Cable cowboy joins Swiss circular firing squad 22 Oct 2019 John Malone’s sale of his Alpine cable outfit UPC is off after an investor revolt at its suitor, Sunrise. The erstwhile buyer has to swallow a 50 mln euro exit charge and misses the chance to challenge peer Swisscom. The Liberty Global boss’s M&A halo gets a bit of a dent.
Naspers spinoff wades into UK food delivery fight 22 Oct 2019 Newly listed Prosus slapped down a 4.9 bln pound order for Just Eat, beating rival Takeaway.com’s all-share bid. Though the UK delivery group rejected the offer, its $120 bln suitor has deep pockets. Rivals like Uber Eats and Deliveroo have a new competitor to worry about.
China’s domestic M&A nudge demands due diligence 22 Oct 2019 The securities regulator is making it easier for unprofitable listed companies to restructure by acquisition. As growth slows, using mergers to help fragmented industries consolidate makes sense. Governance risk and weak finances also mean shareholders will have to be on alert.
Osram sequel risks Pyrrhic victory for AMS 21 Oct 2019 The Austrian sensor maker launched another bid for the German lighting group. Though the 4.5 bln euro price is the same, a lower acceptance threshold improves its chances of success. But if AMS can’t take control of the remaining shares later, it may struggle to pay down debt.
Renault M&A would help stem profit bleed 18 Oct 2019 The $15 bln French carmaker expects 2019 operating profit to plunge as growth slows and R&D expenses rise. While it can do little about a sluggish economy, which may see sales decline by 4%, combining with Nissan or Fiat would mitigate the cost of investing in cleaner engines.
Aussie engineer tugs too strongly on the flag 17 Oct 2019 A $5 bln oil services company wants the foreign-investment watchdog to stop a Middle Eastern investor from raising its stake. It’s an odd defence. Rules that let suitors creep up on their targets may have pushed WorleyParsons into a corner, but it sets an uncomfortable precedent.
EU’s Broadcom attack is a teaser for larger fights 16 Oct 2019 Antitrust boss Margrethe Vestager is temporarily halting some of the $114 bln chipmaker’s supply deals with customers. That’s a more responsive way to tackle Big Tech’s effect on competition than drawing up rules. The likes of Facebook and Google may soon face similar showdowns.
Blackstone makes like a sea urchin in Japan 16 Oct 2019 The buyout shop wants to take over hotelier Unizo for $1.6 bln using an entity named after the local delicacy. Like the animal, the bid for the reluctant target is spiky. The deal also has a squishy appeal, with a rich premium for shareholders and tasty morsels for employees.
AMS has tricky route out of M&A cul-de-sac 15 Oct 2019 The Austrian sensor maker has no good options after its failed bid for lighting group Osram. But German regulators have given it a least-bad exit via a sneaky loophole. It’s not perfect but is better than selling down its Osram stock at a loss or ditching its strategic ambitions.
UK’s $4 bln cyber buyout is pricey but defensible 14 Oct 2019 Thoma Bravo is paying a hefty 37% premium for Sophos, which has battled volatile software renewals. The offer is a high multiple of EBITDA. Yet the cybersecurity firm’s network of distributors should keep rivals out, and give the private equity barons room to grow through M&A.
Some Uniper investors now more equal than others 8 Oct 2019 Finland’s Fortum is buying the 20.5% of the German utility held by activists Knight Vinke and Elliott for 2.3 bln euros. Pushing its own holding above 70% gives Fortum effective control. But it makes second-class citizens of Uniper shareholders that don’t get the same deal.
Cellnex adds UK piece to Europe phone-mast jigsaw 8 Oct 2019 The Spanish firm has snapped up 7,400 British mobile phone towers for 2 bln pounds. At 270,000 pounds per mast the price looks decent compared with other deals. Once Cellnex adds Germany to its map it will have to rely on earnings growth, not acquisitions, to underpin its value.
LSE has done Hong Kong’s bourse a favour 8 Oct 2019 Charles Li, unable to charm the UK exchange into talks, has dropped his bid. It’s a blessing in disguise. Adding cash to sweeten a rejected 30 bln pound offer would stretch finances, and the political backdrop has worsened after a weekend of violence in the Chinese-run territory.
German lighting mess has glimmer at end of tunnel 7 Oct 2019 AMS’s failed bid for Osram leaves the Munich-based group looking friendless and saddled with a blocking stake that might deter private equity. Yet Bain and Advent could afford to offer more without destroying their returns. If they do, it may suit seller, unions and even AMS.
Irish bookie’s $6 bln deal is worth a flutter 2 Oct 2019 Paying a 38% premium usually raises eyebrows. Not so with Paddy Power parent Flutter Entertainment’s all-share acquisition of Toronto-based Stars Group. Cost savings alone almost justify the price. Meanwhile a revenue boost looks credible as legal U.S. sports betting opens up.
BYD could get China’s Tesla back on the road 2 Oct 2019 Nio is sputtering. Making snazzy rides for the world's largest market is burning up cash, and the $1.4 bln electric-car maker is now contemplating more cuts just to keep up. That could tarnish a shiny brand. Pooling with a more experienced peer, like BYD, may be a better option.
Election year could be potent M&A sedative 1 Oct 2019 Drugmakers and healthcare companies made up the lion’s share of deals this year. U.S. presidential elections next year will inject uncertainty, because the sector is so geared to policy shifts. Proposals from Democrats like Elizabeth Warren could dampen animal spirits for years.
Leveraged loan partygoers take a much-needed rest 1 Oct 2019 Growth in risky corporate debt has slowed. Investors worrying about the economy are driving a harder bargain with private equity-owned groups like Shutterfly and Sotheby’s. Yet sovereign bond yields are ultra-low and buyout firms have huge cash piles. The lull may be temporary.
India’s financial fires are starting to rage 1 Oct 2019 An outsize scandal at a Mumbai-based co-operative bank, abetted by poor oversight, has battered confidence. Plummeting share prices, meanwhile, raise questions over the future of private lender Yes Bank, and others. It signals loan pain to come for an already scorched economy.
Osram bidding war triggers flashing red lights 27 Sep 2019 Austrian sensor specialist AMS is upping its bid for the German bulb and LED maker to 4 bln euros. The 17% premium to a formal Bain-Carlyle offer will probably see off the private equity challengers. But it adds another turn to the deal’s already stretched finances.