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.
Corona Capital: College mergers, UK property funds 3 Aug 2020 Concise views on the pandemic’s corporate and financial fallout: M&A goes to the University of Arizona; Britain’s financial watchdog considers stopping property fund withdrawals.
Speedway adds financial inconvenience for 7-Eleven 3 Aug 2020 The retail chain’s Japanese owner, Seven & i, is gearing up to expand its U.S. footprint by buying Marathon’s gas station business for $21 bln. The synergies could help to eke out a sensible return. But investors have already discounted $2 bln, about half of their net value.
Rich $16.4 bln cancer deal is too ambitious 2 Aug 2020 Siemens Healthineers is re-entering radiation treatment about a decade after exiting, buying Varian. Combining diagnostics and treatments is a good idea. But savings don’t cover the $3 bln premium, and a financial wheeze from Siemens doesn’t compensate.
Tricky bidding war brews over LSE’s Italy bourse 31 Jul 2020 The London exchange may sell Borsa Italiana or the unit’s stake in the MTS bond trading platform to win EU approval for its $27 bln Refinitiv bid. Likely buyers Euronext and Deutsche Boerse would find themselves in a messy three-way tussle if Rome weighs in with a domestic bid.
Viewsroom: Silicon Valley spotlight 30 Jul 2020 The CEOs of Big Tech companies faced off against U.S. lawmakers during an antitrust hearing that raised new evidence about past acquisitions. Meanwhile, Japan’s Ootoya and Colowide engage in a food M&A fight. And: SoftBank CEO Masayoshi Son’s next steps.
Saks and Neiman Marcus deserve each other 24 Jul 2020 The prospects for floggers of high-end shoes and handbags are worsening daily. But the rival retailers that sell Chanel and other lux goods overlap significantly. With Neiman in bankruptcy and Saks holding together by a thread, the only outstanding question is who will buy whom.
Viewsroom: Europe’s big money moment and baijiu 23 Jul 2020 The 750 bln-euro stimulus package agreed to by EU leaders this week was a test of the region’s political resiliency, may be a big deal for the single currency and could lead to more capital markets and M&A activity, EMEA Editor Peter Thal Larsen explains. Plus, a shot of Moutai.
Arm M&A offers SoftBank a tricky route to riches 23 Jul 2020 The Japanese group in 2016 overpaid for the $32 bln chip designer, whose results subsequently deteriorated. A sale to $257 bln Nvidia may offer better returns than an IPO. But it would also rile antitrust agencies and Arm’s customers, who compete with its would-be future owner.
Rosetta Stone cracks code as autopay pusher 20 Jul 2020 Though the $500 mln online language tutor’s shares peaked 10 years ago, the stock has been on a tear since mid-March, helped by deal rumors. Like gyms, users ignore small monthly payments once they sign up for an improved or enlightened self. That is, until wallets get squeezed.