Third China Biologic buyout bid holds little charm 19 Sep 2019 CITIC is back with a new group trying again to take the plasma product maker private. The latest $4.6 bln offer is only 2% sweeter than a rival one from about a year ago, even though business has significantly improved. There are plenty of reasons for shareholders to be wary.
Vaping isn’t dead, just prematurely haggard 18 Sep 2019 Juul Labs started as a safer alternative to smoking, but now lawmakers are treating it as a menace. Its recent $38 bln valuation has likely gone up in flames. That doesn’t mean e-cigarettes won’t be profitable. Margins could even be higher as a niche health aid.
Revolving door makes EU bank cop look hapless 18 Sep 2019 The main lobbyist for European banks named a top regulator as its new boss. Shuttling from government to industry is not unusual but should involve a cooling off period. Already criticised for being insufficiently tough, the hire will compound the watchdog’s image problem.
Data turns from asset to M&A liability 17 Sep 2019 Minority stakes in U.S. firms with sensitive information on Americans may soon be subject to national security reviews – a sensible acknowledgement that data has value. There’s a cost though. Casting the net that wide will put a chill on inbound deals, and not just from China.
Telco M&A gets rare regulatory boost in Brazil 16 Sep 2019 The country may treat operators including Oi, which is in bankruptcy protection, with a lighter touch. That gives local units of Telefonica and Telecom Italia reason to pounce. Official support for M&A is a welcome relief from the constraints facing their European parents.
Huawei’s post-American world comes into hazy view 13 Sep 2019 The Chinese telco giant plans to raise $850 mln in its first onshore bond issuance. It’s also ready to share its prized 5G know-how with foreign firms. Innovative concessions may blunt a relentless U.S.-led assault on its reach, but still point to a more domestic-focused future.
China’s 5G fix reflects a costly global reality 10 Sep 2019 Two of the three state telecom outfits will join forces to build a next-generation network. Cooperation could shave about $50 bln off a bill likely to be several times larger. It's a solution that suits Beijing’s ambitions, but a sensible one; overseas rivals may not be so lucky.
Carmakers’ antitrust probe is more smoke than fire 6 Sep 2019 A pledge by BMW, Ford, Honda and VW to cut emissions has caught the eye of a U.S. watchdog. Some aspects of their deal may deserve scrutiny. But competition between the four, and the industry, is fierce. It’s hard to see how their plans would leave consumers worse off.
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.
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.
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.
Breakdown: The global fight over Big Tech’s taxes 22 Aug 2019 OECD countries are trying to agree a new set of rules for the likes of Google. States in Europe and elsewhere want more income from digital behemoths but could well face U.S. intransigence. That makes a messy patchwork of local levies and American countermeasures likely.
Banks win a little more rope to hang themselves 21 Aug 2019 The Volcker Rule stopping banks betting with their own money was worthy but flawed. That’s still the case after its latest rewrite, but it may at least be more usable. Eased rules imply Wall Street firms are no longer in the sin bin. It’s up to them to prove that’s justified.
Tech will struggle to evade U.S. antitrust octopus 20 Aug 2019 Facebook and Apple may soon face state-level probes into their business practices, as well as two by federal agencies. America’s multi-tentacled approach to antitrust is a tangled mess, but a strangely efficient one. It may also favor a tougher end result.
Britain’s blackout whodunnit has multiple suspects 20 Aug 2019 An initial report sheds inconclusive light on a major recent power cut. Wind and gas-fired generators, network distributors, and National Grid may all have goofed. One thing is clear: the UK needs to go big on battery storage to accompany its commendable rush to renewables.
U.S.-China trade war hinges on farmers, not Apple 13 Aug 2019 The Trump administration is delaying import tariffs on some electronics, giving the iPhone maker and the S&P 500 a boost. That’s down to business lobbying and a little pragmatism. But the president wants to boost American agriculture. Until China helps, investors can’t rest easy.
Three ways Walmart could help on U.S. gun violence 5 Aug 2019 The giant U.S. retailer had already tightened its rules on gun sales before a mass shooting in one of its stores. Ditching all firearms may be too bold a step, but there are other steps it could take, from banning open carry to pledging to stock safer, tech-enabled alternatives.
Undoing Trump’s tax cuts harder than it looks 30 Jul 2019 Democratic presidential contenders want to scrap the White House’s signature legislative win. The measure helped companies and the wealthy but also provided some breaks for the middle class, making it tricky to roll back. And a corporate tax hike could trigger a market downturn.
Viewsroom: UK’s new PM looks for the exit 25 Jul 2019 Boris Johnson helped persuade Britons to vote to leave the EU. London’s former mayor now leads the country – and may find his pledge to quit the European bloc hard to keep. Meanwhile, U.S. watchdogs are circling Amazon, Alphabet, Apple and Facebook. Plus: Protests rock Hong Kong.