Antitrust

Sainsbury’s and Walmart test UK merger taboo

28 Apr 2018

Britain’s second- and third-largest grocers plan to merge, with Asda’s U.S. parent as the junior partner. Joining forces is a logical response to the threat from Amazon and rival Tesco’s tie-up with wholesaler Booker. Still, it’s an audacious challenge to competition authorities.

Qualcomm’s future stuck on slow boat to China

16 Apr 2018

The chipmaker’s strategy depends heavily on closing its $44 bln NXP deal. A possible trade war leaves Chinese regulators in no mood to approve the U.S. company’s purchase, though. Qualcomm does have one bright spot: its long-running spat with Apple may be coming to a head.

Hadas: Monopsony money

5 Apr 2018

In theory, single-buyer markets can squeeze suppliers as much as single-seller monopolies hurt buyers. But enhanced employer power doesn’t always hurt workers, and labour monopsonies are only one of many reasons for slow U.S. pay gains. Oligopolies should be a bigger worry.

Guest View: Why the government will lose to AT&T

23 Mar 2018

The U.S. Department of Justice is tuning in to old channels in its case against the telephone company's Time Warner deal, argues a former Federal Communications Commission chief economist. The Trump administration has crocheted a quilt lacking awareness of historical pattern.

Dealmakers contend with a boom being chipped away

14 Mar 2018

M&A practitioners gathering in New Orleans can toast the strongest start to a year since AOL and Time Warner connected in 2000. The annual conclave also coincides with the demise of Broadcom's $117 bln bid for Qualcomm. It raises prickly issues and also hints at cyclical excess.

What’s Time Warner worth?

13 Mar 2018

AT&T's $85 billion bid for the media group is in limbo - but Time Warner may be better off without it. Run the numbers.

Time Warner may do better without AT&T

13 Mar 2018

The broadcast group and HBO owner is in limbo while telecom giant AT&T prepares to fight U.S. watchdogs over its $85 bln bid. If there’s even a 50 pct chance the deal happens, a Breakingviews analysis suggests Time Warner could be worth significantly more than the market thinks.

Disney’s Sky choices: bid, barter or back down

6 Mar 2018

Comcast’s swoop on the British broadcaster puts the U.S. group’s $52 bln tie-up with Rupert Murdoch’s Fox at risk. CEO Bob Iger can enter a bidding war he may lose, offer U.S. assets in exchange, or give up on Sky. The third option is most logical, but hard to sell to Murdoch.

Comcast’s $31 bln Sky bid spoils Disney-Fox party

27 Feb 2018

The U.S. cable group is offering 12.50 pounds per share in cash for the UK broadcaster controlled by Rupert Murdoch. That complicates the mogul’s plan to sell his entertainment assets to Disney boss Bob Iger. Murdoch must enter a bidding war for Sky or re-think the broader deal.

Broadcom’s next sweetener: a bigger breakup fee

14 Feb 2018

The chipmaker's increased $120 bln-plus offer for Qualcomm has finally persuaded its quarry to talk. But the $8 bln of insurance Broadcom is offering in case antitrust regulators in Beijing or Washington block the deal probably isn't enough. History may justify twice as much.

Comcast hints at tense second season for Fox bids

12 Feb 2018

The cable firm could try to thwart media giant Disney’s $52.4 bln purchase of parts of Rupert Murdoch’s empire. Antitrust and family politics would hinder a reprise of Comcast’s $60 bln offer for now, but Disney may yet have to raise its game.

Broadcom ups difficulty level for Qualcomm owners

5 Feb 2018

The chipmaker has raised its hostile bid to more than $120 bln. The merger is no more likely to pass antitrust review unscathed, though. And because Qualcomm’s owners would get roughly a quarter of the combined company, Broadcom’s overpayment becomes a serious risk for them.

Rupert Murdoch’s next foe: Sky hedge fund holdouts

25 Jan 2018

The tycoon’s Fox looks set to deflect regulators’ objections to his bid for UK TV group Sky. But hedge funds could block the deal. The deep pockets of Disney, soon to own Fox, and the hope that cheaper soccer rights will boost Sky’s profit may stir them to seek a higher price.

EU makes Qualcomm bid more attractive, less likely

24 Jan 2018

Regulators fined the company $1.2 bln for paying Apple not to buy chips from its rivals. Such levies reduce Qualcomm’s potential profitability, and make a $105 bln bid from rival Broadcom more alluring. Yet it suggests trustbusters may look askance at the combined firm’s power.

Murdoch’s Sky bid will ride out regulatory storm

23 Jan 2018

The UK competition authority said Fox’s offer for the broadcaster would give Chairman Rupert Murdoch excessive media clout. It may yet call for the deal to be blocked. But Disney’s bid for Fox alters the dynamics. Ring-fencing Sky News could allow the media mogul to get his way.

EssilorLuxottica succession blur needs clearing up

18 Dec 2017

The Italian glasses maker set to merge with France’s Essilor has replaced its CEO. New boss Francesco Milleri may succeed founder Leonardo Del Vecchio as head of the combined firm. Yet the French seem less certain. The lack of clarity could complicate an already tricky merger.

M&A friction limits EU single-market opportunity

13 Dec 2017

Two Spanish ministries are interfering in a 16.5 bln euro Italian bid for local toll-road group Abertis. France and Italy similarly meddled in recent cross-border deals within the euro zone. Building scale isn’t proving as borderless as proponents of EU champions would like.

Hadas: The mystery of lost competition

6 Dec 2017

The U.S. tax cut is expected to boost corporate earnings but not lower prices or raise wages. That implies there’s too much tacit collusion for basic economic theory to work as designed. Limited price competition is great for shareholder value, but bad for the economy.

Sky investors choose between profit and principles

12 Oct 2017

Chairman James Murdoch faces a backlash over concerns about his independence as Twenty-First Century Fox, which he runs, tries to buy the UK pay-TV group. Shareholders have legitimate corporate-governance grievances. But financially they’d be better off with Murdoch’s money.

Google clears deck for huge antitrust fight

27 Sep 2017

The company is separating its European shopping unit and allowing rivals to bid for ads. That solves one problem it has with watchdogs while minimizing losses and continuing an appeal. It also frees up Google to battle the EU over claims it uses Android to dominate online search.