Deals

Cigna pays over the odds for uncertain benefit

8 Mar 2018

The insurer is paying $54 bln for pharmacy middleman Express Scripts in the latest healthcare consolidation move. Express’s business has stalled and the FDA’s campaign for drug-price transparency threatens its model. Cigna’s $13 bln premium is not a sure prescription for growth.

Chinese bidders find new way to collar their prey

8 Mar 2018

Geely’s boss used an “equity collar” to amass a $9 bln stake in automaker Daimler fast, and without much hard currency. HNA has done something similar at Deutsche Bank and Swiss travel retailer Dufry. Other Chinese firms could use derivatives to make their money go further.

HNA is enjoying a pleasant stay at Hilton

7 Mar 2018

The cash-strapped Chinese group bet $6.5 bln on the U.S. hotelier, using lots of borrowed money. It has now sold stock in the spun-off Park Hotels for $1.4 bln, while retaining another $7.6 bln stake. HNA has been a crazily prolific investor, but this trip was worth it.

Miners face a multibillion-dollar growth debate

28 Feb 2018

The big diggers have emerged from 2017 in rude health: BHP, Rio and Glencore's combined net debt is down to a third of where they ended 2013. The challenge is how to go beyond better payouts. Geology and high prices mean the next phase of growth may be unorthodox.

Alibaba delivery deal could be tasty side dish

27 Feb 2018

The $500 bln e-commerce outfit may buy the rest of Chinese startup Ele.me, which gets meals from restaurants to homes. Simply battling rival Meituan Dianping would be costly. If it can enhance Alibaba's payments, groceries and parcels businesses, though, it makes much more sense.

Geely wheels Mercedes into its chop shop

26 Feb 2018

The Chinese carmaker's founder has bought a 10 pct stake in Daimler, parking it next to Volvo, Lotus, London cabs and Swedish trucks. It's another strange turn in Geely's route to global growth. This new $9 bln part will be hard to fuse onto what has otherwise been a sweet ride.

Anbang is big test of China’s non-market market

23 Feb 2018

The state seizure of the insurer looks designed to leave markets unruffled. It will probably work, since capitalist forces in China are still on a tight rein. The real impact will be subtle, as investors and foreign regulators weigh up this new hands-on approach.

General Dynamics pays paranoia premium for CSRA

12 Feb 2018

The U.S. defense group is spending some $6.8 bln for cyber specialist CSRA. The synergies don’t quite cover the premium, and returns look underwhelming. The deal hangs on a big boost in U.S. government spending, and the idea that these companies benefit from a more fearful world.

Comcast hints at tense second season for Fox bids

12 Feb 2018

The cable firm could try to thwart media giant Disney’s $52.4 bln purchase of parts of Rupert Murdoch’s empire. Antitrust and family politics would hinder a reprise of Comcast’s $60 bln offer for now, but Disney may yet have to raise its game.

Google offers Aramco unlikely route to IPO heaven

1 Feb 2018

The Saudi oil producer is in talks with the search engine’s owner to create a tech hub in the kingdom, says the WSJ. There could be a secondary benefit. If investors valued Aramco the way they do Alphabet, the $2 trln valuation Riyadh wants from a future IPO would be a shoo-in.

Newell reaches limit of its brand rollup model

25 Jan 2018

Shares in the maker of Rubbermaid goods and Sharpie pens plunged 20 pct, wiping $3 bln off its value, after it said it would offload nearly a quarter of its businesses, some bought only recently. A tighter focus is overdue, but struggling retailers could make the cleanup harder.

HNA’s hard job: put the M&A machine into reverse

12 Jan 2018

The acquisitive Chinese group has been buffeted by regulatory setbacks and signs of financial stress. Now trade in two key listed units in China is halted, suggesting a corporate reshuffle could be looming. HNA will find shrinking back to health tougher than breakneck growth.

Fosun risks getting knickers in a twist in Italy

20 Dec 2017

The Chinese firm is in talks to buy Italian lingerie company La Perla. This is probably bargain-hunting mixed with a plan to expand in China. Underwear is a tricky industry in the People’s Republic, even at the luxury end. Making an attractive return will be tough.