UK $7 bln food fight’s final course: indigestion 20 Dec 2019 Takeaway.com’s Jitse Groen upped his all-share bid for Just Eat, almost certainly seeing off rival cash bidder Prosus. Yet the likely return on his splurge looks low. And investors accepting his offer are betting that the new group will trade on an overcooked valuation multiple.
Payments M&A is timely bet on Italy’s cash purge 20 Dec 2019 Months after listing, Italian leader Nexi has spent 1 bln euros on Intesa’s merchant acquiring business. Buying state-backed peer SIA to forge a 13 bln euro European champion could be next. Bulking up while Rome is pushing measures to curb the use of banknotes makes sense.
ChemChina’s fortunes rest on Syngenta listing 20 Dec 2019 The state chemicals giant wants to raise $10 bln ahead of a mooted flotation of the Swiss firm it bought in 2016. Boss Frank Ning may settle for a lower valuation, Reuters reports. But the funds will help him pay down big debts, and pave the way for a merger with rival Sinochem.
Viewsroom: Jack Dorsey’s heroic year ahead 19 Dec 2019 From banning political ads to developing cryptocurrency plans, the CEO of Twitter and Square has been politically more astute than rivals like Facebook. That sets him up for a good 2020. Also: the different ways that shareholders, the Fed and M&A bankers will tackle climate risk.
M&A bankers will turn climate risk into clients 19 Dec 2019 The financial impact of global warming is one of the biggest strategic issues CEOs face, yet it plays a small role in dealmaking. That might change in 2020 as shifting regulation and consumer habits start to affect the bottom line, giving climate-conscious advisers an edge.
Japan’s buyout teams face endurance challenge 19 Dec 2019 Industrial group Showa Denko is buying Hitachi’s chemical arm for $9 bln, disappointing private equity suitors like Bain and Carlyle. Firms are raising record sums in the hope that corporate reforms unleash a wave of dealmaking. Flush with cash, Japan Inc is crashing the party.
Lenovo founder’s M&A manual is missing an update 19 Dec 2019 Liu Chuanzhi will retire as head of Legend Holdings, the $8 bln PC-maker’s parent. His 2005 purchase of an IBM unit was one of the best examples of a Chinese firm building a global brand through foreign deals. That playbook looks more like an exception to today’s hostile rule.
Peugeot and Fiat hit the road in a low gear 18 Dec 2019 PSA and FCA are to create the world’s fourth-largest carmaker. But with investors yet to buy into the promise of 3.7 bln euros of annual savings, a deal was the easy part. Peugeot boss Carlos Tavares still has to work his integrational magic to get the market on side.
German listings breakup puts LBO shop in fast lane 18 Dec 2019 Hellman & Friedman paid 3 bln euros for the car sales division of classifieds group Scout24. It’s a rich price, but the unit’s racy growth means the buyout fund should make a healthy return. A higher exposure to risky property leaves the seller’s investors with a bumpier ride.
The hottest new car model is a Daimler-BMW deal 18 Dec 2019 The German giants want to save a combined 13 bln euros to fund the pricey transition to electric cars. But crunching together could yield synergies worth more than three times that. The Fiat-Peugeot playbook will be scrutinised heavily in Stuttgart and Munich in the year ahead.
Cineworld Canada deal has makings of a good sequel 16 Dec 2019 The UK cinema chain is buying Toronto-based Cineplex for $2.1 bln, its second deal in as many years. More debt-driven M&A looks scary after a dreary year at the box office. But the returns are reasonable, and the target’s high market share should limit the financial chills.
DuPont’s latest reinvention risks deal fatigue 16 Dec 2019 The $26 bln sale of its nutrition unit looks smart on paper. Yet DuPont has been reworking itself for four years, with no real boost for shareholders. Buyer IFF is still digesting another purchase. And closing is over a year away. Even the right deal can be too much of a grind.
DuPont comes out smelling of roses in $45 bln deal 16 Dec 2019 Executive Chairman Ed Breen is merging his nutrition and biosciences business into International Flavors & Fragrances. He has secured a premium valuation, cash sweetener and a tax-free transfer for DuPont shareholders. IFF gets little besides the dubious benefits of scale.
LVMH’s Tiffany swoop will trigger bling reprisal 13 Dec 2019 Bernard Arnault’s $230 bln luxury giant is racing ahead of its peers. But they won’t stand still. Kering will use M&A to cure its Gucci habit. Cartier-owner Richemont offers a better fit than possible target Moncler, provided the two can solve significant governance hurdles.
Delivery Hero’s $4 bln order corners kimchi market 13 Dec 2019 The German company is buying South Korean food delivery rival Woowa. The price is a big increase from a $2.6 billion valuation a year ago, but the target enjoys hearty growth and healthy profitability. Joining forces in the country makes sense – provided regulators allow it.
Altice scores narrow win with Portugal fibre deal 13 Dec 2019 Billionaire Patrick Drahi’s telecom group sold half its local broadband network for 2.3 bln euros. Some of the payment is delayed but the price still gives Drahi reason to celebrate. Besides eating into his debt mountain, the cash helps him lay more fibre to stay ahead of rivals.
Torpor at home lures Thai lender to pricey Jakarta 13 Dec 2019 Bangkok Bank has beaten Japanese rivals to take control of Indonesia's Permata, for some $2.7 bln. StanChart, selling along with a local conglomerate, gets a welcome boost. For Bangkok, though, a deal at near twice the target's book value is a necessary gamble on faster growth.
Gold M&A takes a penny-pinching path 12 Dec 2019 The $30 billion-plus in gold-mining deals this year is the most in almost a decade. Premiums are modest, because miners have got the message that investors want cost discipline. But all this parsimony means little is being spent on exploration, something mergers alone don’t fix.
Nomura aims for more sustainable Wall Street role 11 Dec 2019 Japan’s biggest brokerage has tried for decades to build an enduring U.S. investment bank. Its latest attempt involves buying renewable-energy boutique Greentech Capital. It’s a small but focused deal in a growing market. That should increase the odds of Nomura making it work.
Haagen-Dazs cash may melt in Nestlé’s pocket 11 Dec 2019 The Swiss giant is selling its U.S. ice cream unit to a joint venture with buyout firm PAI for $4 bln. A big dollop of debt gives the $312 bln group a taste of private equity returns. After his second big disposal this year, CEO Mark Schneider might be tempted to splash out.