Deals

Fuji Soft’s $4 bln sale needs a rethink

9 Sep 2024

Shares of the IT software specialist are trading 7% above the price of an agreed takeover offer from buyout firm KKR, and above a higher price its rival sponsor Bain is dangling at the target. After wrestling with a sale, the Japanese company has left too much value on the table.

Nordstrom buyout looks like least bad fit

6 Sep 2024

The US department store chain’s founding family and a Mexican retailer have offered to take it private in a $3.8 bln deal. The share price has risen since a deal was first mooted, but Nordstrom’s prospects haven’t. Its directors ought not to let this one get away.

Buyout barons’ music fest punt is oddly compelling

6 Sep 2024

Private equity and countercultural live events might seem worlds apart. Yet KKR’s recent $1.4 bln purchase of the Superstruct group that runs 80 music festivals has many of the factors buyout shops look for. Scope for a healthy return implies more will take the plunge.

Couche-Tard gives 7-Eleven owner easy defence path

6 Sep 2024

The Japanese company's board unanimously rejected its Canadian suitor's $39 bln takeover offer. The 21% premium is well short of Seven & i's breakup value. For this deal to be a real test of Japan's receptiveness to foreign M&A, Couche-Tard needs to work a whole lot harder.

Couche-Tard deal machine faces ultimate test

5 Sep 2024

The Canadian convenience store operator has spent $18 bln gulping down 75 acquisitions since 1996. Japanese rival Seven & i is much bigger prey. Success will depend on the Circle-K operator learning from incomplete takeovers including Carrefour, Caltex and Casey’s General Stores.

Verizon has done worse deals than Frontier

5 Sep 2024

That might not be a ringing endorsement of the US telecom's $20 bln purchase of fiber provider Frontier Communications. The cost savings at least cover the 37% premium. But the returns will be meager unless CEO Hans Vestberg can work wonders. At least it's not Yahoo or AOL.

Blackstone $16 bln AI deal borrows from SPAC boom

5 Sep 2024

A group led by Steve Schwarzman’s firm is paying a large sum to buy data centre operator AirTrunk from Macquarie. By tinkering with EBITDA, the buyer can present a low valuation multiple for a purchase in a hot sector. It's unnecessarily reminiscent of the blank-cheque froth.

Seven & i deal will test Japan’s financial renewal

5 Sep 2024

Couche-Tard’s takeover interest in the 7-Eleven owner is a pivotal moment for the country’s efficiency drive. In this Viewsroom podcast, Breakingviews columnists explain why Tokyo ought to wait to see how the target reacts before opining, and how a deal could easily turn hostile.

Monopolies work best if they exist. Ask Disney.

3 Sep 2024

The $160 bln media giant pulled its sports and entertainment channels off DirecTV while a US judge also blocked its sports streaming JV. In both arrangements, the Mouse House is trying to exercise the power of its content. Trouble is, consumers have plenty of other places to go.

Deutsche’s UK broking adventure takes early detour

3 Sep 2024

The German bank’s $500 mln acquisition of Numis brought relationships with London-listed firms like Rightmove. Now it’s suspended work with the property portal after opting to advise Rupert Murdoch’s REA on a possible bid. Other UK clients may discount future claims of loyalty.

7-Eleven owner faces an inconvenient value truth

3 Sep 2024

Seven & i shares leapt on Couche-Tard's approach but trade at a big discount to the sum of its parts. Boss Ryuichi Isaka can speed up his existing strategy but has failed for years to unlock value. New owners have a better shot at helping the $38 bln retailer reach its potential.

Murdoch’s UK property gambit has a price ceiling

2 Sep 2024

Australian property listings site REA Group is eyeing $6 bln UK peer Rightmove. The News Corp-backed suitor can use cash and higher-valued shares to pay a 30% premium. Beyond that, Rupert Murdoch’s outfit might struggle to combine a successful bid with keeping him in control.

NFL gives buyout barons a view from cheap seats

28 Aug 2024

The US football league is giving private equity firms access to a coveted investment venue. Returns like the one on the $6 bln Washington Commanders are tempting enough for Carlyle and others to accept tough terms and cede some profit. It’s a steep price for a lousy ticket.

Poison pills will hurt Seven & i and Japan

28 Aug 2024

The 7-Eleven owner wants the government to discourage dawn raids on its stock to help defend against a Couche-Tard takeover, per Bloomberg. Such protection would undermine Tokyo's shareholder value push. With other bidders likely, the best course is to encourage a fair process.

Trophy asset extras serve purpose at own expense

27 Aug 2024

Sellers of media properties are in a bind: empires’ charms often appeal to the heart, but not cold financial logic. Perennial tire-kickers – like Edgar Bronfman Jr. who just dropped a run at Paramount – can add FOMO. Problem is, the runner-up’s credibility has a breaking point.

Buyout shops would cash in redesigned blank checks

27 Aug 2024

Shell-company activity has slowed, but not halted. Deals involving SPACs old and new ensure Wall Street steady fees. A wider resurgence, however, may depend on structural changes. With $3 trln of aging assets in need of exits, private equity could benefit by leading a charge.

China steel woes will recast miners’ M&A desires

27 Aug 2024

Buying copper-heavy Anglo American would have helped BHP CEO Mike Henry reduce the $140 bln miner's dependence on iron ore. With the steel industry facing a "harsh winter", deals must look ever-more appealing to BHP, Rio and others. But stock price drops make tie-ups more costly.

US $5 bln mining deal hits limits of coal revival

21 Aug 2024

Consol Energy and Arch Resources are teaming up in a no-premium merger. Though the combined group will dig up cost savings and have more cash to buy back stock, shareholders gave the union a tepid reception. The rock’s future is less dismal, but the investor pool remains narrow.

Walmart’s JD sale displays derisking smarts

21 Aug 2024

The US retail giant has offloaded the stake held in its Chinese partner since 2016 for $3.6 bln. With 400 stores of its own in the People’s Republic, Walmart isn’t leaving. But the move reduces its exposure to a shifting economy and may put a cap on JD’s stock price turnaround.

Price may be Couche-Tard’s lowest Seven & i hurdle

21 Aug 2024

The Canadian suitor may be able to cut enough costs to offer a 40% premium for its rival, valuing it at $59 bln. But antitrust concerns might require selling some US assets. And the target's status in Japan as a quasi-national asset will complicate attempts to seal a deal.