AB InBev’s SABMiller deal losing big-brand fizz 30 Nov 2015 The Budweiser brewer may sell SAB’s Peroni and Grolsch labels to speed antitrust clearances, reports say. The Molson venture in the U.S. has already gone and China may demand disposals. AB InBev will retain some gems, but the SABMiller empire could soon be unrecognizable.
Deutsche Wohnen takes hostile bid defence too far 30 Nov 2015 The German landlord has complicated a 14 bln euros approach by rival Vonovia by buying apartments worth 1.2 bln euros and taking on debt. True, it shows that Wohnen can gear its balance sheet up under its own steam, but there are less risky ways to make the case for independence.
Qube edges ahead in Aussie infrastructure fight 26 Nov 2015 Brookfield’s $6.5 bln agreed bid for Australia’s Asciano has hit serious opposition from competition regulators. The Canadian group could yet salvage its takeover. But interloper Qube, whose break-up consortium is already examining Asciano’s books, now looks like the favourite.
Pfizer’s war chest stealthily rebuilt by Allergan 25 Nov 2015 The $160 bln mostly stock deal will create a combination gushing $25 bln of operating cash flow annually. An offshore tax address means there’s no reason to keep over $60 bln of cash on its balance sheet. That’s a lot of financial firepower to buy back shares and fuel more M&A.
Playground weaklings give Li Ka-shing bloody nose 25 Nov 2015 Hong Kong shareholders rejected the tycoon’s $12.4 bln bid to merge his listed energy and infrastructure units. It’s another sign institutions in the Chinese territory are increasingly willing to exercise their limited powers. Companies can no longer take support for granted.
Delay in Pfizer split is material adverse event 24 Nov 2015 The $160 bln acquisition of Allergan will cut taxes and add solid assets, but it’s also causing Pfizer to defer until 2018 a decision on splitting up. Even though the company’s disposals have added greater value than acquisitions, CEO Ian Read seems more eager to bulk up.
Pfizer-Allergan gets no support from scaredy arbs 24 Nov 2015 The drugmakers’ shares are trading far below the prices implied by Pfizer’s all-stock offer - as if the merger were going to create no value. Arbitrageurs who used to exploit such gaps have little taste for massive deals – especially ones that have politicians on the warpath.
BBVA’s UK buy sees digital banks going mainstream 24 Nov 2015 The Spanish lender has bought 29.5 pct of mobile-only UK player Atom Bank. The 45 mln stg outlay is tiny beside Sabadell’s purchase of TSB. But BBVA joins Woodford Investment, Toscafund and Jon Moulton in backing Atom. Digital banks may find a way to carve out a valuable niche.
Alibaba throws a wrench in web fundraising wars 24 Nov 2015 The e-commerce giant is offloading its stake in Meituan Dianping at the same time as the Chinese startup raises up to $3 bln in new funds. The parallel sales will test investor demand for “online-to-offline” services. Alibaba’s exit will offer a clearer picture of valuations too.
Pfizer-Allergan helps both small and big advisers 23 Nov 2015 As many boutique M&A firms as bulge-bracket players are working on the $160 bln pharma mega-merger. That’s a more even mix than the average this year. But the tax-driven deal’s roster includes Goldman, Morgan Stanley and JPMorgan, extending their league-table lead over rivals.
Petco needs grooming to please new masters 23 Nov 2015 CVC and a Canadian pension fund have won the auction for the No. 2 U.S. pet chain, paying $4.6 bln all-in. TPG and Leonard Green, which bought Petco for $1.8 bln in 2006, are set to exit with a 24 pct IRR. The new owners will need spruced-up growth to fetch anything near that.
Pfizer barely washes face in $160 bln Allergan deal 23 Nov 2015 The biggest inversion ever will bring hefty tax and cost savings worth slightly more than the $30 bln premium on offer. Snag is, the structure will upset U.S. authorities. And slamming two drug giants together often creates dis-synergies in the labs.
Transatlantic ATM merger unlocks fortress Germany 23 Nov 2015 U.S. cash dispenser maker Diebold is buying Germany’s Wincor Nixdorf for $1.8 bln. It’s the first deal of its kind done for a target without an anchor shareholder. Nixdorf was initially sceptical. Its acceptance suggests German boards no longer see independence as sacrosanct.
Playtech’s failed M&A makes gambling a bigger risk 23 Nov 2015 Regulators have forced Israeli billionaire Teddy Sagi’s company to drop its half-billion pound bid for UK currency trader Plus500. A related Irish deal could now fail too. With betting-industry customers consolidating, Playtech may have to pursue other finance-sector targets.
Pfizer-Allergan to throw down tax-reform gauntlet 23 Nov 2015 The drug firms are shrugging off Uncle Sam’s latest attempt to prevent mergers predicated on relocating to low-tax jurisdictions. The largest-ever inversion, at some $150 bln, ought to raise pressure on lawmakers to find more comprehensive fixes to the great M&A tax dodge.
C&W deal exposes John Malone’s paper-thin trackers 20 Nov 2015 The Latam and Caribbean cable operator’s $8 bln sale to the media mogul’s Liberty Global presents shareholders with three forms of payment. The C&W board is recommending the one without a tracking stock. That partly undercuts the reason for creating such shadow shares.
German co-op bank M&A shows Landesbanken the way 20 Nov 2015 The merger of cooperative banks DZ and WGZ is a lesson for Germany’s state-owned lenders. The deal generates 100 mln euros of annual cost benefits. Ropey Landesbanken are bogged down by regional vanities but cannot afford to leave that money on the table by dodging mergers.
Pfizer’s $150 bln plan is high-risk, low-benefit 19 Nov 2015 Buying Allergan would give the drug giant a low-tax domicile in Ireland and one good drug, Botox. At the reported price, Allergan would accrue nearly all of the obvious upside. Pfizer would be left with a possible integration hangover – and tax savings that might disappear.
Willis could kill merger-of-equals conceit 18 Nov 2015 The UK-based insurance broker’s $18 bln union with U.S. consultancy Towers Watson is on the rocks. Investors have turned some $5 bln of promised synergy value into $1 bln of value destruction. A rescue would probably unbalance the economics, undermining the promised equality.
ConAgra carve-up gives activists just a slice 18 Nov 2015 The $17 bln food giant is separating frozen fries from Chef Boyardee and Slim Jim. It’s the second big move for fast-acting boss Sean Connolly who joined in April and was followed into ConAgra by pushy investor Jana. Spinning rather than selling, however, demands more patience.