Deals

BHP and Rio take competition out of going green

9 Feb 2024

The giant miners are teaming up to try and decarbonise steel production. Cutting the 8% of global emissions the current process belches out is key to saving the planet. The collaboration can help Australia keep up too. It makes this unusual setting aside of rivalry doubly smart.

Capital Calls: Disney

7 Feb 2024

Concise views on global finance: Boss Bob Iger nabbed Taylor Swift’s movie for his company’s streaming service, took a $1.5 bln stake in Epic Games and shipped more money to shareholders. But traditional TV is declining, and a new sports partnership makes for an awkward fit.

Woodside torches Santos’ quick activist fix

7 Feb 2024

The oil and gas driller ended talks with its smaller rival about a $52 bln merger Down Under. A deal always looked hard. But it could have got investors off Santos CEO Kevin Gallagher’s back. Now he’ll have to try the slower route of capital returns, cost cuts and asset sales.

WeWork needs an Adam Neumann, not the Adam Neumann

6 Feb 2024

The founder of the office-sharing firm is trying to drum up support to buy his former firm out of bankruptcy. With momentum in its favor, WeWork, at the right value, has prospects, and an insider could be useful. But Neumann’s credibility is forever shot.

Why tech giants will rake in AI’s big gains

6 Feb 2024

Amazon, Microsoft, Nvidia and Alphabet powered roughly 8% of 2023’s North American venture deals, largely in artificial intelligence. In this Exchange podcast, Altimeter Capital investor Apoorv Agrawal explains why these companies are reaping rewards from the latest tech craze.

Disney board bake-off will burn Nelson Peltz

5 Feb 2024

The entertainment colossus is battling against the corporate cage rattler’s director nominees. His previous fight with P&G shows how he can win with a small stake and disparate shareholder base. But this latest contest includes other adversaries, making success less likely.

TikTok and Universal will stage reunion tour soon

5 Feb 2024

The music giant’s decision to yank its catalog off the social-media app hurts singers and bands more than either business. And yet mixing tunes, both new and old, with a powerful algorithm is harmonious. There are plenty of financial reasons for the duo to get back together.

Novo digs $11.5 bln moat around weight-loss jewel

5 Feb 2024

The pharma giant’s parent is buying US manufacturer Catalent. It helps Novo Nordisk keep up with soaring demand for obesity drugs, and makes it harder for rival Eli Lilly to catch up. With such limited capacity, Catalent’s rivals like $4 bln ROVI may soon be in play.

Signature Bank’s savior finds bigger isn’t better

31 Jan 2024

Less than a year after buying the innards of a failed lender, New York Community Bancorp is slashing its dividend and conserving cash to match its enhanced heft. Giants like JPMorgan face less risk of indigestion. The moral: don’t get a small bank to do a big bank’s job.

Iliad rebuff raises the bar for Vodafone in Italy

31 Jan 2024

The UK telco rejected its French rival’s 10 bln euro offer to merge operations in the tough southern European market, a fresh snub to Xavier Niel. CEO Margherita Della Valle needs to quickly plan another deal. Tie-ups with Telecom Italia, Swisscom or Wind all have complications.

Capital Calls: Paramount takeover bid

31 Jan 2024

Concise views on global finance: Media mogul Byron Allen, whose company owns The Weather Channel, is offering to buy the TV and film conglomerate for $30 bln. Even if he doesn’t become the next owner, his presence should help get a sale process moving and plump up the price tag.

Battery minerals pressure causes cracks Down Under

31 Jan 2024

Miner IGO is freezing a nickel project key to a near-$1 bln acquisition just 18 months ago. It’s also having trouble selling lithium. Falling commodity prices and slowing EV growth are proving problematic for many, including BHP. But bad dealmaking has compounded IGO’s pain.

Amazon’s investors can chill with M&A freeze

29 Jan 2024

The e-commerce giant scrapped a $1.4 bln deal for Roomba maker iRobot after regulatory opposition that suggests future deals, no matter how small, will be seen as problematic. Given Amazon’s track record with past tie-ups like Whole Foods, though, some restraint could be welcome.

Commerzbank stake sale would risk M&A impasse

25 Jan 2024

Berlin may consider offloading its 15% stake in the German lender. Deutsche Bank and UniCredit are obvious potential buyers, but higher rates have made a full-blown bank merger less appealing. A market disposal would present prospective suitors with a dilemma.

US Steel calibrates depth of trustbuster discounts

24 Jan 2024

Before Nippon prevailed, Cleveland-Cliffs fought hard to seal a deal, new documents show. Even $1.7 bln of synergy value and a chunky $1.5 bln break fee couldn’t sway the target, however. It’s a revealing portal into how competition authorities are altering merger decisions.

Capital Calls: Disney virtual reality

23 Jan 2024

Concise views on global finance: The $174 bln entertainment giant introduced a novel way for consumers to experience its brands through a partnership with Apple. Further connecting the dots between theme parks and the metaverse might bide Iger some time.

Sony enters a painful new M&A season in India

23 Jan 2024

The Japanese giant is ditching the agreed union of its Indian unit with $3 bln broadcaster Zee. Sony dodges a difficult partner but it will prolong the slugfest in the country's cutthroat entertainment industry. The plot could thicken and disrupt rival Disney's dealmaking too.

Capital Calls: Microsoft’s Russian hacker

22 Jan 2024

Concise views on global finance: The $3 trln tech firm disclosed that a nation-state hack accessed leaders’ email, saying it showed the need for potentially “disruptive” measures. It’s a worrying acknowledgement of the still-vague costs of geopolitical tensions for tech giants.

US Steel deal stokes fiery stakeholder standoff

17 Jan 2024

The $14 bln sale to Nippon Steel is riling workers and politicians. A rival Cleveland-Cliffs bid will attract trustbusters. Staying independent would anger shareholders and squeeze automakers. It epitomizes today’s fraught M&A, but the Japanese buyer is in the strongest position.

Chiplets-to-chips future featured in $35 bln deal

16 Jan 2024

Semiconductor designer Synopsys is buying Ansys, a firm which helps integrate systems. The buyer’s rich stock price should make an estimated low return tolerable. But the key is the future of the chip business: fancier technology requires more integration.