A South Korean EV reversal would inspire copycats 27 Jun 2024 Splitting out electric-car related assets was a popular ploy for firms like Renault and Geely to charge up valuations. But now conglomerate SK might go the other way by merging its loss-making battery business with another unit. As EV demand slows, similar reversals may follow.
Spirit doesn’t deserve Boeing’s cash 25 Jun 2024 Separating the supplier from the aircraft maker in 2005 benefited neither, so a deal to reunite them makes sense. Spirit’s shareholders probably don’t want Boeing’s stock. But the target’s woes compounded the acquirer’s problems. Ties that bind the two leave Spirit few options.
Remington owner runs low on takeover-defense ammo 24 Jun 2024 Vista Outdoor keeps spurning a $3 bln buyout bid in favor of a breakup. With the shareholder vote nearing, its Czech suitor just offered more for the bullets brand. The camping- and shooting-gear unit left behind, however, is risky recompense for more cash and a political fight.
Britvic can swerve Carlsberg dilution 21 Jun 2024 The soft drinks maker rebuffed a $4 bln cash deal from the Danish beer giant. Carlsberg wants to boost its no-alcohol business, so may yet return with a more generous offer. But Britvic’s cocktail of geographic expansion and low-sugar drinks means it can also grow on its own.
Tate & Lyle’s sour M&A may have nicer aftertaste 20 Jun 2024 The $3.2 bln food company is paying $1.8 bln for US-based ingredient business CP Kelco. An unappetising-looking return may be one reason why Tate & Lyle shares lurched down. But the deal makes strategic sense, and there may yet be a path to sweeter numbers.
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.
Nordic $5 bln insurer M&A limits cross-border risk 17 Jun 2024 Finland’s $21 bln Sampo is buying Danish rival Topdanmark. Overseas deals can easily go awry, but Sampo is buying a group it already half-owns and paying in shares. More importantly, the target’s current valuation should make it possible for synergies to cover the premium.
Latest UK builder M&A may yet have completion date 14 Jun 2024 Crest Nicholson rejected bigger rival Bellway’s $828 mln all-share offer. While Crest’s new profit warning is a turnoff, falling returns mean housebuilder mergers generally make sense. Bellway may not need to offer much more to convince its target’s shareholders.
Carlos Slim’s BT stake may just be a prelude 13 Jun 2024 The Mexican billionaire has taken 3% of the $17 bln UK telco. Nationalism, and Slim’s failed 2012 tilt at Dutch peer KPN, imply he won’t launch a full bid. But BT investors Patrick Drahi and Deutsche Telekom may sell their shares if he gets even keener on the group’s turnaround.
Paramount’s Redstones fall short of the Murdochs 12 Jun 2024 For media’s founding families, the issue of messy generational succession looms large. Just look at the ‘Mission: Impossible’ studio, where Shari Redstone has now killed an $8 bln deal at the eleventh hour. Unlike the Murdochs, Paramount’s dynasty failed to clean up its empire.
New Pharma will crowd out Big Pharma 11 Jun 2024 For decades the likes of Pfizer have ruled the industry, gobbling up tech-driven players. But former upstarts are no longer bite-sized, as Vertex Pharmaceuticals’ $125 bln market cap proves. Their new strength will create more M&A competition and undermine established leaders.
Spanish bank M&A lies in lap of interest-rate gods 7 Jun 2024 BBVA’s 12 bln euro hostile pursuit of Sabadell currently implies a slim premium to the target’s pre-bid price. If the latter’s investors think the ECB will keep rates high, returns will stay strong and they should reject BBVA. But lots of rate cuts may upend Sabadell’s defence.
Oaktree can still score a skilful goal with Inter 6 Jun 2024 The US fund ended up owning the loss-making Italian club after the previous owner missed a payment. Fetching valuations similar to what Elliott secured for rival AC Milan looks tricky. Yet American interest in soccer and on-field success point to a sale price exceeding $1 bln.
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.
Blackstone music deal can spare just a cent 3 Jun 2024 Steve Schwarzman’s firm is raising its bid for Hipgnosis Songs Fund by a penny. His private equity firm famously top-ticked the property market and the music deals have similar tunes. While the $1.6 bln price helps, high interest rates make it hard to strike the right note.
Medical trash turns into less valuable treasure 3 Jun 2024 Waste Management is paying $7 bln to buy Stericycle, which had a mixed pandemic. Vaccination needles injected profit into biowaste disposal, but work-from-home shredded the document destruction business. Unless the buyer can sweep up some pricing power, the deal is mostly scraps.
Exxon’s Darren Woods gets a Biden-era dividend 30 May 2024 The oil giant’s CEO just closed a merger with Pioneer, and slapped down a slew of ESG-related shareholder proposals. Exxon’s market value of $510 bln now nearly matches Tesla’s. All this under – and in some cases thanks to – a US president who vowed to fight climate change.
AI will power up buyout barons’ green-energy spree 30 May 2024 Brookfield offered $6.6 bln for French solar and wind firm Neoen after EQT and KKR struck renewables deals worth $4.6 bln. Buyout barons have cash to meet the investment requirements of energy-hungry artificial intelligence, and future rate cuts mean valuations may have bottomed.
Capital One scales banking’s Mount Improbable 30 May 2024 The US lender’s $35 bln bid for Discover will make it king of the hill in credit-card debt, but to realise his ambitions, boss Richard Fairbank has a lot of people to win over. That includes not just regulators and merchants but his own investors – and maybe then the world.
Niel can be less stingy to fulfil his salsa dream 30 May 2024 The French Iliad owner may buy out Millicom, a $4 bln Latin American telco in which he owns a 29% stake. His potential $24-a-share bid implies a tiny 2% premium. Even with the stock up nearly 40% this year, he can offer more for a growing, profitable company.