Bud’s mega-beer deal will brew global reset 16 Sep 2015 After years of speculation, AB InBev has approached SABMiller about a takeover that could value the combined entity at around $280 bln. The giant would complete global consolidation of the brewing industry and lead a new round of regional disposals, spins and amalgamations.
Dealmakers meet match in Obama’s deal breakers 14 Sep 2015 The president’s trustbusters are unbeaten challenging big mergers, including ones proposed by Comcast and Sysco. That puts the likes of Staples and Aetna on notice. Previous administrations filed more cases, but few chalked up as much success. Quality over quantity is working.
Thwarted Danish deal dials up risk for EU telcos 11 Sep 2015 Heat from Europe’s competition czar has scuppered a merger between TeliaSonera and Telenor. Unlike the commission’s attack on Google, the logic here looks sound. Yet with telecoms valuations high this year, a rebuff like this could dampen the buzz.
Consolidation gives betting sector a vital hedge 11 Sep 2015 Gambling companies have laid $11 bln M&A bets year-to-date. Paddy Power, Betfair, GVC, Ladbrokes are all hoping to defray tax, compliance and technology challenges by adding scale. With internet regulation still evolving, more operators may be pushed into defensive tie-ups.
Rob Cox: Immelt pins GE colors to Alstom’s mast 10 Sep 2015 If the revised math actually works, buying the French energy provider is a steal of a deal. GE’s big acquisition also serves as a symbol of its shrewd refocus on industry over finance. On this 14th anniversary of being at the helm, Jeff Immelt is staking his legacy on Alstom.
Staples-Office Depot spread beckons the brave 10 Sep 2015 Shares of Office Depot are trading 27 pct below the implied value of rival Staples’ $5.6 bln offer. The retail office trade is a challenged business, but with Staples down just 18 percent since January, Office Depot looks like a cheap option on the deal passing antitrust muster.
Bombardier steers clear of China turbulence 9 Sep 2015 The Canadian plane maker rejected an $8 bln offer for its rail unit from a state-controlled Beijing firm. Listing a minority stake is a politically easier way to reduce some balance sheet strain. Bombardier is in the wrong business, though, to be playing it financially safe.
KKR and Marshall Wace marry need with ambition 9 Sep 2015 The buyout shop’s purchase of 25 pct of Marshall Wace creates an odd beast: KKR doesn’t get control, and the precedents are mixed. Still, asset managers want scale and diversity, and the buyout business is challenged. If the tensions can be managed, it looks a logical trade.
Heineken crafts telling move away from global beer 9 Sep 2015 The Dutch beer giant has bought into a Californian brewer of pale ale. The undisclosed financials will be small in the context of this 40 bln euro company. But strategically it is a big deal. Heineken is accepting it needs more than fizzy beer in green bottles.
Blackstone hotel deal may include early checkout 8 Sep 2015 The buyout firm is paying $6 bln for Strategic Hotels, owner of Four Seasons and Ritz-Carlton properties. The 13 pct premium seems measly given the appetite of foreign buyers for luxury lodging. Maybe Blackstone’s rewarding commercial real estate breakup of 2007 would work again.
Li Ka-shing’s power deal is a tidy-up too far 8 Sep 2015 The Hong Kong tycoon wants his CKI unit to buy the rest of $18 bln affiliate Power Assets. Li’s latest restructuring would create a simpler, cash-rich firm with lots of M&A opportunities. But the all-share, no premium tie-up doesn’t look great for Power investors.
Mylan $28 bln offer not good enough for Perrigo 8 Sep 2015 The generic drugmaker’s hostile bid comes with a skimpy premium, and is mostly in its own paper. Perrigo investors shouldn’t want stock in a shareholder-unfriendly company with bad governance and financial risk. An auction could generate a better outcome than selling to Mylan.
Media General’s TV roll-up suffers print noise 8 Sep 2015 The owner of some 71 local U.S. stations is buying Meredith for $3.1 bln. Media General will get 17 more TV properties. But it will also be stuck with a raft of magazines. The modest 12 pct premium and decent synergies provide some buffer against the challenge of selling them.
Woodside’s $8 bln LNG bid needs more gas 8 Sep 2015 The Australian energy group has pitched an all-share takeover to rival Oil Search. Woodside’s strong balance sheet would provide cheaper funds to develop Oil Search’s Papua New Guinea assets. But a 14 pct premium for a target that isn’t in financial distress looks under-powered.
Tesco sells Seoul for a decent price 7 Sep 2015 The UK grocer is offloading its South Korean unit for $6 bln-plus in Asia’s largest-ever buyout. That’s a solid result given wider market wobbles and falling margins at Homeplus. South Korea’s burgeoning private equity market and a paucity of big deals in the region helped.
Tesco’s global hopes can survive Korea sale 4 Sep 2015 Britain’s biggest grocer is close to selling its supermarkets in South Korea, reports say. The mooted 4.3 bln stg proceeds would cut net debt in half and relieve operational headaches. Yet an exit need not be the end of Tesco’s international ambitions.
Chinese plane-hire deal survives market turbulence 4 Sep 2015 Bohai Leasing’s $2.6 bln bid for Dublin-based Avolon confirms China’s desire to grow in aircraft rental. The $31-a-share offer is slightly below Bohai’s indicative bid a month ago. But rising interest rates and the falling yuan could have been reasons to drive a harder bargain.
Yoox glee at Net-a-Porter exit may wear thin 3 Sep 2015 Shares in the upmarket online retailer popped 5 pct as Net’s founder cashed out of the merger agreed in March. Terms of the severance deal with Natalie Massenet confirm that Yoox bought its rival at a bargain price. But it is losing know-how at an important time.
Fosun global ambition clashes with market reality 3 Sep 2015 The Chinese conglomerate’s bid for private bank BHF Kleinwort Benson comes with alluring logic and a reasonable premium. That might not be enough. Weak markets in China, and an apparent belief that Fosun will offer more, are pulling in opposite and unhelpful directions.
Novo Banco has issues – Chinese owner or not 2 Sep 2015 Insurer Anbang is no longer in line to acquire the bailed-out Portuguese bank. Yet given rival Chinese group Fosun remains in the race, Chineseness is unlikely to be the problem. Any buyer for Novo Banco needs to get comfortable with its uncertain capital and litigation bills.