Deals

Sony Activision riposte will involve mobile gaming

27 Dec 2023

Microsoft’s $69 bln Activision deal threatens its Japanese rival’s console dominance. But it also establishes a bridgehead for the US firm in the $90 bln mobile gaming space. Recent mobile weakness and an expected return to growth mean 2024 is a good time for Sony to plug in too.

Bristol Myers new CEO grabs M&A by the horns

22 Dec 2023

Buying rival drugmaker Karuna for $14 bln is a big risk for just-installed Chris Boerner. Karuna’s schizophrenia therapy could see giant sales, but with much uncertainty and suboptimal patent protection. Pharma has shone in a dismal year for mergers. Even so, it’s a daring deal.

Restaurant deals will be back on the menu in 2024

22 Dec 2023

With the pandemic receding, US spending on dining out has topped $1.3 trln. Inflation has eaten into any exuberance, but as costs moderate and restaurants recoup margins, dealmaking will return, giving long-held investments like Panera a shot at cashing out.

Capital Calls: Eni’s green sale

22 Dec 2023

Concise views on global finance: The Italian energy major’s 10 bln euro valuation for its retail-and-renewables arm Plenitude is more likely to be recreated or exceeded if it avoids a rushed listing.

Wintershall saga reaches logical $11 bln endgame

21 Dec 2023

After flirting with a listing and rival suitors, the BASF-owned German oil group is to merge with $3 bln Harbour Energy. The UK-listed buyer gets a relatively cheap way to bulk up in gas assets. The sellers get to stick around for the ride, courtesy of some funky financing.

Paramount casts itself in next season’s M&A hit

21 Dec 2023

By starting talks with potential acquirer Warner Bros Discovery, the Redstone family is effectively putting its $10 bln media empire in play. There are multiple ways to structure a deal, and many possible suitors. It’s just not clear debt-laden WBD is the best for the role.

Aon’s $13 bln deal leaves it little room for error

20 Dec 2023

The US insurance broker’s purchase of rival NFP is a sensible bet on the market for selling financial products to mid-sized firms, at a not-so-sensible price. Aon argues growth will be rapid. Still, its wobbly acquisition history saddles it with a credibility deficit.

BP and Equinor will find common ground

20 Dec 2023

The British oil major is undervalued against peers and is in a leadership vacuum. That makes it vulnerable to a takeover as US mega-mergers shake up the sector. Daring to tie up with Norwegian ally Equinor offers a powerful hedge and a springboard.

Price of Illumina’s Grail fail extends to board

19 Dec 2023

The gene-sequencing company finally conceded to selling the cancer-testing business it bought without regulatory approval for $7.1 bln. Its bravado will be costly, as Grail’s value has plummeted. Boss Francis deSouza already paid with his job; directors deserve to, as well.

Backlogged M&A pipeline will burst in 2024

19 Dec 2023

Even normally chipper bankers are wary as merger activity heads for a second straight drop from its $5.7 trln peak in 2021. And yet stabilizing capital costs, bulging cash reserves and adjusting valuation mindsets should help spark enough pressure to ignite a deals resurgence.

Swiss pharma mega-deal has healthy prognosis

19 Dec 2023

In 2001 Novartis took a stake in Roche, yet a deal never happened. Over two decades later, the mooted acquirer is stronger and could gain from vast synergies and more heft in oncology. Making the $440 bln union a reality means overcoming family pride, and antitrust issues.

Nio’s $2 bln Christmas gift requires some strings

19 Dec 2023

Shareholders welcomed the money-losing electric-car maker’s latest infusion from CYVN. But cash alone won’t put Nio on track unless it focuses and cuts costs. With a 20% stake and two board seats, the Abu Dhabi investor could push for some New Year’s Resolutions to boost returns.

Farfetch rescue leaves scattered luxury debris

18 Dec 2023

The struggling online merchant secured a bailout from South Korean e-commerce giant Coupang, which is injecting $500 mln. The deal gives Farfetch a fresh shot at existence, but leaves former backer Richemont wiped out, and its new investor with fresh messes to clean.

Adobe paints brighter future without Figma

18 Dec 2023

Unwilling to fight trustbusters, the design-software giant ditched its $20 bln deal. Since agreeing to pay the inflated price, its own AI plans have wowed investors. Even so, the hype is a bit overdone and its target now gets an extra $1 bln to sketch out new ways to compete.

Nippon’s $15 bln US Steel deal burns too hot

18 Dec 2023

The Japanese company beat out Cleveland-Cliffs and others to buy a tempting supplier to American automakers. Overseas expansion also makes sense, but disgruntled unions may be problematic. And the bidding war pushed the price to a level that undermines the acquisition’s strength.

Vodafone may have to answer Iliad’s Italian call

18 Dec 2023

French tycoon Xavier Niel’s new bid for his UK rival’s business in Italy values it at a chunky 10.5 bln euros. That’s near what he offered last year despite falling earnings at Vodafone’s local arm. CEO Margherita Della Valle may struggle to find a more attractive exit strategy.

Altice’s best hope will be a Middle East lifeline

18 Dec 2023

Telecoms tycoon Patrick Drahi is dismantling his empire to cope with a $60 bln debt wall. Attracting new investors may be tricky given low growth and a corruption scandal. Luckily Gulf states like the UAE and Saudi Arabia are flush with cash and keen to grab Western assets.

Capital Calls: MUFG Down Under

18 Dec 2023

Concise views on global finance: The Japanese finance group’s latest overseas pounce is a $740 mln agreed deal for Link Administration, an investor services firm with three years of failed takeovers behind it.

Oprah’s Weight Watchers is Ozempic-as-a-platform

15 Dec 2023

Obesity-fighting drugs should curb demand for hawkers of weight-loss regimens. But WW bought a telehealth firm that can push prescriptions, like those used by its celebrity backer, to customers. As insurers fund habit-forming programs, companies will find ways to take a cut.

Pricey Campari cognac deal requires a steady hand

15 Dec 2023

Bob Kunze-Concewitz is paying $1.2 bln for French brandy house Courvoisier, the CEO’s biggest purchase yet. At 17 times last year’s EBITDA the price looks punchy while demand for cognac slows in the US and China. Lowering the Italian group's growing debt pile could be hard.