A $14 bln Brambles buyout would loosely stack up 16 May 2022 The Aussie manufacturer of wood pallets is considering an approach from CVC. Tough freight and lumber markets make it vulnerable; its lacklustre total shareholder return doesn’t help either. A chunky deal looks tricky amid rising interest rates, but the takeover maths checks out.
India stands between world and food riots 16 May 2022 A ban on wheat exports is a messy but partial U-turn on India’s pledge to feed the world with its grains. The move protects consumers at home at the expense of farmers. Globally, it will exacerbate food security woes and shift the focus onto the country’s critical rice exports.
Tech unicorns become zombies 13 May 2022 Companies like Peloton, Carvana and DraftKings hit up investors for cheap capital to bolster balance sheets over the past years. But they haven’t used the cash to sort out business models – and they continue to burn through it. They have varying cushion but may already be dead.
Reinvention tops returns in Philip Morris snus bet 11 May 2022 The tobacco giant has agreed a $16 bln takeover of nicotine pouch maker Swedish Match. The deal brings it closer to being mostly smoke-free by 2025. But only rapid growth or big cost cuts can justify the 39% premium. CEO Jacek Olczak has scant room for legal or regulatory snafus.
Super-car SPAC tests EV hype’s reset expectations 11 May 2022 A $1.7 bln bid to resurrect a battered Chinese electric automaker comes as other upstarts are under pressure. Buyer Liu Suying likes a comeback story: he recently relisted Playboy. But CH-Auto’s failure to flog sporty coupes means it’s unlikely to be the next Tesla or Nio.
Grindr’s SPAC profile picture is a blur 10 May 2022 The LGBTQ community’s favoured dating app is listing via a merger with a blank-cheque firm run by a major shareholder. The $2.1 bln price tag looks chunky next to peers like Bumble. Besides data security and governance, investors can fret about potential conflicts of interest.
Capital Calls: Turkey, Nintendo/Sony, India IPO 10 May 2022 Concise views on global finance: President Erdogan makes another ham-fisted monetary intervention; the Switch maker weathers supply chain ructions better than its larger rival; New Delhi needs to be even more generous in its landmark listing of Life Insurance Corp of India.
Philip Morris’ snus deal looks doubly defensive 9 May 2022 The U.S. cigarette maker could beat a faster path to becoming a mostly smoke-free company if it snags the $12 bln Swedish Match and its chewable tobacco packs. A tie-up would be pricy, but investors’ growing yen for recession-proof stocks gives the Marlboro Man an added edge.
Capital Calls: Business travel, Adidas China woes 6 May 2022 Concise views on global finance: British Airways owner IAG faces stormy UK skies; Chinese lockdowns and boycotts are slowing down the German sneaker maker.
SlimFast maker could be tasty swig for Nestlé 4 May 2022 An activist wants Irish protein powder seller Glanbia to break up. Listing its consumer unit in the U.S. could double its 3 bln euro value, but would take time and carries risk. That opens the door to a cash-rich buyer like the Swiss giant, which is bulking up its health lines.
Inflation exposes consumer groups’ portfolio duds 29 Apr 2022 Companies like Danone and Nestlé had some success in flogging more stuff while hiking prices last quarter. Water and healthcare enjoyed a post-Covid boost. But groups peddling inflation-proof wares, such as pet care, look better prepared for sustained high prices.
Amazon takes hit from foggy outlook 28 Apr 2022 The e-commerce giant shed nearly $140 bln in market value after it forecast sluggish sales growth. The pandemic was good for Amazon and other online retailers. Now, while cloud services remain a bright spot, shipping, wage costs and macroeconomic factors are stumbling blocks.
Capital Calls: U.S. GDP fall masks solid economy 28 Apr 2022 Concise views on global finance: Consumer spending and business investment are resilient amid price hikes.
South Korea Inc heaps added pressure on Samsung 28 Apr 2022 The Galaxy maker’s 51% rise in quarterly operating profit, to $11 bln, only underscores its dependence on memory chips. Despite its ambitions in autos, biotech and other areas, peers Hyundai, SK and LG are moving faster to capitalise on new markets. Idle cash is a growing risk.
Capital Calls: GM electrifies executives’ pay 27 Apr 2022 Concise views on global finance: The Detroit automaker’s move to tie boss Mary Barra’s pay to electric vehicles goals is a new spin on pledges to shift away from combustion-engine cars.
Energy efficiency starts to attract the big bucks 25 Apr 2022 Brookfield’s potential $4 bln pitch for UK boiler repair group HomeServe sounds like small fry for a group with $690 bln of funds. But decarbonising buildings is a key growth area in the energy transition. Institutional investors are manoeuvring to ensure they don’t miss out.
P&G’s savvy inflation remedy has its limits 20 Apr 2022 The Braun razor maker’s sales rose 10% in the third quarter. And cuts to marketing spend helped prop up its operating margin even as commodity and freight prices surged. But some input costs filter through with a lag. CEO Jon Moeller may struggle to keep delivering good news.
Just Eat Takeaway faces humiliating U.S. exit 20 Apr 2022 The food delivery group may sell Grubhub, a business it bought last year for $7.3 bln, an embarrassing U-turn for CEO Jitse Groen. Expanding into the tough U.S. market always looked tricky. Getting out when there are few buyers, just as consumers are squeezed, will be harder.
Capital Calls: KKR and Australia, Danone 20 Apr 2022 Concise views on global finance: The private equity firm’s offer for Ramsay Health Care would almost double Down Under M&A by value this year; the French consumer group’s sales growth boost is offset by inflation fears.
Twitter can afford to refuse Musk’s $41 bln bid 14 Apr 2022 The world’s richest man says he’ll pay $54.20 a share for the social network, but may sell his 9% stake if the “best and final” but non-binding offer is rejected. It’s less than a week since Musk walked from a deal to join the board. Twitter has multiple reasons to demand more.