Japan’s Renesas speeds into autonomous M&A wreck 11 Sep 2018 The Tokyo-based chipmaker is buying U.S. peer Integrated Device Technology for $6.7 bln. A promised uplift in revenue from selling self-driving and connected-car technology sounds optimistic. Even if Renesas can achieve such synergies, the return on investment barely stacks up.
For Abe’s next trick, a diplomatic balancing act 10 Sep 2018 The veteran leader is on track to become Japan’s longest-serving prime minister. After almost six years of Abenomics, his signature policy is gaining traction. But with Tokyo caught in trade war crossfire, Shinzo Abe’s manoeuvring in Beijing and Washington will matter more.
Japanese chipmaker deal is hard to process 3 Sep 2018 Renesas Electronics is considering buying U.S. peer Integrated Device Technology, for a price that could be around $6 bln. Its last acquisition hasn’t obviously delivered and the implied return on investment of this one is just 5 pct. Small wonder that investors are skeptical.
HNA aircraft arm flies higher with $2.2 bln deal 8 Aug 2018 Selling a 30 percent stake in its Avolon leasing unit to Japan’s Orix lets the cash-strapped Chinese group repay debt. The deal could also help reassure creditors the division is insulated from the parent’s woes. If elevated borrowing costs fall, all shareholders will benefit.
Japan Tobacco coughs up for more frontier smokers 7 Aug 2018 The owner of Camel and Silk Cut is paying $1.5 bln – a hefty eight times revenue - for Bangladesh's second-largest cigarette company. Its latest emerging market splurge adds sales, but risks distracting the $50 bln giant from newer alternatives, where rivals are forging ahead.
SoftBank investors grapple with Vision distortions 6 Aug 2018 Earnings at Masayoshi Son’s group jumped tenfold to almost $3 bln in the three months to June, helped by the sale of Indian e-commerce outfit Flipkart. Shifting values in the giant Vision Fund add to the noise. SoftBank’s attempt to tidy up won’t close the stubborn discount.
SoftBank is the disruptor of technology disruptors 3 Aug 2018 Masayoshi Son’s investment mammoth is wreaking havoc across Silicon Valley and beyond. The $100 bln Vision Fund makes traditional venture-capital funds look puny, gives startups unimagined firepower, and distorts valuations and IPO markets. Tech finance can scarcely keep up.
Vulnerable Toyota enjoys a moment in the sun 3 Aug 2018 Japan's largest automaker earned nearly $6 bln last quarter, a 7 pct bump. That’s a relief after Nissan, where a drop in U.S. sales weighed. Still, executives are right to strike a cautious tone while Trump's trade guns remain aimed at Tokyo: Toyota is less protected than rivals.
Bank of Japan tries cheap way of imposing will 31 Jul 2018 Governor Haruhiko Kuroda has pledged to keep rates very low for an extended period to calm investors’ concern that monetary policy may become less loose. The no-cost tactic to keep bond yields in check is born of necessity given how many assets the central bank is already buying.
Nomura trading loss exposes delusions of adequacy 26 Jul 2018 The Japanese bank reported a 91 percent decline in first quarter earnings thanks to a $67 mln pre-tax loss at its investment bank. Unless boss Koji Nagai can tame trading volatility, his 10 percent return on equity target by 2020 looks increasingly far-fetched.
Xi takes trade war gloves off by blocking Qualcomm 26 Jul 2018 Beijing's effective veto of the chipmaker's bid for NXP likely wasn't what President Trump expected when he lifted a ban on China's ZTE. But in weaponising monopoly law, President Xi has found a blunt response to security-based U.S. tariffs. Escalation is getting ugly quickly.
Japan’s $11 bln Line treads a very fine one 24 Jul 2018 The chat app’s shares have bounced around since its 2016 IPO as user growth proves elusive. Line bumbled its way from ride-hailing to music-streaming, and is now aiming at fintech. It’s a promising market, but trading at over 100 times earnings leaves little room for error.
Bank of Japan’s trial balloon shot down on runway 23 Jul 2018 Bond yields and the yen rose after Reuters reported the central bank was debating whether to scale back monetary stimulus. The move would be good for bank investors. But the scale of the market reaction and economic reality will make it hard for Governor Haruhiko Kuroda to act.
EU-Japan pact too tiny to lift Trump trade blues 17 Jul 2018 A deal between nations that account for nearly a third of world GDP has symbolic value and may save European companies up to 1 bln euros a year in custom duties. But such benefits are dwarfed by the damage the U.S. president could inflict with more tariffs, say on car imports.
Nordic telecom mash-up gives might to challenger 17 Jul 2018 Sweden’s Telia is beefing up its Norwegian operations by buying rival TDC’s local business for $2.6 bln. That gives it a sturdier platform to challenge incumbent Telenor. Cost savings should help deliver a decent return – as long as it avoids price wars or a regulatory clampdown.
SoftBank gets some help tinkering with valuation 12 Jul 2018 Masayoshi Son’s sprawling operation attracted an investment of over $1 bln from hedge fund Tiger Global. That should help SoftBank narrow its conglomerate discount, as might spinning off the Japanese mobile unit. The massive Vision Fund, though, is a murky hodgepodge unto itself.
SoftBank gets a shrewd deal as Altaba’s middleman 10 Jul 2018 The Japanese conglomerate is acting as go-between for Yahoo Japan in a $2 bln stock buyback from the U.S. investment firm. SoftBank's domestic telecoms arm gets a stake at a cheap price, and closer ties with Yahoo Japan. That will help it gear up to go public.
Premier Foods’ Japanese flavour has turned stale 28 Jun 2018 Top shareholder Nissin’s stake in the Mr Kipling maker has fared poorly, but a beneficial commercial deal ensures its support. With activist Oasis pushing for CEO Gavin Darby’s ouster, it’s time for the Tokyo-based company to start thinking like an investor.
SoftBank’s $5 bln staff whip-round could backfire 20 Jun 2018 Masayoshi Son’s team could kick in that kind of money, using big slugs of debt, to help the Vision Fund hit $100 bln. Having so much skin in the game might prod the giant investment vehicle to spend more cautiously. It could also spell employee disillusionment if deals blow up.
SoftBank and WeWork co-create rocketing valuation 14 Jun 2018 The giant Vision Fund may inject more cash into the loss-making shared-office provider at nearly double its previous $20 bln worth. WeWork is growing fast, but that was already priced in. One test is whether SoftBank puts a lot of money where its mouth is, or only a little.