Chinese mogul takes on extreme triathlon challenge 27 Aug 2015 Wang Jianlin’s Wanda group will buy the operator of Ironman events from its private equity owner for $650 mln. Endurance sports are booming. But turning China’s newly affluent onto day-long stints of running, swimming and cycling looks harder than luring them into Wang’s cinemas.
Schlumberger’s daring deal looks carefully hedged 26 Aug 2015 The oilfield services provider is moving outside its comfort zone to buy drilling gear maker Cameron for $15 bln even as the price of crude falls. The 56 pct premium is flattered by the market selloff and covered by cost savings. Schlumberger may have threaded the M&A needle.
Monsanto leaves Syngenta facing awkward questions 26 Aug 2015 The world’s largest seed maker has given up pursuit of its Swiss rival. The $46 bln deal required aggressive assumptions and carried risks. Syngenta’s management now needs to prove its reluctance to talk was worth it.
Gamblers’ $8 bln tie-up raises odds for rivals 26 Aug 2015 Paddy Power and Betfair have agreed to a possible all-share merger. The two look evenly balanced: the Irish group is big in traditional betting, its UK peer in online exchanges. Greater scale should offer some defence against industry consolidation and rising taxes.
Monsanto $46 bln Syngenta offer deserves a hearing 26 Aug 2015 The U.S. seed giant’s last cash and shares approach to its Swiss rival was rebuffed. Monsanto has offered a little more, but can’t go much higher without destroying value or relying on rosy assumptions. The pressure is on Syngenta to talk, or show investors it has a better plan.
Exelon mercifully spared winner’s curse 25 Aug 2015 Local D.C. authorities nixed the power company’s $6.8 bln takeover of rival Pepco. A bidding war against earlier failed Exelon target, PSEG, led to a price that was hard to justify. Such intervention may be a concern, but in this case one set of shareholders gets a helping hand.
Zurich buys protection with 5.6 bln pound RSA bid 25 Aug 2015 The Swiss insurer has made a 550 pence-per-share indicative offer for its UK peer. At that price, it could achieve a 10 pct return with fairly undemanding cost savings. Twitchy markets may help Zurich clinch a deal that both sides’ shareholders can argue is a fair result.
Southern’s $12 bln deal could find true north 24 Aug 2015 The hefty 38 pct premium it’s paying for AGL looks rich for the utility sector. Though Southern isn’t giving a synergy figure, hacking out over 6 percent of costs would help justify the price. Previous mergers like Duke’s acquisition of Progress at least suggest it’s achievable.
Valeant pops risky $1 bln libido pill 20 Aug 2015 The acquisitive drug firm is buying Sprout, the maker of just-approved “female Viagra.” Valeant will have gotten a bargain if it can crank out billions in annual sales. Snag is, the drug isn’t very effective, it has bad side effects, and regulatory restrictions may crimp sales.
China pharma buyout keeps take-private trend alive 19 Aug 2015 U.S.-listed WuXi PharmaTech has finalised a $3.5 bln takeover. Given China’s slumping stock market and slowing economy, persuading investors to put up $2 bln in fresh equity is impressive. There’s still hope for some of the two dozen other Chinese companies seeking to delist.
New bank M&A powerhouse leaves rivals for dead 18 Aug 2015 Regional U.S. lender BB&T’s $1.8 bln swoop for National Penn is its fourth deal in a year. The acquisition makes financial sense and is more proof the Fed supports industry tie-ups. The longer other banks stay on the sidelines, the more it’ll look like they fear rejection.
John Malone takes home shopping over the top 17 Aug 2015 Buying Zulily, a flash-sale site for moms, would increase online revenue at the cable mogul’s QVC broadcast arm from about 40 pct to half. The target’s growth is already slowing quickly, however. And at $2.4 bln, or 38 times EBITDA, the deal reveals the high cost of chasing Amazon.
Mylan flaunts masterful M&A jujitsu 14 Aug 2015 The drugmaker deftly blocked Teva’s $40 bln offer with a uniquely Dutch poison pill and a bold move to disqualify the suitor’s lawyers. Now it’s exploiting Ireland’s odd takeover rules to put Perrigo in a $34 bln chokehold. Clever defensive tactics will be needed to evade Mylan.
Shire can’t easily pay more for Baxalta 14 Aug 2015 The pharma group’s all-stock $75 bln merger approach has been rejected by its rival. Shire’s bid relies on aggressive claims to boost revenue, which Baxalta disputes. Breakingviews’ model shows Shire chief Flemming Ornskov can’t dig much deeper without bold assumptions.
Goldman’s bank deal swaps one risk for another 14 Aug 2015 Snapping up $16 bln of deposits from GE Capital helps cut the firm’s costs and reliance on bond market financing. Regulators may be happy, but the more deposits it has, the more Goldman, like Morgan Stanley, can use them to fund some trading. That poses systemic issues, too.
SunGard LBO club may yet find reason to cheer 12 Aug 2015 The seven private-equity owners are selling the financial software firm to FIS for $9.1 bln. The 10-year investment yielded a dismal 4 pct internal rate of return. Getting out may alone offer relief, but the firms hold a big, spun-off unit that could still sweeten the end result.
GE loans injection gives Capital One health boost 12 Aug 2015 The bank is buying the conglomerate’s $8.5 bln portfolio of medical loans. Using them to replace lower-yielding bonds on its books should provide an immediate fillip to earnings. As long as the healthcare industry keeps growing, the 6 pct premium CapOne is paying looks justified.
The Economist shows faith in own self-worth 12 Aug 2015 The Agnelli family is raising its stake in the financial weekly’s parent to 43 pct, valuing it at 957 mln pounds. The Economist itself will also buy back stock at a similar valuation. While not cheap, the result is a tidier balance sheet, an acquisition currency and more freedom.
Symantec’s Veritas sale tells truth about tech M&A 11 Aug 2015 Offloading the data storage business for $8 bln to Carlyle and Singapore’s GIC ends a decade-long disaster of a deal. Like HP, eBay, Microsoft and others, Symantec discovered it’s often harder to buy than build. Trouble is, breakups and writedowns tend to perpetuate the problem.
Finns seize the moment in $6.2 bln crane deal 11 Aug 2015 Finland’s crane maker Konecranes is joining forces with U.S. peer Terex in an all-share merger. The deal stacks up strategically, but the timing is opportunistic for Konecranes. Its shares are up 23 percent in a year, while much bigger Terex has lost 40 percent.