Deals

Daimler bags lux joyride on Aston Martin’s dime

28 October 2020

The $59 bln Mercedes-maker has traded some of its technology for a 20% stake in the James Bond marque as part of a wider 1.2 bln pound rescue. In return for access to battery-operated cars, CEO Ola Kaellenius gets a free option on a super-premium brand. It’s a trip worth taking.

Four-year deal delay dims the romance of M&A

23 October 2020

China Oceanwide’s $2.7 bln takeover of Genworth has been postponed for the 16th time since it was unveiled in October 2016. Blame politics and the pandemic for the wait. Mergers that take this long to consummate make it hard to recall the benefits they were meant to provide.

SK Hynix’s $9 bln deal is chip sector’s quick fix

20 October 2020

The South Korean semiconductor giant will buy Intel's NAND memory business in its largest acquisition ever. Less competition might prop up prices, which have plunged on uncertain demand. In the long term, a beefed-up SK stands a better chance against Chinese entrants.

Alibaba grocery deal may stall at final checkout

19 October 2020

The Chinese e-commerce giant is buying out its French partner in supermarket chain Sun Art, for $3.6 bln. A mere 2% premium suggests an eager retreat for the seller. Given Alibaba’s brick-and-mortar ambitions, minority shareholders have less reason to settle for a discount price.

Player 2 wins out in Chinese e-sports deal

13 October 2020

Video-games streaming site Huya is buying smaller rival DouYu in a $6 bln stock swap. The target’s investors not only receive a generous 34% premium, but also half the combined group. Given Tencent's stakes in both, it's a surprising but welcome result for minority shareholders.

Playboy slips into something less comfortable

1 October 2020

No longer a purveyor of adult magazines, the late Hugh Hefner’s empire is using a SPAC to return to the stock market – ahead of a possible reinvention as an M&A-driven conglomerate. The idea is attractive enough, but the public gaze won’t be any more forgiving this time around.

Direct listings discover how to deliver IPO hype

30 September 2020

Purveyors of traditional offerings talk about first-day price pops. This year’s only direct listings, Palantir and Asana, both opened way above their so-called reference prices. But these are meaningless. More importantly, earlier private-market values proved boringly on target.

Utility mega-deal may create wrong kind of sparks

30 September 2020

NextEra’s tilt at rival Duke could create a $200 bln giant, spanning clean-energy generation and lighting homes across the American south. NextEra’s juiced-up shares give it a currency. But the need to please watchdogs suggests a deal has to be harmonious, and probably expensive.

Corona Capital: NYC

30 September 2020

Concise views on the pandemic’s corporate and financial fallout: New York City’s economic reboot comes up against a new outbreak.

Tiffany looks ill suited for life on the shelf

29 September 2020

LVMH’s $16 bln bid for the U.S. jeweler has descended into acrimony. If it craters, Tiffany could be worth just $10 bln based on similar companies’ valuations. For LVMH boss Bernard Arnault, the idea of buffing up Tiffany’s brand must be rapidly losing its appeal.

Nvidia CEO’s crystal ball is a little hazy on Arm

28 September 2020

Jensen Huang hopes that buying the $40 bln group will open $250 bln of markets. Yet phones and other gizmos may not need his fast chips, and Arm designs are yet to catch on in data centres. Huang will also need all his skills to avoid antagonizing his target’s existing customers.

Corona Capital: Shale merger, Logistics startup

28 September 2020

Concise views on the pandemic’s corporate and financial fallout: Two Permian Basin oil drillers agree to merge to share their coronavirus demand-shock woes; and delivery upstart ShipBob gets some SoftBank cash to help it compete with Amazon.

India will win by playing tax cricket

28 September 2020

By accepting the international arbitration ruling in Vodafone’s favour, India can shake off its reputation for “tax terrorism” as it seeks to woo investment away from China. Resolution will bring long-term investment gains even if defeat entails painful upfront costs.

Everyone looks like a deal amateur in TikTok mess

25 September 2020

U.S. orders to divest assets are often straightforward. But dizzying contradictions from both dealmakers and the White House have given ByteDance a free pass around rules to sell TikTok. The resulting chaos obscures the stakes: handling data security and foreign takeover laws.

Hong Kong lender tests Elliott’s patience anew

24 September 2020

After a long review, $6 bln Bank of East Asia is ready to sell its life insurer. It also promises better cost controls and hints at more deals. Since the pushy hedge fund showed up in 2015, however, the stock price has halved. Perseverance may be less rewarding than in Argentina.

Corona Capital: LVMH and Macron, Eyewear deals

23 September 2020

Concise views on the pandemic’s corporate and financial fallout: LVMH has friends in high places; 1-800 Contacts has semi-disposable owners.

M&A 101 will speed end of Tata’s investor fight

23 September 2020

After a long legal spat, the family of ousted chairman Cyrus Mistry is ready to sell its 18% stake in the holding company of Tata group. But a mooted $24 bln price tag double counts the value of India’s top household name. The conglomerate has rare reason to play down its brand.

Tiffany’s fast-track court victory is a trinket

21 September 2020

A Delaware judge ruled for a speedy trial to decide whether LVMH must go ahead with its $16 bln takeover of the U.S. jeweler. But the three-month wait is still a long time to be left dangling. If LVMH names a new, lower price, Tiffany will find it hard to dismiss it out of hand.

Microsoft launches $7.5 bln gaming war of addition

21 September 2020

That’s what CEO Satya Nadella is paying for ZeniMax, owner of games like “Fallout.” The aim is to persuade more users to enlist in Microsoft’s subscription service and force providers like Apple to stream content on its terms. Success would make Microsoft look unstoppable.

Illumina takes pricey round-trip to find its Grail

21 September 2020

The $40 bln firm found out by accident years ago that it could detect cancer using genetic sequencing. It spun out Grail in 2017, bringing in cash from new investors. Now it's spending $7 billion to buy it back. Grail is a hot property, but it competes with Illumina's customers.