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Companies & Funds

ESR take-private throws up Asia exit quandary

13 Dec 2024

A group led by US investors offered to privatise the Asian real estate fund manager for $7 bln. Hong Kong's dismal market and ESR's complex business merits the move, yet backers will find it hard to re-list. Asia offers slim pickings for regional groups with IPO dreams.

AI models’ slowdown spells end of gold rush era

13 Dec 2024

Rapid progress from building bigger systems set off a dash for data centers and chips. But progress may be slowing. Microsoft and Alphabet face less existential pressure but also new competitors, putting a question mark over the $8 trln rise in Big Tech’s market value since 2022.

Warner Bros Discovery re-enters the spin zone

12 Dec 2024

Boss David Zaslav engorged his media empire by merging with a rival’s broken-off business. Corporate restructuring sets him up to reverse the trick. A full roster of bank advisers and moves by peers imply dying TV networks are due a reshuffle. Doing so could add $20 bln of value.

Walgreens invites a Rube Goldberg buyout plan

12 Dec 2024

The flailing $8 bln drugstore would be a cheap target were it not for a $36 bln morass of debt, long-term leases and opioid liabilities. Yet a ruthless buyer could lean on cutting rents, chairman Stefano Pessina’s 17% stake and sellable bits to excavate whatever is left to save.

India tightens its crude bear hug of Russia

12 Dec 2024

Reliance is set to buy Rosneft oil worth $13 bln a year for a decade in the biggest energy deal between the countries. It helps New Delhi cut its current account gap and buy goodwill ahead of Vladimir Putin’s visit. But Moscow’s struggle to manage a flood of rupees may intensify.

Berlin can curb but not stop a Romania-TikTok mess

12 Dec 2024

The app is under scrutiny for enabling meddling in Bucharest’s elections. Given a blanket TikTok ban is beyond the EU’s remit, Germany’s February poll may go the same way. Yet Berlin could also coordinate better with tech platforms ahead of time – which Romania didn’t.

India needs more, not fewer, powerful tycoons

12 Dec 2024

US charges against Gautam Adani expose the country’s reliance on too few industrialists to meet its strategic goals. Rather than prompting a breakup of conglomerates, the saga may nudge the government to share the spoils of the $4 trln economy with a bigger group of chosen ones.

Sour grapes spill beans on squashed grocery deal

11 Dec 2024

After trying to unite for two years, Albertsons and Kroger each claimed the other broke their contract a day after US judges nixed the $25 bln merger. The blame game may well end in a stalemate. It also suggests trustbusters astutely divined a ruthlessness veiled in so much M&A.

Buyout barons’ Europe bargain hunt will intensify

11 Dec 2024

Preqin data shows that funds focusing on the region are outperforming North American ones, helped in part by a 10% valuation discount on local deals. The gap may grow as US stocks get more expensive. But for Europe it’s a sign of corporate weakness, rather than strength.

Korea’s value push is getting a much-needed spark

11 Dec 2024

President Yoon Suk Yeol's botched coup adds urgency for Seoul to curb the power of family businesses. Even before the political crisis, the KOSPI was one of the world's worst performing major stock indices. That makes $22 bln Korea Zinc's upcoming shareholding meeting a key test.

Blocked grocery mega-merger tips rolling M&A cart

10 Dec 2024

A US judge ruled Kroger’s $25 bln union with Albertsons is anticompetitive, siding with President Biden’s trustbusters. The decision further ingrains some of their bolder ideas. Dealmakers and CEOs planning shopping sprees under a new administration could use the reality check.

Hershey would be a bitter confection to swallow

10 Dec 2024

The Reese’s chocolatier may again be a takeover target for Cadbury owner Mondelez. Anti-obesity drugs and the recent Mars-Kellanova merger make the 2016 idea worth reconsidering. Financing a $50 bln deal will be tough, however, requiring dubiously huge synergies to justify.

Ashtead is out of reasons to stay in London

10 Dec 2024

The $31 bln equipment-rental group plans to shift its main listing to New York. It makes sense since most earnings come from the US. Throw in the prospect of higher CEO pay and President-elect Donald Trump’s America First stance, and the switch looks like a no-brainer.

How the world could unplug from China’s batteries

10 Dec 2024

International cell makers are struggling to compete with Chinese giants like CATL. But innovations like solid-state batteries could upend the industry in the not-too-distant future. In this week’s episode of The Big View podcast, QuantumScape CEO Siva Sivaram explains how.

Nvidia probe lets China have cake and eat it

10 Dec 2024

Beijing has started an antitrust investigation into the $3.4 trln firm. Coming after more US tech curbs on the country, the motive seems political. But Nvidia's AI chip dominance means monopoly concerns can't be dismissed. And the decision may resonate with regulators elsewhere.

A $13 bln cash sale breaks buyout doom loop

9 Dec 2024

In a tough market for M&A and IPOs, private equity shops have been recycling assets to sate anxious investors. GTCR’s deal to offload its insurance broker to Arthur J. Gallagher provides a sign that the tide may be turning. Whether animal spirits will persist is the question.

Madison Avenue’s $13 bln deal lacks creative spark

9 Dec 2024

Omnicom is buying rival Interpublic to create the largest ad network, with agencies including BBDO and McCann. Chunky savings worth nearly $6 bln help the merger stack up financially. As AI threatens to upend the industry, however, it’s hard to spin it as anything but defensive.

China cuts its private sector much-needed slack

9 Dec 2024

Crackdowns on education and other industries crushed businesses like tutoring firm New Oriental. But the $10 bln firm's recent revival shows Beijing is loosening its grip to boost consumption and create jobs. The shift will hand private giants a bigger role to reboot growth.

ANZ’s new CEO has his hands partly tied

9 Dec 2024

HSBC's ex-retail boss Nuno Matos will take charge of Australia's second-largest lender. Its subpar performance merits the outside hire. But key projects, like integrating Suncorp's bank, are far from complete. That will limit his ability to shake things up at the $60 bln group.