Manufacturing

Capital Calls: JEDI’s demise, Toyota’s weird world

6 Jul 2021

Concise views on global finance: The cancelation of a $10 bln U.S. government cloud contract shows negotiating big projects is sometimes a matter of guesswork. Meanwhile, the auto firm that pioneered just-in-time manufacturing is cashing in on a chip stockpile and red-hot market.

Pricey Finland pulp deal offers paper-thin returns

2 Jul 2021

Shares in 5 bln euro Finnish engineer Valmet fell after it agreed an all-share takeover of valve maker Neles. Although both operate in paper, the modest cost savings on offer suggest CEO Pasi Laine may struggle to generate decent returns. Investors are right to be sceptical.

Capital Calls: It sure feels good to be a banker

1 Jul 2021

Concise views on global finance: Global deals in the first half of the year broke all records.

Knorr risks a prang in German auto bidding war

30 Jun 2021

The 16 bln euro brake maker’s shares fell sharply after it said it might buy car electricals supplier Hella. The latter’s focus on lights points to minimal savings. Competition from more logical bidders like France’s Faurecia will drive financial returns even further off-road.

Capital Calls: Infrastructure, Doximity, Deliveroo

24 Jun 2021

Concise views on global finance: President Biden’s $1 trln bipartisan plan for U.S. infrastructure is a feat of political engineering. Meanwhile, medical-themed social network Doximity finds riches in niches, and UK delivery outfit Deliveroo serves up a favorable court ruling.

Vaccine vial maker needs to take IPO shot quickly

22 Jun 2021

Italy’s Stevanato is surfing the pandemic wave to a U.S. listing. Valued alongside high-flying medical-kit supplier West Pharmaceutical, it could be worth over $7 bln. But as the virus recedes, sales may ebb while rivals muscle in on its turf, pricking holes in the price tag.

Battery deficit risks UK driving electric jalopy

22 Jun 2021

Britain needs more so-called gigafactories to supply power for green cars, ahead of import caps and a ban from 2030 on gas guzzlers. Current expansion plans may electrify just 20% of local output from BMW, Nissan and others. Prime Minister Boris Johnson faces an uphill drive.

Capital Calls: U.S. malls are a tale of two REITs

14 Jun 2021

Concise views on global finance: Shopping center operator Washington Prime filed for bankruptcy protection, but the outlook is a bit rosier for premium mall owners.

Blocked Nvidia-Arm M&A would hit SoftBank hard

8 Jun 2021

CEO Masayoshi Son agreed to sell his chip designer to the U.S. giant for $40 bln. If governments or competition authorities scupper the deal, an IPO would be the obvious Plan B. Based on sector valuations, $20 bln may be a realistic public price tag, landing SoftBank with a loss.

Markets are too tranquil for their own good

2 Jun 2021

Measures of expected asset-price volatility have fallen as the U.S. economy roars ahead, Fed boss Jay Powell keeps his foot on the accelerator, and firms and consumers regain some confidence. The recovery is now so fully priced in that even small setbacks could rattle investors.

Capital Calls: Airbus signals liftoff, Bill Gates

27 May 2021

Concise views on global finance: The global aircraft industrial complex got a boost after the European plane maker said it hopes to churn out more of its A320 short-haul workhorses per month than expected; Microsoft founder’s huge private investment vehicle under scrutiny.

Bain discount auto IPO is cheap for a reason

25 May 2021

The private equity firm is listing French car parts seller PHE to raise 450 mln euros to pay down debt and prep for M&A. Europe’s fragmented after-sales market is due an overhaul. The jalopy-like multiple reflects uncertain growth and the threat from cheap-to-run electric motors.

Capital Calls: BlackRock/Exxon, Media deals, SPACs

25 May 2021

Concise views on global finance: The giant asset manager will vote for three dissident nominees for Exxon Mobil’s board; boutique adviser LionTree has benefited from a rash of media deals; Lordstown Motors show why blank-check merger projections can’t be relied upon.

Capital Calls: JPMorgan, FirstGroup, Break fees

18 May 2021

Concise insights on global finance: Jamie Dimon is shuffling his deputies; the UK bus-to-rail group’s sale of its U.S. businesses to EQT has hit an investor revolt; deals involving AT&T and Canadian National Railway highlight the fees due for walking away.

Capital Calls: AT&T’s bankers, Blackstone in Italy

17 May 2021

Concise views on global finance: The U.S. telecom giant’s unwinding of its purchase of Time Warner is a gift for advisers on Wall Street; a court rules that the U.S. private equity firm’s 2013 purchase of Corriere della Sera’s HQ was valid.

Capital Calls: Train bidding war

14 May 2021

Concise views on global finance: Canadian National increases its bid for U.S.-based Kansas City Southern.

Capital Calls: Endeavor’s Hollywood ending

29 Apr 2021

Concise views on global finance: The entertainment conglomerate’s IPO flipped the script on opening day.

Europe’s $36 bln chip runt is coming into its own

29 Apr 2021

Shares in Franco-Italian STMicro have lagged the soaring semiconductor sector. Now CEO Jean-Marc Chery is boosting sales targets thanks to a global shortage. And his rising market share in cars and digital everyday gizmos should help close the valuation gap with bigger rivals.

Italian IPO to square God’s work with capitalism

28 Apr 2021

Automatic door maker FAAC, worth some 2 bln euros, may float in Milan. The Catholic Church, which inherited the business from the owner, can use the proceeds to fund good deeds. The firm’s rapid growth may also convince investors their bet will be more solid than a parish raffle.

Capital Calls: The $2 trln toybox

23 Apr 2021

Concise views on global finance: Mattel’s 47% sales growth tees up a spree of discretionary spending, as American consumers raid pandemic savings.