise views on global finance: The $350 bln maker of Pampers diapers and Pantene shampoo charged another 7% more on average for its stable of products, but it can afford to keep squeezing shoppers because of the $1.1 trln Americans have in the bank.

Banks’ wealth-management heyday may have passed

18 Oct 2023

Morgan Stanley, UBS and others focused on catering to rich people after the 2008 crisis, as asset prices soared and regulation hit their traditional businesses. Now, falling fees and rising rates imply slower growth. The silver lining is that smaller players will struggle more.

European payments LBO would be rewarding but messy

18 Oct 2023

CVC may bid for Milan-listed Nexi, Bloomberg reported. A $16 bln buyout could earn handsome returns, even if the group just performs as analysts expect. But Nexi’s private-equity shareholders like Hellman & Friedman know this, forcing buyers to either cough up or bring them in.

UK infrastructure fix is cheaper than it looks

18 Oct 2023

Britain should spend up to 80 bln pounds a year revamping its economy, government advisers say. The private sector has to do most of the heavy lifting, but the state can assist. Offering tax relief to businesses that invest will help – and cost less than Downing Street fears.

Saudi is wild card in Middle East’s new turmoil

18 Oct 2023

War in Israel complicates Crown Prince Mohammed bin Salman’s modernisation push. He must consider the oil market, rivalry with Iran, overseas investment, and the views of 32 mln citizens. How the Gulf’s biggest economy proceeds has big implications for the region – and the world.

Stars align for hard-nosed private equity M&A

17 Oct 2023

French investor Wendel is buying London-based rival IK Partners for $404 mln. Consolidation between buyout barons is rare but will become more common as firms sweat to raise funds. The cheap price on this deal shows it’s a good time to be a buyer.

Macquarie’s Norse saga sends telco breakup warning

17 Oct 2023

The Australian firm is mulling options for Danish operator TDC. A lengthy plan to separate its network from its consumer business left both units burdened by debt amid intense competition, which could deter buyers. Others looking to split, like Telecom Italia, may think twice.

Globalisation woes create new winners and losers

17 Oct 2023

After peaking at 61% of world GDP in 2008, trade is falling due to tariffs, industrial policies and geopolitical strife. That means higher wages and production costs for companies, and more inflation for consumers. Yet some countries, commodities and workers stand to gain.

Putin and Xi’s strengthening bond has a weakness

17 Oct 2023

The Russian president’s expected meeting with his Chinese peer re-ups their “no-limits” friendship. Beijing is gorging on cheap crude and sending goods to its sanctions-hit neighbour. However, the thriving $190 bln bilateral trade is eroding Moscow’s economic sovereignty.

Capital Calls: Starboard vs. Murdoch

16 Oct 2023

Concise views on global finance: The investment fund wants the publisher of the Wall Street Journal to spin off its real estate assets a year after another activist agitated for a similar move.

Poland’s warmer EU ties may come with frozen funds

16 Oct 2023

Centre-left leader Donald Tusk is likely to be the new PM after Sunday’s election. Ending the nationalists’ rule will bring closer relations with Brussels. But to release 35 bln euros in EU aid, the new government will still have to get past right-wing President Andrzej Duda.

US grand strategy can prop up the global order

16 Oct 2023

The horror in Israel and Gaza is a new blow to a fragile world. But the United States can prevent the rules-based order from collapsing by continuing to steer a steady course with regards to Russia and China. The biggest risk would be the return of Donald Trump as president.

Capital Calls: BlackRock, Dollar General

13 Oct 2023

Concise views on global finance: Boss Larry Fink squares off with Uncle Sam; Dollar General bets on its ex-boss’s old magic.

Staley-Epstein probe goes too easy on Barclays

12 Oct 2023

A UK watchdog fined the bank’s old boss $2 mln for ‘misleading statements’ over his ties to the late sex offender. Barclays escapes blame despite naïvely taking Jes Staley’s account on faith. The troubling message is that boards needn’t challenge scandal-hit CEOs too hard.