Indian sale makes Bain Capital rare buyout hero 27 Nov 2015 The U.S. firm has sold its remaining $116 mln stake in Hero MotoCorp four years after investing in the world’s largest motorbike maker. In rupee terms, Bain doubled its money in four years. As private equity pours into India, it’s a reminder that getting money out remains harder.
Qube edges ahead in Aussie infrastructure fight 26 Nov 2015 Brookfield’s $6.5 bln agreed bid for Australia’s Asciano has hit serious opposition from competition regulators. The Canadian group could yet salvage its takeover. But interloper Qube, whose break-up consortium is already examining Asciano’s books, now looks like the favourite.
Bombardier subsidies offer crucial but costly lift 19 Nov 2015 The Canadian aerospace firm’s rail unit agreed to a $1.5 bln infusion from Quebec, days after the province struck a deal to invest in its wobbly jet project. Public cash buys time but comes with pricey terms and governance risks. Potential mergers may be harder to pull off, too.
Rail deal needs more than $28 bln to stay on track 18 Nov 2015 Canadian Pacific justifies its hostile bid for Norfolk Southern by touting cost savings worth over $12 billion. But CP shareholders will keep $5 billion of that amount for themselves. Given antitrust risks, a higher offer will be necessary to bring this merger into the station.
New Chicago Skyway owners need long investing view 16 Nov 2015 Ferrovial and Macquarie paid $1.8 bln in 2005, $1 bln more than the next bid. Now three Canadian pension funds are buying the Windy City turnpike for $2.8 bln. Thanks to extra debt, the sellers won’t see much profit on their equity. At least the buyers can afford to be patient.
Savings may get $50 bln rail deal across the line 10 Nov 2015 The $22 bln Canadian Pacific could try to buy slightly larger Norfolk Southern. If CP can boost its U.S. rival’s efficiency to match its own, the result would be some $7 bln worth of cuts. That’s enough to cover a premium and compensate for the risk of an antitrust derailment.
China’s car-app war could end in Uber-Didi merger 17 Sep 2015 Uber’s Chinese unit and local rival Didi Kuaidi have raised a combined $4.2 bln this month to spend on subsidies to drivers. Now Didi has teamed up with U.S. competitor Lyft. But the battle is unsustainable. The obvious route to profitability is for Uber and Didi to join forces.
Bombardier steers clear of China turbulence 9 Sep 2015 The Canadian plane maker rejected an $8 bln offer for its rail unit from a state-controlled Beijing firm. Listing a minority stake is a politically easier way to reduce some balance sheet strain. Bombardier is in the wrong business, though, to be playing it financially safe.
Uber faces a competition pile-up in Asia 24 Aug 2015 The taxi-hailing app may be a Silicon Valley darling but it’s an underdog in China and India where tech giants are backing larger rivals. A competitor is even funding its top opponent in Southeast Asia. The anti-Uber alliance calls the group’s $51 bln valuation into question.
New York commuter crisis may be good for America 28 Jul 2015 Major delays on some of the busiest rail lines into Manhattan from New Jersey have incited outrage. The overhead wires being blamed are emblematic of the decrepit infrastructure across the country. After so much partisan bickering, this episode could focus minds on funding.
Chicago toll road owners may avoid highway to hell 21 Jul 2015 Macquarie and Ferrovial are shopping the fee-charging U.S. turnpike, a decade after buying it for $1.8 bln. The high debt and low earnings mean it’ll take a big valuation multiple to recoup the investment. Recent infrastructure deals suggest they could get one.
Uber has right on its side in New York City scrap 17 Jul 2015 The $50 bln ride-hailing app giant doesn’t help itself with its attitude to rules that hold back its business. And congestion in the Big Apple is a real concern. But Mayor Bill de Blasio’s plan to cap car-service growth pending study is just too convenient for the taxi industry.
Uber’s rocky ride hits smooth patch on Wall Street 8 Jul 2015 Opposition to the ride-hailing service is mounting from Paris to Mexico City to New Delhi. Silicon Valley’s $50 bln darling is getting a warm reception, however, from the likes of JPMorgan. Bankers are not only obvious customers, but also would love to drive Uber’s eventual IPO.
China taxi apps speed towards subsidy showdown 29 Jun 2015 Local taxi-hailing app Didi Kuaidi is raising up to $2 bln less than a month after rival Uber said it will invest $1 bln in the People’s Republic. Both are racing for market share by spending heavily on subsidies for drivers. The question is whose investors lose patience first.
Missing motorbikes point to Indonesian demand hole 19 Jun 2015 A 36 percent slide in motorcycle sales in May shows just how fast falling commodity prices are eroding purchasing power. More worrying, however, is President Joko Widodo’s failure to offset the shortfall by boosting investment. A weakening currency is compounding the challenge.
Crumbling America demands smarter repair blueprint 13 May 2015 Tuesday’s tragic Amtrak crash is stoking conversations about U.S. infrastructure. Just a day earlier, a trio including Evercore’s Roger Altman urged a higher gas levy and tax-free bonds to fund new projects. The challenge will be getting businesses to shoulder more of the costs.
Alstom’s growth train has Chinese twist 6 May 2015 The French group’s focus on transport is paying off, with train orders up 10 pct and rising margins. But the merger of two larger Chinese rivals intensifies competition in Alstom’s global markets. Teaming up with Bombardier or Siemens may be its next destination.
Bombardier may be the little Canadian that can 30 Apr 2015 The manufacturer is mulling selling a majority stake in its rail unit to a Chinese rival. Political objections are likely: even home-improvement chains are off limits to foreigners. Using the proceeds to keep its aviation business flying, though, may keep critics in the hangar.
Serial dealmaker makes smart truck stop in France 29 Apr 2015 Bradley Jacobs’ XPO is paying an undemanding 3.2 bln euros with debt for French trucking firm Norbert Dentressangle. The U.S. buyer’s timing is good: the euro is weak while France is increasingly open to deals. And the capital markets could hardly be better for M&A machines.
China SOE fusion could topple cult of competition 28 Apr 2015 A mooted $569 bln merger between Sinopec and PetroChina looks a step back for reform and efficiency. But competition between state-backed firms isn’t always helpful. A more demanding shareholder, pricing power and superior regulators could be better spurs to improve performance.