Mergers & Acquisitions

Berlusconi puts Bolloré in a corner at Mediaset

20 September 2019

The Italian tycoon has found a clever way to thwart his French rival’s attempts to kill Mediaset’s merger plan. Small fund Peninsula has agreed to put up the almost 1 bln euros needed to buy out Vivendi. The surprise move gives Berlusconi the upper hand in the ongoing struggle.

Hong Kong’s first UK exchange foray clouds second

20 September 2019

Its 2012 takeover of the London Metal Exchange promised to preserve the institution and expand in China. Hong Kong’s bourse honoured the first, but Beijing made its own way in commodities. Returns have been poor too. That history informs its $37 bln London Stock Exchange bid.

Fiat can’t wait forever for Renault to sort itself

18 September 2019

The collapsed merger of the two car groups promised savings worth 33 bln euros. That’ll shrink if Fiat kickstarts its own electric-car investments rather than piggybacking on Renault’s. The longer the French take to win over hesitant ally Nissan, the less sense a Fiat deal makes.

Defence deal puts post-Brexit UK in crosshairs

18 September 2019

The government is reviewing the $5 bln acquisition of Cobham by U.S. buyout group Advent. The aviation contractor’s investors already approved it, and national security concerns are spurious. Blocking the sale would imply Britain’s post-Brexit future is more closed than open.

Buyout offers exit if Thyssen gets stuck in lift

17 September 2019

Advent, Cinven and ADIA are lining up a bid for the German conglomerate’s elevators, the FT says. Thyssenkrupp may prefer trade rival Kone’s greater scope to offer an enticing price. But private equity has less to worry about from the EU’s recently reappointed antitrust chief.

Dairy deal Down Under unlocks China prize

17 September 2019

State-backed Mengniu wants to buy Bellamy’s, a maker of infant formula, for some $980 mln. The premium looks frothy, and such tie-ups have soured before. But if local ties mean licences and an Aussie brand lures wealthy buyers, shareholders are right to bet on success.

China keeps trade war fire away from Wall Street

17 September 2019

Goldman Sachs wants a majority stake in its local joint venture. Beijing looks open to letting U.S. banks boost their presence despite tensions. Their lack of market heft means they don’t threaten local rivals, and China needs their support in the future.

Blackstone $4.7 bln REIT deal houses market oddity

16 September 2019

Steve Schwarzman’s firm is paying an 18.5% premium to take Canadian property owner Dream Global private. The lack of daily pricing volatility helps explain why far more is invested in unlisted real estate. But REITs are liquid, have lower fees and tend to outperform.

Telco M&A gets rare regulatory boost in Brazil

16 September 2019

The country may treat operators including Oi, which is in bankruptcy protection, with a lighter touch. That gives local units of Telefonica and Telecom Italia reason to pounce. Official support for M&A is a welcome relief from the constraints facing their European parents.

Tencent jams pedal into battered China car market

16 September 2019

The tech giant and others have made a roughly $1.2 bln offer for comparison site Bitauto. That will in turn mean bidding for online retailer Yixin, which the target part-owns. It’s a cheap bet that may bring benefits in payments; acceleration will still require an auto recovery.

Hong Kong’s LSE bid suffers market credibility gap

12 September 2019

Shares in Hong Kong Exchanges and Clearing barely budged in response to a bold $37 bln cash-and-share offer for its London rival. That could be a sign that investors like the combination. A better explanation is that they think it’s unlikely to happen.

Yahoo Japan pushes Zozo investors into new orbit

12 September 2019

The SoftBank-backed web portal offered $3.7 bln for control of the ailing fashion site. Zozo’s boss, who bought SpaceX’s first ticket to the moon, is tendering most of his stake. Other owners may want to sell too: Yahoo Japan recently trampled on minority shareholders elsewhere.

HKEX bids $37 bln to halt London rival’s escape

11 September 2019

Hong Kong’s exchange is dangling a 23% premium to LSE shareholders if they reject a $27 bln deal with data provider Refinitiv. It’s a last-ditch attempt to snag the perennial takeover target. But the tie-up has only vague financial benefits and faces a tricky political reception.

Chinese video-games takeover bid may start a trend

10 September 2019

Internet pioneer Sohu is offering to buy out minority investors in a U.S.-listed gaming subsidiary for a near-70% premium. The move looks opportunistic: the shares, hit by Beijing’s regulatory crackdown, are at less than half of a 2017 peak. Peers could lure bargain hunters too.

U.S. might quite like a China deal for En+

9 September 2019

State firms linked to Beijing may buy Russian VTB’s stake in the energy group. Washington, which attached strict conditions to the de-sanctioning of Rusal’s parent, wouldn’t love a Russia-China sale. But it could at least help distance still-sanctioned Oleg Deripaska from En+.

Japan drug firm bets $3 bln on castoffs and hype

6 September 2019

Sumitomo Dainippon’s growth has stalled and its pipeline is bare. It’s paying a lofty price for pieces of Roivant Sciences, which has scooped up dozens of compounds from Big Pharma but has yet to produce a marketed drug. This dream-chasing is unlikely to have a happy ending.

Southeast Asia joins global telecom M&A hang-up

6 September 2019

Telenor and Axiata ended talks to create a $40 bln regional champion. A complicated structure and Malaysia’s nationalist tendencies eclipsed the allure of big cost savings. The difficulty of merging phone operators around the world presents a growing problem for investors.

Stakeholder capitalism gets German reality check

4 September 2019

U.S. Democrats and even CEOs are saying companies should be run for workers, not just investors. In a market where employees already have a say, AMS’s $4.8 bln bid for Osram reveals the flaws. Boards can do little to rebuff the highest cash offer, even if the buyer is unstable.

Just Eat M&A bump may have a long delivery time

3 September 2019

A top investor in the UK food-delivery group says it will vote against Dutch peer Takeaway.com’s all-share bid, now worth 5.1 bln pounds. A higher price could be needed to seal the deal. But with no rival bidder in sight, Takeaway CEO Jitse Groen can wait until the last minute.

Indian bank merger extravaganza will hurt first

3 September 2019

New Delhi wants to combine 10 state-owned lenders into four, as it cleans up a sector weighed down by bad debt. But job cuts are ruled out, putting synergies out of reach, and a recent combination of three others destroyed value. It's a costly distraction for a flailing economy.