BREAKINGVIEWS

China’s Alibaba slap offers clues to hit Amazon

12 April 2021

Jeff Bezos’s firm has reason to worry about the $2.8 bln fine for Jack Ma’s e-commerce giant. Beijing’s definition of the appropriate market and focus on data may provide helpful tips to U.S. watchdogs. Still, Amazon has something Alibaba lacks: recourse to American courts.

Honest is a baby consumer firm on the make

12 April 2021

Jessica Alba’s eco-friendly diaper company filed to go public and could be worth some $3 bln due to fast-growing sales and a focus on wellness. It’s also a tempting target for bigger groups gobbling up startups. But any whiff of brand insincerity is just one of many risks.

Vaccine fiasco casts long shadow over Oxford IPO

12 April 2021

A university spinoff behind the AstraZeneca jab is listing for a mooted $700 mln. Vaccitech’s technology might combat diseases from cancer to hepatitis. Yet lingering doubts over efficacy and side-effects on Covid-19 patients are a risky legacy in a highly competitive sector.

Microsoft’s $20 bln bet on speech lacks Nuance

12 April 2021

The deal is CEO Satya Nadella’s second biggest. Its return on capital is below 2%. But the price is a trifle for the $1.9 trln giant. And Nuance’s tech may finally be delivering on its long-held promise, making it an attractive bolt-on for Microsoft’s expanding cloud business.

How to play the post-Covid return to getting it on

12 April 2021

Rich-country birth rates fell in 2020 amid economic uncertainty, reduced social life, postponed nuptials and fertility treatments. The patter of tiny feet will return as lockdowns end and economies bounce. Diaper producers and formula makers like P&G and Reckitt stand to benefit.

French water fight ends in honourable $15 bln draw

12 April 2021

After months of feuding, Veolia is buying the 70% of rival Suez it doesn’t own for 20.5 euros a share. Target boss Bertrand Camus has squeezed a few extra euros from his suitor. Meanwhile Veolia gets to keep its big prize: 500 mln euros of cost savings in North and South America.

DiaSorin wisely hedges against Covid-19 test slump

12 April 2021

The Italian diagnostic group which has benefited from pandemic demand is buying smaller U.S. peer Luminex for $1.8 bln. Thanks to hefty cost savings the deal makes financial sense. With vaccinations accelerating, it’s a good time to seek more enduring sources of revenue.

Fine leaves sharp sword hanging over Alibaba

12 April 2021

A $2.8 bln penalty for preventing sellers from using rival sites is manageable but sweeping orders to develop healthy competition raises the prospect of further changes that may do serious damage. The message is clear: Beijing wants a bigger say in how tech giants are run.

Rio finds gold plating for Mongolia copper mess

12 April 2021

The $131 bln miner and its partner Turquoise Hill have made peace over financing the troubled Oyu Tolgoi project. It’s a deft solution that tries to get most stakeholders to pitch in. Other prickly issues remain, like getting back into Ulaanbaatar’s good books. But it’s progress.

Amazon win over union pits Bezos against Biden

9 April 2021

The $1.7 trln e-commerce giant’s aggressive campaign to stymie organized labor in Alabama paid off. But it puts the founder at odds with the U.S. president, who backed the effort to form a union. Biden’s broader employee-friendly plans may keep Amazon on the back foot.

Gaming weakness puts Ubisoft on M&A last life

9 April 2021

Shares in the “Assassin’s Creed” publisher have languished since a failed takeover by Vivendi in 2018. Despite a pandemic boost, CEO Yves Guillemot’s $10 bln group suffers from dour profitability. That leaves him open to attack by rivals like Activision Blizzard or Tencent.

Babcock CEO’s reset comes with valuation upside

9 April 2021

David Lockwood may soon unveil a writedown at the 1 bln pound UK engineering group, which is also saddled with heavy debt. Those concerns obscure the relatively promising trend of UK defence spending. Lockwood’s CV offers hope of a cleanup – and significantly higher share price.

China wealth management ventures build on sand

9 April 2021

Western funds like BlackRock are partnering with local banks to tap a market forecast to hit $23 trln in assets by 2030. It’s the latest rush into a promising financial sector where foreigners can take majority stakes. But control may prove illusory while hidden risks abound.