Deals

Asia’s tech giants lean toward desperate deals

30 Nov 2023

TikTok is in talks to tie up with Indonesia’s GoTo to avoid a ban on social media entities in e-commerce, per Bloomberg. China’s growth woes incentivises its companies to compromise as they push overseas. A share price rout means Southeast Asian foes could soon become friends.

Saudi’s Indian cricket play works for both sides

30 Nov 2023

The kingdom is looking to invest as much as $5 bln in the Indian Premier League. In this Viewsroom podcast, Breakingviews columnists discuss what it means for the sport and how it sizes up against Riyadh’s growing global sporting ambitions.

 

Insurer mega-deal faces doubly poor prognosis

29 Nov 2023

Cigna and Humana are in talks to create a $135 bln giant. Overcoming near-certain trustbuster opposition likely means hiving off overlaps that would benefit either and enduring a year-plus wait. Judging by investors’ early response, that might cause them to nix the idea first.

Richemont digital strategy goes back to square one

29 Nov 2023

The Swiss group’s sale of its YNAP online platform is in doubt due to troubles at US-listed buyer Farfetch. Extracting itself from the deal, though potentially messy, looks the best option for the Cartier owner. Yet that still leaves Chairman Johann Rupert with an old problem.

Uneasy lies the head of Crown Castle

28 Nov 2023

Pushy investor Elliott is again chiding the $47 bln wireless towers operator, urging it to replace CEO Jay Brown. The shares have dragged under his watch, with costly fiber networks partly to blame. As NRG and Citrix sensed, it’s unwise to slam the door twice on the hedge fund.

EU watchdogs muck up Amazon’s messy iRobot cleanup

28 Nov 2023

The European Commission says the e-commerce giant’s $1.4 bln takeover of the Roomba maker could shut out robot-vacuum rivals. Trustbusters are mainly concerned about Amazon’s market clout. Yet if the deal collapses, iRobot shareholders will suffer more downward suction.

ADNOC German oil deal has bad timing, good logic

28 Nov 2023

Abu Dhabi’s energy giant may bid for BASF-owned Wintershall, in a deal worth $11 bln. As the UAE prepares to host the COP28 climate shindig, that’s a bad look. But buying the German group’s pipeline network may suit ADNOC’s wider aim to bulk up in European petrochemicals.

Capital Calls: Amazon shipping

27 Nov 2023

Concise views on global finance: The online retailing giant’s push to distribute packages itself has been a costly way to attract customers, but some numbers suggest it is becoming more efficient and speed is helping boost profit.

Media buyout would crown Bolloré’s empire-building

23 Nov 2023

The tycoon’s purchase of Hachette owner Lagardère is a smarter bet than his Italian foray. It offers good returns and will keep buyer Vivendi flush with cash. Using the funds to take the 9 bln euro media group private would square Vincent Bolloré’s M&A circle.

Adevinta $13 bln bid puts minorities in a corner

22 Nov 2023

Permira and Blackstone are seeking to take the Norwegian classifieds group private. The offer price isn’t overly generous but the chance of activist investors stalling the deal is low. With top shareholders already supporting the bid, minority investors don’t have alternatives.

Choice Hotels takes a vacation from reality

21 Nov 2023

The Comfort Suites operator has taken another stab at its unsolicited and unwelcome $9.8 bln offer for rival Wyndham. The part-shares deal is easy to rebuff in a wobbly market where cash is king. But switching it to cash could leave Choice with hefty debt and unhappy customers.

Telegraph M&A twist hinges on Gulf leniency

21 Nov 2023

A vehicle backed by Abu Dhabi and a US buyout firm may take control of the newspaper by paying off the debts of its longtime Barclay family owners. Lender Lloyds would win. Yet it all hangs on potentially risky Gulf loans to the Barclays, whose main business is hardly thriving.

Payments sector comedown creates opening for M&A

17 Nov 2023

The once-hot industry has slumped amid rising competition and a possible regulatory clampdown. For online specialists like $34 bln Adyen, the solution is to boost their customer offerings by buying startups. Older players like Nexi and Worldline, meanwhile, are ripe for mergers.

Mars’ posh pivot comes with a rich price

16 Nov 2023

The privately held Snickers maker is buying upmarket British brand Hotel Chocolat for $662 mln. Its premium products may benefit as consumers move away from cheap sugar-rich snacks. But UK shoppers are stretched, and Mars will need rapid growth to make an appetising return.

Capital Calls: Walmart, HelloFresh

16 Nov 2023

Concise views on global finance: Although the US retailer lost nearly 8% of its market value after it indicated that price increases are starting to ease, it should be able to navigate the challenge; the 2.7 billion euro meal-delivery company has become a tasty buyout target.

Two Disney activists aren’t better than one

15 Nov 2023

Mason Morfit’s ValueAct has taken a stake in the $168 bln Magic Kingdom, where it can take its own pushy path or work with fellow cage-rattler Nelson Peltz to shake things up. Dueling campaigns would make boss Bob Iger’s job easier. Tag-teaming doesn’t guarantee success.

Natura takes a bath to pass on Body Shop stink

14 Nov 2023

The Brazilian beauty giant is selling the shower gel retailer for around $260 mln six years after buying it from L’Oréal for $1.1 bln. The 80% price discount reflects the eco-friendly brand’s loss of relevance. For buyer Aurelius, restoring glow requires applying a lot of polish.

Payments-app war drags banks into discomfort zone

14 Nov 2023

The US lenders behind Venmo rival Zelle, including JPMorgan and Bank of America, are now compensating victims of some online scams. They’d rather not, and technically shouldn’t have to. In the cutthroat fintech market, however, customers can be right even when they’re wrong.

Glencore deal is necessary detour on breakup path

14 Nov 2023

CEO Gary Nagle is buying 77% of Teck Resources’ coal arm for $6.9 bln as a prelude to a dirty-fuel spinoff. It’ll backfire if prices fall or authorities intervene. But it’s worthwhile given the reasonable valuation and chance to build a more appealing coal unit for investors.

Vodafone CEO M&A job boosts Italy deal confidence

14 Nov 2023

After successfully offloading the telco’s UK and Spanish arms, Margherita Della Valle may sell all or part of its slowing Italian business. Rival Iliad is the top contender. But the division is now worth perhaps 2 bln euros less than what tycoon Xavier Niel offered last year.