China travel boom is stuck in the departure lounge 10 Dec 2021 Domestic tourism was already struggling of late. Now a surge in pandemic curbs like testing and quarantine is making regional travel difficult. Duty-free giant China Tourism’s decision to shelve its $6 bln Hong Kong listing shows the industry hunkering down for staycation pain.
Jack Dorsey’s fintech firm stumbles out of block 9 Dec 2021 Renaming Square to Block should have been bottom on his to-do list. Bigger priorities include integrating its $29 bln purchase of Afterpay, improving profitability and fending off rivals. Dorsey is more of a visionary. When it comes to Square, he’ll have to get his hands dirty.
Nubank becomes LatAm’s biggest, and riskiest, bank 9 Dec 2021 An IPO worth above $40 bln tops even Itaú Unibanco. At roughly 10 times tangible book value it’s a pricey bet that a Warren Buffett-backed Brazilian fintech can disrupt the region’s market before established players react, without missteps, and with immunity from economic perils.
Glove maker’s governance spoils pandemic bounce 9 Dec 2021 Top Glove, the world’s largest maker of protective handwear, has won investor support for a third listing in Hong Kong. Labour concerns derailed the Malaysian firm’s earlier attempt when markets were hot. With shares back near pre-pandemic levels, the delay has cost it dearly.
Nestlé’s $10 bln L’Oréal sale is a messy trim 8 Dec 2021 The food giant sold a 3% stake in the French cosmetics group, hanging onto 20%. It’s been a strong performer, but a full exit would make more sense for Nestlé’s shareholders. CEO Mark Schneider’s timidity may reflect a dearth of reasonably priced companies to spend the money on.
Visa-Mastercard payments duopoly has staying power 8 Dec 2021 The $770 bln duo’s shares are down 5% in 2021. Investors worry that Amazon and banks will negotiate sweeter terms, or that fintech will cut out middlemen. But even if they have to give up some revenue, none of the threats are existential. Current valuations are too pessimistic.
Capital Calls: Securitas 8 Dec 2021 Concise views on global finance: The Swedish security specialist’s acquisition of Stanley Black & Decker’s alarms unit should boost growth and margins.
LG’s $11 bln battery spinoff is fully charged 8 Dec 2021 The South Korean group is eyeing a $60 bln valuation for its crown jewel in what could be the country's biggest IPO. The hot play on electric vehicles hopes to entice investors by offering a discount to peer CATL. LG's track record of recalls, though, warrants caution.
Prominent SPACs like Lucid make good lessons 7 Dec 2021 The electric-car maker drew an SEC subpoena related to its blank-check merger. It was backed by seasoned dealmaker Michael Klein. But that, and size, made it a target. Amid a flurry, making examples of deals like Lucid or the Trump SPAC helps the swamped agency flex its muscles.
Intel Mobileye float is step back to self-driving 7 Dec 2021 The $220 bln chipmaker plans to list a minority stake in the autonomous-driving business it bought in 2017. Initially it's for Wall Street's benefit, as overheated valuations mean Mobileye might be worth $50 bln. But it may also be the start of the unit's return to independence.
Trump SPAC is masterclass in political workarounds 7 Dec 2021 The ex-president’s new media venture is raising $1 bln as it merges with a listed blank-check firm. If the deal closes, Trump’s backers will have a new way to support his agenda without the usual campaign finance strictures, and with the prospect of a profit to boot.
Capital Calls: Microsoft, AT&T, American Airlines 7 Dec 2021 Concise views on global finance: Microsoft is finally being scrutinized with Europe’s probe of its $16 bln Nuance deal; U.S. lawmakers have antitrust worries about the telecom firm’s Discovery deal; American Airlines’ retiring CEO leaves shareholders short-changed.
Zegna tailors elegant fix for BuzzFeed problem 6 Dec 2021 The Italian suit-maker and the millennial media group are both going public through SPACs. But Zegna has raised extra funds that kick in if investors extract money before the deal closes, as 94% of BuzzFeed’s did. With cash comes confidence; Buzzfeed ended up with less of both.
Boots exit may smooth way for Walgreens buyout 6 Dec 2021 The $40 bln drugstore operator may sell its UK chain, less than a decade after buying it. A sale could raise $8 bln for the U.S. group to beef up its own in-store clinics. And if Chairman Stefano Pessina wants one last big deal, a leaner Walgreens would be an easier target.
Capital Calls: Fund services M&A, Mattress mystery 6 Dec 2021 Concise views on global finance: Shareholders of Amsterdam-listed Intertrust dodge a regulatory crackdown with a 1.8 bln euro sale; the western man credited with Chinese retailer DeRucci’s success finally has his identity revealed.
DocuSign shows risk of investing along dotted line 3 Dec 2021 A slowdown in demand ripped $18 bln off the digital document-signing firm’s market value. The company’s response – spending more to revive sales – adds to the near-term pain. For profitless companies reliant on ambitious forecasts, sharp corrections are a signature move.
Transatlantic food delivery value gap will narrow 3 Dec 2021 DoorDash and Just Eat Takeaway have similar revenue and growth prospects, but the $57 bln U.S. firm is worth four times as much as its Dutch rival. Better profitability and an earlier move into groceries helps explain the gap. DoorDash’s push into Europe suggests it won’t last.
Bruised UK fund manager throws pricey counterpunch 2 Dec 2021 After years of struggling to hang onto assets, Abrdn is buying consumer platform Interactive Investor for 1.5 bln pounds. It brings growth and a chance to steal share in personal savings. The challenge is ensuring its expensive new bauble shines inside a stodgy asset manager.
Lululemon-Peloton union makes more sense than feud 2 Dec 2021 The exercise firms are locked in legal tussles and each is encroaching on the other’s turf. Given the bike maker’s share price has fallen two-thirds this year and there are obvious costs to cut, the sporty clothing specialist’s better option is to make an offer for its adversary.
Pharmacy bidding war stands to get more feverish 2 Dec 2021 Aussie supermarket chain Woolworths has offered 13% extra to buy Priceline owner API over an agreed deal with Wesfarmers. The premium now stands at a whopping 53%. Deep-pocketed buyers, a frenzied M&A market and the implied returns are a prescription for additional sweeteners.