Deals

China’s crackdown on IPO risk factors is a warning

25 Jul 2023

Officials want negative descriptions of the country's policies toned down in prospectuses. It's another hoop for firms listing in Hong Kong and the US to jump through, and for regulators to spar over. For global banks and investors, it ups the dangers of doing Chinese deals.

ADNOC has upper hand in $30 bln plastics M&A

24 Jul 2023

The UAE energy giant may merge Borouge and Borealis, the petrochemicals firms it co-owns with Austria’s OMV. Simplification helps both state-owned groups, but neither Vienna nor Abu Dhabi will want to be the minority player. The latter’s control of gas and oil inputs looks key.

Drug scarcity and freak storms are nightmare combo

21 Jul 2023

A tornado that ripped through a Pfizer plant raises the specter of disruptions in an industry already stricken by shortages. Market forces aren’t much help at replacing lost supply in the drug trade. Avoiding future shocks means more slack in the system, and maybe higher prices.

Buyout barons feast on excesses of last boom

21 Jul 2023

The post-pandemic M&A frenzy is long over, but its legacy lives on in the generous loans that fueled a wave of leveraged takeovers. With debt now scarcer and twice as costly, investors like Blackstone and CD&R are crafting deals that take advantage of yesterday’s cheap credit.

Capital Calls: European earnings

20 Jul 2023

Concise views on global finance: Consumer-facing companies Electrolux, Essity and HelloFresh all plunged after weaker-than-expected financial reports.

Morgan Stanley and MUFG’s next act is well-timed

19 Jul 2023

The duo will collaborate on equities and currencies as their 15-year alliance evolves. With global interest in Japan driving up stocks as Tokyo toughens its stance on governance and amid a welcome return of inflation, the partnership will become even more the envy of its peers.

Capital Calls: AMC’s meme investor backlash

18 Jul 2023

Concise views on global finance: A new lawsuit looking to force a shareholder meeting adds to growing antagonism between $2 bln movie theater chain AMC and the retail investors who buoyed its business during the pandemic. For boss Adam Aron, meme stock stardom comes at a cost.

Sony’s Microsoft truce marks new gaming reality

17 Jul 2023

After opposing its US rival's $69 bln Activision buy, the Japanese group signed a deal over the latter's "Call of Duty" title. It will help Microsoft appease regulatory holdouts, but Sony benefits too. Boss Kenichiro Yoshida can now focus on how to outplay the sector's behemoth.

Activision’s comeback raises $69 bln question

13 Jul 2023

After defeating US trustbusters in court, Microsoft may need more time to seal the deal with UK authorities. The 45% premium struck when the “Call of Duty” maker was reeling looks less generous 18 months later. If negotiations drag, boss Bobby Kotick could push for a sweetener.

Amazon’s fumbled M&A leaves few good options

13 Jul 2023

The $1.3 trln giant splurged on grocer Whole Foods and movie studio MGM. But it hasn’t disrupted these sectors as hoped. Instead, both divisions are becoming more expensive and less promising. Ditching one would be an option if it weren’t so financially painful.

Bain’s Chindata buyout saga verges on absurd

13 Jul 2023

The US investment firm last month offered $2.9 bln for the Chinese data centre operator it already controls after potential rival bids yielded nothing. Now a state-backed group has bested Bain’s offer by 15%, yet is being ignored. It’s an odd way to get the best deal all round.

Capital Calls: Exxon’s $5 bln carbon-capture deal

13 Jul 2023

Concise views on global finance: The oil giant is using its own shares and paying a tiny premium to buy Denbury, the largest US carbon dioxide pipeline operator, in a greenish-looking transaction that mostly helps it pump more crude.

Microsoft-Activision deal not yet game on

12 Jul 2023

The $2.5 trillion tech giant has beaten down the US antitrust regulator. But the similar counterpart in the UK is digging in. Microsoft will have to either renegotiate its $69 billion deal with the gaming company or offer concessions, and then go through approval again.

Capital Calls: Illumina, Domino’s Uber delivery

12 Jul 2023

Concise views on global finance: The EU fines the $30 bln genetic test maker 432 mln euros for closing its 2021 Grail deal prematurely; the pizza chain known for its own delivery app is expanding its service with Uber Eats, a smart move to nab more orders from fickle customers.

Kering’s beauty drive has flashy precedent

12 Jul 2023

François-Henri Pinault paid $4 bln for upmarket perfumes brand Creed, says the FT. At 23 times EBITDA, the deal isn’t cheap but high margins and rapid growth mean it should pay off. It may also allow Kering to fully control its scent business, a gamble that worked with eyewear.

History is against UK and Spanish telecoms M&A

12 Jul 2023

Vodafone and Orange have deals worth $40 bln on antitrust agencies’ desks. Europe has only once approved a similar merger without competitive remedies, which involved a tiny Dutch player. The telcos may have to make big concessions, undermining their tie-ups, or accept defeat.

Drone IPO gives wings to India’s defence industry

11 Jul 2023

IdeaForge’s shares have nearly doubled since their debut, giving the government supplier a $586 mln valuation – or 151 times trailing earnings. It’s a bet that New Delhi will upgrade its military amid tensions with neighbours. India’s defence stocks look primed for takeoff.

Private equity gears up for a deal fest Down Under

11 Jul 2023

Blackstone, EQT, CVC and peers are shifting resources to Australia, partly due to geopolitical tension. The country’s stumbling economy will also leave property, consumer and other firms ripe for buyouts. That means M&A battles – once inflation, rates and debt markets settle.

Ocado has better options than a cheap sale

7 Jul 2023

Bid hopes have pumped up the $6 bln grocer-cum-warehouse operator’s shares. Yet retailers like Amazon would struggle to buy a company that also works for competitors. CEO Tim Steiner could instead sell the UK business, letting the market value Ocado more like rival AutoStore.

Worldpay deal gets buyouts halfway back to normal

6 Jul 2023

Private equity shop GTCR is scooping up 55% of the payments firm at an $18 bln valuation, gifting seller FIS a rich price without any IPO hassle. The transaction defies weak debt and M&A markets, but it also requires flexing fundraising muscles to underpin a huge cash outlay.