Breakingviews

Delphi deal crudely hitches to connected-car hype

July 30, 2015

The auto supplier is paying $1.7 bln for a UK maker of “bundle management solutions.” HellermannTyton may be a solid company whose cable ties and such are integral components, but there’s a whiff of dot-com fever in the rhetoric. That’s not enough to justify the 45 pct premium.

Teva exits Mylan mess with $40.5 bln Allergan deal

July 27, 2015

The Israeli pharma firm has been locked in a bitter battle to take over the Dutch drugmaker. Now it has agreed to buy the generic business from Allergan. The swap makes sense. Friendly is far easier than hostile, and the Allergan businesses are just as attractive as Mylan.

Breakdown: Watchdogs chew on health insurer deals

July 24, 2015

Anthem and Cigna are the latest big U.S. providers to serve up a blockbuster merger. But they and their peers need to satisfy a slew of regulators before chowing down. Here’s a look at the agencies and the transactions officials may be asked to swallow in a concentrated industry.

Rob Cox: FT is to Nikkei as Jim Beam is to Suntory

July 24, 2015

Outside Japan, the $1.3 bln purchase of the salmon-hued newspaper is hard to fathom. The finances may never stack up. From a Japanese perspective, the calculus is different. In a shrinking market, without a product that travels internationally, deals like this are existential.

Lazard and Evercore do more with less in M&A boom

July 23, 2015

Second-quarter results show the two independent advisers have not reaped as much benefit as bulge-bracket rivals from the recent dealmaking surge. But their simpler business models and higher margins leave more of the gains for shareholders – especially owners of Lazard.

Financial logic in $1.3 bln FT buy is paper thin

By Guest Contributor
July 23, 2015

Japanese media group Nikkei is taking a bold step with its purchase of the Financial Times. The price equates to 35 times adjusted operating income. Sure, Nikkei gets a bucketload of kudos. But the tag is around three times higher than the multiple enjoyed by quoted media peers.

Micron would be a less-than-fab deal for China

July 14, 2015

A state-backed group is reportedly eyeing a record $23 bln bid for the U.S. memory-chip maker. Beijing is already building a standalone semiconductor industry via smaller takeovers. But completing this deal, and getting the most out of the acquired business, will be much harder.

Latest pharma roll-up leaves lots of room to grow

July 7, 2015

Horizon’s $1.75 bln unsolicited offer for U.S. rival Depomed continues the sector’s M&A rave fueled by tax savings and cost cuts. The Irish bidder is a recent entrant on the scene, so its low debt load and small size means it can easily expand. That portends more deals ahead.

Healthcare M&A pumped after Obamacare booster shot

July 2, 2015

The U.S. top court decision upholding medical-coverage subsidies signals the official start of a race to consolidate. Centene and Health Net’s $6.3 bln deal gives the insurers an early lead. Big rivals like Cigna may catch up as the industry accepts that reform is here to stay.

ACE aims to defy history with $28 bln Chubb deal

July 1, 2015

The Swiss insurer is buying its upscale U.S. rival. Cost and tax savings don’t cover the premium, implying ACE believes in promised revenue gains, also touted in the Willis-Towers Watson merger this week. The failed 1999 marriage of Provident and Unum, though, provides a warning.