Deals

Japan Inc is only winner in nixed chip deal

27 Oct 2023

The collapse of Kioxia-Western Digital merger talks is bad for the two struggling companies, complicates Bain’s exit strategy and highlights investor-rival SK Hynix’s conflicts. But Tokyo now seems more open to cross-border deals, even for national champions. That’s a positive.

Real big energy: Exxon and Chevron swim upstream

26 Oct 2023

The two US oil titans unveiled acquisitions worth more than $100 bln combined within weeks of each other. In this Viewsroom podcast, Breakingviews columnists discuss what’s powering the renewed consolidation push, as well as the threats posed to the industry by a greener market.

Europe’s oil majors are stuck as M&A party-poopers

26 Oct 2023

Exxon Mobil and Chevron’s respective decisions to double down on oil have put European peers Shell, BP and Total on the spot. Yet their lower valuations complicate share deals. The most obvious big targets for lower-carbon M&A are invitingly cheap, but look hard to get at.

China deal offers Stellantis ingenious EV shortcut

26 Oct 2023

The $58 bln Jeep-owner is paying $1.6 bln for 20% of electric-car maker Leapmotor and the right to sell its autos abroad. Hitching up with the Chinese group’s affordable and advanced tech will help CEO Carlos Tavares accelerate his green goals, despite festering geopolitics.

Hess deal would be higher-octane with cash added

25 Oct 2023

The takeover target’s rich valuation grants it a chunky stake in an enlarged Chevron. But the $53 bln merger now offers no premium and only shares in an underperforming acquiror. Chevron CEO Mike Wirth may have to bid against himself by throwing in a sweetener with hard currency.

Music fund’s flat deal calls for major key change

25 Oct 2023

Shareholders are pushing Hipgnosis, run by industry veteran Merck Mercuriadis, to overhaul its board and cancel a $440 mln asset sale involving Blackstone. Poor governance and a discount value add weight to their case. A new management team could do better by selling the company.

Capital Calls: Roche’s $7 bln partial cure

23 Oct 2023

Concise views on global finance: The Swiss pharma giant’s deal for rights to develop a bowel disease treatment in the US and Japan can help diversify its portfolio. But new boss Thomas Schinecker will need more such purchases to fill out his depleted pipeline.

Chevron’s $53 billion deal is risky Exxon copycat

23 Oct 2023

The all-stock offer for Hess is more speculative than rival Exxon’s massive plunge in Texas shale. It also makes Chevron look more like its US rival: Exxon already owns a piece of prolific Guyana fields with Hess. The long-term bet could work, but for CEO Mike Wirth, it’s dicey.

Capital Calls: Merck aims at targeted cancer drugs

20 Oct 2023

Concise views on global finance: Merck’s giant deal for rights to three Daiichi therapies, which could be worth up to $22 bln, illustrates the frenzy around drugs that can deliver toxins directly into cancerous cells. A stampede into the area may lead to lower returns.

Sculptor board moves deal goalposts too far

20 Oct 2023

The hedge fund’s founder Daniel Och is suing to stop a $680 mln sale to Rithm Capital, alleging that a higher offer led by Boaz Weinstein has not been given a fair shake. Some of the choices behind the deal decision are defensible. Stacking the shareholder vote, however, is not.

German auto ram-raid warrants careful driving

20 Oct 2023

Schaeffler is buying car-parts maker Vitesco, both controlled by the same family, for $4 bln. Minority shareholders can choose between a low price now or an uncertain future in a conglomerate. Schaeffler can probably get away with its smash and grab, but it might backfire later.

Blackstone’s business is lumpy and that’s OK

19 Oct 2023

The asset manager regularly touts its steady, rising fund fees as a cushion against the stop-start business of buying and selling assets. The problem is that choppy markets have dampened both. They’ll no doubt return – it’s just a reminder that there’s no escaping the cycle.

Risky biotech M&A therapy will heal more fractures

19 Oct 2023

Bristol Myers is paying $5 bln upfront for Mirati, and will fork out another $1 bln if the target’s lung-cancer drug makes headway. Such contingent value rights often end up worthless, sowing discord. As valuation spats gum up deals, however, the sweeteners hold greater appeal.

Capital Calls: Merck aims at targeted cancer drugs

19 Oct 2023

Concise views on global finance: Merck’s giant deal for rights to three Daiichi therapies, which could be worth up to $22 bln, illustrates the frenzy around drugs that can deliver toxins directly into cancerous cells. A stampede into the area may lead to lower returns.

Brookfield can lob cranky Origin investors a bone

19 Oct 2023

The money manager’s $12 bln offer for the Australian energy company is fair, according to an independent review. Raising the price just a percent or two should be enough to get sceptical top shareholder AustralianSuper and others on board.

Wyndham suitor is unprepared to check in just yet

18 Oct 2023

After months of talks, rival hotelier Choice went public with a $10 bln offer, putting pressure on its target’s board. Despite a 38% premium, the deal lacks a compelling valuation and could lard on heavy debt. It also glosses over competition risks. There’s some tidying up to do.

KKR’s Japan chip gear IPO clears high first bar

18 Oct 2023

Kokusai’s $720 mln float is the country’s largest in five years and coincides with the bottom of the semiconductor cycle. Pricing was cautious and two investors bought nearly half the offer. But with war drums beating, Japan’s elongated, inefficient listings process is in focus.

Stars align for hard-nosed private equity M&A

17 Oct 2023

French investor Wendel is buying London-based rival IK Partners for $404 mln. Consolidation between buyout barons is rare but will become more common as firms sweat to raise funds. The cheap price on this deal shows it’s a good time to be a buyer.

Tycoon’s lithium grab leaves investors hanging

16 Oct 2023

Billionaire Gina Rinehart has stifled Albemarle’s $4.2 bln bid for Liontown with deft use of Australia’s takeover rules. Now the minerals producer has to raise cash just as prices for the key battery material are falling. She needs to show why her spoiling tactics were worth it.

Rubik’s Cube owner solves eternal M&A puzzle

13 Oct 2023

After Spin Master agreed to buy toymaker Melissa & Doug for up to $1.1 bln, its shares jumped 10%. Defying screen-time culture is a risky deal game. But paying a discount to where rivals trade for a company growing faster than the market is the way to play well with investors.