EMEA

Media buyout would crown Bolloré’s empire-building

23 Nov 2023

The tycoon’s purchase of Hachette owner Lagardère is a smarter bet than his Italian foray. It offers good returns and will keep buyer Vivendi flush with cash. Using the funds to take the 9 bln euro media group private would square Vincent Bolloré’s M&A circle.

Every country needs an Inflation Reduction Act

23 Nov 2023

The US's $370 bln in green subsidies left allies fearing they’d be at a disadvantage. Now they’re realising that adapting the blueprint can unlock private capital, boost economies and speed up the energy transition. Funding remains a challenge, but not an insurmountable one.

UK’s overdue business-friendly budget has a catch

22 Nov 2023

Premier Rishi Sunak slashed taxes for workers and businesses at an annual cost of 20 bln pounds. It’s a partial antidote to the damage of Brexit, inflation and Britain’s dismal growth. Yet his party’s erratic policies, and poor chances at next year’s poll, will dent its impact.

Adevinta $13 bln bid puts minorities in a corner

22 Nov 2023

Permira and Blackstone are seeking to take the Norwegian classifieds group private. The offer price isn’t overly generous but the chance of activist investors stalling the deal is low. With top shareholders already supporting the bid, minority investors don’t have alternatives.

EU holiday-home rules lead shady bookings to light

22 Nov 2023

Cities looking to rein in short-term rental platforms like Airbnb will get a boost from an EU plan to track bookings data. Patchy reporting has hampered stay limits and tax oversight. Clearer figures will help local authorities to balance the needs of travellers and residents.

Branding’s corporate titans face moment of truth

22 Nov 2023

Sales volumes at consumer goods giants are falling for the first time this century. Branded goods sell well when quality is tangibly higher and price premiums slim. With neither now the case, the valuation of $296 bln Nestlé, and rivals, may shrink in line with its KitKats.

Capital Calls: Carlyle, Panasonic

22 Nov 2023

Concise views on global finance: The US private equity firm is making a decent return selling its stake in McDonald’s China back to the burger chain. The $25 bln Japanese conglomerate is offloading a chunk of its low-margin automotive unit and will consider a listing, too.

Telegraph M&A twist hinges on Gulf leniency

21 Nov 2023

A vehicle backed by Abu Dhabi and a US buyout firm may take control of the newspaper by paying off the debts of its longtime Barclay family owners. Lender Lloyds would win. Yet it all hangs on potentially risky Gulf loans to the Barclays, whose main business is hardly thriving.

How the West can win the green metals race

21 Nov 2023

China dominates the processing of stuff essential to the energy transition. Rich countries can shift the balance if they accept more mining at home. Most of all, Europe needs to be better at recycling, critical materials expert Gavin Harper explains in the Exchange podcast.

EU fiscal pact ignores green elephant in the room

21 Nov 2023

The bloc’s budget goals failed to keep national debts in check. On average, they are now 83% of GDP, well above target. A revamp is a step forward. Yet with the climate challenge set to strain state finances, new rules alone will do little without more jointly funded investments.

Capital Calls: Monte dei Paschi

21 Nov 2023

Concise views on global finance: The Italian Treasury raised 920 mln euros by selling a 25% stake in the bank on the open market. So far, it looks like a better outcome for taxpayers than submitting to the onerous sale conditions offered by UniCredit in 2021.

Julius Baer hit undermines private-banking premium

20 Nov 2023

The pure-play Swiss wealth manager fell 12% after a profit warning, prompted partly by sharp losses against its credit portfolio. Investors didn’t sign up for that kind of risk. The private bank’s top-tier valuation may have to shrink.

Bayer drug fail is symptom of growing breakup pain

20 Nov 2023

Shares in the 33 bln euro group fell 20% after it aborted a late-stage trial. Given drugs regularly fail, that’s excessive. Instead, investors’ main concern could be that a grim pharma outlook and litigation risk in Bayer's seeds unit mean a planned split may release less value.

UK pay-later fiscal giveaway amounts to self-harm

20 Nov 2023

Faster growth and inflation may gift Rishi Sunak a 13 bln pound war chest ahead of Wednesday’s budget update. But that’s only thanks to optimistic math. If Britain’s prime minister opts for fiscal fireworks, he may torch public spending and singe Britain’s prospects.

World Bank and kin head for a $100 bln cash call

20 Nov 2023

Scaling up the Washington-based lender and other multilateral banks makes geopolitical sense and helps fight climate change. Sweating their balance sheets is a start. But eventually shareholders including the US will have to overcome domestic hurdles and put up more capital.

With Saudi, India can push new cricket boundaries

20 Nov 2023

India is on course to dominate the sport despite its defeat in the cricket World Cup final at the weekend. The kingdom has discussed a deal valuing the Indian Premier League at $30 bln, per Bloomberg. It’s a wise departure from Riyadh’s heavy-handed approach to sports investing.

Capital Calls: Gap earnings

17 Nov 2023

Concise views on global finance: Investors rewarded improvements at the apparel company's Old Navy brand by sending shares up over 30%. Yet overall third-quarter results remain muted. It’s a promising sign for new boss Richard Dickson, even if the bar was low to begin with.

Payments sector comedown creates opening for M&A

17 Nov 2023

The once-hot industry has slumped amid rising competition and a possible regulatory clampdown. For online specialists like $34 bln Adyen, the solution is to boost their customer offerings by buying startups. Older players like Nexi and Worldline, meanwhile, are ripe for mergers.

Multipolar world opens up surprising safe havens

17 Nov 2023

Despite geopolitical challenges the United States remains the world’s largest net debtor, owing the rest of the globe $18 trln. Yet increasing dependence on overseas equity investors makes it vulnerable. If the tide turns, fund managers may be better off in emerging markets.

Britain solves half of its wind power problem

16 Nov 2023

After a humiliating failed auction, the UK is hiking green energy subsidies. That will draw bidders, and the resulting power should still be cheaper than gas. But to hit a target of 50 GW of offshore wind by 2030, PM Rishi Sunak will need to allot more cash in new bidding rounds.