Asahi gives fuller meaning to beer premiumisation 28 Jan 2019 The Japanese brewer is adding iconic London Pride to Peroni and Grolsch in its cooler. Paying a sudsy 24 times EBITDA for Fuller’s beer signifies the need for upscale and craft ales to keep up with liquor rivals. Cheap money should help make the deal go down easier for Asahi.
Deutsche-Commerz even more defensive than it looks 25 Jan 2019 The German government is still exploring a merger between the ropey domestic lenders. As a way to create economic returns for investors, it’s underwhelming. As a means to limit capital injections if Deutsche Bank’s various U.S. woes become massive fines, it has some logic.
LSE Nordic raid would be expensive complication 24 Jan 2019 The London Stock Exchange is mulling a bid for Oslo Bors, says the Evening Standard. The Norwegian group is already the target of a pricey offer by Euronext, and LSE’s links with it limit cost savings. The takeover would be a costly distraction from bigger issues, like Brexit.
Viacom zigs as wannabe Netflix peers zag 23 Jan 2019 The MTV owner is buying a free streaming-TV service for $340 mln. That’s chump change compared with the $180 bln Disney, AT&T and Comcast have collectively spent on media deals to keep pace with Reed Hastings’s firm. Low-budget Viacom is wisely choosing a less-traveled path.
Toyota JV recharges Panasonic’s battery business 23 Jan 2019 The two Japanese companies are uniting to power electric vehicles. It should provide a technological step forward for the $200 bln automaker, but also reduce Panasonic’s dependence on Elon Musk’s Tesla. Toyota’s control, though, may yet limit plans to sell to other manufacturers.
Ford’s real reveal adds pressure on Jim Hackett 22 Jan 2019 The CEO’s ho-hum VW alliance made the carmaker the talk of a sluggish Detroit auto show. But Ford also disclosed that trucks and vans generate 135 pct of earnings. That highlights the need for speedier fixes to other, sputtering units – or a full merger that Hackett rejects.
Sainsbury’s M&A sweep may end with empty trolley 21 Jan 2019 UK competition watchdogs will soon opine on the grocer’s $9 bln acquisition of Asda. Its share price suggests investors think the deal will get the thumbs-down, or need painful disposals. A failed deal would put pressure on CEO Mike Coupe to come up with a new growth plan.
KKR scrapes second-rate return out of First Data 18 Jan 2019 After a long 12-year investment in the payment processor, a sale to Fiserv sets the stage for a profitable exit. It’s a wonder the $29 bln buyout survived the financial crisis, considering the debt and multiple CEOs. Anything better than breaking even amounts to a win.
EU can afford to shunt Siemens-Alstom to a siding 18 Jan 2019 Margrethe Vestager may well block the rail groups’ merger. That would rile German and French politicians yearning for a European champion to face down distant fears of Chinese dominance. But if the antitrust tsar pulls the plug, neither Siemens nor Alstom would suffer too much.
Telecom Italia’s new boss needs some quick wins 18 Jan 2019 The Italian telco’s shares have dived after a profit warning. New CEO Luigi Gubitosi can stop the rot by listing its fixed network, but that path is slow and uncertain. A quicker route to credibility lies in selling stakes in choice assets like Inwit and the Brazil business.
Stalling Jet Airways puts Narendra Modi in a bind 17 Jan 2019 To save the private carrier, India’s premier may have to choose between relaxing foreign ownership rules for Abu Dhabi’s Etihad and letting state banks take a hit. Both options touch the sorest points of Indian finance: it's an awkward dilemma in the run-up to a general election.
Last deal for First Data carries late-cycle risk 16 Jan 2019 Fiserv’s $22 bln all-stock acquisition of the transaction processor at a 30 pct premium comes with plenty of cost savings. Revenue synergies would be icing on the cake. But as with KKR’s toppy leveraged buyout of First Data in 2007, market turns can undermine M&A logic.
Big Tech may face another front in D.C. battle 16 Jan 2019 William Barr, set to become U.S. attorney general, wonders how Silicon Valley “behemoths” like Amazon got so big. That hasn’t been a DOJ focus. Facebook’s clout was one reason for AT&T’s purchase of Time Warner, on whose board Barr sat. It could make him a new antitrust threat.
Swiss $4 bln freight battle has questionable cargo 16 Jan 2019 Activist investor Cevian has helped solicit a bid for subscale freight group Panalpina. Would-be owner DSV could face competition from Switzerland’s Kuehne + Nagel, handing shareholders a sweeter price. It’s less clear that either will make a return from a much higher offer.
Miners can close the confidence gap in 2019 16 Jan 2019 Stock markets point to a rough year for diggers, valuing each dollar of expected cash at a stubbornly hefty discount. Investors are fretting about a Chinese slowdown and don’t trust cashed-up bosses at Rio, BHP and the like to restrain themselves. The reality may be brighter.
Waning China FDI overshadows trade worries 15 Jan 2019 Foreign investment into mainland businesses grew less than 1 pct in yuan terms last year, to $131 bln. Flows to North America and Europe also tanked. Deepening suspicions are as much to blame as weaker demand. This retreat poses longer-term concerns than imports and exports.
Gannett’s dilemma is picking lesser of two evils 14 Jan 2019 A rival publisher wants to buy the USA Today owner for $1.6 bln. Gannett has repeatedly sliced costs and staff, to the detriment of news. MNG’s script is more of the same – and cuts are likely to be deep to justify a 23 pct premium. The public interest probably loses either way.
Newmont’s $28 bln gold merger is an alloyed good 14 Jan 2019 The U.S. gold miner is swallowing Canada’s Goldcorp in an all-share deal. Rivals Barrick and Randgold already bulked up in a similar deal, and the 17 pct premium is slim. Yet Newmont is handing over most of the benefits, and even those might be hard to extract.
L’Occitane picks odd time to bet on British beauty 14 Jan 2019 The Hong Kong-listed soap and hand cream brand has snapped up luxury skincare group Elemis for $900 mln in cash. At over 22 times last year’s EBITDA, the price looks a tad rich. The acquisition will also boost L’Occitane’s exposure to the UK at a time of economic uncertainty.
Temasek gives CapitaLand a new economy makeover 14 Jan 2019 The state investor will sell a real estate unit to the Singapore property giant for $4.4 bln. Temasek gets a majority stake in the heavyweight, which it already part-owns. With more exposure to e-commerce and developed markets, CapitaLand gets scale and downside protection.