Thyssenkrupp finds lost hydrogen lottery ticket 17 Nov 2021 The ailing 7 bln euro German group’s shares soared amid hopes it might list its electrolysis unit. With a few tweaks, its chlorine-making kit can produce hydrogen, a big enabler of a no-carbon world. That promise means its paltry current sales could yield a 5 bln euro jackpot.
Ariston IPO is enticing play on green energy wave 17 Nov 2021 The family-owned maker of heat pumps and water heaters is going public in Milan at a valuation of up to 4 bln euros. With demand for energy-efficient heating systems set to boom, it’s in a sweet spot. A discount to rivals A.O. Smith and NIBE Industrier should help inflate demand.
Capital Calls: Stadium naming, Diageo, Evolution 17 Nov 2021 Concise views on global finance: Crypto.com is paying heavily to rename Staples Center; The drinks maker plans to grow its market share by 50% in the next decade; the $36 bln Swedish gambling firm lost $2 billion of its market capitalisation after accusations of illegal gambling.
Bitcoin miner’s green patina is fool’s gold 17 Nov 2021 In a somewhat novel twist for the power-sucking cryptocurrency business, Iris Energy relies mainly on renewables. That probably helped boost its valuation in a $1.6 bln IPO, but it feels like style over substance. And the climate hype cannot mitigate some serious risk factors.
Biden at war with himself on supply-chain battles 16 Nov 2021 The U.S. president wants to ease bottlenecks but punitive tariffs on Chinese-made port equipment, a vaccine employer mandate, and expiring contracts with a dock workers union stand in the way. Solving the problems require changing Biden's policies. Neither will be fixed soon.
The Exchange: Hollywood broadens its horizon 16 Nov 2021 The entertainment industry is hard to break into without connections. Hollywood producer Tyler Mitchell is trying to make the process more diverse with an online network. He explains to Jennifer Saba how his firm Impact helps discover writers who might otherwise be overlooked.
Carlyle bank buyout would need hard work and hope 16 Nov 2021 The U.S. private equity group is eyeing sickly UK lender Metro. It looks cheap, but an acquirer would have to throw in extra capital, slash costs and crank up risky lending to earn a respectable return. A merger with another small peer might help but would be tricky to pull off.
Temasek buffs sovereign fund standing in M&A fight 16 Nov 2021 The money manager is on both sides of a $2.9 bln tussle for Singapore Press’ real estate assets. That may seem a conflict in the city-state’s spiciest bidding battle in years. But it hammers home how Temasek’s mundane arm's-length investor role makes it the envy of global rivals.
Capital Calls: CalPERS and private equity, Art market 16 Nov 2021 Concise views on global finance: The biggest U.S. public pension fund is taking on more risk; works collected by the Macklowes sold for $676 million on Monday in a reminder that the richest have prospered through the pandemic.
Data-center valuations enter the metaverse 15 Nov 2021 CyrusOne has struck a deal with buyout firm KKR for a rich $15 bln, while peer CoreSite is selling itself to American Tower for $10 bln. Both deals show from different angles how financial and industrial buyers are banking on the arrival of Silicon Valley’s new virtual reality.
AT&T deal is a drama in search of a plot 16 Nov 2021 The $177 bln telecom giant hasn’t detailed the structure of the deal with Discovery it announced in May. It hasn’t articulated an operational strategy either, and its pay-TV unit HBO looks like it’s in a sweet spot. AT&T is committed to a deal – but maybe it shouldn’t be.
BNP Paribas U.S. exit would be wise but messy 15 Nov 2021 The French bank may sell BancWest for up to $15 bln. Offloading the subscale unit makes sense, though a dearth of buyers means CEO Jean-Laurent Bonnafé may have to take a low price if he wants a clean break. The risk for investors is that he squanders the proceeds on risky M&A.
Shell’s Dutch exit comes with legal side benefits 15 Nov 2021 Shifting its tax residency to the UK, along with its head office and CEO, simplifies the $170 bln oil major’s structure. It also makes it easier to reorganise for the energy transition. The implied snub to the Dutch court which ordered Shell to cut emissions is an added bonus.
Capital Calls: Philips, Chinese overseas IPOs 15 Nov 2021 Concise views on global finance: The Dutch electronics firm’s shares drop 11% as it faces new questions over a recall of faulty ventilators; the country’s cyberspace regulator makes clear that sensitive data questions for initial public offerings apply to Hong Kong too.
FX risks dilute appeal of Heineken’s Africa tipple 15 Nov 2021 The Dutch brewer is buying South Africa’s Distell for $3 bln and taking over Namibia Breweries. With modest cost savings, CEO Dolf van den Brink can make a spirited return. But he’ll have to flog more Amarula liquor beyond the continent to ease the headache of wobbly currencies.
Goldman’s cosy Japan deal is ripe for rival bid 15 Nov 2021 The Wall Street bank and refiner Eneos are forging ahead with a contested plan to take full control of $4 bln roadbuilder Nippo. Even with a richer premium, a leveraged buyout would deliver a healthy return, Breakingviews calculates. It’s a fresh test of Japan Inc’s dozy ways.
J&J breakup about more than financial engineering 12 Nov 2021 The $429 bln maker of shampoo and vaccines is splitting in two. A valuation uplift looks likely as consumer giants like P&G fetch higher multiples than pharma groups. Giving the business a separate life, with its own currency, opens the door to other possibilities, including M&A.
Gensler crypto crackdown would be gift in disguise 12 Nov 2021 The SEC chair’s push to add investor defenses to a $2.8 trln industry might dampen digital assets first, yet should over time make them more attractive. But Gensler’s to-do list is long, from SPACs to hedge fund fees. Getting overlooked is a risk for crypto, not an opportunity.
Richemont beats orderly retreat from digital fight 12 Nov 2021 Under pressure from activists, the Cartier owner plans to spin off its loss-making online arm to rival Farfetch and others. If valued in line with peer Zalando it would be worth a respectable 4.7 bln euros. A sale should help Richemont close the valuation gap with luxury rivals.
Toshiba split edges it slowly down the right path 12 Nov 2021 The $19 bln conglomerate plans to break into three, days after fellow former titan GE did the same. For Japan Inc, it’s revolutionary. More focused units should attract better managers and valuations. But the two-year timetable seems designed to discourage more vocal investors.