Consumer Products and Services

China’s DJI performs impressive fundraising stunts

10 Apr 2018

The drone-maker is requiring investors who want to buy equity at a $15 bln valuation to provide an accompanying interest-free, three-year loan. Such terms suggest DJI is soaring above many struggling gadget companies. It's also the latest evidence of breathtaking tech heights.

Aston Martin can race Ferrari in IPO test

9 Apr 2018

James Bond’s carmaker is eyeing a listing six years after an emergency pit stop. Rich margins and racy growth make it a close match for the prancing horse, justifying a $7bln valuation, and sixfold return for rescuer Andrea Bonomi. But Ferrari’s scarcity premium could be dented.

Canines chase cars, except in case of eHi’s buyout

9 Apr 2018

The Chinese auto-rental agency has been a dog since its IPO in 2014. While travel is growing in the People’s Republic, that hasn’t translated into a robust business. Still, compared to similar species like Car Inc, eHi's public owners will be fortunate to exit free of bite marks.

Carlyle uncorks a fine Australian wine deal

6 Apr 2018

The private equity firm is acquiring Accolade, maker of Hardys and other brands, for A$1 bln. Asian demand should leave ample room for growth. Higher Chinese tariffs on U.S. wine also could help. And a cheap valuation compared to rival Treasury makes it a buyout worth toasting.

Samsung is poster child for the “Korea discount”

6 Apr 2018

First-quarter operating profit is likely to rise a blistering 58 pct to $15 bln. Yet Samsung’s shares look cheap, even allowing for challenges ahead in semiconductors. The best fix would be to build on the baby steps it has already taken to improve corporate governance.

Chinese visitors can hit nerve tariffs don’t reach

5 Apr 2018

Levies on imports will slow the flow of TVs and medical devices into the United States. They could also thin the already-falling influx of tourists from China. America collects more from them than from all its exports of soybeans, and that number could pass $50 bln by 2022.

Smucker places a risky bet on dogs

5 Apr 2018

The Jif peanut-butter maker is moving deeper into the pet-food aisle by buying the maker of Rachael Ray pet food for $1.9 bln. Premium pet-food sales are growing fast, but the modest returns on this high-priced deal may not justify the debt. Smucker may find itself on a PB&J diet.

Meituan deal sets pace in Chinese bicycle-sharing

4 Apr 2018

The food-delivering, ticket-booking, ride-sharing app is buying Mobike for $2.7 bln. Given the competitive and cash-burning realities, investors should be relieved at the sale. For rival Ofo, which just raised nearly $900 mln more from Alibaba and others, the riding gets tougher.

Spotify and its direct listing win popular vote

3 Apr 2018

The music service earned a stonking $29 bln valuation in its early moments as a public company. Its non-traditional float scored insiders more liquidity, while saving on fees. Was it a real success, either for the company or for its unusual method? Ask this time next year.

China’s soybean trade card is difficult to play

3 Apr 2018

New tariffs target $3 billion worth of U.S. imports. But they don’t touch a big American pressure point: soybeans. This first round is a warning shot, to be sure. But retaliating against this commodity would hurt Chinese farmers and consumers, so Beijing might save it for last.

China’s business culture sabotages its art culture

29 Mar 2018

Art Basel’s Hong Kong fair kicked off on Thursday. Mainland sales rose 14 pct to $13.2 bln in 2017; exhibitors hope enthusiasm will prove contagious. But Chinese art prices and volumes are unreliable. An excess of auction houses draws speculators and deters real collectors.

Shareholders could upset Hyundai overhaul

29 Mar 2018

South Korea’s second-largest conglomerate is finally moving to simplify its elaborate corporate structure. But the first stage of the rejig short-changes minority investors in a key unit. The controlling Chung family might have to improve the terms to get this done.

Unilever-FTSE standoff is test of index power

28 Mar 2018

The benchmark compiler must decide whether to keep the Marmite maker in the FTSE 100 after it opted for a Dutch head office. Recent tax changes and activist pressure may prompt similar rejigs at heavyweights Shell and BHP. The index may have to bend its rules to retain its clout.

Drug companies take the anti-Amazon pill

27 Mar 2018

Novartis is selling its consumer health assets to GSK for $13 bln. It makes sense for the former to focus on traditional drugs given the threat from e-commerce. For the latter, the purchase is less risky than a Pfizer deal and may still allow investment in its core business.

Mukesh Ambani’s music deal could get a remix

27 Mar 2018

India's richest man is merging two music-streaming services into a $1 bln group. That will help attract users to the telecoms arm of his Reliance Industries. With the conglomerate poised to start throwing off cash again, Ambani could take his content ambitions to another level.

China’s Gen Z app has a lot of growing up to do

27 Mar 2018

Bilibili, a popular video site for anime-obsessed teens, wants to list at a $3 bln-plus valuation. That’s hefty considering a single mobile game accounts for 60 pct of sales. Losses may be narrowing, but Bilibili's amateur business plan doesn't warrant a premium price tag.

Market jitters accentuate M&A regulatory risk

26 Mar 2018

Dealmaking sprees are prone to extinction events. Market panics erode the value of buyers’ stock, make bankers reluctant to lend, and change the outlook violently. Recent tumult doesn’t yet qualify, but it makes it harder to overlook deals that push the regulatory limits.

Uber races towards IPO with Southeast Asian deal

26 Mar 2018

The U.S. ride-hailing giant is exiting another cut-throat market. It will hand its regional business to Grab, a $6 bln local rival, and take 27.5 pct of the enlarged group. This is a sensible step to prepare Uber for public life – provided Grab can hold onto its leading position.

Reckitt may yet benefit from Pfizer’s poor timing

22 Mar 2018

The Dettol maker’s shares jumped after it pulled a bid for the U.S. group’s consumer arm. The auction coincided with CEO Rakesh Kapoor’s struggle to digest a big deal, and rival GSK’s need to focus elsewhere. If Pfizer delays the sale, Reckitt could limber up for a second shot.

China’s 5G ambition is China Mobile’s punishment

22 Mar 2018

The country's biggest wireless group grew earnings 5 pct in 2017. This year will be tougher. Beijing wants the carrier to deliver a world-beating, ultra-fast network in a jiffy, and sell access cheaply. That will be tough on shareholders, but the state-owned group has no choice.