Deals

Trade wars are holding cross-border M&A hostage

31 December 2019

Global deals exceeded $3.8 trln in 2019, but takeovers where buyer and seller are in different countries fell by a quarter. Geopolitical tensions make any big transaction a potential target. Spats between the United States, China and the EU look set to keep weighing on activity.

Asia Pacific is primed for its next 11-digit LBO

23 December 2019

Over $250 bln of private equity money is sloshing around the region, as a new KKR fund looks set to exceed its flagship U.S. one. Cheap debt helps put another Toshiba-like deal in the frame. Dentsu and Haier fit the buyout profile. Even whoppers like Woolworths could be targeted.

T-Mobile Sprint antitrust defense has a hole in it

20 December 2019

America’s No. 3 and No. 4 telecom firms are fighting state regulators to keep their $26 bln deal on track. Federal watchdogs want to preserve competition by making the companies help Dish build a new fourth mobile carrier. That only works if Dish is up to the job. It may not be.

ChemChina’s fortunes rest on Syngenta listing

20 December 2019

The state chemicals giant wants to raise $10 bln ahead of a mooted flotation of the Swiss firm it bought in 2016. Boss Frank Ning may settle for a lower valuation, Reuters reports. But the funds will help him pay down big debts, and pave the way for a merger with rival Sinochem.

Lenovo founder’s M&A manual is missing an update

19 December 2019

Liu Chuanzhi will retire as head of Legend Holdings, the $8 bln PC-maker’s parent. His 2005 purchase of an IBM unit was one of the best examples of a Chinese firm building a global brand through foreign deals. That playbook looks more like an exception to today’s hostile rule.

Torpor at home lures Thai lender to pricey Jakarta

13 December 2019

Bangkok Bank has beaten Japanese rivals to take control of Indonesia's Permata, for some $2.7 bln. StanChart, selling along with a local conglomerate, gets a welcome boost. For Bangkok, though, a deal at near twice the target's book value is a necessary gamble on faster growth.

Gold diggers may find growth is copper-bottomed

5 December 2019

Rising prices have filled coffers for bullion miners. Now some, like $31 bln Barrick, are arguing future growth may come from a more modest metal: copper. Using safe-haven returns to bet on a similar, underperforming, material has logic, despite tarnished M&A precedents.

Carl Icahn just needs any Xerox-HP deal

2 December 2019

The smaller copier group where the activist owns 11% says it will go hostile with its $33 bln offer for HP. The bickering aside, it would be more logical for HP to buy Xerox. That could turn out much the same for Icahn, who owns 4% of HP, and for both companies’ other owners.

Canada’s Aussie gas station bid needs more fuel

26 November 2019

Quebec-based Couche-Tard has offered $7.3 bln including debt for Caltex to expand its filling station empire Down Under. At more than 9 times EBITDA the price looks good, while rival bidders are scarce. A mooted real estate IPO is Caltex’s best hope to squeeze out more value.

Market pours cold water on M&A animal spirits

25 November 2019

Schwab and copier maker Xerox are touting respective deals worth a combined $59 bln, but grand claims of value creation aren’t showing in share prices. For Schwab, customers may end up sharing the extra profit, while the Xerox deal on the table is unlikely to happen at all.

Maybe eBay should rebrand as a VC fund

25 November 2019

The $29 bln firm is a shadow of Amazon in e-commerce, but selling StubHub for $4 bln shows prowess at incubating a business acquired for less than a tenth of that. Off-loading its classified operations could be similarly successful. And eBay’s biggest gains have come from PayPal.

Xerox prints double-sided hostility in HP bid

21 November 2019

The copier maker says it will take its $33.5 bln offer to the printer company’s shareholders if it won’t get serious about merger talks. That’s just silly. Reading between the lines, though, Xerox is threatening an activist battle, a prospect that ought to bring HP to the table.

Schwab-TD merger too appealing for its own good

21 November 2019

An $80 bln union of the two U.S. brokerages is an idea that has been tossed around for over a decade, and justifiably. Competitive pressures are intense, the industry fragmented, and the potential savings prodigious. That, though, gives TD Ameritrade room to set a high price.

Dr. Jart applies prettier M&A than Kylie Jenner

19 November 2019

Estée Lauder is buying the South Korean skincare line’s maker, Have & Be, at a $1.7 bln valuation, or about 3 times sales. Coty, meanwhile, unveiled plans to pay 6 times for the Kardashian’s makeup. A more conservative price for a less faddish brand wins this beauty deal prize.

HP-Xerox could turn into battle of logic over ego

18 November 2019

If merging the printer and copier makers creates the savings Xerox has outlined, a $35 bln tie-up really is a no-brainer – but only if both can compromise. For shareholders, HP should be buying Xerox, not the other way around. But Xerox’s boss would be the best choice to lead it.

It’s a super-hard road to a Japanese super app

18 November 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.

Thermo Fisher diagnoses rare $10 bln land grab

14 November 2019

It’s circling Qiagen, a month after the diagnostics firm changed strategy and ditched its long-time leader. The would-be acquirer may spy an opportunity to snap up its rival while its defenses are weakened. The risk is that outweighs the pursuit of good returns.

Xerox truce leaves future in black and white

5 November 2019

The copier-maker’s $2.3 bln exit from its joint venture with Fujifilm beats the convoluted, activist-opposed merger the two had once discussed. The neat ending makes up for years of wrangling. And the $7.7 bln firm’s spiffed up governance and simpler structure may tempt a buyer.

Tiffany splurge is affordable indulgence for LVMH

28 October 2019

Buying the $12 bln purveyor of blue-boxed trinkets would bulk up the French giant’s jewelry business and its U.S. presence. Though pricey, a deal would not stretch Bernard Arnault’s cash-gushing group. It also throws down a diamond-studded gauntlet to rivals Richemont and Kering.

WeWork mess should end the cult of the founder

22 October 2019

SoftBank is providing nearly $10 bln to rescue the office-sharing firm, valuing it 83% below its peak. Adam Neumann, the architect of WeWork’s rise and fall, is getting $1.7 bln to step out of the way. If they choose, investors can ensure he’s the last founder able to run amok.