Apax can find a bargain in UK used-car dealer 11 Jun 2018 Auction group BCA Marketplace has rejected a 1.6 bln pound bid from the private equity manager. It’s a bold move when sales are slowing, and UK consumers weak. Yet BCA is growing market share, and its margins look low. Apax could pay a 30 pct premium and still make a good return.
KKR gives Envision a $6 bln general anesthetic 11 Jun 2018 Going private will make life less painful for the U.S. medical services group, which has labored amidst reports of patients stung by surprise charges for emergency treatment. KKR should make out fine, too, if healthcare practitioners’ ability to charge high prices endures.
USG pokes hole in U.S.-Europe trade drywall 11 Jun 2018 The building products outfit agreed to a $6.1 bln takeover by German rival Knauf. It did well to get a 5 pct top-up given 31 pct owner Warren Buffett was already on board. In the wake of a rancorous G7 it shows companies can still transact when politicians keep out of the way.
CFIUS proves it is not a one-way bet after all 11 Jun 2018 The U.S. security panel cleared China Oceanwide’s $2.7 bln takeover of Genworth, after nearly two years of waiting and as Washington and Beijing feud over trade. The insurer’s shares carried a 30 pct discount, showing just how hard it is to price regulatory risk right now.
Water M&A mudslinging does no one any favors 7 Jun 2018 A cold war between four utilities is heating up. Frustrated California Water is launching a hostile $1.4 bln bid for local rival SJW. SJW’s preferred Connecticut partner, also in Eversource’s sights, is grudgingly seeking other offers. It may be too late to keep watchdogs happy.
ZTE deal sets a bad precedent 7 Jun 2018 The White House will fine the sanctions-violating Chinese telecoms giant $1 bln and replace its board. The sum is a financial giggle, board changes look mostly symbolic, and a new compliance team will be challenged from the get-go. It’s a weak deterrent and a wasted opportunity.
Morrisons can pilfer from larger rivals’ trolley 7 Jun 2018 The merger of J Sainsbury and Walmart-owned Asda leaves the UK grocer in a distant third place. Boss David Potts could counterbid, but drumming up similar synergies looks tough. Better to lobby against the deal, and grab market share and the best shop locations if it goes ahead.
Shareholder disquiet lights up Chinese gas M&A 7 Jun 2018 A $400 mln deal to sell Sino Gas to U.S. buyout shop Lone Star seems hasty, when the Australia-based firm has just won a key regulatory approval. A 19 pct premium looks ho-hum. If the board sees big risks ahead for foreign energy firms in China, it needs to better explain itself.
Western banks in China can downplay equities 7 Jun 2018 JPMorgan, UBS and others could soon control Chinese securities houses. It is hardly worth taking on local brokers over underwriting new equity issues or in share dealing, except for private-banking clients. So firms will probably focus on areas such as bonds and M&A.
Investors think Qualcomm-NXP deal is back on 6 Jun 2018 The $44 bln chip acquisition-in-waiting may finally get approval from Beijing – if Chinese telecom-equipment group ZTE can turn a U.S. business ban into a less damaging fine. NXP’s stock is again trading within 10 pct of the offer price. It’s still a bet fraught with uncertainty.
Athenahealth moves from trauma to cure 6 Jun 2018 The underperforming healthcare-software firm has removed CEO Jonathan Bush shortly after he admitted hitting his ex-wife. The company is looking for a replacement, but a stalking-horse bid from activist Elliott Management could lead to a sale. Either could address what ails it.
Smurfit Kappa loses a suitor, may gain an activist 6 Jun 2018 The Irish paper group irritated shareholders by stonewalling a 9 billion euro offer from International Paper. And it trades at a discount to rivals. Hitting ambitious targets would help close the gap, but an impatient investor could push for a breakup.
UK nod gives Sky suitors licence to overpay 5 Jun 2018 Rupert Murdoch’s Fox can buy the 61 pct it doesn’t own of the pay-TV group if it sells Sky News to Disney, Britain’s media secretary said. A rival Sky bid by Comcast was also cleared. That’s good news for Sky investors, who may now receive toppy bids from the U.S. media giants.
SoftBank’s Chinese chip deal doesn’t quite add up 6 Jun 2018 The Japanese group is selling 51 pct of its local Arm unit to unnamed buyers at a curiously low $1.5 bln valuation. SoftBank paid $32 bln for the semiconductor designer and the division accounts for a fifth of sales. China’s tech self-sufficiency push looms as a possible factor.
Sharp has better shot at PC reboot than Toshiba 5 Jun 2018 The Japanese group is buying its rival’s laptop business for a song. Toshiba was a PC pioneer, but the last thing it needs now is to battle in this cutthroat, scale-dependent and low-growth industry. Backing from Taiwan’s Foxconn puts Sharp in a slightly stronger position.
Walmart throws its BRICs into one basket 4 Jun 2018 The retailer is taking a $4.5 bln hit to sell most of its Brazil unit to private-equity firm Advent. As with its China - and UK - retreat, Walmart will at least get some benefit if fortunes improve. But it leaves CEO Doug McMillon’s shop even more dependent on India’s Flipkart.
GitHub deal displays softer side of Microsoft 4 Jun 2018 The $775 bln IT giant is buying GitHub, the most popular site for developing, sharing and talking about software, for $7.5 bln. The old Microsoft was about extinguishing competition – boss Satya Nadella seems more interested in persuading developers to use his services.
Italy’s politics is new obstacle to UniCredit deal 4 Jun 2018 The country’s largest lender has debated merging with French rival Société Générale for over a decade. Past talks foundered on executive egos. Italy’s radical government – and fresh jitters over its sovereign debt – are likely to scupper any attempt to revive the combination.
Air France check-in lacks logic for AccorHotels 4 Jun 2018 Buying the French government’s 450 mln euro stake in the ailing airline might help it get tough with unions. But the hotel group would not enjoy any strategic benefits. That AccorHotels is even considering the purchase shows the state’s continuing sway over the private sector.
DS Smith’s repackaging could have further to go 4 Jun 2018 The UK paper group is buying Spain’s Europac for 1.9 billion euros. As online shopping boosts demand for box materials, more European tie-ups are likely. One could be an International Paper deal for DS Smith, if the former’s bid for Smurfit Kappa finds the wastepaper basket.