Chinese tech tycoon gives de-SPAC new meaning 27 Aug 2021 Joyy’s founder wants to take the video-streaming outfit private in a mooted $7.8 bln deal. Having sold many of its businesses already, what's left is mostly a huge cash pile. A buyout of what’s effectively a blank-cheque firm at a 100% premium puts a wild twist on the M&A craze.
Capital Calls: Pennies matter to dollar stores 26 Aug 2021 Concise views on global finance: Low-margin U.S. retailers are suffering from supply-chain cost inflation, a direct hit to their business model.
Xiaomi is primed to scale Mount Microchip 26 Aug 2021 The $82 bln Chinese company shipped 53 mln handsets in the second quarter, overtaking Apple to become the world’s No. 2 producer behind Samsung. With greater heft, boss Lei Jun’s ambitions in semiconductors should be within reach soon. Favourable policies from Beijing will help.
Dating outscores gaming in app store showdown 25 Aug 2021 A U.S. judge is considering an antitrust suit against Apple’s online shop as lawmakers pile pressure on the iPhone maker and rival Google. Despite games dominating their outlets’ $111 bln in annual sales, a cut in the tech giants’ 30% fee may boost daters like Match more.
Capital Calls: Delta Air Lines’ vaccine stick 25 Aug 2021 Concise views on global finance: The U.S. carrier will charge unvaccinated stateside employees $200 per month towards healthcare. Adding some push to the pull of incentives makes sense.
Pinduoduo’s largesse masks bigger profit problem 25 Aug 2021 China's $124 bln e-commerce group swung into the black in the quarter as it reduced subsidies. But slowing growth, alongside a $1.5 bln philanthropic pledge in rural projects, suggest that is not sustainable. Beijing’s crackdown on the sector has also emboldened rivals like JD.
Capital Calls: Cook defeats Apple crumble risk 24 Aug 2021 Concise views on global finance: The CEO replaced the ailing Steve Jobs exactly 10 years ago. Despite fears at the time, Cook’s must be one of the most lucrative successions of all time for shareholders.
Beijing and ByteDance are killing a video-app star 24 Aug 2021 Kuaishou has shed $190 bln from a peak struck shortly after its February listing. Its adjusted net loss is forecast to hit $3 bln this year as it struggles with regulators and TikTok’s owner. Barring a turnaround, it may prove to be China tech's shortest-lived flash in the pan.
Capital Calls: Salmon, M&S, Sydney airport, BHP 20 Aug 2021 Concise views on global finance: SalMar places $1.3 bln order for Norway Royal Salmon; the UK retailer’s improving fortunes may ward off predators; the Australian firm provides scant evidence for rejection of a $16 bln takeover bid; Santiago dings the Aussie miner over water use.
Telecom floor price threatens toppy Indian tech 20 Aug 2021 Mobile operators want regulators to impose minimum rates to help ease financial stress. Without higher charges, Vodafone’s local unit might struggle to repay debt. Rational tariffs, however, would hurt the voracious data consumption underpinning soaring tech valuations.
Capital Calls: Amazon, Robinhood, GlobalFoundries 19 Aug 2021 Concise views on global finance: The e-commerce giant may open its own version of department stores; contrary to the stereoptype, Robinhood IPO buyers may be holding rather than flipping; a successful IPO by chipmaker GlobalFoundries would bolster the case for an Arm listing.
Tencent’s Disney-like ambitions will enchant Xi 18 Aug 2021 Games, movies and web shows did well in the quarter, showcasing the $540 bln group’s entertainment prowess. Unlike the U.S. giant, censors dictate what Tencent can do. Yet a Chinese answer to the Magic Kingdom at least fits into Beijing’s vision of a prosperous middle class.
Capital Calls: Sea’s rising tides 18 Aug 2021 Concise views on global finance: The $162 billion Southeast Asian tech group’s revenue is soaring, but so are its costs.
Just Eat Takeaway is looking like an M&A leftover 17 Aug 2021 The 15 bln euro delivery company made a smaller-than-expected loss in the first half. It’s still battling a tough U.S. market and needs to step up investment in Europe. A cheap valuation and restive shareholders would make it hard for CEO Jitse Groen to fend off an offer.
Surf ‘n’ turf is juicy ESG starter for M&A feast 17 Aug 2021 Brazilian meatpacker JBS made a curious second bid for Tasmanian salmon farmer Huon after mining billionaire Andrew Forrest raised environmental and animal-welfare concerns. Buyers often come ready to clash over price, not sustainability. Add a new chapter to the deal cookbook.
UK defence buyout tests government poker hand 16 Aug 2021 Private equity-backed Cobham is offering a 63% premium for rival Ultra Electronics. To get Britain’s approval for the 2.6 bln pound deal, it will make commitments on jobs and research. If those pledges are robust, owner Advent will have to work hard to earn a good return.
Capital Calls: Oatly, Sonos/Google 16 Aug 2021 Concise views on global finance: The Swedish oat milk producer’s decent results are only good in parts; Sonos gets a boost with a preliminary trade ruling that Google infringed its patents.
BHP climate parcel pass would oil buyer’s regret 16 Aug 2021 The miner is in talks to sell its petroleum unit to Woodside for a mooted $15 bln. It’s a decent price for the seller, and cost cuts would make it stack up for the bidder. But there’s a big risk these assets are sharply devalued on carbon concerns sooner rather than later.
Indian edtech scores relatively high marks 16 Aug 2021 Foreign investors are piling into Byju’s, upGrad, Eruditus and others, fuelling valuations and acquisitions. They have a stronger foundation for international expansion than Chinese peers. A young population also makes a Beijing-style crackdown on online learning less likely.
Capital Calls: Coupang’s winding road 13 Aug 2021 Concise views on global finance: The fast-growing South Korean e-commerce outfit’s lack of profit is testing investors’ patience.