SoftBank wins most in $5 bln industrial-data M&A 25 Aug 2020 UK-listed Aveva, part of the French Schneider, is buying OSIsoft, backed by the Japanese tech investor. SoftBank gets a handsome profit on an investment made three years ago. For the new owner, justifying the price requires massive growth in sales of factory-analysis software.
Nippon Paint’s $12 bln makeover uses semi-gloss 21 Aug 2020 The Japanese company is ceding control to its biggest shareholder, Singapore's Wuthelam, by acquiring its JVs for stock. It's a clever cleanup, but also dilutes minority investors in the process. They have enjoyed a good run, however, and the growth strategy looks promising.
M&A bedbugs need not stop $17 bln hotel megadeal 20 Aug 2020 Sebastien Bazin, CEO of French group Accor is eyeing a tie-up with Holiday Inn owner InterContinental Hotels, Le Figaro says. A merger would bring savings and scale, but also challenges with governance and integration. The pandemic makes even tricky unions much more likely.
J&J’s $6.5 bln drug deal follows the money 19 Aug 2020 The U.S. group’s new acquisition, Momenta, spent years making cut-price versions of existing drugs for little financial reward. So it swerved into high-priced new therapies instead – and its valuation soared. The buyout rounds out a tale of skewed incentives in the health system.
Blotches appear on Kirin’s skincare deal 19 Aug 2020 A year after the Japanese brewer paid $1.2 bln for a 30% stake in Fancl, the facial cream maker’s profitable but frustrated overseas distributor is up for sale. That could deepen the rift between Fancl and its partner, and force Kirin to protect its pricey investment.
Sickly Japanese buyout gets even queasier 18 Aug 2020 Medical staffer Nichiigakkan’s $1.2 bln deal with Bain was already riddled with governance ailments before Baring Private Equity disclosed that its approach worth 20% more had not been given proper attention. A shareholder backlash at this stage could open fresh wounds.
Diageo’s star power success will be hard to repeat 17 Aug 2020 The $80 bln alcohol giant is hoping Ryan Reynolds’ gin can copy the feat of George Clooney’s tequila, which grew 68% in a year. U.S. imbibers, who tend to drink the group’s spirits at home, are a good target. But the deal hinges on them stumping up just as wallets are squeezed.
Sanofi begins M&A spree with low-risk $3.7 bln bet 17 Aug 2020 The French drugmaker bought U.S. firm Principia Biopharma, its first deal after selling a $12 bln stake in Regeneron. Buying an established partner allows CEO Paul Hudson to grow in a familiar and fast-growing field, autoimmune diseases. The trade-off is a long wait for a return.
Japan’s FamilyMart plays way too easy to get 17 Aug 2020 Itochu wants to buy the rest of the convenience store operator for $5.4 bln. FamilyMart pushed for better terms based on new M&A guidelines to protect minorities. Yet it ultimately endorsed a lowball offer that ignored them. Clearly the new rules aren’t strong enough.
Covid market fervour derails $13 bln lab test deal 13 Aug 2020 Thermo Fisher Scientific scrapped a bid for German diagnostics group Qiagen after investors balked. The takeover was tabled in March, but the offer looked low once Covid-19 hopes boosted testing groups’ valuations. The U.S. company’s retreat suggests insiders are less gung-ho.
Cable Cowboy makes pricey Swiss return call 12 Aug 2020 The Alpine arm of Liberty Global, founded by billionaire John Malone, is paying $7.4 bln for telco Sunrise a year after a deal to sell to it fell apart. This trade is riskier, and more expensive. But the logic of creating a rival to state-backed Swisscom justifies the reversal.
Alstom can drive a hard bargain on Bombardier 10 Aug 2020 The French train maker hinted it will reassess an $8.2 bln buyout of its Canadian rival’s unit following surprise losses. A 20% price cut would allow CEO Henri Poupart-Lafarge to make an economic return. EU consent for a deal and Bombardier’s high debts strengthen his hand.
ICE deal risks giving private equity a good name 7 Aug 2020 Thoma Bravo is making around a fourfold return in 16 months selling mortgage processor Ellie Mae to the bourse operator for some $9 bln plus debt. But ICE boss Jeff Sprecher isn’t overpaying. The pandemic, low rates and the target’s growth make this a smart deal for all.
UniCredit can play in Italy’s great bank M&A game 7 Aug 2020 Intesa Sanpaolo’s takeover of UBI creates pressure for more mergers. By shunning domestic deals, its $21 bln rival risks missing out on cost and capital benefits. Combining UniCredit’s Italian business with a local bank could free CEO Jean Pierre Mustier’s hand for deals abroad.
Blackstone adds to Ancestry’s dog-show lineage 6 Aug 2020 Stephen Schwarzman’s firm is the latest well-heeled, but somewhat interchangeable private-equity owner of the genealogy site. Steady cash flow and an aging population explain the continuing appeal. Pandemic boredom presents a new opportunity, but at a hefty $4.7 bln valuation.
Virtual $16 bln health merger destroys real value 5 Aug 2020 Teladoc and Livongo are riding a pandemic-driven telemedicine high. Teladoc hopes buying its rival will unleash even more revenue. The fall in both companies' inflated stock prices suggests investors are questioning the need for M&A if the firms’ individual futures are so bright.
Sampo takes pricey UK joyride with Hastings deal 5 Aug 2020 The Finnish group has made a $2.2 billion offer for the London-listed motor insurer. A 42% premium looks chunky given few cost savings on offer. CEO Torbjorn Magnusson needs to boost revenue in the cut-throat British market and swerve a likely increase in claims to avoid a crash.
Continental spinoff can trigger overdue auto M&A 5 Aug 2020 The $20 bln Frankfurt-listed mobility company wants to separate its engine division, which might be worth $4 bln. That may hasten a union with Schaeffler, in which the eponymous German family also holds a big stake. Faced with a downturn, rivals like Valeo could soon follow suit.
Staid Microsoft gets a viral gift from TikTok 4 Aug 2020 The least cool tech giant has outperformed most of its rivals to reach a $1.6 trln value. Owning the popular video app could finally bring buzz and ad dollars. There are political risks, and buying only part of TikTok may be messy. But potential financial gains make up for it.
Mukesh Ambani’s retail M&A would wipe competition 4 Aug 2020 The tycoon’s Reliance might buy Future Group for $3.6 bln. It would enlarge a shopping giant bigger than all its major brick-and-mortar rivals combined. Amazon might also invest in the behemoth. The deals would shore up Ambani’s dominance, and blunt India’s shopping revolution.