L’Occitane picks odd time to bet on British beauty 14 Jan 2019 The Hong Kong-listed soap and hand cream brand has snapped up luxury skincare group Elemis for $900 mln in cash. At over 22 times last year’s EBITDA, the price looks a tad rich. The acquisition will also boost L’Occitane’s exposure to the UK at a time of economic uncertainty.
Temasek gives CapitaLand a new economy makeover 14 Jan 2019 The state investor will sell a real estate unit to the Singapore property giant for $4.4 bln. Temasek gets a majority stake in the heavyweight, which it already part-owns. With more exposure to e-commerce and developed markets, CapitaLand gets scale and downside protection.
Refocused Olympus provides a flash of hope 14 Jan 2019 As the $13 bln Japanese company turns 100, it is inviting pushy investor ValueAct onto the board, slashing costs and zooming in further on endoscopes and other medical kit. Changing the corporate culture has been a slog, though. A weak camera business also blurs the picture.
AB InBev’s Asia sale needs breathalyser test 14 Jan 2019 The Belgian brewer is said to be mulling an IPO of its Asian unit. The region is a fast-growing jewel in the drinks giant’s crown, yet it faces stiff competition in China, and still struggles in India and Southeast Asia. The mooted $70 bln valuation will be tough to keep down.
Xiaomi’s grand plan gets market reckoning 11 Jan 2019 After Apple warned of weakness in China, Lei Jun’s $33 bln smartphone maker lost a quarter of its market value. The end of a post-IPO freeze on share sales also hurt. It’s time for Xiaomi to tone down “new species” talk and keep proving it can sell more handsets internationally.
Chinese mystery beauty queen is ripe for makeover 11 Jan 2019 Pechoin is giving global cosmetics brands a run for their money in China’s $30 bln skincare market. Its revival from state-owned obscurity is impressive; it did so without outside investors or partners. As the economy cools, however, it could make an attractive acquisition target.
Viewsroom: High anxiety hits SoftBank’s vision 10 Jan 2019 Rising rates, lower oil prices, wobbly markets and the backlash against Saudi Arabia could put Masa Son’s $97 bln fund on the spot this year. Elsewhere, some Indian tech startups may take the world by storm. Plus, Breakingviews picks three indicators to monitor the world economy.
Masters of detail will rule in jumpy markets 10 Jan 2019 Big swings in both directions in equities and bonds make it dangerous for investors to jump out of one and into the other. Better to drill down and find groups with healthy balance sheets and decent free cash flow. Those chasing high growth or cheap valuations could come unstuck.
Temasek helps a drugstore giant flaunt its glow 10 Jan 2019 The state investor may sell part of its stake in health and beauty giant A.S. Watson. The retailer's size, moves upmarket in the mainland and growth elsewhere in Asia can justify a premium. Cashed-up buyout firms may well be tempted, helping Singapore to cash in on a $6 bln bet.
Emerging Asia is primed for volatility 10 Jan 2019 The new year has brought hints of recovery to the region, thanks to weaker oil and hopes of a more dovish U.S. Fed. But slow growth, trade tensions and key polls in India, Indonesia and Thailand leave room for significant ructions in equity, credit and currency markets.
Hadas: Big mergers show capitalism’s bad side 9 Jan 2019 Celgene shareholders will welcome Bristol-Myers Squibb’s $74 bln takeover offer. The acquirer’s owners might eventually gain too. But such mega-deals distract managers and rarely serve workers or the common good. If corporate purpose was better and broader, they would be scarce.
Beijing U-turn hints at silly season for subsidies 9 Jan 2019 The state planner is hinting at measures to increase domestic consumer spending on cars and appliances. Any tax cuts or handouts would be a short-term fix that shifts focus away from efforts to cut excess capacity. It underscores China’s determination to prop up the economy.
HNA’s haphazard selloff keeps getting trickier 9 Jan 2019 The Chinese conglomerate is flogging stakes in an online lender, life insurer and brokerage. A lack of clear strategy and market perceptions of creditor clout will make it harder to profitably unwind HNA’s $50 bln buying spree. Falling asset prices aren’t helping, either.
Citi plays longer game in China 9 Jan 2019 Even as the mainland economy wobbles, the U.S. mega-bank is ditching a Shanghai underwriting and advisory JV to build a brokerage it can control. A more pliant partner would help Citi compete against entrenched Chinese rivals. Slumping markets should make finding one easier.
WeWork needs path to profit, not enlightenment 8 Jan 2019 The cash-burning office-share outfit – now “The We Company” – wants to “elevate the world’s consciousness.” SoftBank is investing $2 bln more, some at a notional $47 bln valuation. But that’s far less than mooted. Broadening its ambitions as backers shrink theirs is risky.
SoftBank-WeWork mess exposes cracks in Vision Fund 8 Jan 2019 Masa Son’s main partners have balked at pouring more cash into the office-space provider, according to the FT. That undermines the idea of him as a visionary tech investor. It also makes it harder for the $97 bln vehicle to negotiate future deals – or set up a second fund.
Ghosn puts up his freedom as bond for his legacy 8 Jan 2019 The deposed 64-year-old automaker CEO has declared his innocence. Given Japan's 99 pct conviction rate, he could face a decade in jail. Ghosn may hope prosecutors back off. Either way, the man who saved Nissan creates space to pull off another unprecedented rescue - of himself.
Geely flags Chinese car pileup ahead 8 Jan 2019 The $13 bln automaker is forecasting flat sales for the year ahead, following a 20 pct rise last year. Demand is cooling after years of blistering growth, forcing companies to downshift. Politics and over-investment are mostly to blame, but that’s scant comfort to investors.
Samsung’s bad news intensifies $70 bln cash bind 8 Jan 2019 The South Korean giant says quarterly operating profit likely fell to a worse-than-expected $10 bln. With chip prices set to drop further, Jay Y. Lee can draw on his cash pile to boost investor returns and invest in new tech, like 5G. His track record in both is less assuring.
India’s coerced bank M&A has financial logic too 8 Jan 2019 Deals are coming fast on the back of political and regulatory pressure. Plucky $9 bln Bandhan will buy richly valued mortgage lender Gruh without paying a premium. It follows a sensibly-structured three-way merger among state banks. These are some good signs for the industry.