Walmart weighs online weapon in India’s retail war 31 Jan 2018 The U.S. grocer may buy up to 20 pct of Flipkart, Amazon's arch-enemy in India. The e-commerce firm, valued at some $12 bln, would secure a marquee backer ahead of a possible New York IPO. Walmart, which has struggled to open stores, would jump-start access to local consumers.
Copier companies spit out an M&A original 31 Jan 2018 Fujifilm is taking control of $8 bln Xerox, whose storied brand became a verb. The premium being paid hinges on some financial engineering of a 56-year-old joint venture. It’s an odd deal, but one that should deliver savings without straining the Japanese company's balance sheet.
Santander’s Brazilian samba drowns out UK blues 31 Jan 2018 A rebound in the Spanish bank’s largest market by profit offset rising UK bad debts, enabling an annual 11.8 percent return on underlying tangible equity. This year should see a stronger Brazil and fewer one-offs. That should mean Santander’s returns stay ahead of European peers.
Trump policy agenda starts to stick to the script 30 Jan 2018 The U.S. president’s first State of the Union address praised fast growth and recent tax cuts. He talked immigration and promised $1.5 trln for infrastructure, but the speech contained few surprises. A consistent platform is starting to emerge from the noise.
Blackstone could double its money betting on data 30 Jan 2018 The buyout firm is taking control of Thomson Reuters’ financial unit in a $20 bln deal. With a shade more efficiency and some acquisition-led growth, Blackstone could generate a generous return. The risk comes from adding financial leverage to a cyclical, competitive industry.
MetLife pension gaffe leaves CEO on thin ice 30 Jan 2018 Steve Kandarian’s big coup was getting the $725 bln insurer knocked off the list of systemic institutions. But MetLife’s failure to pay benefits to 30,000 retirees overshadows that achievement. After poor returns and a disappointing spinoff, it looks like his time is up.
Dr Pepper settles too readily on drinking partner 30 Jan 2018 The $21 bln beverage group’s deal to sell itself to coffee maker Keurig leaves shareholders some 25 pct richer. It’s not the greatest brand. But based on savings achieved in other mergers, Dr Pepper should be able to extract more. Either rivals lack ambition or the company does.
Holding: Mickey Mouse is due trip out of copyright 30 Jan 2018 The valuable rodent will follow other creations into the public domain if Congress allows 95 years of legal protection to expire after 2018. Disney would squeak, but artists, internet users and, yes, Google should cheer. Another extension would leave lawmakers looking like rats.
U.S. healthcare bloat faces new triple threat 30 Jan 2018 Amazon, Berkshire Hathaway and JPMorgan are getting together to cut medical costs. Details are few and obstacles many, but they bring relevant skills and a lot of employees to the mix. A multibillion-dollar hit to health-sector stocks shows the shakiness of the status quo.
Thomson Reuters deal puts financial over risk 30 Jan 2018 The Canadian group is in talks to sell 55 pct of its data and analytics business to Blackstone at a $20 bln valuation, including debt. That implies a market discount for the remaining legal and tax arms. Carving up the company may end a run of lagging peers’ stock performance.
JPMorgan gives Dimon freedom to outstay welcome 29 Jan 2018 The $400 bln lender’s CEO and his directors have agreed he’ll stay on till 2023, which would mark a 17-year tenure. Given Dimon’s track record, it’s understandable: JPMorgan is stronger and more stable than most. What he gives up is the chance to leave on an unambiguous high.
Chipmaker M&A exhibits increasingly fuzzy logic 29 Jan 2018 Amid a rash of big deals, Japanese firm Renesas may offer close to $20 bln for U.S. rival Maxim, CNBC reported. Combining the two could generate big savings – but Renesas would need to cut 100 pct of Maxim’s operating expenses to justify that price. That’s called overpayment.
Dell has no time for fantasy finance 29 Jan 2018 The U.S. tech giant needs cash to pay taxes, reduce debt and let investors exit. Reversing into its $53 bln subsidiary VMware is too complex, while an IPO would be financially unattractive because of pricey past acquisitions. There are simpler, more logical ways to raise cash.
Mondelez slurps Coke’s returns in Dr Pepper deal 29 Jan 2018 The Ritz cracker maker looks to have doubled its $2 bln investment in coffee maker Keurig, now merging with drinks group Dr Pepper. Mondelez’s gain is largely the result of others’ efforts. Pity Coca-Cola, which sold a stake in Keurig just as things started to get interesting.
Auto industry exposes NAFTA’s blind spot 29 Jan 2018 Canadian negotiators have pointed out that the North American treaty doesn’t capture the value of high-tech equipment in autos, Reuters reported. A rule change to reflect tech advances is due. Complex supply chains call for new ways of measuring trade flows.
WestRock outboxes weak demand with $4.9 bln deal 29 Jan 2018 The U.S. packaging company will close the gap on market leader International Paper by acquiring KapStone. Integration benefits should pay for the deal, and WestRock will gain new West Coast markets. Being bigger offers some insurance against a sluggish market.
JAB takes gulp from 3G with Keurig-Dr Pepper deal 29 Jan 2018 The private group’s coffee-pod company is buying the soda and tea outfit, creating a drinks giant potentially worth over $30 bln. Having bought and then cut costs at Keurig, JAB and its partners can apply themselves to Dr Pepper. It’s reminiscent of the architects of Kraft Heinz.
Fed’s inflation-target rethink dodges big question 29 Jan 2018 Some U.S. rate-setters wonder about their 2 percent goal – both its level and whether it’s more a ceiling or a long-term average. The debate is welcome but could be even more radical. Today’s real issue is whether central bankers can fully explain, let alone control, inflation.
Beware the Davos bubble’s dubious emissions 29 Jan 2018 Each January, the Swiss mountain gathering provides a snapshot of elite thinking. Often it proves to be wide of the mark. This year the global economy, Italy’s election, the importance of crypto-currencies and Saudi reform produced what may be the surest examples of groupthink.
Wynn Resorts slide shows house can lose in new era 26 Jan 2018 Boss Steve Wynn says sexual-misconduct accusations leveled at him are “preposterous”. The $2 bln wiped off the company's shares suggests investors nonetheless fear boardroom disruption. It’s a warning to all firms that even alleged misbehavior has become a financial risk.