Just Eat M&A takeout is best served with cash 15 Nov 2019 Investors in the $6 bln group have an all-share offer from peer Takeaway.com and a higher cash bid from tech giant Prosus. Taking the money means quitting the fast-growing food-delivery sector before it has matured. Since profit margins are falling, that may be a good thing.
It’s a super-hard road to a Japanese super app 18 Nov 2019 SoftBank and South Korea's Naver want to merge Yahoo Japan and Line in a complex, multi-step deal. Investors are excited about a $30 bln payments-to-messaging giant, but there are many hurdles to clear. Shareholders and regulators may balk. And even then, a JV structure awaits.
Battered Japan automakers look better under bonnet 13 Nov 2019 From Subaru and Suzuki to Mazda and Mitsubishi, local marques have been hit by a strong yen and soft demand. Though things are bad, fundamentals seem firm and government stimulus may help. Japanese carmakers look clunky, but they are ready to switch up a gear.
Nissan’s new bosses start with a whimper 12 Nov 2019 New CEO Makoto Uchida has inherited a pile-up. The carmaker’s quarterly sales fell, while operating margins contracted. Cost cuts aren’t helping fast enough, and full-year forecasts got revised downward, again. The only good news is that low expectations are easy to beat.
Alibaba logistics deal is hard Singles’ Day sell 11 Nov 2019 The web giant’s online shopping fest kicked off to fanfare on Monday, overshadowing news that Alibaba will invest $3 bln in a subsidiary it already controls. Neither financial details nor strategic rationale were given. Shareholders, unlike shoppers, can’t see this price tag.
Biotech upstarts will be Big Pharma’s China tonic 6 Nov 2019 AstraZeneca is launching a $1 bln healthcare fund in the People's Republic. A wealthier, older society promises huge growth, but rising costs mean Beijing is pushing drugmakers to lower prices. Investing in local discoveries and exporting them globally could be a smart remedy.
China baby-milk IPO mixes in a helping of cynicism 6 Nov 2019 Feihe has priced shares at the bottom of the range, valuing the infant-formula maker at $8.6 bln. That's partly down to Hong Kong's lukewarm market. But it also reflects the risks for a homegrown brand sourcing a premium product locally in a country with a history of food scares.
Asia’s airports fly far higher than its carriers 5 Nov 2019 Thai Airways’ market value has shrunk by a third this year to $600 mln, and the loss-making airline says it is running out of time. Airports of Thailand, by contrast, is worth $38 bln and is a top performer. It’s a light signal for investors eyeing the region’s travel boom.
Uber earnings are winding road to nowhere 4 Nov 2019 The $53 bln rideshare company’s revenue grew by 30%; it expects a profit by 2021. But which revenue, and which profit? Uber’s reporting is increasingly intricate, but offers few clues on big questions like whether it can really make money, and whether insiders will stick around.
Japan enters rehab for cash-addiction 4 Nov 2019 The world's third-largest economy is hooked on paper money. Ditching banknotes could generate a 3% one-off output boost in big cities like Tokyo, juicing innovation and wages. Elderly consumers and reluctant merchants will require more forcible persuasion, though.
LVMH’s greatest gift to Tiffany could be privacy 1 Nov 2019 The U.S. jeweler may think Bernard Arnault’s $15 bln offer is stingy. But LVMH’s semi-private embrace might allow Tiffany to undertake the generous investments it needs, and which public investors are unlikely to welcome. Arnault could even bring shareholders along for the ride.
Google’s hardware mishaps may help snag Fitbit 1 Nov 2019 The internet firm’s $2.1 bln offer for the fading fitness-device firm sounds like an easy win. Yet regulators are actively pondering whether past tech takeovers were less benign than they seemed. Google’s best defense may be its poor track record with gear.
Consumer giants’ housekeeping turns into hard work 1 Nov 2019 Big groups slimmed down by selling businesses from margarine to beer. But now Pernod Ricard is cooling on a sale of its wine brands, while Nestlé is taking a while to offload its cooked meats unit. Unrealistic price expectations and pumped-up valuations are partly to blame.
Amgen pops $2.7 bln dose of risky Chinese medicine 1 Nov 2019 The pharma giant is paying a 36% premium for a fifth of biotech group BeiGene. That feels rich for a pre-profit upstart that just fought off a short-seller attack. But the partnership promises the American company quick access to China’s massive cancer market at a critical time.
Viewsroom: LVMH wants more sparkle 31 Oct 2019 The $200 bln luxury conglomerate is making a $14.5 bln bid for Tiffany. The iconic brand known for putting its bling in blue boxes would be wise to accept the proposal. Plus: Venezuela’s leadership saga and a surreal debt drama collide. And: the world’s most expensive chocolate.
TikTok calls the tune for SoftBank’s comeback tour 30 Oct 2019 After WeWork's collapse, disappointing debuts from Uber and Slack, and now Wag, boss Masayoshi Son needs a hit. His bet on the $78 bln Chinese outfit behind the popular video app looks promising. TikTok's troubles in Washington and beyond, though, may derail a chart-topping IPO.
Beyond Meat’s post-lockup slump is just a taster 30 Oct 2019 The vegan-burger maker’s stock fell 22% as a block on insiders’ share sales was lifted. It’s still far above its IPO price, and revenue is rocketing. But it’s a reminder of a simple truth: more supply tends to mean lower prices. Rivals are getting wise to meatless meat’s appeal.
Just Eat bidders distracted by messy sideshow 29 Oct 2019 Prosus and Takeaway.com are competing to buy the UK food delivery group. Now a Just Eat shareholder has accused the former of orchestrating a sale of shares in the latter to depress the value of its bid. The war of words won’t deflect investors from demanding a better offer.
Xi Jinping’s crypto call seals stock-picker crown 29 Oct 2019 U.S. President Barack Obama presciently called the post-crisis S&P 500 trough and Donald Trump’s tweets have rattled equities. Mere intimations from China’s leader, though, can really get share prices marching. His blockchain shout-out underscores authoritarian market power.
Great Wall Motor’s lean machines defy China gloom 29 Oct 2019 The carmaker surprised with a 507% increase in third-quarter earnings. The homegrown marque has made the best of an historic slowdown in domestic demand by squeezing suppliers and juicing margins. The market might stay sour, but here’s a recipe for making lemons into lemonade.