Oct 7, 2014 13:50 UTC

Rio Tinto can dig in against Glencore

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By Quentin Webb

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Rio Tinto can dig in against Glencore. On Oct. 7 the miner admitted rebuffing an approach in July from the commodity trading giant. Fair enough. The timing seems expedient following a slump in Rio’s dominant product, iron ore. A $160 billion “merger” also smacks of a takeover on the cheap. Rio can justifiably demand a real premium or no deal.

Sep 30, 2014 20:09 UTC

Rob Cox: Flurry of ski M&A aims to control weather

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By Rob Cox

The author is a Reuters Breakingviews columnist. The opinions expressed are his own. 

The ski business is amid a flurry – not of snow, but of deals. At the center of the action is Vail Resorts, a $3 billion publicly traded operator in an industry traditionally dominated by family and local owners. The company is upending winter-sports convention in a variety of ways. Chief among them is trying to prove that it can control the weather with some corporate finance.

Sep 29, 2014 15:48 UTC

SoftBank and Shrek may lack on-screen chemistry

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By Una Galani

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

SoftBank’s acquisition strategy is nothing if not animated, but it’s not always easy to see a clear plot. The Japanese conglomerate’s next move could be a bid for DreamWorks Animation worth $3.4 billion, according to The Hollywood Reporter. SoftBank’s giant balance sheet could easily absorb the hit and miss earnings of film production. Yet with each big buy, it becomes less clear how the group’s parts fit together.

Sep 25, 2014 05:38 UTC

Sinopec’s petrol station revamp is an uphill job

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By Ethan Bilby

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Chinese oil giant Sinopec wants to sell more from its 23,000 pump-side stores. But as a new Breakingviews calculator shows, even a dramatic increase in non-fuel sales won’t do much to lift the $58 billion valuation that outside investors have put on the business.

Sep 23, 2014 18:02 UTC

Tax clampdown could deter half-baked pharma M&A

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By Neil Unmack and Robert Cyran

The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

The U.S. clampdown on tax-driven cross-border M&A should deter half-baked pharma deals. Some U.S.-led transactions, like AbbVie’s recent agreement to buy UK-based Shire, may survive on strategic logic. But pure tax-avoiding combinations look tricky.

Sep 16, 2014 18:39 UTC

Henry Kravis spins a different kind of club deal

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By Jeffrey Goldfarb

The author is a Reuters Breakingviews columnist. The opinions expressed are his own. 

Henry Kravis is spinning a different sort of club deal. The old kind, in which several private equity shops would make an acquisition together, led the buyout baron’s KKR to join the recent hefty settlement of a lawsuit that alleged collusion with other firms. In the new iteration, KKR buys Pioneer’s DJ audio equipment business for $550 million. Kravis is laying down a smooth groove in a funky M&A market.

Sep 15, 2014 13:51 UTC

SAB/Heineken could leap antitrust hurdles

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By Robert Cole

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

A $130 billion Anglo-Dutch beer monster could leap antitrust hurdles. Heineken has rebuffed a takeover approach from SABMiller as “non-actionable.” As you might expect from a combination of the world’s second- and third-biggest brewers, there are major competition concerns. But these could be fixed and the result would be an emerging markets titan. The rejection suggests family control of Heineken is the real sticking point.

Sep 12, 2014 18:51 UTC

Club Med auction returns to work refreshed

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By Quentin Webb

The author is a Reuters Breakingviews columnist. The views expressed are his own. 

Club Mediterranee shareholders have been vindicated for refusing to throw in the towel. Last year, litigious investors held up a low-ball management buyout offer for the faded French holiday group. They were eventually rewarded with a counterbid from Italian financier Andrea Bonomi. Now the MBO team, again working with China’s Fosun, are back, trumping Bonomi with a $1.1 billion proposal.

Sep 10, 2014 06:50 UTC

Rakuten’s $1bln U.S. buy stretches loyalty logic

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By Una Galani

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

Rakuten’s latest acquisition stretches loyalty logic. Buying U.S. cash back site Ebates for $1 billion will help Japan’s largest e-commerce group beef up abroad. It also underscores Rakuten’s determination to use loyalty schemes to distinguish itself from rivals like eBay and China’s Alibaba. Yet, as with Rakuten’s other recent chunky deals, it’s unclear how all the parts fit together.

Sep 9, 2014 19:20 UTC

General Mills may smother pricey organic target

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By Kevin Allison

The author is a Reuters Breakingviews columnist. The opinions expressed are his own. 

General Mills risks smothering its latest acquisition target. The $32 billion Cheerios maker has agreed to pay $46 per share, a 37 percent premium, for Annie’s, a California-based “natural” mac-n-cheese and organic snacks company. The $820 million deal is small relative to General Mills’ overall business, but there’s a risk of indigestion.