Deals

BHP bombshell puts South African mining in a hole

6 May 2024

The Australian miner’s $39 bln tilt at Anglo American highlights the decline of the country’s once-mighty industry. Blocking the deal would send an even worse signal about South Africa as an investment destination. Pretoria would do better to push for a more acceptable outcome.

Private equity giants choose their own adventures

2 May 2024

Blackstone, Carlyle, KKR and Apollo’s first-quarter earnings each illustrate a different central quest: sustaining the firm, fixing it, reshaping it or growing it. With a total $2.7 trln of assets, all four are hitting some new goals, but still have their own ogres to vanquish.

Trustbusters target poor man’s John D. Rockefeller

2 May 2024

Today’s energy producers wield far less clout than the industrialist’s Standard Oil, whose breakup shaped US competition law. By comparison, the FTC’s collusion case against Pioneer’s ex-CEO linked to the $65 bln Exxon deal is mostly symbolic. Robber barons lurk elsewhere now.

M&A-shy EU bank investors are own worst enemy

2 May 2024

BBVA’s shares fell 8% over three days after it pitched an all-share acquisition of $10 bln Spanish rival Sabadell. But the returns look good, and the combined group’s capital ratio will remain high. If investors sink this deal, other CEOs in the fragmented sector may think twice.

Clash of the mining titans will get more bruising

2 May 2024

Australian giant BHP’s $39 bln swing for Anglo American is a contentious, complex land grab for the metals key to a renewable future. In this Viewsroom podcast, Breakingviews columnists discuss the political and financial hurdles, and why this M&A contest has a way to run.

Bain could be third time lucky in Japan

2 May 2024

It's pushing an IPO of Kioxia again after talks to merge the chipmaker collapsed last year. A deal would help pare a $6 bln company loan. Timing is on the sellers' side; demand for chips and Japanese stocks is robust. Rival buyout firms will cheer a successful selldown too.

Anglo breakup costs complicate a sweeter BHP deal

1 May 2024

The miner’s Australian suitor is mulling a hike to its $39 bln proposal. But if Anglo American were to demerge its listed South African units as part of the deal, BHP or any other buyer might inherit a $2 bln tax bill. That may limit BHP boss Mike Henry’s scope for generosity.

Satellite union will struggle to defy gravity

30 Apr 2024

Luxembourg-based SES agreed a $3 bln cash acquisition of US rival Intelsat. The news wiped a fifth off the buyer’s shares. Investors thought they were getting a ton of cash from the lowly valued satellite operator, but instead they’re getting a deal with questionable returns.

Overdue $80 bln Spain bank merger has new hurdles

30 Apr 2024

BBVA broached an all-share deal with $10 bln Sabadell. The smaller lender’s valuation has improved since the same merger was discussed in 2020, which could make it easier for the board to agree a sale. Yet it also makes the sums harder for the buyer, whose investors are spooked.

L’Occitane sets a high bar for Hong Kong exits

30 Apr 2024

Chairman Reinold Geiger’s offer to take his skincare group private values it at 6 bln euros, a decent 30% premium. Funding led by Blackstone might help keep a lid on interest expenses while the company restructures and seeks a listing in Europe. Other buyouts will be trickier.

Petrol station tycoon picks poor time to exit Asda

29 Apr 2024

TDR may buy Zuber Issa’s 23% stake in the UK grocer, increasing its own holding. Since their 2021 deal Asda has repaid a big chunk of its debt, but market struggles mean it merits a lower multiple. The buyout shop’s consolation is it can drive a hard bargain on price.

Thoma Bravo UK cyber deal looks a little too good

26 Apr 2024

The buyout firm finally agreed a takeover of long-term target Darktrace, an IT security specialist. Despite the generous-looking 44% premium on offer, the buyer’s returns seem juicy given a nascent US push. That may raise the chance of shareholders asking for more money.

BHP investors throw CEO too short an M&A leash

26 Apr 2024

The miner’s stock fell 4.6% after the company proposed to buy Anglo American at a $39 bln valuation. It suggests shareholders fear boss Mike Henry will end up overpaying. But with his low-ball opener leaving plenty of wriggle room to justify upping the bid, that looks premature.

Anglo American has grounds to play hard to get

25 Apr 2024

The London-listed miner has received an all-share $39 bln bid from BHP. Anglo’s recent woes explain why, but its jumble of assets could be worth more. If boss Duncan Wanblad can show as much by outlining a plan B, he may yet see its $149 bln rival off – or extract a higher offer.

Vote no to bashing proxy advisers

25 Apr 2024

Corporate leaders at JPMorgan and AstraZeneca bridle when ISS and Glass Lewis criticize their governance. No wonder: Some high-stakes shareholder votes this year will be uncomfortable for feather-bedded bosses. Proxy firms are problematic, but they do more good than harm.

How one firm made child’s play of tricky M&A games

24 Apr 2024

Imagine buying a company without tedious negotiations, rival bids or pricey premiums. A Saudi investor pulled it off by snapping up enough shares to gain control of US retailer The Children’s Place. The feat will be hard to replicate, but there’s now a model for deal masterminds.

Kate Spade deal veto is lucky dip for trustbusters

23 Apr 2024

US competition cops want to stop Tapestry, owner of the handbag brand, from buying rival Capri. The $8.5 bln merger is a tempting target: well-known products, few political issues, and none of Big Tech’s mighty resources. That offers a chance to road-test novel legal theories.

Paramount’s sale cries out for intervention

19 Apr 2024

Shari Redstone is mulling a deal for control of the $8 bln media company with unclear upside for other shareholders. The math can just work, but a bid from Apollo would offer a safer payday. The choice is clear, even if independent investors can do nothing but press their case.

Winner’s curse unfairly haunts $7 bln paper deal

19 Apr 2024

UK-based Mondi dropped its pursuit of DS Smith, handing victory to rival US bidder International Paper. The victor’s shares have lagged the sector, suggesting its investors see little value in the deal. If the promised cost savings appear, that view may be too pessimistic.

UK music fund may walk off stage without encore

18 Apr 2024

Hipgnosis Songs Fund accepted $1.4 bln in cash from US rival Concord Chorus. The 32% premium pitches songs by Neil Young and Shakira at the lower end of their shrunken fair value. With higher-for-longer rates, it’s far from clear that its Blackstone-owned manager will pay more.