EQT pays an electrifying price for U.S. bus ride 23 Apr 2021 The Swedish buyout group is acquiring two of travel operator FirstGroup’s North American units for $4.6 bln. It’s a punchy valuation. To earn a decent return, EQT will have to boost growth by converting the iconic yellow school bus network into a fleet of clean electric vehicles.
Trains counterbid has reasons to go off the rails 20 Apr 2021 Canadian National’s $34 bln offer for railroad operator Kansas City Southern thumps rival Canadian Pacific’s bid. Both offers push financial and regulatory limits. In a sector chugging towards consolidation, the interloper has little to lose by trying to thwart its competitor.
Grab’s $40 bln debut comes with twin airbags 13 Apr 2021 The Southeast Asian taxi-to-fintech firm is going public at a sales multiple twice Uber’s. U.S. SPAC sponsor Altimeter is contributing to a $4 bln PIPE and signing a long lockup. It’s a smart way to underwrite an amped-up valuation and sets a template to speed others to market.
TuSimple $8 bln IPO destination looks out of range 8 Apr 2021 It values the self-driving truck firm run by financiers and a gamer at 4,260 times 2020 sales. Volkswagen’s Traton, UPS and others are partners. But autonomous vehicles are years off, TuSimple is hauling a load of governance issues and has an investor in a U.S. regulatory probe.
Didi’s IPO could be as bumpy as Dida’s 7 Apr 2021 The Chinese ride-hailing firm is navigating toward public markets and a $100 bln valuation. Its smaller, similarly named rival's listing effort has stalled in Hong Kong after hitting regulatory, legal, and operational potholes. Didi will have to buckle up for a comparable ride.
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.
Biden’s $2 trln road trip can’t start soon enough 31 Mar 2021 Republicans think the president’s infrastructure plan is too big; progressive Democrats think it’s too small. The cost is deceptive because projects still have to surmount local politics and red tape. The main thing is to agree something so that investment and jobs can follow.
Capital Calls: New York, Allegro exit 17 Mar 2021 Concise views on global finance in the Covid-19 era: The Big Apple reigns in a new ranking of global cities, but the prize isn’t what it was; shareholders in Polish e-commerce group Allegro sell down early.
Capital Calls: WeWork, HSBC offices, Wells Fargo 23 Feb 2021 Concise views on global finance in the Covid-19 era: Co-founder Adam Neumann may get a big payment for failure after all; The bank’s plan to shrink its property footprint recalls an earlier effort; And the scandal-plagued lender takes another small step towards rehabilitation.
Europe is now the main front in gig economy war 19 Feb 2021 Britain’s top court ruled that a group of Uber drivers are entitled to worker rights. Spain is also cracking down. It’s a stark contrast to America, where a California ballot win gave the sector hope. Tougher rules mean a longer path to profit – and higher prices for consumers.
Uber’s valuation requires both hands on the wheel 10 Feb 2021 Its food delivery unit helped keep it to a 16% drop in quarterly revenue but that service is losing money. Experience from rideshare could help. But its valuation is fully baked relative to peers that operate in one market or the other. That leaves Uber little room for error.
Capital Calls: Jay vs. Larry 10 Feb 2021 Concise views on global finance in the Covid-19 era: Jerome Powell takes on Larry Summers in the inflation debate.
Corona Capital: Indian banks, LBOs, Stellantis 18 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: Indian banking guru Aditya Puri gives reasons to be bullish about New Delhi’s lenders at a Breakingviews predictions event; the ECB cracks down on risky loans; carmaker Stellantis gets a boost from passive funds.
Shared scooters jump into a profitable future 14 Jan 2021 The pandemic has given a new boost to startups offering two-wheeled rentals, previously dented by high operating costs and safety fears. With increased demand, more European cities legalising e-scooters, and funding from investors like SoftBank, the business is gaining speed.
Next London, New York mayors can breathe easier 28 Dec 2020 Fuggedaboutit. That’s what the world’s two top finance centers would love to do with Covid-19. With budgetary, property and transport wounds to heal, it won’t be so easy as 2021 arrives. But after mayoral polls respectively in May and November, urban buzz should start returning.
Heathrow expansion faces long Covid-19 quarantine 16 Dec 2020 Britain’s Supreme Court cleared the way for the London airport to build a third runway, boosting its capacity by two-thirds. The pandemic-induced collapse in air travel makes passenger forecasts obsolete. Even if demand recovers, airlines will struggle to cover the extra costs.
Corona Capital: New York City, Fed/climate change 15 Dec 2020 Concise views on the pandemic’s corporate and financial fallout: New York City’s exodus puts local government in a tight spot; the Fed’s belated move shows a change in Washington.
Corona Capital: Gaming M&A, Beauty’s bold face 9 Dec 2020 Concise views on the pandemic’s corporate and financial fallout: Consolidation in video games reaches the next level as Sweden’s MTG buys Hutch Games for $375 million; and Spanish cosmetics, fashion and perfume group Puig predicts revenue will double by 2023.
The Exchange: Journey of a vaccine 8 Dec 2020 Covid-19 vaccines developed by Pfizer, Moderna and AstraZeneca may soon be available for distribution. But how do you deliver billions of vials across the world? Rob Coyle, pharma head at freight giant Kuehne+Nagel joins Lisa Jucca to discuss how to meet the logistics challenge.
Corona Capital: Airbnb IPO, IKEA catalog 7 Dec 2020 Concise views on the pandemic’s corporate and financial fallout: Vacation-rental app Airbnb ups its likely market valuation when it goes public later this week; and IKEA kills off its doormat-denting printed catalog after 70 years.