Shipping

Shippers turn the tank around too slowly

17 May 2023

Americans are pulling back on spending after their pandemic-era shopping sprees. That's perhaps good news for inflation, but bad news for the shipping business, which is set for its biggest capacity jump since at least 2016.  As demand cools, shippers can’t pivot fast enough.

Bolloré sale brings Vivendi endgame a step closer

19 Apr 2023

Tycoon Vincent Bolloré may offload his logistics unit for $5 bln. That gives him firepower to buy out shareholders of his $12 bln media group Vivendi. Yet a full takeover may be costly, and the 71-year-old has other ways to tighten his grip. Betting on a big premium looks risky.

Merck treats its migraine with half headache pill

17 Apr 2023

With its star cancer remedy close to going off patent, the pharma giant has shifted into digestive disease with an $11 bln bid for Prometheus. If the biotech’s drugs are approved, Merck will have a slice of a $49 bln sector. If not, the patent cliff will be even more precipitous.

Deutsche Bahn $16 bln sale has non-obvious endgame

24 Mar 2023

The German railways group may sell logistics arm DB Schenker for over $16 bln to cut debt. The most obvious fit is rival DSV. But selling to private equity or French shipping giant CMA CGM could mean fewer job cuts, which may be more appealing to Deutsche Bahn’s state owner.

Global supply chain scars will spark sea change

31 Jan 2023

The business of shifting goods around the world plunged into chaos during the pandemic. In this Exchange podcast Alan Murphy, boss of researcher Sea-Intelligence, explains China’s changing role in global trade and how that impacts the price of everything from iPhones to cars.

Capital Calls: McDonald’s ex-CEO fine

10 Jan 2023

Concise views on global finance: The Security and Exchange Commission’s decision to slap former fast food chain boss Stephen Easterbrook with a penalty is a convoluted way to the right outcome.

Capital Calls: DuPont, Dollar stores, Twitter

2 Nov 2022

Concise views on global finance: The chemicals company takes an unexpected but welcome M&A break; Dollar General is being sued for practices that raise questions about pricing power; and Elon Musk plans to charge micro-bloggers for blue checks to help cover his huge deal costs.

Odd UK hospital deal has healthy prognosis

4 Aug 2022

Johann Rupert’s Remgro and shipping giant MSC are buying London-listed Mediclinic for $4.5 bln. It’s an unusual concoction, but time away from public markets may help the company grow. A fair price and the threat of rising costs mean minority shareholders should play along.

Maersk’s cash machine is economic storm warning

2 Aug 2022

The Danish shipping giant reckons sky-high freight rates will help it land $37 bln of EBITDA this year. The trouble is its $50 bln enterprise value gives little credit to what lies over the horizon. The likely explanation is a sharp collapse in container demand due to recession.

Capital Calls: Maersk rides freight-rate M&A wave

26 Apr 2022

Concise views on global finance: The Danish shipping giant’s $19 bln of forecast free cash flow provides massive firepower for deals.

Capital Calls: Buffett’s HP bet, Gambling M&A

7 Apr 2022

Concise views on global finance: Berkshire Hathaway takes a hefty stake in the computer and printer maker; Betting group 888 negotiates a better price for buying UK bookie William Hill.

Capital Calls: Americans accept inflation for now

10 Mar 2022

Concise views on global finance: U.S. prices rose a whopping 7.9% year-on-year in February. Even so, Russia’s invasion of Ukraine has improved President Joe Biden's approval ratings. It may not last.

Shipping news makes grim reading for central banks

9 Feb 2022

Logistics giants Maersk and DSV expect another bumper year due to high freight rates. Their guidance suggests transport costs are unlikely to fall to pre-pandemic levels even if ports unclog. That will make life harder for rate-setters as they seek to curb high inflation.

MSC gives Lufthansa cover for Italian raid

27 Jan 2022

The shipping giant and German carrier want to buy Alitalia successor ITA, a boon for Italian taxpayers. A reported 1.2 bln euro price tag will surprise Berlin, which retains a 14% stake from a 2020 airline bailout. If MSC does the heavy lifting, the swoop is easier to justify.

Shipping giants will plot course for landbound M&A

22 Dec 2021

Soaring container fees pushed the valuations of seaborne transport companies to record highs. Those trends will reverse in tandem. Still, with sacks of cash on board, ocean-goers like Maersk can buy landlubbing logistics rivals in preparation for the next supply-chain crunch.

Bolloré’s happy Africa exit hints at more deals

21 Dec 2021

French tycoon Vincent Bolloré may sell his African logistics business to shipping group MSC for 5.7 bln euros. It’s a rich price for an asset tainted by a bribery scandal. He could use the cash to buy more cheap shares in his media group Vivendi, or his own investment company.

Capital Calls: KKR, Ferrari, HelloFresh

2 Nov 2021

Concise views on global finance: The private equity company is making the most of ideal market conditions; the Italian sports car maker raises its guidance; and a positive sales update turbocharges the German meal-kit delivery firm’s share price.  

Maersk’s green ships have first-mover disadvantage

26 Aug 2021

The $53 bln container giant is buying eight vessels powered by carbon-neutral methanol. Maersk gets a green halo, and customers could shoulder its increase in costs. The catch is that clean fuel alternatives currently in development are likely to be cheaper, and greener.

Canadian Pacific has edge in great U.S. train race

10 Aug 2021

The original bidder for Kansas City Southern has returned with a $27 bln offer to challenge rival Canadian National. While the price is lower and changing railroads mid-journey for a second time isn’t free, reduced regulatory risk makes it a better deal for KCS shareholders.

Inflationary tide rises on glum shipping forecast

26 May 2021

Sea freight costs have more than tripled in the past year. Ports are backed up, containers are in the wrong place, and demand is picking up. Supply-chain disruptions won’t last forever. But, going by what companies like Maersk are seeing, pressures may persist for most of 2021.