Deals

Spain’s utility saga calls for tough balancing act

18 Apr 2024

The UAE wants to buy 40% of 22 bln euro Naturgy from its private equity owners. That would usually require a full takeover, but Madrid has form on protecting key infrastructure. Spain will have to balance its desire to retain control with the need not to scare its bidder away.

Czech Sphinx may need to pay up for UK mail morsel

17 Apr 2024

Daniel Kretinsky has been rebuffed in a bid to buy the 72% of 3 bln pound International Distributions Services he doesn’t already own. The Czech billionaire has deep enough pockets to pay more for the owner of Royal Mail. But his target’s board has grounds to dig its heels in.

Microsoft’s G42 deal puts UAE in America’s AI tent

16 Apr 2024

The $3 trln software giant is paying $1.5 bln for a minority stake in Abu Dhabi-based artificial intelligence group G42. Microsoft gets years of cloud storage business. But it also implies an end to the Gulf state’s effort to be a neutral AI counterparty to China and the US.

Salesforce’s activist makeover faces trial by M&A

16 Apr 2024

A swarm of pushy investors last year pushed the software firm into cutting costs, returning capital, and de-emphasizing dealmaking. Now it’s mulling a takeover of $11 bln Informatica, the WSJ says. The price will signal whether founder and CEO Marc Benioff has changed his ways.

Berlusconis have narrow window for German TV bid

16 Apr 2024

The Italian clan’s broadcasting group MFE had banks lined up for a potential $4 bln offer for ProSiebenSat.1, Reuters reported. If they could replicate the savings from a past Spanish merger, the numbers work. The risk is the target’s shares keep rising, undermining the logic.

Goldman’s plan B unexpectedly upgraded to a B-plus

15 Apr 2024

A bond-trading surge helped lift quarterly earnings at David Solomon’s firm to $4.1 bln. Investors prefer stabler revenue sources, and Goldman’s pitch that markets activity is less volatile is born of necessity. Still, it helps that traditional banking has lost some shine.

Prysmian finds sparky US fix for dim cable outlook

15 Apr 2024

The world’s biggest maker of telco and power lines is buying a cash-rich US rival. At $4 bln, the deal is not cheap, and heavy investment in grids has slowed. Still, adding heft to the more attractive North America market should improve the $15 bln Italian company’s prospects.

Gulf bank’s M&A hunt risks shareholder injury

15 Apr 2024

First Abu Dhabi, worth $40 bln, may be eyeing Turkish lenders following a short-lived pursuit of Standard Chartered. An overseas deal would help to diversify away from corporate and investment banking, but the cost savings look slim. Better to focus on growing at home.

MUFG and Indian credit scratch each other’s backs

15 Apr 2024

Taking a $2 bln stake in an Indian shadow lender backed by HDFC would be punchy at five times book value. Still, the South Asian country's non-banks are growing super fast. Japan's financial institutions aren’t waiting around for a payday at home from rising borrowing costs.

BP takeover is both appealing and daunting

12 Apr 2024

Abu Dhabi National Oil Company recently considered buying its $110 bln British peer. It’s unlikely to be the only suitor. BP trades at a discount to other oil giants and recently installed a new CEO. But UK security concerns and EU antitrust rules present formidable hurdles.

Société Générale CEO is pruning a decaying tree

11 Apr 2024

Slawomir Krupa agreed to sell an equipment-financing unit to local French rival BPCE for 1.1 bln euros. It’s a good price, and Krupa is right to clear out peripheral assets that languished under his predecessor. The problem is that the bank’s core isn’t alluring either.

Motor-racing deal faces quick antitrust pitstop

11 Apr 2024

F1 owner Liberty Media is doubling down on sports broadcasting rights with its $4.5 bln buy of MotoGP’s parent. CVC’s 2006 attempt to own both racing series got an EU antitrust black flag. The rise of streaming channels means mogul John Malone will have an easier ride this time.

Blackstone’s apartment deal has only so much room

8 Apr 2024

A $10 bln buyout of AIR Communities and its 27,000 US rental units is the biggest of its ilk in a while. It hews to COO Jon Gray’s plan to invest before a market recovery. But unlike his firm’s post-2008 spree, deep pockets aren’t enough. The Fed and the economy loom larger now.

Vivendi gives Canal+ a South African dowry

8 Apr 2024

The French pay-TV operator has offered $1.9 bln to buy out South African broadcaster MultiChoice. Despite a significant increase on an earlier bid, the price looks reasonable. Consolidating its presence in a fast-growing market may boost Canal+’s appeal in an upcoming IPO.

UAE flips own script with $4 bln oil pipeline deal

5 Apr 2024

Abu Dhabi’s $100 bln fund, Lunate, bought KKR and BlackRock’s 40% stake in ADNOC’s infrastructure arm. In recent years the UAE has raised cash from foreign investors by selling minority stakes in its oil giant. The latest deal does the opposite.

US bid has paper-thin lead in packaging M&A race

5 Apr 2024

Tennessee-based International Paper pegged the savings from a proposed all-share deal with DS Smith at $500 mln. If they’re viable, they help keep the US group’s investors on side. The onus is now on rival bidder Mondi to offer more, or show its own cost cuts would be higher.

Hollywood super-agent casts himself as deal star

4 Apr 2024

Endeavor boss Ari Emanuel was unexpectedly humbled: some of his bonuses went unpaid because the company’s stock price has sputtered. A $13 bln sale to buyout shop Silver Lake fixes the problem. Between equity, royalties and other goodies, he stands to pocket more than $400 mln.

US antitrust push invites creative dealmaking

4 Apr 2024

Policymakers and trustbusters are eyeing new restrictions on mergers and acquisitions. In this Viewsroom podcast, Breakingviews columnists unpack some imaginative workarounds being used by companies ranging from Big Tech to fast food.

Ben & Jerry’s rocky ESG road bucks vanilla trends

4 Apr 2024

The purpose-driven ice cream brand is being scooped out of Unilever as corporate activism increasingly invites controversy. And yet the maker of flavors like Empower Mint has grown faster than its parent. Social values, especially when authentic, can mix well with financial aims.

Capital Calls: Green vehicles

3 Apr 2024

Concise views on global finance: French shipping and logistics heavyweight CMA CGM has acquired a 10% stake in Flexis, a joint venture set up by Volvo and Renault to develop electric vans in Europe.