Mergers & Acquisitions

Aramco’s downstream diversion solves few problems

19 July 2018

Buying a stake in petrochemical maker SABIC would enable the Saudi oil giant to diversify its business. But it complicates the government’s plans to open state companies to private capital. And the holding is too small to pump up Aramco’s valuation in an initial public offering.

Comcast’s second loss to Disney is a victory

19 July 2018

Boss Brian Roberts decided not to top rival Bob Iger’s $71 bln bid for Fox assets, instead focusing on buying Sky. In 2004, Comcast also backed down after trying to buy the Mouse House. Given the eye-watering price Disney is paying, Roberts and his shareholders are the winners.

Nordic telecom mash-up gives might to challenger

17 July 2018

Sweden’s Telia is beefing up its Norwegian operations by buying rival TDC’s local business for $2.6 bln. That gives it a sturdier platform to challenge incumbent Telenor. Cost savings should help deliver a decent return – as long as it avoids price wars or a regulatory clampdown.

Supermarket buying pacts dodge primary problem

16 July 2018

Alliances to pool purchases, like one signed by Carrefour and Tesco, have in the past boosted grocers’ operating margin by up to 1.5 percentage points. Wringing savings without all the hassle of a merger is great. It does less to stop Aldi and Lidl grabbing market share.

Trust deficit thwarts logical Comcast-Disney truce

13 July 2018

The sensible way for the media giants to end their damaging bidding war would be to carve up Rupert Murdoch’s U.S. and UK assets. As the two sides can’t negotiate, an armistice depends largely on goodwill. The rivalry between CEOs Brian Roberts and Bob Iger makes that unlikely.

Broadcom chief uses up eight of his nine lives

12 July 2018

With a single deal – the $19 bln acquisition of software company CA – Hock Tan has torched a reputation built through years of savvy acquisitions. Broadcom lost nearly $16 bln of market value at a stroke. Recovering from that will take time, luck and abstinence.

One number in Fox bid battle just gets smaller

12 July 2018

It’s the return on investment Comcast or Disney stands to make from buying parts of Rupert Murdoch’s empire. The price to beat is $71.3 billion, but the deal no longer looks as rational as when Disney made its first offer. As things heat up, the likely winner is whoever loses.

SoftBank gets some help tinkering with valuation

12 July 2018

Masayoshi Son’s sprawling operation attracted an investment of over $1 bln from hedge fund Tiger Global. That should help SoftBank narrow its conglomerate discount, as might spinning off the Japanese mobile unit. The massive Vision Fund, though, is a murky hodgepodge unto itself.

Comcast can save itself from M&A madness

11 July 2018

The U.S. media group upped its bid for Britain’s Sky to $34 bln, a level that defies financial logic. That could be bearable if it drops out of a bigger, parallel auction for Sky’s main shareholder, Fox – leaving rival Disney to overpay. Doubling down would be downright reckless.

Broadcom’s new M&A strategy has a bug

11 July 2018

The $105 bln chipmaker’s prolific dealmaking has supercharged growth. But its size, and the torpedoing of its Qualcomm bid, left it bereft of natural targets. Expanding into software by buying CA brings new opportunities - and substantially increases the risks of pitfalls.

Fox’s toppy Sky bid is just a new price floor

11 July 2018

Rupert Murdoch’s group is bidding 14 pounds a share for the UK group’s equity it doesn’t own, valuing Sky at 24.5 bln pounds. Yet a ruling by Britain’s Takeover Panel may push that even higher, while rival bidder Comcast can hit back. Sky investors may be far from peak altitude.

John Malone could still snag iHeartMedia

10 July 2018

Even though lenders to the bankrupt U.S. radio operator snubbed his last offer, the media tycoon has a chance thanks to the potential for a merger with his own Sirius XM. As iHeartMedia edges toward a $20 bln debt restructuring, there should be room for a harmonious deal.

Smucker sells inconvenient Doughboy

10 July 2018

The jam maker is shedding Pillsbury and other baking brands for $375 million because of soft sales. It sees a brighter future in snacks, coffee and pet food. But as PepsiCo’s Frito-Lay unit shows, consumers aren’t shunning unhealthy foods, just those that require a little effort.

New Fox bid would take Sky into crazy territory

10 July 2018

Rupert Murdoch’s group may launch a 25 bln pound offer for the UK pay-TV group this week, the FT reports. The mooted price is close to the level Britain’s Takeover Panel may require, but is too high for a buyer to make a decent return. That’s mostly a problem for Fox suitor Disney.

SoftBank gets a shrewd deal as Altaba’s middleman

10 July 2018

The Japanese conglomerate is acting as go-between for Yahoo Japan in a $2 bln stock buyback from the U.S. investment firm. SoftBank's domestic telecoms arm gets a stake at a cheap price, and closer ties with Yahoo Japan. That will help it gear up to go public.

Trump’s court pick a deregulatory gift to business

9 July 2018

Brett Kavanaugh, the president's Supreme Court nominee, has ruled against the consumer protection agency and net neutrality. His staunch conservatism ensures Democratic resistance. But if Republican numbers prevail, he can tilt the judicial balance to the right for a generation.

Spurned $3 bln satellite group still in M&A orbit

9 July 2018

Inmarsat seems a plausible target despite U.S. peer EchoStar dropping its offer. The shares are down a third in a year, and on some estimates fail to reflect the value of the spectrum it controls. The former Permira buyout may appeal to private equity, or to satellite rivals.

Rules of the road crystallizing for Chinese M&A

9 July 2018

Trade tensions and nationalism have tripped up transactions involving chipmakers Broadcom, Qualcomm and NXP, among others. Even as Beijing and Washington spar, though, dealmakers are adapting by scanning different regions or accepting smaller stakes and tougher conditions.

China’s Fosun gets into bed with its boss

6 July 2018

The $16 bln conglomerate is adding matchmaking to its "happiness ecosystem", buying a dating service from Chairman Guo Guangchang for $600 mln. Baihe Jiayuan is a big brand, but sector growth is slowing and the price looks steep. This insider deal is unlikely to charm investors.

Boeing’s $3.8 bln deal looks sleek, may not fly

5 July 2018

The aerospace giant is paying a fair price for 80 pct of Brazilian rival Embraer’s commercial-jet unit. Boeing can use the new joint venture to extend its dogfight with Airbus across the full range of aircraft. But Brasilia hasn’t signed off yet, and an election looms in October.