Mergers & Acquisitions

Biden trustbusters keep new ideas on life support

15 Nov 2024

The DOJ is suing to stop UnitedHealth’s $3 bln deal for in-home care rival Amedisys, arguing it would hurt patients. As with other recent US litigation, it targets issues beyond price, in this case quality and capacity. It’s a parting shot at codifying novel competition theory.

John Malone M&A cleanup costs minority investors

14 Nov 2024

The famed cable dealmaker’s empire is reshaping itself, as giant Charter strikes a $13 bln agreement for Liberty Broadband. It’s mostly about the buyer getting back a lump of its own shares, at an 11% discount. The transaction is great for everyone except selling shareholders.

Just Eat’s discount deal puts CEO on notice

13 Nov 2024

The food delivery firm finally sold Grubhub for $650 mln, a stark decline from the $5 bln it paid three years ago. Investors’ cheer reflects that they feared an even worse price, and it gets rid of a dead weight. But Just Eat boss Jitse Groen can’t afford any more mistakes.

Giant LBO brings barbarians to Seven & i’s rescue

13 Nov 2024

The founding Ito family has offered $58 bln to take the 7-Eleven operator private. The whopping deal would stretch Japan’s financing markets and require a management overhaul to generate decent returns. Still, it gives the board another alternative to Canadian suitor Couche-Tard.

Arbageddon dangers averted by only so much

12 Nov 2024

Merger arbitrageurs battered by tougher trustbusters and scarce deals cheered the US election results. The pending $35 bln takeover of credit card brand Discover and others may benefit, as more M&A gets teed up. A mercurial Donald Trump, however, is bound to blow up some trades.

Activist hitches long ride on Nissan’s turnaround

12 Nov 2024

Fund Effissimo bought a stake in the sickly Japanese carmaker, sending shares up 13%. The $9 bln marque already unveiled bold cost-cutting plans, and there is limited scope to push for more. It’s a risky bet CEO Makoto Uchida can pull it off amid an increasingly tough market.

Singapore’s banking giant DBS is coming of age

12 Nov 2024

The $90 bln Singapore lender will start returning capital to shareholders through share buybacks. Incoming CEO Tan Su Shan will retain sufficient firepower to pursue bold M&A, though changing US policy in its Asian backyard may merit a cautious turn.

European airlines’ tough summer adds to M&A logic

11 Nov 2024

Carriers such as $8 bln Lufthansa and $2 bln Air France-KLM saw rising costs and competition on Eastern routes from Chinese rivals. The logical response for EU players is to look West instead. Bidding for Portugal’s state-owned TAP would drive much-needed consolidation.

Wood Group saga is a masterclass in M&A self-harm

8 Nov 2024

Shares in the energy-services group were already miles below where suitors Apollo and Sidara had offered to buy. Now they’ve halved after Wood Group garbled a message about future losses. The likely upshot is shareholders accept a third offer – even lower than the first two.

Burberry buyer would need steel-plated trench coat

6 Nov 2024

Shares in the $4 bln UK luxury group rose after a website reported that Moncler was eyeing a bid. But the returns on offer look low, while boosting the brand will be costly. Possible suitors require deep pockets, and the patience to wait a long time for any kind of payback.

Verizon would be wise to hold on $20 bln deal

4 Nov 2024

Two big investors claim that broadband builder Frontier is worth more than what the wireless titan is paying for it. The numbers already look shaky and there’s no other suitor, so there’s little reason to sweeten the bid. The fraying fiber transaction is better left to unravel.

German M&A flurry is powered by lasting tailwinds

4 Nov 2024

Teutonic deal volumes are below their 2021 peak, like everywhere else. Yet a burst of activity, including the $15 bln privatisation of DB Schenker and $16 bln Covestro sale, show signs of life. Radical changes to the country’s industrial model imply an enduring rebound.

UBS can share more M&A savings with investors

30 Oct 2024

CEO Sergio Ermotti keeps upping the pace of cost cuts from buying Credit Suisse, with his 2024 target now $7.5 bln. Yet expenses elsewhere in the bank seem to be offsetting those gains. To please shareholders, UBS may have to let more of the bounty drop down to the bottom line.

China’s SOEs bulk up for market heavy lifting

29 Oct 2024

Guotai Junan and Haitong's proposed merger to form a mega-brokerage is the latest in a raft of deals. Beijing wants its state-owned enterprises to be larger to boost its $11 trln stock market. But unlocking cost savings and cutting overcapacity will be the real challenge.

Axel Springer boss is media’s key consolidator

28 Oct 2024

Mathias Döpfner will soon have up to 4 bln euros to spend on M&A. If the long-term Axel Springer boss is just after storied brands, Murdoch assets like Dow Jones may be in play. But with the obvious targets tricky to pull off, he may equally train his sights on AI or data.

Biden trustbusters get free rein to accessorize

25 Oct 2024

A US judge agreed to halt the $8.5 bln sale of Michael Kors owner Capri to Kate Spade parent Tapestry. Shares buoyed by overconfident traders halved. Others should take heed: the ruling adds substantial heft to novel theories pushed by this administration’s deal hawks.

Investors will keep Ari Emanuel in the boxing ring

24 Oct 2024

The Hollywood super-agent is selling a bull riding franchise from Endeavor to TKO for $3 bln. The price is hard to justify, and shareholders are throwing tomatoes at the deal. While stuffing the assets together makes sense, it adds a complexity to an already convoluted match.

Budget US airlines look clearer for deal takeoff

23 Oct 2024

Frontier may be mulling a fresh offer to buy struggling rival Spirit two years after JetBlue’s doomed interruption. Stern trustbusters and $3 bln of debt will be steep hurdles. But boss Barry Biffle has a better shot now, if he stays disciplined with a bid this time.

EQT defers exit brainteaser with school deal

22 Oct 2024

Swedish firm EQT is reinvesting in education group Nord Anglia alongside Neuberger Berman for $14.5 bln, instead of a sale or listing. It highlights how buyout groups are keeping assets for longer. In this case, that comes with rising regulatory risks, and limited exit options.

JAB’s pricy coffee shot is not as dumb as it looks

21 Oct 2024

The German investment group scooped up a 18% stake in JDE Peet’s, which it listed in 2020, from Mondelez at a fat 32% premium. That eliminates a share overhang and risk of an interloper. And, with the $12 bln Douwe Egberts seller’s stock cheap, the markup is easy to swallow.