Supermarkets

Morrisons has a nuclear way to keep suitors honest

9 September 2021

The battle for the UK grocery chain looks set to end in an auction. The big danger is that Fortress or CD&R bid too much and then break pledges in areas like employee rights. The board has a way to make these promises legally binding, but the risk is both bidders walk away.

Bernard Arnault’s farewell to Carrefour is overdue

1 September 2021

The LVMH founder sold his remaining 5.7% stake in the $15 bln Gallic grocer, at one-third the likely price he paid in 2007. It’s a rare miss for the luxury guru. Yet given the sector’s shaky outlook and French government opposition to takeovers, even a painful exit makes sense.

Sainsbury’s surfs wave of UK retail FOMO

23 August 2021

The British supermarket’s shares jumped 12% on Monday on rumours of a private equity bid of over 7 bln pounds. The feeding frenzy around rival grocer Morrisons guarantees thwarted bidders on the rebound. As with that saga, buyers should fear overpaying as much as missing out.

Morrisons’ epic saga could use a short circuit

20 August 2021

CD&R’s 9.7 bln pound swoop gazumps Fortress and extends the already-lengthy bidding war for the UK grocer. A UK Takeover Panel auction, as proposed at inhaler maker Vectura, might help. Given the increasingly paltry returns if things drag on, bidders might even welcome it.

Capital Calls: U.S. jobs, BBQ IPOs, Wm Morrison

6 August 2021

Concise views on global finance: The Delta variant puts a leisure job boom at risk; two grill makers’ floats show the IPO market isn’t frozen; Fortress strikes in the bidding war for a UK supermarket.

Unilever’s inflation struggle is a mixed basket

22 July 2021

Higher costs squeezed the $155 bln Marmite maker’s profitability in the first half, forcing CEO Alan Jope to dump his goal of higher operating margins. Hefty marketing spend gives Unilever scope to raise prices faster. But investors are placing a bigger discount on future growth.

Capital Calls: BBQGuys go easy on the hot sauce

20 July 2021

Concise views on global finance: An e-commerce company for grill connoisseurs is going public via a blank-check company with a valuation that befits its side-dish status.

Capital Calls: Chinese hacking, Tencent

19 July 2021

Concise views on global finance: When the only response to China hacks is harsh words, companies will pay the price; the $680 billion technology giant places a heavyweight bet on UK gaming group Sumo.

Viewsroom: Grocer buyouts, More China crackdowns

8 July 2021

Why are private equity firms clogging the aisles at Britain’s WM Morrison to pull off a near-$9 billion purchase of the supermarket chain? Aimee Donnellan and Peter Thal Larsen explain. And our Asia columnists discuss Beijing’s new attitude to U.S.-traded Chinese companies.

Fortress’ vows to Morrisons look flimsy and finite

6 July 2021

A consortium led by the private equity group secured the British grocer’s support for an $8.7 bln takeover by pledging to treat suppliers well and not sell real estate. Yet its promises are not legally binding and expire in a year. The target’s board should have pushed for more.

Morrisons feeding frenzy raises multiple dilemmas

5 July 2021

Apollo may become the third bidder for the UK grocer. Investors are hoping for more than the $8.7 bln agreed offer by Fortress. Rivals will have to pay up while potentially agreeing to tricky conditions. If the deal turns hostile the board – and shareholders – will be in a bind.

Fortress bid shunts Morrisons into premium aisle

3 July 2021

The British grocer agreed to an $8.7 bln takeover led by the SoftBank-owned investor. It’s higher than a recent approach from CD&R, and prospective returns look lower. Add in employee-friendly conditions accepted by the buyer, and private equity rivals will find it hard to beat.

Buyout shoppers can spend more on Morrisons

21 June 2021

The British grocer rejected an $8 bln bid from Clayton, Dubilier & Rice. The 30% premium looks juicy, but the private equity firm will earn a decent return if Morrisons just delivers expected sales and margins. Extra cost savings or property sales would justify a bigger trolley.

Capital Calls: AMC craziness, Pro lacrosse

2 June 2021

Concise views on global finance: The movie-theater chain raised $230 million from a hedge fund, which promptly sold the shares at a profit; New England Patriots owner Robert Kraft and Alibaba's Joe Tsai are betting on the latest U.S. effort to professionalize the preppy sport.

Capital Calls: Greensill/Bluestone

1 June 2021

Concise views on global finance: The collapse of the supply-chain finance group may have left the governor of West Virginia personally on the hook for $700 million.

Capital Calls: Uber, Roblox

11 May 2021

Concise views on global finance: Free rides for Covid jabs won’t help the ride-hailing app’s labor battle with Washington; the online games platform’s year-on-year growth decelerated sharply in April.

Rapid grocery delivery splurge will end with purge

30 April 2021

The business of bringing alcohol and ice cream to punters within minutes has attracted $8 bln from investors like SoftBank this year. The stage is set for a frantic fight between startups, takeout apps and supermarkets. They will burn much cash in pursuit of uncertain returns.

Capital Calls: Jerome Powell, Shopify

28 April 2021

Concise views on global finance: The clock is ticking on the Fed boss’s taper timeline; the e-commerce firm grew even as it warns of a post-pandemic lull.

Capital Calls: U.S. antitrust, Dyal-Owl Rock

21 April 2021

Concise views on global finance: Would-be U.S. trustbuster nominee Lina Khan suggests it’s not just tech companies to blame for Big Tech’s dominance; two U.S. investment firms’ planned merger and sale to a blank-check company has cleared a legal hurdle.

Capital Calls: Bank of America, WeWork, Kering

20 April 2021

Concise views on global finance: The bank’s shareholders voted against a deeper dive into its impact on racial inequality; the office landlord is taking bitcoin as payment, for now; the Gucci owner needs to run faster to catch arch-rival LVMH.