Cox: Parisian elite’s offsite exposes fractures 8 Jul 2019 The annual gathering of French government, business and economic bigwigs in Aix revealed a political class struggling to deal with China, Trump and Big Tech. But French firms exude international ambition and benefit from globalisation. Reconciling the two will be tricky.
Indian media mogul’s buyout buries the tech lead 8 Jul 2019 Minority shareholders are challenging a valuation of Vineet Jain’s empire. Stakes in Uber and other startups, some acquired in exchange for newspaper ad space, may not be fully reflected in the offer price. It’s a twist on holding company discounts faced by the likes of SoftBank.
Amazon could be a smart shopper in Southeast Asia 8 Jul 2019 The U.S. e-commerce giant pushed into Singapore in 2017, but hasn’t tackled the region's larger, faster-growing markets. Indonesia’s $7 bln Tokopedia and Alibaba-owned Lazada are among those scrapping for dominance. Amazon would be a formidable rival if it bought Sea's Shopee.
Muji wannabe’s $1 bln IPO tests power of mimicry 5 Jul 2019 Miniso, brash Chinese rival of the minimalist chain, is considering a listing. The Tencent-backed seller of toys and gadgets cultivates a Japanese feel. The challenge will be to convince investors that its valuation belongs with slick Tokyo peers, not pile-em-high 100-yen shops.
Japan’s testy trade row strikes at Samsung 5 Jul 2019 Tokyo is curbing exports of tech materials to South Korea over a wartime spat. Hardest hit may be the $260 bln handset maker, which expects second-quarter operating profit to fall by 56% amid U.S.-China tensions. If supply chains keep getting disrupted, so too should valuations.
Elliott pounced on the wrong booze company 4 Jul 2019 The activist made a 1 bln euro bet on Pernod Ricard in December, arguing the French spirits group could be more profitable and better run. The Absolut maker’s shares have bounced 17% since. That’s about par with the market. But its arch-rival Diageo has done even better.
ChemChina vexes Beijing’s bureaucrat dealmakers 4 Jul 2019 In an odd display of buyer’s remorse, the country’s envoy to Switzerland has slammed the $43 bln takeover of Syngenta in 2017. It hints at the complex politics of such M&A. The reaction also calls into question the many orchestrated mega-mergers involving state-owned giants.
Wanda’s Ironman IPO could lose a little weight 4 Jul 2019 The triathlon-to-soccer arm of tycoon Wang Jianlin’s empire plans a $500 mln U.S. listing. China's legions of fans and the prospect of the 2022 Olympics in Beijing will be a draw. But a share sale eases only some of its debt load; less burdened rivals may beat it to the finish.
Broadcom’s Symantec swoop rests on tricky reboot 3 Jul 2019 The chipmaker led by Hock Tan is in talks to buy the troubled $14 bln cybersecurity outfit. It’s another move to diversify after its bid for Qualcomm was crushed. To earn a return, Tan will need to repeat recent integration success, cut costs, and manage hard-to-quantify risks.
Africa growth outlook puts democrats on back foot 3 Jul 2019 Ballooning populations mean per capita wealth is falling in key democracies Nigeria and South Africa. That’s a recipe for trouble. Alongside a stronger performance by autocratic Egypt, it also makes worrying reading for those who believe a democratic Africa is a more stable one.
Nexon suitors must clear three tough levels to win 3 Jul 2019 Plans to sell control of the $13 bln maker of “MapleStory” and other video games have stalled, but may yet be revived. Bidders like KKR will have to get past a messy corporate structure. Then there’s South Korean nationalism to slay. And the last big challenge is China's Tencent.
KKR puts fresh eyes on Japanese conglomerates 3 Jul 2019 Just two years after buying Hitachi Kokusai for $2.2 bln, the LBO shop is selling one of its two units for the same sum. Japan Inc has been slow to offload unloved businesses, but deals like this reveal some of the missing value. It could also make it harder for bargain hunters.
Budweiser serves up a pricey pint in Hong Kong 2 Jul 2019 AB InBev values its Asian unit at up to $65 bln, or about 20 times EBITDA. That’s close to multiples of rivals in fast-growing emerging markets like China, but half the business is in slower, more mature ones. The IPO will seem less giddy if Carlos Brito pours on M&A next.
India Insight: Modi faces tricky confidence crisis 2 Jul 2019 The prime minister’s corruption crackdown has chastened tycoons and hurt private investment. Doubts over data, the fragility of lenders, and plummeting car sales add to the jitters. Strengthening the financial system would go a long way to getting the country back on track.
Hong Kong protesters score Pyrrhic victory 2 Jul 2019 A furious faction broke into the city’s empty legislature and trashed it, deepening a crisis for Chief Executive Carrie Lam. The violence will weaken some of the movement’s support. It also may spook big business and give Beijing a pretext to dig in. There’s little to celebrate.
The Exchange: Hong Kong’s political crisis 2 Jul 2019 Michael Tien was among the first politicians from the city’s pro-Beijing faction to oppose the controversial extradition proposal. Just before protesters ransacked the legislature, he spoke with Breakingviews about Chief Executive Carrie Lam’s future and giving residents a vote.
Huawei is now driving the U.S.-China trade bus 1 Jul 2019 President Trump’s ban on the Chinese telecom firm made sense, but mixing business and national security puts his own party in a bind. It’ll be hard to seal a broader trade deal without giving Huawei a break. U.S. lawmakers won’t like it, but politics may force them to cave.
Japan Display could use a solid AppleCare plan 1 Jul 2019 The iPhone-screen maker is getting a $100 mln lifeline from its most important customer as part of a messy bailout. It’s a rare sort of investment for Apple, but it has few alternative suppliers for the item. The imprimatur also should help Japan Display shore up other backers.
New trade-war ceasefire has familiar feel 29 Jun 2019 Donald Trump will restart talks with Xi Jinping and hold off imposing new tariffs on about $300 bln of Chinese exports. Huawei also got a nod at the G20 meeting. A deal may seem closer, but investors would be wise to hedge their bets. The last détente wound up falling apart.
Nio’s upscale brand singed by battery blazes 28 Jun 2019 The New York-listed group has recalled almost 5,000 ES8 cars, more than a quarter of those delivered, after fires. Samsung recovered from worse, but Nio is a startup betting on quality to stand out from electric-car rivals in China. Much-needed cost cuts may have to wait too.