Deals

Capital Calls: China, Disney, Banks, P&G, Fintech

30 July 2021

Concise views on global finance: The SEC wants more disclosures on IPO risks related to Beijing regulators; plus Scarlett Johansson’s lawsuit, EU stress tests, consumer prices, and Qatar’s investment in an African fintech.

Capital Calls: U.S. GDP

29 July 2021

Concise views on global finance: Supply chain woes are tripping up solid U.S. economic growth. GDP grew 6.5% in the second quarter, a big miss from estimates of 8.5%.

Aussie oil deal drills into some messy territory

21 July 2021

Embattled Oil Search rejected a $6.5 bln offer from rival Santos. A merger would help clear up the target’s poor governance and improve the bidder’s balance sheet. And yet a takeover looks a financial stretch for Santos and could devolve into a value-destructive bidding war.

China’s IPO crackdown exposes U.S. weaknesses

19 July 2021

Several companies have spiked plans to list abroad after Beijing ramped up oversight. But the move by regulators also highlights the frailties of an American financial system that is heavily reliant on disclosure. Chinese firms have long shown that’s easy to take advantage of.

Aurora could be biggest fish in a faraway pond

16 July 2021

The self-driving firm is going public in a $13 bln blank-check deal, and at a premium to rivals Embark and TuSimple. Aurora may deserve one based on its technology pedigree and partnerships with the likes of Toyota. But all may be underestimating when the market arrives.

Capital Calls: Online fashion retail

15 July 2021

Concise views on global finance: The return of old customer habits and muted demand as the pandemic lingers could reverse the recent stellar run of the likes of ASOS.

Sydney Airport becomes Covid-19 rebound hub

15 July 2021

It rejected a $17 bln takeover proposal despite the hefty premium on offer. The airport operator reckons it can land post-pandemic value unaided. Any bid sweetener would require an even rosier view of travel, turning the deal into a stark proxy for fuzzy recovery prospects.

Capital Calls: Bank of America, EU carbon prices

14 July 2021

Concise views on global finance: the U.S. lender beat earnings forecasts, despite a less-than-stellar performance in the activities that boosted rivals; and European Commission reforms should push up the cost of greenhouse gas emissions.

China chip crash helps fine-tune tech policy

14 July 2021

Lavish government funds fuelled the rapid expansion of semiconductor darling Tsinghua Unigroup. It now faces bankruptcy with $31 bln of debt piled up. Letting it fail reflects Beijing's new, more selective strategy of developing industry champions. It may yield better results.

Tencent e-sports defeat exposes tech M&A weakness

12 July 2021

Trustbusters nixed a $5 bln merger of two video-game streaming companies the Chinese titan backs. It's a sign Beijing will no longer tolerate the kinds of transactions that created giants like Meituan. For Tencent boss Pony Ma, a bigger problem may be having to unwind past deals.

Cairn and India have a third option in tax fight

8 July 2021

Freezing of the country’s Paris properties underscores frustration at New Delhi’s refusal to pay a $1.7 bln arbitration award. India can avoid further embarrassment and escape paying in full by letting Cairn invest in new projects. But that’s only possible if it concedes defeat.

AirAsia super-app SPAC will require sick bag

8 July 2021

The Malaysian carrier led by Tony Fernandes is swapping a 4.8% stake in its fledgling e-commerce and fintech division for Gojek’s Thai business. The deal imputes a $1 bln valuation, and a sky-high multiple of sales. A planned spin into a public listing promises a dizzying ride.

Chinese IPO detour benefits Hong Kong only so much

8 July 2021

Didi’s U.S. listing debacle has lifted expectations that more mainland companies will go public closer to home. New York’s star may be dimming, but Beijing’s crackdown on overseas market debuts sounds sweeping. Even the Asian financial hub’s $80 bln bourse faces fresh hurdles.

Capital Calls: U.S. jobs, Fitness IPO

7 July 2021

Concise views on global finance: U.S. employment vacancies tip scales towards workers; Mark Wahlberg-backed F45’s IPO values it at twice what an attempted SPAC deal did last year, justifiably.

Suning bailout might model China Evergrande rescue

6 July 2021

A public-private consortium including Alibaba has thrown the debt-laden Chinese retailer a $1.4 bln lifeline. There are now lots of cooks in Suning’s kitchen, complicating a business turnaround. But it might be a trial run for restructuring its troubled ally Evergrande.

China uses Didi as data law test dummy

6 July 2021

Cybersecurity watchdogs are revamping regulations and readying new ones as they widen their crackdown. The $75 bln ride-hailing group’s data trove and foreign backers mean it's a good candidate to make an example of. Investors may hope for more legal clarity; they might not get it.

Green goals will milk more Kiwi-like finance fixes

6 July 2021

New Zealand needs 13% fewer cows to help hit emissions targets. That lends urgency to dairy giant Fonterra’s plan to restructure its cooperative as farms grapple with environmental crises. Suppliers and their balance sheets will be a key battle front in the war on climate change.

Sydney airport bid needs high-flying guesstimates

5 July 2021

Shares took off after infrastructure funds offered $17 bln for Australia’s top aviation hub just after the hermit country halved its arrivals quota. The 42% premium is still below pre-pandemic prices. Even if travel resumes, the opportunistic bid rests on blue-sky thinking.

China puts New York IPO fine-print risk in bold

5 July 2021

Chinese regulators have opened investigations into two more companies listed in the city after hammering ride-sharing app Didi just days after it raised $4.4 bln there. Investors that bought into these deals may blame Beijing or bankers, but they had ample, if indirect, warning.

Robinhood has too many arrows pointed its way

2 July 2021

The trading app filed to go public and may seek a $40 bln valuation. Based on its growth, that isn’t impossible. But it is too exposed to speculative trading and some government probes look serious. It could only fetch such spoils in the vulnerable market it helped create.