Deals

Exxon juggles stick of dynamite near Hess deal

27 Feb 2024

The oil giant and Chinese partner CNOOC say Chevron’s $53 bln acquisition of Hess gives them the right to buy the latter’s crown jewel stake in a Guyana oil field. While that threatens to blow up Chevron’s plan, an Exxon purchase also could saddle it with a risky time-bomb.

Capital Calls: Charter and Altice

27 Feb 2024

Concise views on global finance: Tying up Charter, the cable giant backed by the media mogul, with rival Altice USA would form the country’s largest broadband player. That isn’t worth bearing the burden of regulatory hurdles, Altice’s mountain of debt, or its over-rich valuation.

Europe defence push requires clearing M&A barriers

27 Feb 2024

The region is hiking military spending to aid Ukraine and become less dependent on the US. Yet governments are squandering investment on incompatible weapons and systems. Creating more regional champions, like aerospace giant Airbus and missile maker MBDA, is a top priority.

Shein’s IPO backup plans can unravel

27 Feb 2024

The fast-fashion retailer is eyeing London, Singapore and Hong Kong as its US listing hits a snag, per Bloomberg. Those venues might allow the profitable firm's backers to cash out faster. But recent New York debuts show Plan A still outshines the rest.

Alcoa forges smart deal out of metal woes

26 Feb 2024

The US metal producer wants to buy Alumina, whose sole asset is 40% of a joint venture with its wannabe new owner. Benefits to Alcoa from the $2.2 bln deal include a simpler structure. And selling investors get a premium despite rising costs and falling aluminium prices.

Ant puts its talent for disruption back on display

26 Feb 2024

The Jack Ma-founded fintech firm has outbid Citadel for Credit Suisse's investment-banking unit in China, Bloomberg reports. A deal makes little sense but would signal the payments-to-lending group is back in good standing with Beijing. A smaller Ant can still surprise.

Reddit’s future looks bright through VR goggles

22 Feb 2024

The social media firm's IPO document shows narrowing losses and a fast-growing top line. But compared to competitors, a mooted $5 bln valuation should be a stretch. The upshot is founder Steve Huffman’s plan to sell data to train AI models. That has promise, in a virtual world.

Capital Calls: Oil M&A

22 Feb 2024

Concise views on global finance: The $11 billion Williston Basin combination of Chord Energy and Enerplus lacks the wow factor of Exxon’s and Chevron’s mega-mergers, but there are sufficient savings to suggest more deals will be on the way.

Universal Music’s John Legend deal is harmonious

21 Feb 2024

The music giant is purchasing a more than 25% stake in Chord for $240 mln, gaining some control over the music with a sliver of its own money at risk. Importantly, Universal is buying Chord from KKR. Swapping tunes between sophisticated buyers legitimizes the business.

Walmart buys TV portal to nowhere

20 Feb 2024

The $484 bln retailer is buying smart-TV maker Vizio for $2.3 bln. It’s a tiny gamble on the possibility the operating system eventually captures individual viewing habits and beefs up ad capabilities. But given Walmart’s M&A track record, chances are, it’s still a waste.

Capital One will struggle to cash in M&A rewards

20 Feb 2024

An $80 bln deal with Discover would create a credit-card giant with a Visa-like payment network and huge cost savings. These perks can only be redeemed by overcoming political foes, regulators and the target’s conduct issues. On balance, it’s wise to buy now, and maybe pay later.

JD is logical winner of odd UK retail bidding war

19 Feb 2024

The $37 bln Chinese e-tailer is mulling an offer for Britain’s Currys, also the subject of interest from Elliott Advisors. A feeding frenzy for a sub-$1 bln UK asset with an unproven turnaround story sounds weird. But JD.com’s need to expand overseas is a strong motivation.

Deal famine is driving private equity evolution

15 Feb 2024

M&A activity fell 30% in 2023 and this year is off to a relatively slow start. In this Viewsroom podcast, Breakingviews columnists discuss how a dearth of deals is spotlighting a shift of focus among traditional buyout houses like KKR and Carlyle into areas like private credit.

Japan’s overseas tech deal crosses financial wires

15 Feb 2024

Electronics design outfit Altium has a smart product and is growing at a decent pace. That doesn't justify Renesas paying $6 bln for the Australian-listed company. Unless the buyer can supercharge revenue, it's another Japanese outbound deal that will generate meagre returns.

Capital Calls: Lyft

14 Feb 2024

Concise views on global finance: The US ride-hailing firm mistakenly forecast 500 basis points of margin improvement for 2024, causing its stock to surge some 60% before it came back to earth.

Gaming suitors have a window in which to pounce

13 Feb 2024

After a ropey 2022, the $180 bln sector grew less than 1% last year. Former stars like Ubisoft have been cutting staff, and their shares now look cheap. That gives perennial suitors who think gaming can recover – like Netflix, Disney and Saudi Arabia – a chance to bulk up.

Shale twins’ $26 bln deal can afford to be pricey

12 Feb 2024

Permian producer Diamondback is buying a smaller version of itself in Endeavor, from overlapping acreage to neighboring offices. That implies the price is maybe $1 bln over the odds. Given unique savings the duo can reap in the heart of the US oil boom, the buyer can afford it.

PGA political golf drama is Saudi’s Trump card

12 Feb 2024

Senators accused former Citi banker Michael Klein and other consultants of siding with PIF over an agreement with the PGA and its investments in the US. While the golf tie-up remains in flux, political scrutiny is intensifying. A delay could work in the Saudis' favor.

Europe’s wilting bourses get fresh cause to unite

12 Feb 2024

The likely de-listings of Italy’s Saras and Tod’s add to a wider exodus from euro zone stock exchanges. Part of the problem is a lack of new European companies to replace them. But Europe could also help itself if its equity market rules and trading were less fragmented.

UK $13 bln cardboard saga has durable M&A endgame

9 Feb 2024

Three years after its last approach, $7.4 bln Mondi wants to merge with $5.4 bln DS Smith. Amid slowing consumer demand, there’s more strategic and financial logic in uniting the UK-listed packagers. That doesn’t mean there won’t be a squabble over how they’re scrunched together.