China offers escape hatch for Hong Kong tycoons 28 Nov 2024 The $200 bln China Mobile is eyeing assets in the financial hub. Beijing's push for deeper integration between Hong Kong and the mainland plus beaten down valuations mean other state giants can bargain hunt too. Family-owned business like Li Ka-shing's ports may all be in play.
Nissan and Honda would drive better together 28 Nov 2024 An emergency overhaul won’t lift profitability much at Renault’s $9 bln alliance partner. And $40 bln Honda’s autos unit is subpar. Merging Japan’s second- and third-largest carmakers would give scope to cut costs, boost earnings and invest more efficiently in EVs and other tech.
Aviva can put its foot down with Direct Line 28 Nov 2024 The $16 bln UK insurer has had a $4 bln approach for its smaller rival rebuffed. Boss Amanda Blanc has scope to turbocharge the offer and still make an acceptable return. That makes it more likely that she goes over the heads of Direct Line’s management if they don’t engage.
European pharma’s growth prescription: pivot to US 28 Nov 2024 Novartis, Novo Nordisk and regional rivals lost $86 bln in value over concerns about tariffs and other possible measures by President-elect Donald Trump. Stateside M&A and manufacturing moves could ease the pain and boost revenue. But hopping across the pond will mean paying up.
Adani charges highlight broader India solar risks 28 Nov 2024 US fraud allegations against the billionaire revolve around him trying to sell expensive power. That may have been the result of high costs, falling tariffs, competition and bureaucracy that hit all players. The industry has stabilised – for now – but returns have been falling.
Starbucks coffee in China is better served to-go 27 Nov 2024 New boss Brian Niccol has a geographical dilemma. Crazy concoctions are flustering US baristas while Chinese customers want more new beverages. He’s better off focusing on the home market and spinning off the second-biggest business. It’s probably only worth about $7 bln anyway.
Big Tech’s Irish grip is immune to election shocks 27 Nov 2024 Sinn Féin wants Ireland to ditch its centre-right coalition. If their hard-left policies win, it would give the likes of Google a fright. But with a cadre of multinationals providing 60% of corporate tax receipts, policy will continue to be weighted towards them regardless.
Indian business may learn wrong lesson from Adani 27 Nov 2024 US corruption charges against tycoon Gautam Adani have cast a shadow over Narendra Modi’s war on graft. The prime minister has made progress. But rather than spurring a cleanup in the $4 trln economy, the saga might just make its capitalists warier of tapping global markets.
Tycoons’ odd telco bets mask a greater logic 26 Nov 2024 In recent years high-profile, rich investors like Carlos Slim have snapped up stakes in the likes of $19 bln BT. These haven’t always yielded juicy returns, nor prompted strategic shifts. But as a bet on much-needed consolidation, they may yet end up looking smart.
Italian bank M&A circus risks sidelining investors 26 Nov 2024 Andrea Orcel’s UniCredit offered 10 bln euros for Banco BPM, irking Rome and potentially eliciting a rival swoop from the target’s 9.2% owner Crédit Agricole. Meanwhile BPM may launch its own bid for Monte dei Paschi. The risk is that shareholder interests get lost in the noise.
Mining M&A makes a mockery of windfall taxes 26 Nov 2024 Anglo American has just joined BHP and others disposing of coal assets in securing a cut from new owners if the fossil fuel's price soars. It's savvy but also breezily undercuts their objections to governments pulling similar tricks to reduce costs for consumers.
An $11 bln concrete deal is about unset options 25 Nov 2024 Quikrete is buying building materials peer Summit at a so-so multiple, despite a rush of subsidy-bolstered US construction. If the pace keeps up amid easing interest rates, it’s smart vertical integration. If a new Trump era wrecks that forecast, there are obvious units to sell.
UniCredit boss’ 3D chess M&A game could backfire 25 Nov 2024 Andrea Orcel’s bank offered 10 bln euros for Italian rival Banco BPM months after a raid on Germany’s Commerzbank. Both deals make sense, and having options may boost his negotiating power. But hostile moves can harden opposition, and UniCredit risks looking desperate for a deal.
Adani presents India with big financing ultimatum 25 Nov 2024 US criminal charges against Chair Gautam Adani pose broad risks for the conglomerate. Though it can service its $31 bln debt for a few years, global banks may recall loans and refuse hedging contracts. New Delhi can nudge local lenders to step up, but support will come at a cost.
Nvidia’s next move is to hit the road 22 Nov 2024 The $3.5 trln chipmaker gleans only 1% of sales from carmakers. Yet the unit grew 72% in the third quarter, a similar pace to rival Qualcomm. Stuffing silicon into cars could be a $140 bln market by 2028 and a crucial diversifier from relying on a few colossal data center buyers.
Dish deal collapse would torch massive windfalls 22 Nov 2024 DirecTV ended plans to buy its satellite rival as owner Charlie Ergen refuses to haggle with bondholders balking over a $1.5 bln discount. He’ll be stuck with $10 bln of debt, creditors get left on shaky ground and synergies worth $8 bln vanish in an epic lose-lose-lose.
Adani’s US woes put TotalEnergies on the spot 22 Nov 2024 The $137 bln French group has 20% of Adani Green Energy. Gautam Adani’s US bribery charges present a different challenge to those faced by TotalEnergies in Iran in 2018. But they complicate CEO Patrick Pouyanné’s plans to expand in a key growth market.
Russian gas to Europe is on the slow road to zero 22 Nov 2024 The slim possibility of a Trump-brokered end to Moscow’s war with Ukraine raises the question of whether the European Union would ever buy more of its fossil fuels. Yet EU reliance on Russian pipeline gas is set to fall further. Moreover, Europe doesn’t need it.
Hong Kong regains some lustre amid China’s gloom 22 Nov 2024 Top mainland officials made a rare appearance alongside CEOs like David Solomon at a conference in the city. It's a sign Beijing will lean on Hong Kong more to tap global capital and navigate looming US tariffs. Potential market reforms could benefit the finance hub, too.
Europe’s Starlink-lite is a worthwhile also-ran 21 Nov 2024 EU satellite players like Eutelsat are debt-laden minnows compared to Elon Musk’s SpaceX-owned behemoth. But given Starlink now owns more than 60% of all working satellites, Europe has to start somewhere. Investors shouldn’t count on galactic returns, though.