French telco M&A could be triumph of the smallest 23 Dec 2015 Past attempts to reduce the number of mobile operators have failed. A mooted tie-up between Orange and Bouygues may fare better, though with tough remedies. The beneficiary could be market No. 4 Iliad, which may get the chance to pick up some cheap offcuts.
Japan’s dealmakers rediscover their samurai spirit 23 Dec 2015 Acquisitions by Nomura and Panasonic cap a punchy year for outbound M&A with deals totaling a near-record $79 bln. Overseas purchases have eclipsed domestic ones for a second year. Though assets are getting pricier, Japan’s demographic decline ensures the exodus will continue.
Qatar price for Turkish bank reflects weaknesses 22 Dec 2015 The Gulf state’s largest lender says it will pay National Bank of Greece 2.75 bln euros for Turkey’s Finansbank. A price equivalent to around one times book value looks cheap. But business conditions have worsened. Qatar National Bank may find it hard to generate economic profit.
Chinese corruption drive may thin out M&A bidders 21 Dec 2015 Fosun’s decision to drop its bid for private bank BHF Kleinwort Benson may be unrelated to the brief disappearance of its boss. But corporate predators from China account for 7 pct of global cross-border takeovers. A crackdown on graft could lead to less competition for deals.
Qihoo gets its $9 bln buyout, against the odds 18 Dec 2015 The biggest take-private of a U.S.-listed Chinese company has been finalised despite funding challenges. Tapping retail investors may have helped raise the $6 bln equity cheque. But peers eyeing similar buyouts, before re-listing back home, could find their journey harder.
Breakdown: China’s chip ambitions will jolt rivals 18 Dec 2015 National security and industrial policy are driving tens of billions of dollars of investment into China’s semiconductor industry. M&A by state firms like Tsinghua Unigroup is already rattling foreign competitors and governments. Fights over market share will follow.
Casino mogul secretly bought the wrong newspaper 17 Dec 2015 Sheldon Adelson has emerged as the mystery buyer of the Las Vegas Review-Journal. It’s not clear why the billionaire wants it, beyond solidifying his influence in Nevada. Macau matters more to his business than Sin City – maybe he should have grabbed the South China Morning Post.
AstraZeneca’s M&A flurry clears value hurdle 17 Dec 2015 The UK pharma group has spent $4 bln on a stake in cancer specialist Acerta. Its acquisitions this quarter now total more than $7 bln. The dealmaking reflects new-drug pipeline challenges and sector-wide price pressure. Astra is ratcheting up the risk, but the approach looks sound.
SAB’s dregs might wet a private buyer’s whistle 16 Dec 2015 Spinning off Peroni and Grolsch could raise $1.2 bln for the UK brewer’s new owner AB InBev and ease antitrust approval. Rivals like Carlsberg or Asahi have little to gain from SAB’s cast-offs. A buyout firm or acquisitive family investor, though, could spy a double-digit return.
Pricey fintech deal may fall shy of industry hype 16 Dec 2015 Global Payments is forking over $4.3 bln for rival Heartland Payment Systems. It looks like a conventional tie-up in a hot market already losing steam. Cost savings probably won’t cover the 20 pct premium, meaning the buyer needs to boost sales to justify the steep price.
Dow-DuPont tax acrobatics more clever than cagey 15 Dec 2015 The chemical giants’ $130 bln merger and split should avoid any tax on capital gains. One needed contortion is to show that the shareholder rosters overlap. Dodges like so-called inversions have caught flak lately, but this looks more like a convenient fit with byzantine rules.
Spin-meisters’ $841 mln deal takes cue from clients 15 Dec 2015 The purchase of press release service PR Newswire is the latest in a string of deals for Cision, owner of the Gorkana journalist database. Acquisition “platforms” have already colonized the pharma and consumer sectors. It was only a matter of time before flaks piled on.
Sanofi and Boehringer scratch each others’ backs 15 Dec 2015 The French pharma group is swapping its animal health business for the consumer arm of the German company. The 23 billion euro deal helps both while avoiding the risk of expensive M&A. Boehringer may have a marginally better deal, but Sanofi’s need is probably greater.
Pininfarina deal shows money buys taste after all 15 Dec 2015 Indian conglomerate Mahindra is paying a modest price to control the storied Italian car designer, saving it from high debt, anemic earnings and a jaded business model. As peers Ferretti and Pirelli already found, even Italian engineering flair doesn’t go very far without cash.
GE upset offers Asian buyers way into U.S. kitchen 15 Dec 2015 The group’s appliance unit is up for grabs after a $3 bln sale to Electrolux collapsed. Buying one of the top makers of U.S. cookers, dishwashers and fridges would be transformational for Haier or Midea of China. But Panasonic, Samsung, or Germany’s Bosch might have other ideas.
China’s chip landgrab sparks $8 bln of hasty M&A 15 Dec 2015 China wants to assemble a domestic semiconductor giant via foreign takeovers. So rattled rivals are rushing to secure assets, especially in Taiwan. Micron’s $4.1 bln buyout of a JV partner makes sense. ASE’s gatecrashing of an agreed tie-up with the Chinese looks riskier.
Newell Rubbermaid overworks M&A machine 14 Dec 2015 The serial-acquiring owner of Sharpie markers and Graco baby gear is buying Jarden’s motley collection of candles, camping gear and more for over $15 bln. The value of the proposed cost savings more than covers the $2.7 bln premium, but the scale and debt strain conglomerate logic.
Alibaba’s HK newspaper deal adds to mission creep 11 Dec 2015 The e-commerce giant’s purchase of South China Morning Post is an old headline with a new twist. Jack Ma follows in the footsteps of countless tycoons wielding influence through the press. The difference is that he’s forcing Alibaba’s public shareholders to lend him a hand.
DowDuPont tests limits of ambitious M&A 11 Dec 2015 A $130 bln union of the U.S. chemical titans is really four deals in one, given a planned three-way breakup to follow. The $30 bln of estimated value creation from cost savings is aggressive. Mergers of equals often become strained. At least the strategic rationale makes sense.
Goldman and Morgan Stanley cement M&A oligopoly 11 Dec 2015 Both banks landed advisory roles on either side of the $130 bln DowDuPont merger, extending their league-table leads in a record year of dealmaking. They also held the one and two spots during the 2007 and 2000 peaks. Cracking the top tier can be done, but it’s exceedingly rare.