Conglomerates

Warren Buffett flaunts his green investment thumb

17 Jul 2023

Berkshire Hathaway is paying $3.3 bln for control of a liquefied natural gas facility. The conglomerate’s utilities now account for about half the conglomerate’s capex. Regulated returns help, but the Oracle’s funding devoted to energy transition should be a sign to laggards.

Samsung sees glimmer of light at end of tunnel

7 Jul 2023

The $365 bln South Korean tech titan warned that its quarterly operating profit has probably cratered 96%, thanks to a global memory-chip glut. But there are signs that prices are bottoming out. A recent artificial intelligence frenzy may also bolster demand in the year ahead.

Adani case threatens watchdog’s rising credibility

6 Jul 2023

Indian regulator Sebi has disciplined two media tycoons for alleged wrongdoing and strengthened disclosures for foreign investors. The moves fit Chair Madhabi Puri Buch’s tough reputation. But an inconclusive probe into the billionaire’s dealings could undermine recent progress.

Swire’s Coca-Cola sale gives investors sugar rush

29 Jun 2023

Handing its US drinks subsidiary to its parent for $3.9 bln allows the Hong Kong conglomerate to pay a tasty dividend, cut net debt and still run the division for a fee. It’s a sweet deal for investors, as long as property, airline Cathay Pacific and other holdings recover soon.

Capital Calls: Canada is calling Meta’s bluff

23 Jun 2023

Concise views on global finance: The Facebook owner plans to pull news on its platforms in Canada after the country passed a bill that requires internet giants pay publishers. If Australia is any guide, Meta will eventually cave.  

Masayoshi Son’s new AI push merits a pinch of salt

22 Jun 2023

The SoftBank founder said he would place further bets on artificial intelligence after taking a pause. Some of his investments may pay off. But Arm is his only real AI win from a $112 bln portfolio, his credibility has taken a knock, and his war chest is smaller than it looks.

GoTo’s new CEO has one key job: bring stability

9 Jun 2023

Patrick Walujo is replacing Andre Soelistyo atop the $10 bln Indonesian superapp. The private equity boss may want to more closely knit together GoTo’s disparate businesses. But after several high-level changes, cost cuts and stake sales, providing a steady hand comes first.

Toshiba gives shareholder management masterclass

9 Jun 2023

The Japanese company is recommending a $14 bln buyout two-and-a-half months after first supporting it. The deft way its board eventually handled the process provides a template for Japan Inc to engage pushy owners. Point one: don’t automatically treat shareholders as the enemy.

Warren Buffett – he invests just like us!

7 Jun 2023

The Nebraskan billionaire has come to embody the idea of buying and holding for the long-term. It’s true where Berkshire Hathaway acquisitions like See’s Candies are concerned. When it comes to sizeable equity stakes such as TSMC, however, he can be as fickle as anyone else.

Gautam Adani’s fundraisings offer multiple tests

16 May 2023

His companies are preparing to tap capital markets for some $3 bln, three months after a short attack succeeded in obliterating $120 bln and 50% off his group’s value. It will test the Indian conglomerate’s reputation, his attitude to public equity, and the besieged regulator.

Ambani’s finance listing will measure disruption

11 May 2023

The fledgling venture mostly comprises a 6% stake in $200 bln parent Reliance. Yet it may be floated as soon as September. It’s easier to spin out than the conglomerate’s digital and retail businesses. How it’s valued will signal whether investors reckon he can shake up lending.

Omaha man sails into Florida’s imperfect storm

9 May 2023

Hurricane Ian’s $50 bln of covered wreckage last year forced insurers in the state to offload risk. At the same time, the price of doing so has been rising. In classic Warren Buffett style, his Berkshire Hathaway justifiably forecasts sun where others see dark financial clouds.

Buffett’s imprint on Berkshire reaches its limit

8 May 2023

The billionaire again made clear that energy lieutenant Greg Abel will someday be the company’s next CEO. By bequeathing his stock to the Bill and Melinda Gates Foundation and others, Buffett has outlined ownership succession too. Even those best-laid plans leave notable holes.

Private equity is the new fuel for India’s tycoons

3 May 2023

Big conglomerates Reliance, Tata and Bharti are putting more skin in the game by looking to outside shareholders including tech giants and sovereign funds to finance new ventures. It heralds a shift from debt to equity, and towards better governance at the expense of lenders.

Capital Calls: Inflation gets sticky

12 Apr 2023

Concise views on global finance: US inflation is increasingly coming from non-essential goods’ prices that rarely drop. That’s a bad sign for Americans since it signals a longer battle against price hikes and even higher interest rates.

Alibaba hands parched dealmakers a glass half-full

30 Mar 2023

The $250 bln e-commerce giant’s six-way split will prompt bankers to dust off pitchbooks for peers like Tencent and Baidu, too. The bold can spread the net wider to carmakers and more. With M&A and other fees in a slump, it’s the best chance in a while to drum up business.

Jack Ma is Beijing’s prodigal entrepreneur

28 Mar 2023

The Alibaba founder is back in China, prompting an ephemeral Alibaba stock rally. His rehabilitation appears part of an official campaign to revive business confidence, and has a whiff of desperation. It highlights Beijing's love-hate relationship with the private sector.

Perfection is enemy of $15 bln Toshiba buyout

24 Mar 2023

A group led by Japan Industrial Partners will offer less than two times what foreign activists paid per share to bail out the firm in 2017. It’s not the dream deal outsiders hoped for, but markets are uneasy and geopolitics fast-changing. If it goes through, it’ll be a win.

Bolloré buyback delays possible Vivendi M&A action

15 Mar 2023

The French tycoon’s eponymous holding company is buying back 10% of its shares, potentially boosting the family’s control. The outlay drains cash that could have been used to boost its stake in media group Vivendi. But that’s still a logical endpoint for Bolloré and his children.

Adani contrarian is a win for Hindenburg, too

3 Mar 2023

GQG’s $1.9 bln investment is a fillip for the tycoon. But shares of his firms are close to the short-seller’s target. And a court has ordered India’s securities watchdog to probe its allegations. Even if cleared, Adani may struggle to secure the backing of mainstream financiers.