Global supply chain scars will spark sea change 31 Jan 2023 The business of shifting goods around the world plunged into chaos during the pandemic. In this Exchange podcast Alan Murphy, boss of researcher Sea-Intelligence, explains China’s changing role in global trade and how that impacts the price of everything from iPhones to cars.
Capital Calls: McDonald’s ex-CEO fine 10 Jan 2023 Concise views on global finance: The Security and Exchange Commission’s decision to slap former fast food chain boss Stephen Easterbrook with a penalty is a convoluted way to the right outcome.
Capital Calls: DuPont, Dollar stores, Twitter 2 Nov 2022 Concise views on global finance: The chemicals company takes an unexpected but welcome M&A break; Dollar General is being sued for practices that raise questions about pricing power; and Elon Musk plans to charge micro-bloggers for blue checks to help cover his huge deal costs.
Odd UK hospital deal has healthy prognosis 4 Aug 2022 Johann Rupert’s Remgro and shipping giant MSC are buying London-listed Mediclinic for $4.5 bln. It’s an unusual concoction, but time away from public markets may help the company grow. A fair price and the threat of rising costs mean minority shareholders should play along.
Maersk’s cash machine is economic storm warning 2 Aug 2022 The Danish shipping giant reckons sky-high freight rates will help it land $37 bln of EBITDA this year. The trouble is its $50 bln enterprise value gives little credit to what lies over the horizon. The likely explanation is a sharp collapse in container demand due to recession.
Capital Calls: Maersk rides freight-rate M&A wave 26 Apr 2022 Concise views on global finance: The Danish shipping giant’s $19 bln of forecast free cash flow provides massive firepower for deals.
Capital Calls: Buffett’s HP bet, Gambling M&A 7 Apr 2022 Concise views on global finance: Berkshire Hathaway takes a hefty stake in the computer and printer maker; Betting group 888 negotiates a better price for buying UK bookie William Hill.
Capital Calls: Americans accept inflation for now 10 Mar 2022 Concise views on global finance: U.S. prices rose a whopping 7.9% year-on-year in February. Even so, Russia’s invasion of Ukraine has improved President Joe Biden's approval ratings. It may not last.
Shipping news makes grim reading for central banks 9 Feb 2022 Logistics giants Maersk and DSV expect another bumper year due to high freight rates. Their guidance suggests transport costs are unlikely to fall to pre-pandemic levels even if ports unclog. That will make life harder for rate-setters as they seek to curb high inflation.
MSC gives Lufthansa cover for Italian raid 27 Jan 2022 The shipping giant and German carrier want to buy Alitalia successor ITA, a boon for Italian taxpayers. A reported 1.2 bln euro price tag will surprise Berlin, which retains a 14% stake from a 2020 airline bailout. If MSC does the heavy lifting, the swoop is easier to justify.
Shipping giants will plot course for landbound M&A 22 Dec 2021 Soaring container fees pushed the valuations of seaborne transport companies to record highs. Those trends will reverse in tandem. Still, with sacks of cash on board, ocean-goers like Maersk can buy landlubbing logistics rivals in preparation for the next supply-chain crunch.
Bolloré’s happy Africa exit hints at more deals 21 Dec 2021 French tycoon Vincent Bolloré may sell his African logistics business to shipping group MSC for 5.7 bln euros. It’s a rich price for an asset tainted by a bribery scandal. He could use the cash to buy more cheap shares in his media group Vivendi, or his own investment company.
Capital Calls: KKR, Ferrari, HelloFresh 2 Nov 2021 Concise views on global finance: The private equity company is making the most of ideal market conditions; the Italian sports car maker raises its guidance; and a positive sales update turbocharges the German meal-kit delivery firm’s share price.
Maersk’s green ships have first-mover disadvantage 26 Aug 2021 The $53 bln container giant is buying eight vessels powered by carbon-neutral methanol. Maersk gets a green halo, and customers could shoulder its increase in costs. The catch is that clean fuel alternatives currently in development are likely to be cheaper, and greener.
Canadian Pacific has edge in great U.S. train race 10 Aug 2021 The original bidder for Kansas City Southern has returned with a $27 bln offer to challenge rival Canadian National. While the price is lower and changing railroads mid-journey for a second time isn’t free, reduced regulatory risk makes it a better deal for KCS shareholders.
Inflationary tide rises on glum shipping forecast 26 May 2021 Sea freight costs have more than tripled in the past year. Ports are backed up, containers are in the wrong place, and demand is picking up. Supply-chain disruptions won’t last forever. But, going by what companies like Maersk are seeing, pressures may persist for most of 2021.
Danish shipping raid heralds consolidation wave 27 Apr 2021 DSV Panalpina is loading Kuwait’s Agility into its hold in return for $4.1 bln in new shares. With its flotilla of medium-sized players, the global freight sector is ripe for M&A. Disruption from the pandemic and recent Suez blockage present a window for bigger players to pounce.
Trains deal takes regulatory risk on a round trip 1 Apr 2021 Canadian Pacific can effectively close its $25 bln takeover of Kansas City Southern before watchdogs approve the deal, because of a quirk of U.S. rail regulation. Sellers’ shareholders get paid out. But the combined company shoulders regulatory risk in a more complicated way.
Capital Calls: WFH deals, Suez Canal, NorNickel 29 Mar 2021 Concise views on global finance in the Covid-19 era: Fintech firm Broadridge pays a full price for trading platform; with the waterway clear, all sides will be taking up positions for a legal battle royal; the Russian nickel producer cashes in on high copper prices.
Suez blockage comes a year too late 25 Mar 2021 The Ever Given continues to block the Egyptian canal. Barring progress, shipping firms may soon have to re-route vessels around Africa, adding seven days and extra fuel costs. A year ago, with crude prices tumbling, many did that anyway. With oil dearer, it’s a painful choice.