Harry’s razor sale shreds its disruptive creds 9 May 2019 Once the scourge of big brands, the online shaving upstart is selling to Schick owner Edgewell for $1.4 bln. Harry’s is growing but unprofitable, hence the ho-hum price, and its new owner’s sales need refreshing. But a thick lather of debt blunts the logic.
Bank of America brings high M&A hopes to oil patch 8 May 2019 Its bankers are so keen for client Occidental to prevail with its $38 bln offer for rival Anadarko that chief Brian Moynihan personally called Warren Buffett for help. After losing ground for a decade, BofA’s dealmakers and their new boss Matthew Koder could use the boost.
Buyout firms download promising $14 bln data deal 8 May 2019 EQT and Digital Colony Partners are buying serial acquirer Zayo on the cheap. The fiber and data center firm’s subdued growth and hefty need for capital made for an uncomfortable five-year ride as a public company. A brighter future, helped by 5G growth, awaits as a private firm.
Private equity could choke on Imperial cigar sale 8 May 2019 Imperial Brands could raise 1 bln pounds from a unit that makes premium stogies. Its rapid growth means a buyout group could earn decent returns at that price. Yet concerns over cancer could irk their investors, and complicate an exit. A Chinese peer may be a more logical owner.
Blocked Aussie deal is sign of antitrust times 8 May 2019 Competition authorities Down Under torpedoed the $11 bln merger of TPG Telecom and Vodafone's local venture. Combining the smaller operators might have created a stronger challenger, but cheaper prices are no longer enough. Such aggressive oversight may become more common.
Americans are no better off with standalone Sprint 7 May 2019 The cellphone operator’s merger with T-Mobile hangs in the balance because regulators fear four big companies turning into three. In reality it’s already more like three and a half. Sprint is losing customers despite offering discounts. Prices may rise even without the tie-up.
Casino mogul’s Cambodia cash hedges investors’ bet 7 May 2019 Boss Chen Lip Keong will use some $1.8 bln of his own money to fund half of NagaCorp’s new venture, Asia’s largest gambling resort. Competition is increasing, and both Cambodia and the industry depend heavily on China. It’s still a show of confidence that can cheer punters.
Disney sports deal is small fumble in long game 6 May 2019 The Magic Kingdom sold some regional networks to Sinclair for $10.6 bln – much less than what was expected. But Disney completes a necessary task to clear its $71 bln deal for bits of Rupert Murdoch’s Fox. The launch of streaming services, with Fox content, is the greater prize.
Norwasian telecom deal dials right numbers 6 May 2019 Telenor and Malaysia’s Axiata are aiming to form a regional champion with some 300 mln customers by merging their South and Southeast Asian businesses. Bigger looks better with savings worth some $5 bln expected. Kuala Lumpur might raise an eyebrow at less competition, though.
Refined Occidental bid leaves one box unchecked 5 May 2019 The $43 bln U.S. oil driller upped the cash in its offer for rival Anadarko. Financing from Warren Buffett and a side-deal to sell assets to Total make it look deliverable. Dispensing with a vote by Oxy shareholders should boost the bid too, though not investors’ peace of mind.
The battle for Anadarko: run the numbers 1 May 2019 Weigh up Occidental and Chevron’s competing cash and stock offers to adjust for the bidder’s underlying value, and how much value they can create.
Occidental is winning Anadarko battle by a mile 1 May 2019 The Texan shale producer’s stock has slumped since it offered $38 bln for its rival. The tie-up would rely on cutting costs in a single region, unlike a lower rival bid from Chevron. Yet even if Anadarko shareholders discount Oxy’s stock and planned savings, they’ll do better.
UniCredit should approach Commerz by the side door 1 May 2019 The demise of the German lender’s merger with Deutsche Bank clears the way for its Italian peer. A straight takeover of Commerzbank could be politically tricky. Spinning off UniCredit’s German arm HVB and then merging it, however, might be an easier sell.
Buffett digs sweetest well in U.S. shale patch 30 Apr 2019 Berkshire Hathaway is putting up $10 billion to help Occidental fund its $38 billion bid for Anadarko. It’s a vote of confidence in Oxy’s unsolicited offer. As usual, though, the best deal will go to Warren Buffett himself, who can still win even if other shareholders lose.
Cash is the real prize in oil-patch showdown 26 Apr 2019 Forget diversification and other strategic chimeras as the rationale for Chevron and Occidental’s $38 bln battle for shale driller Anadarko. It’s all about sating oil investors’ irrational fixation on dividends. Bigger Chevron can pay more, Occidental has the greater need.
European energy’s biggest M&A impasse has an exit 26 Apr 2019 Activist Knight Vinke has an idea to break the stalemate preventing Finnish group Fortum from taking control of 10 bln euro German utility Uniper. Splitting the latter’s business requires fellow investor Elliott and the two companies to compromise. That’s better than gridlock.
Yum China plays proficient game of deal chicken 26 Apr 2019 Boss Joey Wat and her board rejected an $18 bln buyout approach led by Hillhouse last summer. After detailing KFC expansion plans and a Pizza Hut turnaround, the shares are now flirting with the offer price. That puts pressure on Yum China to fully justify a standalone strategy.
Commerz Plan B would leave Deutsche Bank on Plan C 25 Apr 2019 Germany’s two biggest banks have ditched merger talks. Commerzbank is in play, and UniCredit is the likeliest suitor. If that deal occurs, Deutsche can’t wait for a new opening – meaning boss Christian Sewing would need more radical surgery to raise dire shareholder returns.
UK supermarket M&A will return in bargain bin 25 Apr 2019 The competition watchdog blocked Sainsbury’s proposed $9 bln takeover of Asda. CEO Mike Coupe has few palatable options to cope with German discounters and the revival of UK peers. Deal fever will resurface after the rot sets in and the grocer’s share price has fallen further.
Occidental gives Anadarko an ill-judged bear hug 24 Apr 2019 Its $38 bln cash-and-stock offer trumps bigger rival Chevron’s bid for the U.S. oil producer, is a two-thirds premium and in theory helps both sides. Yet Occidental’s shares are less attractive and its debt would jump. Chevron only need sweeten its offer a bit to regain its edge.