Mergers & Acquisitions

Swiss finish would take shine off UBS’s M&A gift

21 Oct 2024

The bank’s $3.8 bln takeover of Credit Suisse was described as the 'deal of the century'. But $19 bln of extra capital charges so far, and another looming hit from local regulators, will lower the returns. The next time a bank rescues a rival, it may push for even sweeter terms.

Bidders poke holes in Japan’s fair M&A push

21 Oct 2024

Seven & i and Fuji Soft have each dug in their heels against generous takeover approaches from Canada's Couche-Tard and buyout firm Bain Capital. New guidelines are reshaping the market for deals in the $4 trln economy, but reluctant targets retain power to simply say no.

Growth-hungry EQT boss faces an M&A puzzle

17 Oct 2024

The $40 bln buyout group’s CEO Christian Sinding is practically shouting from the rooftops that he wants to buy a private-markets peer. So-called secondaries targets, the biggest of which is Ardian, make sense. But it’s a sellers’ market and EQT’s Swedish stock may be a turnoff.

Luxury’s China wobble will accelerate M&A

16 Oct 2024

LVMH lost 7% of its market value after revealing bleak consumer spending in the world’s second-largest economy. The broader sell-off will make small players more vulnerable. But this will create a big opening for cash-rich giants to pounce on already battered stocks like Kering.

Fiery family feud is opportunity for Korea Inc

16 Oct 2024

Watchdogs are looking into a messy takeover battle between $12 bln Korea Zinc's founding houses. One has teamed up with Bain, the other with Asian fund MBK. Each is decrying its rival's tactics. The saga throws a timely spotlight on the country's governance shortcomings.

EU champions’ hope will slam into hard M&A reality

16 Oct 2024

Brussels bigwigs, like new antitrust boss Teresa Ribera, want to create US-style corporate giants. Yet possible options, like a 160-bln-euro Orange-Deutsche Telekom deal, make no industrial sense. The risk is that even if politicians get on board, shareholders won’t.

CD&R $17 bln French deal may hinge on big retreat

15 Oct 2024

Paris is concerned about the future of critical medicines if the private equity firm buys a stake in Sanofi’s consumer unit. CD&R can promise bigger investment and still get a decent return. Giving up control by bringing in a Gallic co-investor might also soothe the government.

UK tax threat revives gambling stocks’ M&A saga

14 Oct 2024

Entain and Evoke shares fell over 10% on reports of a 3 bln pound tax hike on the sector. After a troubled few years in which it was a target for MGM, debt-laden Entain had looked on the mend. If Britain turns the fiscal screw, smaller players may need to bulk up.

Weak 7-Eleven defense might embolden Couche-Tard

10 Oct 2024

Japan’s top convenience store owner will spin off its superstores and trim stakes in non-core assets to fend off a $47 bln takeover approach. It’s a disappointing strategy update. The Canadian suitor can consider taking its offer directly to the target’s long-suffering investors.

Sanofi sale is critical health check for mega LBOs

10 Oct 2024

The French pharma company is deciding whether to sell its consumer drugs unit to Clayton Dubilier & Rice or PAI for $17 bln, says Bloomberg. It helps that volatile equity markets make an alternative listing riskier. A successful deal could give large buyouts a shot in the arm.

China M&A leaves offshore investors in the lurch

10 Oct 2024

The merger of brokerage firms Guotai and Haitong will massively dilute the former's Hong Kong shareholders. Blame the stubborn discount the city's stocks trade at to onshore equivalents. Beijing's consolidation push will leave more global backers in a similar spot.

Rio’s $6.7 bln lithium bet is a pricey slow burn

9 Oct 2024

The $112 bln miner is paying a 90% premium to buy Arcadium in cash. That’s probably not justified by the synergies – and Rio Tinto has yet to reveal them. Boss Jakob Stausholm can point to forecasts of a lithium demand surge, but right now investors have to take his word for it.

Couche-Tard clears price hurdle to Seven & i deal

9 Oct 2024

The Canadian suitor can cut enough costs to justify its revised 53% indicative premium, valuing its rival's enterprise at $55 bln. Though antitrust concerns in the US remain, it seriously raises the bar for the Japanese target's strategic update on its plans to unlock value.

Equinor’s Orsted bet is cheap route to green goals

7 Oct 2024

The Norwegian driller has bought about 10% of the $26 bln Danish green energy group. Oil groups are more bullish about crude, but still have renewable energy capacity targets. Orsted’s recent strife offers a cheaper way for Equinor to get there than building the kit itself.

Rio boss may be about to eat his M&A words

7 Oct 2024

Jakob Stausholm is in talks to buy Arcadium Lithium, soon after saying deals only make sense if cost cuts cover the premium. On that score, he can perhaps offer a 40% bump, valuing his prey at $4.2 bln. With one investor wanting double that, Stausholm faces an unpalatable choice.

Capital woes are no rebuttal to merger foes

4 Oct 2024

Budget airline Spirit may file for bankruptcy after competition cops grounded a merger with rival JetBlue. A judge ignored pleas that the firm is failing – but even now, Spirit doesn’t meet a legal test that’s strict for good reason. The market has ways to fix bad businesses.

Greece is unlikely victor in bank selldown race

3 Oct 2024

Athens sold 10% of National Bank, effectively ending the privatisation of the major lenders it rescued. Germany, the Netherlands, the UK and Ireland still own bank stakes. Greeks can thank continued government support and a strong economy, fuelled by rising investment.

CVS surgery would provide little if any relief

1 Oct 2024

As part of a strategic shakeup, the healthcare supermarket may try amputation. A $90 bln acquisition binge has left it indebted and worth less than $80 bln. The breakup math is flimsy, meaning the prescription for boss Karen Lynch is to stop buying and nurse the existing parts.

ADNOC German deal is blueprint for Gulf takeovers

1 Oct 2024

The UAE energy giant agreed to buy chemicals group Covestro for $16 bln including debt. It’s paying a big premium, retaining management and injecting extra capital. The terms are a sign of the hoops Middle Eastern buyers must jump through to get hold of sensitive European assets.

Murdoch leaves Rightmove little room for error

1 Oct 2024

The Australian tycoon’s REA Group walked away after four rejected bids for the UK property listings portal, prompting the latter’s shares to slump. Rightmove can get to the offer price if it grows revenue at 11% a year and keeps its 75% margin. But that’s not simple to do.