Just Eat Takeaway is looking like an M&A leftover 17 Aug 2021 The 15 bln euro delivery company made a smaller-than-expected loss in the first half. It’s still battling a tough U.S. market and needs to step up investment in Europe. A cheap valuation and restive shareholders would make it hard for CEO Jitse Groen to fend off an offer.
Chinese car battery giant reaps crackdown dividend 17 Aug 2021 CATL is raising $9 bln through a private placement, as jittery investors rotate funds into sectors insulated from policy risk. Able to easily raise cash at frothy valuations and plough it into overseas expansion, CATL could give rivals LG Chem and Panasonic an electric shock.
Surf ‘n’ turf is juicy ESG starter for M&A feast 17 Aug 2021 Brazilian meatpacker JBS made a curious second bid for Tasmanian salmon farmer Huon after mining billionaire Andrew Forrest raised environmental and animal-welfare concerns. Buyers often come ready to clash over price, not sustainability. Add a new chapter to the deal cookbook.
Spinning Eagle is a SPAC twist, not a revolution 16 Aug 2021 Harry Sloan’s blank-check firm wants to raise $2 bln with the option to spin off some cash in another SPAC. It's a way to have scale to buy a big target without being forced to. Unlike, say, Bill Ackman's overwrought effort, it's a reasonable tweak that shouldn't worry regulators.
Faurecia’s German car-parts deal has firm chassis 16 Aug 2021 The French automotive supplier edged out its rivals with a 6.7 bln euro bid for Lippstadt-based Hella. Annual savings worth 15% of its target’s R&D and marketing costs justify the outlay on their own. Any sort of sales boost would amount to go-faster stripes and alloy wheels.
UK defence buyout tests government poker hand 16 Aug 2021 Private equity-backed Cobham is offering a 63% premium for rival Ultra Electronics. To get Britain’s approval for the 2.6 bln pound deal, it will make commitments on jobs and research. If those pledges are robust, owner Advent will have to work hard to earn a good return.
Capital Calls: Oatly, Sonos/Google 16 Aug 2021 Concise views on global finance: The Swedish oat milk producer’s decent results are only good in parts; Sonos gets a boost with a preliminary trade ruling that Google infringed its patents.
BHP climate parcel pass would oil buyer’s regret 16 Aug 2021 The miner is in talks to sell its petroleum unit to Woodside for a mooted $15 bln. It’s a decent price for the seller, and cost cuts would make it stack up for the bidder. But there’s a big risk these assets are sharply devalued on carbon concerns sooner rather than later.
Indian edtech scores relatively high marks 16 Aug 2021 Foreign investors are piling into Byju’s, upGrad, Eruditus and others, fuelling valuations and acquisitions. They have a stronger foundation for international expansion than Chinese peers. A young population also makes a Beijing-style crackdown on online learning less likely.
Booster jabs are easy money for Pfizer and Moderna 13 Aug 2021 The U.S. has authorized a third dose of Covid-19 vaccines for people most at risk. That’s under 3% of the population, but broader use is likely in rich countries. Both producers will benefit, even if Moderna’s $160 bln valuation counts on more than just boosters in the future.
Capital Calls: Coupang’s winding road 13 Aug 2021 Concise views on global finance: The fast-growing South Korean e-commerce outfit’s lack of profit is testing investors’ patience.
Vectura tussle chips away at money’s winning might 13 Aug 2021 The inhaler maker endorsed a bid from Philip Morris that was 6% above one from Carlyle. Juicier shareholder returns and deeper pockets to invest prevailed over distaste for Big Tobacco. But the noisy debate makes scrutinising deals on broader stakeholder grounds look more normal.
Private equity barks up right pet-makeover tree 13 Aug 2021 Hellman & Friedman is splurging $3.5 bln on unloved German pet food supplier Zooplus. The online retailer is crying out for more investment and better management to cash in on the e-commerce and pet-ownership booms. Even with minimal debt, returns could turn out best in show.
Aussie coal bailout begins with fair share of pain 13 Aug 2021 Power producer AGL’s CEO says everyone should pitch in to wean the country off the black stuff. Fair, but it also sounds like a pitch for taxpayer aid from a company that dug itself into a hole. A credible plan would ensure shareholders and executives bear the brunt.
Beijing puts Baidu comeback within reach 13 Aug 2021 Even though it isn’t obviously targeted in China’s tech crackdown, the web search company has lost half its market value since February. Quarterly results suggest boss Robin Li is making progress in cloud computing and AI. Policy initiatives should actually help the momentum.
Airbnb returns to 2019 form, only leaner 12 Aug 2021 The $91 bln online vacation-booking platform has regained pre-pandemic levels of bookings and revenue as well as turning an adjusted EBITDA profit in the second quarter. The coronavirus remains a risk, but it’s also the reason Airbnb is now looking vigorous.
SPAC five-year plans fall short of Soviet accuracy 12 Aug 2021 AppHarvest, a greenhouse grower that completed a SPAC merger earlier this year, cut its 2021 sales forecast by nearly two-thirds. Revenue-free firms float on five-year projections, but a series of early stumbles show most long-term forecasts are practically a stab in the dark.
Hollywood talent wars call for a new currency 12 Aug 2021 Scarlett Johansson’s fight with Disney shows the old model of paying stars based on the box office doesn’t work in an age of streaming. Netflix has its own radical alternative, but there’s another way, too: Align stars’ pay more closely with numbers shareholders care about.
Capital Calls: Authentic Brands nabs Reebok 12 Aug 2021 Concise views on global finance: The Juicy Couture owner is buying Reebok from Adidas for up to 2.1 bln euros. It looks like a relative bargain, both compared with the German group overall and what the company paid for Reebok 15 years ago.
Delivery Hero’s side gig does it few favours 12 Aug 2021 The German group spent $300 mln on a stake in Deliveroo, taking its investments in rivals to $2.7 bln. The bets look a distraction for a $28 bln food delivery company whose operations are devouring cash. Besides, investors are hardly rewarding CEO Niklas Oestberg’s efforts.