Deals

Salesforce 2.0 benefits will download soon enough

30 May 2024

The software developer lost nearly $50 bln of market value after its revenue outlook fell short of what analysts were expecting. Chasing growth, which has been around 20% for a decade, would be a bad idea, though. Boss Marc Benioff’s profitability quest is a solid update.

Exxon’s Darren Woods gets a Biden-era dividend

30 May 2024

The oil giant’s CEO just closed a merger with Pioneer, and slapped down a slew of ESG-related shareholder proposals. Exxon’s market value of $510 bln now nearly matches Tesla’s. All this under – and in some cases thanks to – a US president who vowed to fight climate change.

AI will power up buyout barons’ green-energy spree

30 May 2024

Brookfield offered $6.6 bln for French solar and wind firm Neoen after EQT and KKR struck renewables deals worth $4.6 bln. Buyout barons have cash to meet the investment requirements of energy-hungry artificial intelligence, and future rate cuts mean valuations may have bottomed.

Capital One scales banking’s Mount Improbable

30 May 2024

The US lender’s $35 bln bid for Discover will make it king of the hill in credit-card debt, but to realise his ambitions, boss Richard Fairbank has a lot of people to win over. That includes not just regulators and merchants but his own investors – and maybe then the world.

Niel can be less stingy to fulfil his salsa dream

30 May 2024

The French Iliad owner may buy out Millicom, a $4 bln Latin American telco in which he owns a 29% stake. His potential $24-a-share bid implies a tiny 2% premium. Even with the stock up nearly 40% this year, he can offer more for a growing, profitable company.

Conoco’s Marathon deal is cheap and cheerful

29 May 2024

As rivals like Chevron buy premium assets at high prices, the $139 bln Conoco is bagging OK assets at a reasonable $23 bln. The return on investment of 10% is attractive, though. And it leaves the oil sector positioned for future consolidation – maybe with Conoco as a target.

Failed Anglo bid is net negative for BHP CEO

29 May 2024

Mike Henry has ditched the Australian miner’s $47 bln attempt to buy its UK-listed rival. He misjudged the difficulty of pushing Anglo to divest South African assets. But he avoided upsetting investors by overpaying, and if his target’s breakup plan falters he can try again.

Royal Mail deal defies nationalist anti-M&A trend

29 May 2024

Czech tycoon Daniel Kretinsky agreed a $4.6 bln buyout of the UK postal service’s parent group. Britain’s likely next government seems OK with it despite the chance of jobs cuts and a breakup. As countries pull up the drawbridge on sensitive takeovers, there are still exceptions.

T-Mobile makes lurch into uninspiring rural US

28 May 2024

The $200 bln US telecom giant is buying struggling mini-rival US Cellular for $4.4 bln. Based on valuation, the deal rings the bell. But it’s tiny, and the tough regulatory environment will be a battle. Even for a capable buyer, the mature industry leaves few options.

Swiss wealth M&A may kill two birds with one stone

28 May 2024

Julius Baer and EFG held merger talks, Reuters and others reported. With just $640 bln of combined assets under management, they’d be unlikely to threaten UBS. Yet a deal would make financial sense, and EFG CEO Giorgio Pradelli could fill a leadership void at its larger peer.

Rio Tinto’s dual listing belongs in history books

28 May 2024

Activist fund Palliser is overegging the 44% boost holders of the miner’s London stock could get if Sydney became its primary bourse. But there’d be some uplift. And CEO Jakob Stausholm could use a more level M&A playing field as BHP potentially kicks off a wave of consolidation.

ESR buyout showcases depths of Hong Kong misery

27 May 2024

The $6 bln Asian real estate fund manager is mulling a take-private bid. While its complex business has been hit by high interest rates, a 60% fall from the stock's 2021 peak looks harsh amid a promising turnaround. Shareholders like OMERS can push for a high premium.

Covid buyout drama will unfold in tense third act

24 May 2024

Thoma Bravo’s 2020 takeover of software developer Instructure in many ways encapsulates the tech deal boom. A quick IPO capitalized on the era’s exuberance before debt and a slowdown took hold. The latest sale effort sets the stage for other uplifting or tragic denouements.

Antitrust worries risk clipping EU airlines’ wings

24 May 2024

Groups like Lufthansa and IAG are seeking greater scale to better compete globally. But Brussels frets that regional tie-ups will lead to higher fares and reduced consumer choice. Blocking the $8 bln German firm’s play for smaller peer ITA could mean other deals won’t take off.

DuPont’s big breakup could be second-time lucky

23 May 2024

The chemicals giant has merged, split, bought, sold – and created, on its face, little value. But the centuries-old firm’s defining challenge has been how to shed old businesses in favor of new. A final split to create three simple, racier units is a better bet to work.

Latest cheap UK target can flip refusenik script

23 May 2024

Hargreaves Lansdown rejected an initial $6 bln tilt from a group including CVC. Like other recent British corporate prey, the financial adviser’s board sees the attention as opportunistic. But Hargreaves needs to cut its fees, and that may be better done away from public markets.

Copper’s M&A mania obscures a dysfunctional market

23 May 2024

The red metal is the main driver of BHP’s $46 bln bid for Anglo American. But despite expectations that the energy transition will boost demand, prices are still too low to tempt miners into expanding production. Mergers may help break the deadlock, but aren’t certain to do so.

BHP boss hopes a week is a long time in dealmaking

23 May 2024

Mike Henry has won an extra seven days to try to seal a deal with Anglo American. The trick will be to persuade his harried quarry that its own breakup plan is more risky than BHP's three-step approach. It's a battle of egos, and may yet require upping the $46 bln proposal.

BHP may have to channel Glenstrata to snare Anglo

22 May 2024

The UK-listed miner has rejected the Australian giant’s latest $46 bln offer. Glencore’s 2012 swoop on rival Xstrata produced annual synergies of more than $2 bln. To offer more for Anglo American without hurting his own investors, BHP boss Mike Henry may need something similar.

JAB’s Buffett impression is a work in progress

22 May 2024

The private European conglomerate, whose $50 bln portfolio includes Pret A Manger and Panera Bread, hired an executive for an insurance push. It makes sense as a funding source, as investors from Warren Buffett to KKR and Apollo proved. The snag is JAB’s patchy investment record.