Deals

Spooked dealmakers scurry back into their foxholes

23 Mar 2023

Beyond high-profile cases against Google, US trustbuster Jonathan Kanter is rewriting the anti-consolidation playbook. As he shreds historic guidance, pursues criminal charges and focuses on labor, CEOs are putting M&A on ice. It’s worth waiting to see which policies stick.

Capital Calls: Bank of England, Wonder drugs

23 Mar 2023

Concise views on global finance: The UK central bank has joined peers in raising rates, but there’s not much room to keep hiking. Meanwhile, a drug that might help smokers’ lung is could be good for makers Regeneron and Sanofi, but even better for society.

John Lewis needs a breakup more than a rescue

23 Mar 2023

The UK employee-owned retailer wants to raise $2.5 bln to improve its ailing stores. But that could leave a new investor owning nearly half the company, undermining its mutual status. Merging its grocer Waitrose with rival M&S would bring in cash and forge a more viable player.

Capital Calls: Credit Suisse bump trade

20 Mar 2023

Concise views on global finance: The bank’s shares closed above the implied value of UBS’s $3.2 bln government-backed offer. Investors expecting more may be disappointed.

Salesforce is stuck with its pricey acquisitions

20 Mar 2023

Pushy investors persuaded the business software developer to cut back on M&A, but undoing past deals would be tougher. Offloading $28 bln Slack, $16 bln Tableau or $7 bln MuleSoft looks to be more trouble than it’s worth. Integrating them is a better, albeit slower, approach.

UBS salvages most value from Credit Suisse wreck

19 Mar 2023

The Swiss bank is scooping up its ailing arch-rival for just $3.2 bln in a state-arranged rescue. In return for shoring up confidence it gets a balance sheet backstop, a competition waiver, big savings and a giant capital boost. It also becomes bigger and more systemic than ever.

Canada’s deal Mounties get $15 bln wake-up call

17 Mar 2023

Rogers’ deal for telecoms rival Shaw may finally close after a two-year fight. The country’s antitrust agency failed to block it – the latest in a history of losses. Reform efforts should wrestle with reasons for its lack of teeth next to aggressive U.S. and European enforcers.

Capital Calls: Gas station M&A

16 Mar 2023

Concise views on global finance: Canada’s $44 bln Alimentation Couche-Tard pays 3.1 bln euros for TotalEnergies’ European gas station cast-offs.

Capital Calls: BlackRock and ESG, UK pensions

15 Mar 2023

Concise views on global finance: Bank ructions and inflation give Larry Fink, boss of the $8 trln asset manager, cover to talk about something other than climate change in his annual letter; Britain’s abolition of a retirement tax threshold is an expensive way to help the rich.

Kanye West blunder puts Adidas in play

15 Mar 2023

The $28 bln sportswear maker is battling to restore its image after ditching a lucrative but dubious alliance with the musician. That requires CEO Bjorn Gulden to splurge on marketing, hitting dividends and margins. Adidas’s depressed valuation may soon catch the eye of rivals.

Capital Calls: Uber’s risky gig, Meta’s NFTs

14 Mar 2023

Concise views on global finance: A California court ruled in favor of classifying drivers as independent contractors, but investors may be overlooking other risks; after less than a year, Mark Zuckerberg’s $465 bln social media company is getting rid of its NFT capabilities.

Bank woes make winners of money market villains

14 Mar 2023

Failed lenders like SVB exposed the riskiness of uninsured bank deposits. That boosts the relative appeal of money market funds, which were at the center of the 2008 crisis. With better returns and a history of being bailed out, the $5.2 trillion market stands to grow larger.

Middle East pivot to Asia is strategic this time

14 Mar 2023

A restoration of diplomatic ties between Saudi and Iran is a big win for its broker China. After prior false starts, the Middle East and Asia have a growing mutual interest in helping each other advance their energy and trade security. For bankers, financial deals will follow.

Capital Calls: Ritchie Bros founder regret

13 Mar 2023

Concise views on global finance: The industrial equipment auction company’s $7 bln deal for scrap-yard operator IAA has drawn one last opponent: the company’s own co-founder.

M&A bankers trip over their cracked crystal balls

8 Mar 2023

Corporate consiglieri use an array of flawed methods to forecast deal activity, which tallied $3.6 trln last year. Luckily, they’re paid to complete mergers, not predict them. This blind spot makes staffing tougher, however, and in some ways undercuts the value of their counsel.

Near worthless GAM still isn’t an enticing bargain

8 Mar 2023

The Swiss asset manager is trying to sell itself, after losing 96% of its market value since a bond fund scandal in 2018. A buyer would have to stomach losses and slash costs to make the numbers work. Volatile markets and the chance of losing further assets make it a risky bet.

Obesity drugs have heft beyond Weight Watchers

7 Mar 2023

The first effective obesity therapies are just starting to have effects beyond their pharma developers and patients. WW International’s purchase of a telehealth prescriber is a pivot, but one that may help its existing business. Other firms will follow.

SAP ends pointless M&A roundtrip with Qualtrics

7 Mar 2023

The $150 bln software giant may sell its stake to Silver Lake. A $12 bln valuation implies mediocre returns for SAP, which bought the survey group in 2018. The buyout firm may struggle to put much debt on the target, crimping its profit, but it looks like a more logical owner.

Capital Calls: Carlsberg CEO exit

7 Mar 2023

Concise views on global finance: Asia will be a key battleground for the $21 bln Danish brewer’s next boss.

TPG starts a dicey dance with death Down Under

7 Mar 2023

The private equity firm is offering $1.5 bln for funeral-services firm InvoCare. The target could use some help after losing market share. But the 41% premium means the buyer would be piling on debt as interest rates rise. Making a decent return would require some deft footwork.