Deals

Capital Calls: JetBlue’s Spirit sacrifice

6 Jul 2023

Concise views on global finance: The budget airline says it won’t fight a court order nixing a partnership with a larger rival to allay concerns about its $4 bln deal for peer Spirit. It’s unlikely to satisfy antitrust enforcers.

How UBS can cling on to its Swiss purchase

6 Jul 2023

CEO Sergio Ermotti is under pressure to offload Credit Suisse’s local unit to ease political anger over the mega bank merger. But selling it could jettison prized wealth assets and $1-2 bln in annual savings. If UBS avoids mass layoffs it will have a stronger case for keeping it.

Czech sphinx’s Casino bet trumps French insiders

5 Jul 2023

The retailer must choose between two offers to cut its 6.4 bln euro debt load. Daniel Kretinsky’s deal brings more equity, helping the grocer spruce up stores and compete. But he will need France to ditch its preference for domestic owners like rival tycoon Xavier Niel.

Sea giant MSC sets sail on erratic M&A journey

4 Jul 2023

After expanding into logistics and eyeing an airline, the maritime firm may buy a train operator for $6 bln. Diversification is key to countering a shipping downturn. MSC’s owner, the Aponte family, is right to deploy its ample cash reserves, but the bet may prove expensive.

Capital Calls: KKR’s reluctant bidding war

30 Jun 2023

Concise views on global finance: Despite pushing arguments about antitrust and financing risks, the buyout shop ended up parrying a rival suitor for industrials company Circor by matching it on price.

KKR adopts M&A’s new rules in bidding war

28 Jun 2023

A smaller private equity shop is gatecrashing Henry Kravis’s firm and its $1.7 bln deal to buy industrial company Circor. KKR’s response: offer more certainty, not a better price. Hawkish regulators and shaky debt markets are changing dealmakers’ priorities.

Brookfield finds it’s no fun to be half-married

27 Jun 2023

The private equity firm bought a stake in American Equity with a view to working together, but got disgruntled when the annuity provider partnered with a rival. Now Brookfield wants to buy the whole company for $4 bln. It’s the simplest way for both sides to get what they want.

Capital Calls: Eli Lilly gorges on obesity options

27 Jun 2023

Concise views on global finance: The drugmaker found patients losing an incredible 24% of their weight on one of its latest treatments. First-movers don’t always win out in pharma, however, as Pfizer proved with Lipitor. That’s why Lilly is wise to keep investing in alternatives.

Big Tech backlash swells the AI gold rush

26 Jun 2023

Cloud provider Databricks is buying a machine learning startup for $1.3 bln, almost six times its valuation earlier this year. Models backed by Microsoft and Google dominate artificial intelligence. But a bet that companies want to control their data is pumping up smaller rivals.

Capital Calls: Canada is calling Meta’s bluff

23 Jun 2023

Concise views on global finance: The Facebook owner plans to pull news on its platforms in Canada after the country passed a bill that requires internet giants pay publishers. If Australia is any guide, Meta will eventually cave.  

Eni’s bet on gas comes at an acceptable price

23 Jun 2023

The Italian group and Var Energi, in which it holds a 63% stake, are buying Neptune Energy for $4.9 bln. The seller’s private equity owners once hoped for an IPO at twice that level. Bulking up in fossil fuels carries risks, but Eni’s price at least creates some sort of buffer.

Capital Calls: Satellite M&A crash landing

22 Jun 2023

Concise views on global finance: SES and Intelsat’s decision to call off merger talks leaves the Luxembourg-based group with a $3 bln puzzle.

Thyssenkrupp hydrogen IPO calls for leap of faith

22 Jun 2023

The German conglomerate has resumed efforts to list electrolyser firm Nucera, hoping to raise $650 mln. Green hydrogen was once seen as the Swiss army knife of climate change. But market sentiment has soured and Thyssenkrupp’s alkaline technology faces competition from China.

Thrift-store IPO dresses up old model in new style

21 Jun 2023

Secondhand retailer Savers Value Village is seeking a market value as high as $2.7 bln. Its pile of debt is a well-worn problem. At the same time, an ESG strand and Gen Z’s zeal for recycled goods give the 69-year-old business a fresh look.

Swiss $17 bln CoCo case could bite UBS on the tail

21 Jun 2023

Bondholders are suing regulator FINMA for ordering the writedown of funky hybrid bonds to smooth a Credit Suisse deal. If they win, the debt may come back to life, giving UBS a capital hole. Or the government may pick up the tab, creating new political headaches.

Capital Calls: Intel Outside, Amazon Prime beef

21 Jun 2023

Concise views on global finance: The chipmaker struck a deal to sell 20% of a tool-making subsidiary, which should benefit from being put on a path to independence. Meanwhile, the $1.3 trln e-commerce company’s subscription service is unlawfully hard to cancel, says the US FTC.

KKR takes private markets right up to the checkout

20 Jun 2023

The buyout shop will acquire up to 40 bln euros of buy-now-pay-later loans from PayPal. That will feed a business growing 70% a year, and satisfy asset managers’ hunt for new big markets to pour dollars into. They may encroach on another domain once the preserve of banks.

ADNOC’s German chemical punt looks a stretch

20 Jun 2023

The Abu Dhabi energy giant is eying Covestro, valuing it at 14 bln euros including debt. The energy crisis has hit the German group’s valuation, and other UAE firms have snapped up European bargains elsewhere. But ADNOC would require synergies to make a deal stack up financially.

Bain’s Swiss software bid merits hard pushback

20 Jun 2023

SoftwareOne rejected a $3 bln offer from the US buyout group. The bidder’s alliance with the founding shareholders puts it in a stronger position than with a recent approach for a similarly named company. But the returns look juicy, meaning it can probably afford to pay more.

Comcast rejigs media script after falling from Sky

16 Jun 2023

The $173 bln cable giant is discussing a cash dowry to lure buyers for its pay TV operator’s German arm. That would remove a distraction as CEO Brian Roberts hunts for a new deal. A sale may be hard to reach. But it’s better to cut the cord sooner than later.