Coupang’s next delivery: better disclosures 2 Mar 2021 South Korea's e-commerce darling is seeking a $50 bln valuation. It boasts heady growth and hefty losses. Metrics such as fulfillment costs, reported by peers like Amazon, are missing from its prospectus, though. Scant detail on new bets also makes the IPO math hard to justify.
Swelling Sea mostly flows in sound new direction 2 Mar 2021 Worth quintuple what it was a year ago, the $127 bln tech outfit is buying an Indonesian lender and won a digital bank licence in Singapore. Expanding in finance brings new risks but sensibly deploys capital to diversify. Venturing into Mexico, though, is a nouveau-riche misstep.
Finance pioneer Greensill hit by old-school risks 1 Mar 2021 Credit Suisse suspended $10 bln of funds linked to the SoftBank-backed group. It grew quickly by helping companies raise money from invoices but is under pressure from overexposure to hard-to-value loans for magnate Sanjeev Gupta. Funding may now be scarcer and more expensive.
Arrival of J&J vaccine is sign of glorious spring 1 Mar 2021 Last March, the world realized in panic that lockdowns were here to stay. This month should unwind that reaction. The U.S. authorization of J&J’s new vaccine and rapid production increases by Moderna and Pfizer are good news for Americans, but also for everyone else.
Walmart’s fintech gain hints at Goldman’s loss 1 Mar 2021 Omer Ismail is leaving the Wall Street bank for a job at the $368 bln retailer, just two months after becoming head of Goldman’s consumer bank. Walmart could become a force in finance. But it’s also a sign that Goldman’s retail bank is losing some shine.
Capital Calls: Sarkozy’s trial 1 Mar 2021 Concise views on global finance in the Covid-19 era: the former French prime minister’s conviction for trying to bribe a judge creates a new dilemma for the companies on whose board he sits, including hotel chain Accor.
Private equity growth fetish stores up future pain 1 Mar 2021 Last year’s $592 bln of deals were done at near-record valuations, according to Bain & Co. The consultancy reckons buyout barons are increasingly reliant on boosting sales rather than cutting costs. Since fast-growing targets are scarce, and pricey, it’s a recipe for low returns.
Danone has plenty more cash cows to milk in China 1 Mar 2021 Chief Executive Emmanuel Faber has unveiled his latest plan to placate activist investors. He wants to sell its $2 bln stake in China Mengniu Dairy. It means pulling out of a growing firm. But peddling Danone’s own brands to thirsty Chinese consumers will keep the cream flowing.
Goldman’s 1MDB pain looks light next to AmBank’s 1 Mar 2021 The Malaysian lender is paying what equates to 30% of its market value for its part in the sovereign fund scandal, more than four times the Wall Street firm’s ratio. Domestic politics is at play, but AmBank’s fine is ominous for global banks yet to draw a line under the affair.
Unizo mess could make Japan M&A less hospitable 1 Mar 2021 Less than a year since the hotelier’s $2 bln takeover battle, it is under pressure from the massive debt used to repay buyout backer Lone Star. An aggressive deal structure exacerbated pandemic risks. The danger is that Japan Inc’s more open-minded approach to deals closes again.
The house always wins with SPACs 26 Feb 2021 In poker, if you don’t know who the sucker is, it’s you. That’s also true of blank-check firms like the one that just did a deal with Lucid Motors. Sponsors, SPAC traders, merger co-investors and target-company owners all rake it in. Regular shareholders get the crumbs.
Capital Calls: CPPIB, Barclays, McPlant, DoorDash 26 Feb 2021 Concise views on global finance in the Covid-19 era: Canada Pension Plan Investment Board's CEO is booted for jab-line jumping; the UK bank wins a legal, if not ethical, victory over financier Amanda Staveley; Beyond Meat partners with McDonald’s and Yum; and DoorDash is too hot.
EU chip factory fantasy puts cart before horse 26 Feb 2021 Commissioner Thierry Breton wants an advanced semiconductor plant to cut reliance on Asia. The problem is that Europe’s chip designers and carmakers are ill-equipped to use such a cutting-edge site. Getting them on side, and investing more in research, is the place to start.
Evergrande contagion tests Beijing’s generosity 26 Feb 2021 China’s $10 bln retailer Suning.com threw a financial lifeline to the troubled property developer. Its founder is now selling a controlling stake as the embattled group faces $5 bln of debt due this year. A government bailout, which may be imminent, would send the wrong message.
AT&T clumsily cuts the cord on DirecTV 26 Feb 2021 The U.S. telecom titan is spinning off its pay-TV business in a $16 bln deal, six years after buying it for $67 bln. TPG will share control while kicking in just $1.8 bln for a 30% stake that includes a 10% cash coupon. It’s a pricey way to ease out of a disastrous acquisition.
Airbnb’s post-IPO showing is a pre-SPAC throwback 25 Feb 2021 The home-sharing app’s quarterly revenue fell 22%, yet still beat rivals. Because it went through its growing pains in private, Airbnb’s first results as a listed company show an already solid business. Many startups taking the blank-check route to market won’t have that luxury.
Viewsroom: Electric cars share some market fever 25 Feb 2021 Toyota, Ford and GM are all trading at their highest level in years as investors start to pick some winners among traditional automakers. Fear of missing the next Tesla, though, means shareholders are keeping the heady valuations for upstarts like latest SPAC target Lucid Motors.
European cardboard box M&A would be tight squeeze 25 Feb 2021 Paper maker Mondi may bid for envelope rival DS Smith, according to Bloomberg. Wrapping in debt and a premium, the box specialist could be worth 9 bln pounds. The e-commerce boom justifies Mondi pivoting from declining office paper, but only if it can unpack big synergies.
Klarna listing would be a mixed blessing 25 Feb 2021 The Swedish fintech’s next funding round could value it at $30 bln, and it’s mulling a direct listing. Allowing early investors to cash out carries obvious appeal. The downside is there would be a daily commentary on Klarna’s regulatory risks and shortcomings relative to rivals.
Pandemic speeds AB InBev’s necessary revamp 25 Feb 2021 More drinking at home and higher raw materials costs will pressure the $100 bln brewer’s margins in 2021. After years of zero-based budgets, it needs looser purse strings to revive sales. But with $83 bln of debt, its valuation discount to less profitable rivals will persist.