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.
Consoles power up Nintendo like nothing else 31 Jan 2018 A near four-fold leap in quarterly operating profit to $1.1 bln accentuates the popularity of the recently launched Switch. Some lean years fed angst about apps and IP. Like the iPhone's significance to Apple, though, what really matters to Nintendo is getting the device right.
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.
Guest view: Japanese maverick bucks ROE revolution 25 Jan 2018 Just as corporate Japan starts to take return on equity seriously, a famed entrepreneur is headed off-course. Rakuten’s push into mobile under boss Hiroshi Mikitani will destroy shareholder wealth and shows up another supine Japanese board, argues investor Kisalaya Singh.
Uber plan highlights SoftBank’s addiction to debt 25 Jan 2018 The Japanese group might raise funds by borrowing against its shares in the U.S. ride-hailing app, or in British chip designer ARM, a report says. That’s plausible: SoftBank prefers maximum financial firepower. Extra layers of leverage will introduce fresh complexity and risk.
Chancellor: Carillion’s flaws are common to many 22 Jan 2018 The collapsed UK construction firm’s problems may look idiosyncratic. But its problems with “onerous contracts” were exacerbated by a balance sheet stuffed with intangible assets and ultimately shaky assumptions. These issues are not peculiar to Carillion.
Breakdown: How do you say “taper” in Japanese? 22 Jan 2018 The Bank of Japan’s $4.7 trln balance sheet is nearly equal to national GDP. It’s early for a radical rethink by the world’s most aggressive major central bank, but tweaks could be necessary. This will require tact. Mere hints of change recently have upset investors.
Insurance M&A benefits from thin U.S. safety net 19 Jan 2018 Lincoln National is paying $1.4 bln for Liberty Mutual’s employer-based insurance business. It gives the buyer added heft in a growing field as more Americans top up life, health and disability coverage through the workplace. Cost cuts give this deal an added bit of assurance.
Mizuho’s CEO choice may be lost in translation 16 Jan 2018 The Tokyo bank's next boss comes from the securities division. That's less telling than, say, if Deutsche Bank puts a credit trader in charge. Japanese executives tend to move around more. Given Mizuho's challenges, though, Tatsufumi Sakai's expertise should prove helpful.
Telecoms IPO would be a smart step for SoftBank 15 Jan 2018 Floating a Japanese cash-cow subsidiary could unlock $18 bln, which boss Masayoshi Son could use for yet more bold bets on new technology. The move might help lift the unit’s performance. It could also help address the persistent discount the market applies to SoftBank shares.
Uniqlo owner has too much cash insulation 12 Jan 2018 Earnings from Fast Retailing underline the turnaround at the Japanese retailer, especially overseas. All those puffer jackets and sweaters have generated a $7 bln-plus cash pile. If Fast does not share more of that with shareholders, troublemakers could show up.
Fujifilm has chance to ink a solid deal with Xerox 11 Jan 2018 A full takeover by the $19 bln Japanese company of its U.S. partner would be gutsy, especially given Fujifilm’s already shaky grasp on overseas outposts. Still, with activist Carl Icahn heaping pressure on the American printer and copier maker, a smaller deal could make sense.
Brookfield bets on nuclear plants aging gracefully 4 Jan 2018 Cost overruns building expensive, controversial nuclear plants got Westinghouse into trouble. Servicing, fueling and decommissioning them, however, is a more predictable business. That makes the $4.6 bln Brookfield is paying for the bankrupt Toshiba unit look realistic.
Our 2018 predictions on Reuters TV 31 Dec 2017 From the CEOs who should run for U.S. president, to the banks that ought to be sizing up mergers, our writers give their take on the coming year in a series of Reuters video reports.
SoftBank’s ride-hailing roadmap is unreadable 21 Dec 2017 The Japanese group invested yet more in China’s Didi, as part of a $4 bln fundraising, and wants to put billions into Uber. Yet as Didi expands abroad, fresh conflict with Uber is inevitable. SoftBank may envisage a merger, but for now it is funding both sides of an arms race.
Asahi’s Tsingtao misadventure has one positive 21 Dec 2017 The Japanese brewer is selling 20 percent of its Chinese counterpart for $937 mln. The near-decade-long bet has not been time and money well spent. At least the sell-off suggests Asahi has sobered up and intends to focus on investments where it can exercise meaningful control.
Bitcoin finds unlikely ally in Asian watchdogs 20 Dec 2017 Japan and South Korea make up half of global trading volumes in the $300 bln bitcoin market. Tokyo has officially recognised digital currency exchanges. Seoul is mulling the same. Regulations help contain risk but also increase acceptance and allure of this untouchable cash.
A deluge of scandals in Japan will drive change 19 Dec 2017 Embarrassing lapses in governance and, perhaps even more painfully, in quality control have dented the country's reputation. The revelations are likely to continue in 2018. Company bosses will need to show that they understand what is really going on inside their organisations.
Bond vigilantes will grab power from central banks 18 Dec 2017 Governments’ net debt issuance in 2018 is set to outstrip central bank buying for the first time in four years. That gives investors a welcome chance to hold profligates to account. Bond markets may, however, be prone to over-reaction as they rediscover their rusty powers of discernment.
Japan’s creative pay push contains mismatch flaw 15 Dec 2017 A fresh tax-rate cut rate gives employers an incentive to raise worker wages and invest in factories. The link recognises the folly of trusting companies to use a windfall to spread the wealth. One big hitch in the plan is that the corporate cost will far outlast the benefit.