PR firms step into big-ticket merger lull 17 Sep 2021 Global dealmaking hasn't yet surged after America's Labor Day holiday. It may yet happen. In the meantime two big M&A communications firms, WPP-backed Finsbury and Sard Verbinnen, are considering a merger of their own. The combo would get a top league-table spot to shout about.
State Street-Invesco deal may leave both in limbo 17 Sep 2021 On paper, a tie-up between their asset management businesses looks valuable. Cost cuts are fairly easy and taking out a competitor has merits in a commoditized business. But fees will keep falling, and even putting their $5 trln of assets together won’t supercharge growth.
Capital Calls: China/TPP, Flavourings, Chill-boxes 17 Sep 2021 Concise views on global finance: China formally applies to join the Pacific trade pact; EQT-owned Azelis has a strong market debut; Sweden’s Dometic is shelling out a cool $677 mln for Texan chill-box maker Igloo.
Gene hunter IPO is missing link in British biotech 17 Sep 2021 DNA sequencer Oxford Nanopore is eyeing a UK float, worth perhaps $5 bln. Shunning the bigger U.S. market looks bold, but the company’s niche position in a hot sector will help. While that’s hard to repeat, a success would boost London’s appeal for other life science groups.
Three’s a good crowd in Indonesia telecoms deal 17 Sep 2021 Combining CK Hutchison’s local 3 unit with Ooredoo’s Indosat produces a $6 bln No. 2 player and synergies of $400 mln. If past industry tie-ups in similar markets are a guide, the Hong Kong and Qatari groups’ deal will also lift rivals’ revenue and cut their costs too.
Review: Riches to rags with the red aristocrats 17 Sep 2021 Desmond Shum’s wife became one of China’s wealthiest women via deals with the elite, then vanished in 2017. “Red Roulette” tells her story and concludes distrust of entrepreneurs is a feature of the system, not a bug. If so, only an economic crisis will end the current crackdown.
Remitly cash-transfer IPO names a high-wire price 16 Sep 2021 The fintech firm that helps immigrants send money home could value its shares at up to $7 bln. Its founders have hit on a genuine need – there’s a $500 bln market for global remittance payments. Yet vast competition and lack of profit make this an expensive kind of transfer.
Federer’s sneaker IPO sets blistering pace 16 Sep 2021 Shares of On, backed by the tennis legend, soared 50% on debut, valuing the running-shoe maker at $11 bln. Rapid sales growth supports the steep valuation. But On has plenty of rivals, and its early success in China may fall foul of Beijing’s hostility to foreign brands.
Bolloré gives coup de grâce in French tycoon spat 16 Sep 2021 Gallic raider Vincent Bolloré may buy publisher Lagardere for 4.6 bln euros, ending a battle for control of the Paris Match owner also involving LVMH boss Bernard Arnault. His Vivendi can make a healthy return, while CEO Arnaud Lagardere at least gets to come along for the ride.
Pricey private equity IPO rides road and rail boom 16 Sep 2021 French Infrastructure boutique Antin is raising 550 mln euros in Paris. It’s a chance to profit from Europe and America’s plans to boost investment, though closely held shares mean investors only get a passenger seat. Stellar growth is needed to justify a 4 bln euro valuation.
Capital Calls: Biden channels Trump on China 16 Sep 2021 Concise views on global finance: After losing an Australian submarine deal, the French accused the U.S. president of acting like his predecessor. They’re right that there’s bipartisan antipathy towards Beijing in Washington. They’d better hope the similarity ends there.
Viewsroom: Breaking up Ant, smokes and flavors 16 Sep 2021 Beijing’s crackdown on Jack Ma’s fintech giant continues, but there may be some silver linings to the latest wrinkle, Robyn Mak tells Pete Sweeney. Meantime Dasha Afanasieva explains what a cigar spinoff at Swedish Match and carveouts at Royal DSM have in common.
Hong Kong unicorn bets on positive Covid results 16 Sep 2021 Biotech upstart Prenetics is set to go public in a $1.7 bln merger with a blank-cheque firm. Demand for virus test kits at airports and homes has boosted sales, but that is unlikely to last. Growth will depend on new technologies and habits in a post-pandemic world.
Tesla crash-tests India’s industrial focus 16 Sep 2021 Elon Musk wants the country to cut sky-high import tariffs. Speeding his luxury vehicles onto roads might give New Delhi’s electrification goals a flashy endorsement. But there would be little real impact. India’s push for a clean mobility revolution can charge up without Tesla.
Kweichow Moutai will take longer to sober up 16 Sep 2021 After a stock rally as fiery as its liquor, the Chinese distiller has lost some $200 bln of market value since February. The industry is facing fresh regulatory scrutiny, which could keep prices flat. A new state-picked chairman also builds a case against the top-shelf valuation.
Goldman fintech deal serves borrowers on a plate 15 Sep 2021 Like all banks, the Wall Street firm wants to lend to consumers at credit-card-like returns without the hassle of attracting them. Buying buy-now-pay-later firm GreenSky for $2 bln means merchants like Home Depot act as recruiters. Other lenders will jump on this bandwagon.
Cigarless Swedish Match has pull for Marlboro Man 15 Sep 2021 The $15 bln oral tobacco maker is spinning off its stogies to quit the combustion business. With its ambitious smoke-free revenue targets, Philip Morris may be keen on what’s left. Judging by its pumped-up takeover of inhaler firm Vectura, it may take the hit, however pricey.
Big Brother’s tighter grip exposes poor Macau bets 15 Sep 2021 Authorities want more influence over casinos and their dividends. That may reduce investor rewards but is hardly a surprise: Beijing tolerates betting because it can control the enclave. A 25% hit to Wynn Macau’s and Sands China’s value suggest shareholders miscalculate the odds.
South Africa is litmus test for climate solidarity 15 Sep 2021 Despite its relatively small size, the Rainbow Nation’s economy is a big CO2 emitter. Yet Pretoria can ill afford a switch from coal due to soaring public debt. A $10 bln aid plan could be the answer, if lenders can close their eyes to the financial and political risks.
Supersized Canva inspires financial creativity 15 Sep 2021 The Australian design-software firm more than doubled its valuation to $40 bln in five months after a fresh $200 mln investment. Its avant-garde approach includes co-founders intending to use most of their 30% stake to “do good”. Things get abstract, though, at 40 times revenue.