Chinese video-games takeover bid may start a trend 10 Sep 2019 Internet pioneer Sohu is offering to buy out minority investors in a U.S.-listed gaming subsidiary for a near-70% premium. The move looks opportunistic: the shares, hit by Beijing’s regulatory crackdown, are at less than half of a 2017 peak. Peers could lure bargain hunters too.
U.S. might quite like a China deal for En+ 9 Sep 2019 State firms linked to Beijing may buy Russian VTB’s stake in the energy group. Washington, which attached strict conditions to the de-sanctioning of Rusal’s parent, wouldn’t love a Russia-China sale. But it could at least help distance still-sanctioned Oleg Deripaska from En+.
Japan drug firm bets $3 bln on castoffs and hype 6 Sep 2019 Sumitomo Dainippon’s growth has stalled and its pipeline is bare. It’s paying a lofty price for pieces of Roivant Sciences, which has scooped up dozens of compounds from Big Pharma but has yet to produce a marketed drug. This dream-chasing is unlikely to have a happy ending.
Southeast Asia joins global telecom M&A hang-up 6 Sep 2019 Telenor and Axiata ended talks to create a $40 bln regional champion. A complicated structure and Malaysia’s nationalist tendencies eclipsed the allure of big cost savings. The difficulty of merging phone operators around the world presents a growing problem for investors.
Stakeholder capitalism gets German reality check 4 Sep 2019 U.S. Democrats and even CEOs are saying companies should be run for workers, not just investors. In a market where employees already have a say, AMS’s $4.8 bln bid for Osram reveals the flaws. Boards can do little to rebuff the highest cash offer, even if the buyer is unstable.
Just Eat M&A bump may have a long delivery time 3 Sep 2019 A top investor in the UK food-delivery group says it will vote against Dutch peer Takeaway.com’s all-share bid, now worth 5.1 bln pounds. A higher price could be needed to seal the deal. But with no rival bidder in sight, Takeaway CEO Jitse Groen can wait until the last minute.
Indian bank merger extravaganza will hurt first 3 Sep 2019 New Delhi wants to combine 10 state-owned lenders into four, as it cleans up a sector weighed down by bad debt. But job cuts are ruled out, putting synergies out of reach, and a recent combination of three others destroyed value. It's a costly distraction for a flailing economy.
Hotelier bidding war may be Japanese wakeup call 3 Sep 2019 Travel agent H.I.S. ended its unsolicited tilt at Unizo, ceding to SoftBank-owned investment firm Fortress. The unusual hostilities for Japan helped the target’s stock price more than double. This deal, enabled by wider reforms, suggests more value could be hidden in plain sight.
Toyota and Suzuki make a virtue of cross-holdings 29 Aug 2019 The carmakers are buying small stakes in each other, four years after Suzuki ended a rocky ride with Volkswagen. Although such deals are being unwound across Japan, this one holds promise. It may pave the way for a deeper alliance in an industry increasingly dependent on scale.
Tencent is stuck in a losing battle with Beijing 28 Aug 2019 A year after a video-games crackdown hit the web giant, its $21 bln music-streaming arm may be under antitrust scrutiny. That makes Pony Ma's hopes of building an entertainment empire look fragile. It’s a reminder too that China's tolerance of its new economy champions is waning.
Vodafone races against time to salvage India deal 28 Aug 2019 Since the British mobile giant unveiled a merger of its local business with Idea in early 2017, 90% of the equity value has vanished. As it tries to deliver $10 bln of promised synergies, rivals including Jio are adding 4G users faster. Another cash call may be needed.
Altria may have missed chance for merger of equals 27 Aug 2019 The tobacco giant is talking to Philip Morris, the international arm it spun off in 2008, about reuniting – a combo worth more than $200 billion. Both see their future in e-cigarettes. But Altria’s market cap was closer to equal last year. The ideal moment may have passed.
Bernie Sanders grasps wrong half of media problem 27 Aug 2019 Everyone knows the news industry is in trouble. But the U.S. Democratic presidential candidate’s proposed solutions – blocking M&A and taxing Silicon Valley – won’t revive a fading sector. The best chance of survival lies with rich patrons like Jeff Bezos and nonprofit models.
Air China edges closer to Cathay Pacific’s cockpit 27 Aug 2019 Unrest in Hong Kong may prompt the local $5 bln airline to change course. Bookings have fallen, and Beijing’s ire over protesting employees forced out its CEO. The mounting pressure makes it a bit easier to see owner Swire selling out to its rival and big mainland shareholder.
Bristol-Myers passes $74 bln deal’s first big exam 26 Aug 2019 The drugmaker is stretching to buy rival Celgene. To smooth U.S. antitrust review, it put its target’s blockbuster psoriasis treatment on the market. Amgen has won that prize, for an unexpectedly rich $13 bln. That’s a boost for Bristol-Myers’ deal rationale – and its timing.
A VW-Tesla marriage looks heartbreakingly remote 22 Aug 2019 The German carmaker’s CEO Herbert Diess covets the $40 bln group’s tech, Manager Magazin reported. Tesla could use VW’s cash and manufacturing nous. But boss Elon Musk has shown no interest in cooperating with rivals. And Tesla’s crazy-high valuation makes a takeover unlikely.
John Malone’s Swiss sale still faces interference 22 Aug 2019 Sunrise wants to gee up support for its $6.3 bln purchase of Alpine assets held by the “cable cowboy”. Yet new, higher synergy estimates lack credibility without explanation, and big shareholder Freenet rightly panned the price. CEO Olaf Swantee still has a fight on his hands.
Transatlantic pet care deal will need grooming 20 Aug 2019 Elanco is paying $7.4 billion in cash and shares to buy Bayer’s animal-health division. The deal may make more sense for the seller than the buyer. The Eli Lilly spinoff will have to ramp up sales and deliver on ambitious cost-cutting plans to make a success of its acquisition.
Buyout barons play good guy in German lighting M&A 20 Aug 2019 Bain and Carlyle’s $4 billion Osram bid may be trumped by chipmaker AMS. Trade unions, which sit on the target’s board, are more worried by the latter than the former. While Chairman Peter Bauer may hear out the Austrian suitor, its heavy debt load will be hard to ignore.
Li Ka-shing raises fresh glass to diversification 19 Aug 2019 Hong Kong’s richest man is buying the Greene King pub chain for $5.6 bln including debt. Most of his empire’s sales are abroad already. But given the deal injects new capital into the UK, it’s still a boon for Brexit Britain and a minor thumbs-down for his troubled home turf.