Divestment

Sapporo might get half-drunk on efficiency

18 Jul 2024

After the $3 bln beer maker agreed to rejig its property holdings, activist 3D has detailed exactly how the company should go about it. Japan Inc is warming up to the idea of realising gains on real estate. But there's plenty of room for missteps, even in a seller's market.

Axel Springer split could suit both parties’ needs

12 Jul 2024

Buyout firm KKR backed an 8 bln euro take-private of the media group in 2019. Now it may get the classifieds unit it likes while CEO Mathias Döpfner keeps news, the FT says. It would unpick an odd governance situation, and the German tycoon could get cash for a US media splurge.

Northvolt flags European batteries’ growing pains

5 Jul 2024

The $12 bln Swedish maker of devices to power electric cars has lost a contract with BMW, one of its own backers. Brussels would love domestic players to cut European automakers’ reliance on China. Yet the EU’s conflicting strategies and foreign competition mean progress is slow.

Smith & Nephew faces long and painful activist fix

4 Jul 2024

Cevian has taken a 5% stake in the $11 bln underperforming London-listed medical equipment maker. Curing its depressed share price will require deep operational surgery. While that may take time, a breakup could be a second treatment further down the line.

Anglo American’s revamp has an inauspicious start

1 Jul 2024

The easiest part of the $41 bln group’s overhaul after BHP’s takeover bid was a sale of its coking coal business. A months-long closure of that unit’s most profitable mine may make an expected $5 bln valuation harder to achieve. That increases the pressure on CEO Duncan Wanblad.

UBS deal reflects resilient demand for China trade

25 Jun 2024

Its sale of Credit Suisse’s Chinese securities JV stake to a state-run firm greases the Swiss bank’s plan to take control of another unit, and snubbed bidder Citadel still looks keen to enter the market. Conditions are tough but firms are shoring up their future on the mainland.

Vodafone India bulls get ahead of themselves

21 Jun 2024

Two big share deals show New Delhi’s decision to prop up the country’s third-largest telecom operator is starting to work. But the tripling in $13 bln Vodafone Idea’s stock looks overdone. It’s still losing customers and battling debt, all with a messy ownership structure.

Mining M&A stokes coal race against cleaner power

20 Jun 2024

Anglo American will soon offload dirty deposits used to make steel as part of CEO Duncan Wanblad’s overhaul. Rival sales suggest there should be plenty of suitors. Coking deals can pay off for buyers if prices stay high and green options develop slowly, but neither is assured.

Dollar Tree rejig is tale of haves and have nots

5 Jun 2024

The $26 bln discount chain’s main brand is attracting shoppers with deeper pockets, a similar pattern to Walmart. The more downmarket Family Dollar, acquired in a takeover battle a decade ago, is struggling. Cutting it loose could help shareholders uncover a bargain.

Rio Tinto’s dual listing belongs in history books

28 May 2024

Activist fund Palliser is overegging the 44% boost holders of the miner’s London stock could get if Sydney became its primary bourse. But there’d be some uplift. And CEO Jakob Stausholm could use a more level M&A playing field as BHP potentially kicks off a wave of consolidation.

BHP boss hopes a week is a long time in dealmaking

23 May 2024

Mike Henry has won an extra seven days to try to seal a deal with Anglo American. The trick will be to persuade his harried quarry that its own breakup plan is more risky than BHP's three-step approach. It's a battle of egos, and may yet require upping the $46 bln proposal.

Ping An wrestles with its HSBC dilemma

17 May 2024

The bank's top owner may reduce its 8% stake a year after its breakup bid failed. It's a fair move given the recent bumper returns and looming succession and growth issues. But HSBC's dividends and arguable undervaluation suggest Ping An won't trim its outsized holding too much.

Hotpot IPO looks too mild without China spice

17 May 2024

Singapore-based Super Hi has distanced itself from its Chinese roots ahead of a $50 mln US offering. That's prudent, given scrutiny on companies like Shein and ByteDance. Yet without support from former parent Haidilao, the firm may struggle to stand apart from larger peers.

Anglo breakup gives investors a free option on M&A

14 May 2024

The $40 bln miner plans to offload coal, diamond, nickel and platinum assets to help fend off takeover interest from BHP. The standalone strategy may be worth more to shareholders than what its Australian suitor proposed. Yet if it flops, a future takeover might be even easier.

Geely’s $5 bln carve-out slows down to speed

13 May 2024

The automaker's electric-vehicle unit Zeekr rose 35% after pricing its IPO at less than half its 2023 valuation. That suggests group Chair Li Shufu has learned from his overpriced deals to take Lotus and Polestar public and found a way to coax investors wary of China risk.

Anglo breakup costs complicate a sweeter BHP deal

1 May 2024

The miner’s Australian suitor is mulling a hike to its $39 bln proposal. But if Anglo American were to demerge its listed South African units as part of the deal, BHP or any other buyer might inherit a $2 bln tax bill. That may limit BHP boss Mike Henry’s scope for generosity.

Kate Spade deal veto is lucky dip for trustbusters

23 Apr 2024

US competition cops want to stop Tapestry, owner of the handbag brand, from buying rival Capri. The $8.5 bln merger is a tempting target: well-known products, few political issues, and none of Big Tech’s mighty resources. That offers a chance to road-test novel legal theories.

Swedes’ gaming split is far from a next-level fix

22 Apr 2024

Struggling $3 bln Embracer will divide itself into three discrete companies. Leveraging up the group’s board games arm and splitting out hit-and-miss blockbusters and steadier mobile games makes sense. But it’s unlikely to unlock value akin to the Swedish firm’s glory days.

Guess what: Boeing can be spelled without G and E

17 Apr 2024

Instead of investing in a new model, the 737-maker embraced the gospel of Jack Welch and returned $60 bln to shareholders over a decade. McDonnell Douglas suffered a similar fate before infusing Boeing with GE’s toxic ethos. It’s not too late to excise it and build another plane.

Berlusconis have narrow window for German TV bid

16 Apr 2024

The Italian clan’s broadcasting group MFE had banks lined up for a potential $4 bln offer for ProSiebenSat.1, Reuters reported. If they could replicate the savings from a past Spanish merger, the numbers work. The risk is the target’s shares keep rising, undermining the logic.