France’s Atos entrée heads for fuzzy denouement 2 May 2024 The French state wants to buy the defence assets of the IT group, which is trying to restructure 4.9 bln euros of debt. It should then be easier to sell what’s left of Atos. But it’s unclear how or when Paris might marshal private buyers to recoup its outlay of up to 1 bln euros.
M&A-shy EU bank investors are own worst enemy 2 May 2024 BBVA’s shares fell 8% over three days after it pitched an all-share acquisition of $10 bln Spanish rival Sabadell. But the returns look good, and the combined group’s capital ratio will remain high. If investors sink this deal, other CEOs in the fragmented sector may think twice.
Unilever and Nestlé offer two flavours of India 2 May 2024 Weak rural demand ate into earnings at the $63 bln local unit of the Dove soap maker. By contrast, its smaller and more-richly valued Swiss rival grew profit thanks to a larger share of urban customers. The divergent fortunes point to the limits of the Indian consumer’s wallet.
Bain could be third time lucky in Japan 2 May 2024 It's pushing an IPO of Kioxia again after talks to merge the chipmaker collapsed last year. A deal would help pare a $6 bln company loan. Timing is on the sellers' side; demand for chips and Japanese stocks is robust. Rival buyout firms will cheer a successful selldown too.
Microsoft’s AI land grab becomes costly power game 1 May 2024 The tech giant is splurging on artificial intelligence models and chips. Now it’s made a big commitment to buy renewable energy for data centres, enabling Canadian investor Brookfield to build a massive 10 gigawatts of capacity. It’s another long-term bet on nascent technology.
Anti-obesity drugmakers savor pandemic leftovers 1 May 2024 The main obstacle to Eli Lilly and Novo Nordisk selling more weight-loss treatments is the ability to produce them. It turns out Covid-vaccine infrastructure has useful capacity. Quickly solving supply concerns gives both a shot at bigger slugs of the potential $100 bln market.
Hurricanes threaten to stir perfect economic storm 1 May 2024 Warmer oceans portend an unusually fierce 2024 season in the Atlantic, with two states already propping up their home insurance systems. The nightmare scenario is $200 bln of losses. Insolvencies would be a problem, but not as big as exorbitant premiums and lower property values.
EU bank holdouts are playing with fire in Russia 1 May 2024 Two years after the invasion of Ukraine, lenders Raiffeisen and UniCredit still have sizable businesses based in Moscow. Fearing lack of scrutiny in a sanctions-hit nation, the ECB is ratcheting up pressure to leave. A costly exit looks suddenly preferable to penalties.
Anglo breakup costs complicate a sweeter BHP deal 1 May 2024 The miner’s Australian suitor is mulling a hike to its $39 bln proposal. But if Anglo American were to demerge its listed South African units as part of the deal, BHP or any other buyer might inherit a $2 bln tax bill. That may limit BHP boss Mike Henry’s scope for generosity.
Amazon is the everything-plus-AI store 30 Apr 2024 The $1.8 trln company is still dominating e-commerce and cloud computing, as first-quarter earnings show. But its valuation trails Microsoft’s, which has plunged into AI. Boss Andy Jassy will play catchup in the coming year. But Amazon may not be as behind as investors think.