Mergers & Acquisitions

PR firms step into big-ticket merger lull

17 September 2021

Global dealmaking hasn't yet surged after America's Labor Day holiday. It may yet happen. In the meantime two big M&A communications firms, WPP-backed Finsbury and Sard Verbinnen, are considering a merger of their own. The combo would get a top league-table spot to shout about.

State Street-Invesco deal may leave both in limbo

17 September 2021

On paper, a tie-up between their asset management businesses looks valuable. Cost cuts are fairly easy and taking out a competitor has merits in a commoditized business. But fees will keep falling, and even putting their $5 trln of assets together won’t supercharge growth.

Capital Calls: China/TPP, Flavourings, Chill-boxes

17 September 2021

Concise views on global finance: China formally applies to join the Pacific trade pact; EQT-owned Azelis has a strong market debut; Sweden’s Dometic is shelling out a cool $677 mln for Texan chill-box maker Igloo.

Bolloré gives coup de grâce in French tycoon spat

16 September 2021

Gallic raider Vincent Bolloré may buy publisher Lagardere for 4.6 bln euros, ending a battle for control of the Paris Match owner also involving LVMH boss Bernard Arnault. His Vivendi can make a healthy return, while CEO Arnaud Lagardere at least gets to come along for the ride.

Capital Calls: Biden channels Trump on China

16 September 2021

Concise views on global finance: After losing an Australian submarine deal, the French accused the U.S. president of acting like his predecessor. They’re right that there’s bipartisan antipathy towards Beijing in Washington. They’d better hope the similarity ends there.

Goldman fintech deal serves borrowers on a plate

15 September 2021

Like all banks, the Wall Street firm wants to lend to consumers at credit-card-like returns without the hassle of attracting them. Buying buy-now-pay-later firm GreenSky for $2 bln means merchants like Home Depot act as recruiters. Other lenders will jump on this bandwagon.

Capital Calls: Microsoft’s buyback, Railway M&A

15 September 2021

Concise views on global finance: the software giant’s $60 bln stock repurchase plan is smaller than it sounds; meanwhile, a tangled takeover battle for train operator Kansas City Southern takes a messy new track.

Cigarless Swedish Match has pull for Marlboro Man

15 September 2021

The $15 bln oral tobacco maker is spinning off its stogies to quit the combustion business. With its ambitious smoke-free revenue targets, Philip Morris may be keen on what’s left. Judging by its pumped-up takeover of inhaler firm Vectura, it may take the hit, however pricey.

Supersized Canva inspires financial creativity

15 September 2021

The Australian design-software firm more than doubled its valuation to $40 bln in five months after a fresh $200 mln investment. Its avant-garde approach includes co-founders intending to use most of their 30% stake to “do good”. Things get abstract, though, at 40 times revenue.

Intuit bites off a lot with $12 bln Mailchimp deal

14 September 2021

The TurboTax maker is paying 15 times 2020 sales for the digital marketing firm to better crack the big market for small business services. Mailchimp’s record suggests it has a shot. The trick will be to avoid indigestion as Intuit is still integrating an earlier $7 bln purchase.

Buyout sweeteners are symptom of limp boards

14 September 2021

Hellman & Friedman offered 18% more for Zooplus a month after the German retailer backed a $3.5 bln takeover. Blackstone and CD&R also paid more for listed targets than initially intended. Recommending a bid can flush out rival suitors. But boards should be negotiating harder.

DSM rejig needs stronger growth flavour

14 September 2021

The 31 bln euro food ingredients maker is looking to sell its industrial materials unit. It’s an overdue step that will give the shares only a modest bump. If the Dutch group can grow its sales more quickly, a Givaudan-style valuation and sweeter gains could follow.

Capital Calls: Amazon’s wage rise

14 September 2021

Concise views on global finance: The e-commerce giant’s salary strategy could catch on.

Elliott returns to haunt backsliding Citrix

9 September 2021

The investor sold out in 2020. Since then, the enterprise-software group's shares have slipped 25% despite a pandemic tailwind. Now Elliott is back with a stake worth more than $1 bln and a similar list of gripes. If it worked once, the rare activist double-dip could work again.

Bill Gates bets luxury hotels are plague resistant

9 September 2021

The billionaire who predicted a pandemic snagged half of Saudi Prince Alwaleed’s stake in the Four Seasons chain, valuing it at $10 bln. That’s a big price since Gates helped take the group private in 2007 and a sign one of the richest guys thinks fancy suites offer protection.

EasyJet packs M&A reserve chute into safety plans

9 September 2021

The low-cost carrier is raising $1.7 bln from shareholders after another virus-hit summer. That, plus a $400 mln loan facility, gives CEO Johan Lundgren a plump cushion if the recovery stalls again. If all else fails, ambitious budget rivals like Wizz Air are poised to pounce.

Betting minnow turns high roller with $3 bln wager

9 September 2021

London-listed 888 is paying more than its current market value for William Hill’s non-U.S. assets. It’s a quick way to gain scale but pushes debt to a hairy 5 times EBITDA. Ample savings and the chance to diversify into licensed online games and sport make it a calculated punt.

Morrisons has a nuclear way to keep suitors honest

9 September 2021

The battle for the UK grocery chain looks set to end in an auction. The big danger is that Fortress or CD&R bid too much and then break pledges in areas like employee rights. The board has a way to make these promises legally binding, but the risk is both bidders walk away.

TCI does good work as conflicted trains M&A broker

8 September 2021

Chris Hohn’s fund wants Canadian National to drop its bid for Kansas City Southern and leave the floor to Canadian Pacific. An investor who owns stakes in both bidders is not an impartial mediator. But Hohn is right to try to stop a tussle that will lead to the victor overpaying.

UK’s Smiths faces tough physio after M&A surgery

8 September 2021

The $8 bln engineer is flogging its health unit to ICU Medical for $2.4 bln, three years after walking away from the same bidder. The sale is a win for new boss Paul Keel. But for Smiths to warrant a jazzier rating, he will have to work similar magic on languishing margins.