Natixis buyout is a punt on cut-price traders 9 Feb 2021 Mutual BPCE has made a 3.7 bln euro offer for the 29% of the French lender it doesn’t own. Doubling down on the misfiring investment bank looks bold. However, a lowly valuation and potential trading rebound mean CEO Laurent Mignon will still bag a sweet deal if he pulls it off.
Europe’s chip M&A invaders merit partial knockback 9 Feb 2021 Germany and Britain must decide whether to allow foreign takeovers of $6 bln Dialog Semiconductor, $5 bln Siltronic and $40 bln Arm. The risk lies in yielding control of scarce, technologically critical assets. In that respect, only the latter two deals are worth blocking.
Capital Calls: KKR, the investment bank 9 Feb 2021 Concise views on global finance in the Covid-19 era: The private equity firm run by Henry Kravis is building a useful capital-markets business, with almost half its deals last year for outside clients.
BNP’s American bank is the joker in its M&A deck 9 Feb 2021 A middling California lender worth $14 bln jars with CEO Jean-Laurent Bonnafé’s Europe focus. But BancWest gives BNP options. Like BBVA, it could raise cash in a sale to fund a pop at SocGen or UniCredit. More radically, it offers cost savings for a deal with Santander or HSBC.
New Hong Kong bourse boss keeps eye beyond China 9 Feb 2021 Hiring JPMorgan’s international private bank chief Nicolas Aguzin signals overseas ambitions even after Charles Li’s failed attempt to buy the LSE. HKEX Chairman Laura Cha can help with Beijing. The bigger tasks will be to keep foreign investors sweet and the gateway opening.
Swiss chemical buyout can just about wash face 9 Feb 2021 Bain and Cinven are paying drugmaker Lonza $4.7 bln for its skin sanitiser-ingredient unit. Aided by leverage, the pair should be able to eke out an acceptable return. But that hinges on changes to personal hygiene trends rather than just cost-cutting.
Humbled Crown Resorts faces rough reinvention 9 Feb 2021 The company is not fit to operate its $1.7 bln casino in Sydney, according to a report prepared for regulators. An ownership change could solve some, but not all, of the issues. China’s row with Canberra, plus a crackdown on overseas gaming, renders the business model obsolete.
Chinese property developers blur red lines 9 Feb 2021 From Country Garden to Vanke, many are breaching at least one of Beijing's three leverage rules – known as red lines – designed to curb wild growth, one study found. Craftiness with JVs, shell companies and more obscure debt realities. The crackdown will require extra vigilance.
Japan’s auto giants could ignite hydrogen hype 9 Feb 2021 Tokyo is backing fuel-cell-powered vehicles to help cut emissions. It’s reminiscent of China’s early support for electric cars. As then, commercial success will depend on official subsidies. But unlike startups, Toyota and Honda have the tech and funds to enjoy a smoother ride.
UK wind auctions are frothy for a reason 8 Feb 2021 The toppy price paid by BP for wind turbine-friendly seabed reflects its desperation to pivot to green energy. But the UK’s subsidy-laden regime is also more attractive than those of other states. That makes wind maven Orsted’s reluctance to match the UK major even more striking.
Musk’s next disruption: accounting for crypto 8 Feb 2021 The $808 bln Tesla has put $1.5 bln into bitcoin and may accept it from buyers of its electric cars. The cryptocurrency surged to a record high value, but Musk’s car company won’t mark up the gain. If such investments catch on, reporting rules may need to change.
Capital Calls: Super Bowl, Poison pills, Experian 8 Feb 2021 Concise views on global finance in the Covid-19 era: America’s game doesn’t benefit from scarcity value; Cubic’s poison pill serves a purpose; And Brazil’s cyberattack has a price for Experian.
SoftBank asset gains push focus to its firepower 8 Feb 2021 Markets have been kind to Masayoshi Son, helping the Japanese firm he leads log big gains from revaluations. Shares have hit a 20-year high. A bigger commitment to buybacks and detailed plans for its $42 bln-and-growing cash pile could provide a lift beyond the current frenzy.
Anglo takes quick, dirty route to greener pastures 8 Feb 2021 The miner may dump its African coal unit, worth maybe $1 bln. A spinoff could add six times that sum to the $45 bln group’s value by luring eco-conscious investors. Yet it doesn’t cut global emissions, and Anglo American’s iron ore assets may soon feel the environmental heat.
Japan’s Renesas steers towards chip M&A pileup 8 Feb 2021 It's trying to buy UK-based Dialog for $6 bln less than two years after taking over similarly sized IDT. Booming demand for semiconductors used in cars makes it strategically appealing, but the implied return on investment looks unimpressive. The deal engine could be overheating.
Thai beer float needs market fizz for top value 8 Feb 2021 Thai Beverage’s move to float 20% of its brewing business has strong echoes of the 2019 IPO of Budweiser’s Asia unit. To reach a mooted $10 bln equity value, it will need to match a bubbly valuation too. But it’s less profitable and Singapore listings aren’t known for froth.
Jeff Ubben’s soft touch could help hardened Exxon 5 Feb 2021 The activist behind Inclusive Capital may join the $204 billion oil giant’s board. He helped usher Ballmer out of Microsoft and encouraged an aging Adobe to transform. With vocal and quiet agitators at Exxon, shareholders need a diplomat. Ubben’s experience could prove useful.
Corona Capital: Peloton, Star SPAC, Italian bank 5 Feb 2021 Concise views on the pandemic’s corporate and financial fallout: Peloton needs to keep pedaling faster to keep up its subscriber pace; baseball’s Alex Rodriguez is jumping in the special purpose acquisition company game; and Intesa Sanpaolo makes good on M&A.
Enel will be hard to dislodge from green perch 5 Feb 2021 The Italian utility has become one of the world’s top renewable energy players and achieved stellar returns under CEO Francesco Starace. A booming green market and a big project pipeline mean its lead will outlast his tenure. Oil majors entering the market will trail behind.
Lazard bucks Aussie investment banking trend 5 Feb 2021 The $5 bln advisory shop is scaling back as financiers from UBS and elsewhere decamp to startups such as Barrenjoey and Jarden. Boss Ken Jacobs has struggled to gain traction Down Under. With an M&A boom potentially on the horizon, though, it’s an odd time to shrink.