Mergers & Acquisitions

Capital Calls: SXSW

19 April 2021

Concise views on global finance: Rolling Stone publisher Penske Media is taking a 50% stake in hipster arts festival South By Southwest.

Melrose disposal puts spring back in M&A step

19 April 2021

The UK turnaround specialist is selling most of its air conditioning unit for $3.6 bln. Though the implied annual return of 14% is not stellar, further disposals may lift it. Cutting net debt will allow CEO Simon Peckham to hit the acquisition trail again with vigour.

Lithium merger flips electric-vehicle deal script

19 April 2021

The $3.1 bln tie-up of rivals Orocobre and Galaxy creates the fifth-largest miner of the crucial metal for battery-powered cars. The all-share deal is devoid of splashy predictions and juicy premiums. A fast-lane valuation multiple, though, drives home the strategic importance.

Ireland bank exodus presages wider EU retrenchment

16 April 2021

Belgium’s KBC may flog most of its $12.3 bln of local assets to Bank of Ireland. NatWest just pulled the plug on Ulster Bank. Tough regulation, large incumbents and low rates played their part. The same factors will push other European lenders to retreat from far-flung markets.

Thermo Fisher’s $17 bln deal bets on jam tomorrow

15 April 2021

The U.S. scientific device maker looks like it is overpaying for PPD given its return on investment will be less than 5% in a few years’ time. But a decade of deals shows PPD’s buyers benefiting from a trend for clinical trials to be outsourced. That may be true again this time.

Capital Calls: Delta Air Lines, L’Oreal

15 April 2021

Concise views on global finance: The U.S. air carrier says it was cash-flow positive in March, signaling the beginning of the end of the pandemic; the French cosmetics group has too much cash, which could be useful for dealmaking.

Televisa twist gives Univision a better script

14 April 2021

The Mexican company is injecting its content assets into the U.S.-based Spanish-language media group for $4.8 bln. Televisa becomes the largest shareholder in a bigger and less leveraged business. Size matters in media, but Univision is a late arrival to the streaming party.

Czech billionaire’s supermarket raid looks pricey

14 April 2021

Daniel Kretinsky doubled his stake in British grocer J Sainsbury to 10%, prompting talk of a takeover. The $7.5 bln chain has thrived during the pandemic, but a reopening economy will mean more competition and higher costs. A buyout would yield mediocre returns.

Capital Calls: Christine Lagarde, Bernie Madoff

14 April 2021

Concise views on global finance: The European Central Bank president’s quest for inflation will take a while to achieve its goal; investor gullibility will live on after the death of the Ponzi schemer in a U.S. federal prison.

Capital Calls: LVMH surges back to full health

13 April 2021

Concise views on global finance: The 300 billion euro luxury conglomerate’s first-quarter sales surpass pre-Covid-19 levels.

Microsoft’s $20 bln bet on speech lacks Nuance

12 April 2021

The deal is CEO Satya Nadella’s second biggest. Its return on capital is below 2%. But the price is a trifle for the $1.9 trln giant. And Nuance’s tech may finally be delivering on its long-held promise, making it an attractive bolt-on for Microsoft’s expanding cloud business.

French water fight ends in honourable $15 bln draw

12 April 2021

After months of feuding, Veolia is buying the 70% of rival Suez it doesn’t own for 20.5 euros a share. Target boss Bertrand Camus has squeezed a few extra euros from his suitor. Meanwhile Veolia gets to keep its big prize: 500 mln euros of cost savings in North and South America.

DiaSorin wisely hedges against Covid-19 test slump

12 April 2021

The Italian diagnostic group which has benefited from pandemic demand is buying smaller U.S. peer Luminex for $1.8 bln. Thanks to hefty cost savings the deal makes financial sense. With vaccinations accelerating, it’s a good time to seek more enduring sources of revenue.

Gaming weakness puts Ubisoft on M&A last life

9 April 2021

Shares in the “Assassin’s Creed” publisher have languished since a failed takeover by Vivendi in 2018. Despite a pandemic boost, CEO Yves Guillemot’s $10 bln group suffers from dour profitability. That leaves him open to attack by rivals like Activision Blizzard or Tencent.

Capital Calls: Cellebrite good times

8 April 2021

Concise views on global finance in the Covid-19 era: The Israeli cracker of mobile-phone encryption is going public via a SPAC at a $2.4 billion valuation.

Capital Calls: Trucking IPO

7 April 2021

Concise views on global finance in the Covid-19 era: Startup TuSimple will be listing shares via a traditional initial public offering.

SocGen fund sale is good enough to spur copycats

7 April 2021

The French bank is set to sell its passive investing unit to Amundi for 825 mln euros. While below some estimates of 1 bln euros, CEO Frederic Oudea’s price is adequate and he’s solving a strategic problem. Other banks with subscale fund arms, like UBS, may follow suit.

Robo-suit SPAC paints dystopian financial future

6 April 2021

Former First Boston banker Brian Finn is using other people’s money to buy Sarcos, a robot maker in which he’s already an investor. The conflict-laden deal was negotiated in mere weeks. If Sarcos’ bionic product succeeds it will be a deal to remember. Doubly so if it fails.

Newspaper bidding war puts ESG on the front page

6 April 2021

Beneficent billionaires led by hotelier Stewart Bainum offered $680 mln for Tribune, topping a bid from hedge fund Alden. The white knights want to help U.S. newspapers like the Baltimore Sun find civic-minded owners. Yet price will decide if social good beats capital returns.

Capital Calls: Bling deal

6 April 2021

Concise views on global finance in the Covid-19 era: Signet, the owner of jewelers Zales and Kay, is buying rental firm Rocksbox.