MarketLine Blog

Posts tagged to Merger

Tata-ThyssenKrupp merger: Deal will have short-term impact but doubts remain over long term

MarketLine

The merger of the European steel making section of Tata and German based ThyssenKrupp will likely have useful short-term impacts upon European production, but the benefits heading into the long-term future are less clear. Soon to be the second largest steel maker in Europe, the combined company will have sufficient bulk to compete much better with Chinese producers who are under pressure from the central government to consolidate. Chances are the new company will gain substantial efficiencies and improve product quality beyond other major rivals, but this only solves some… Read more

Siemens Alstom merger: Deal necessary to compete against China state-backed CRRC

MarketLine

The merger between Siemens and Alstom will create a company able to compete against the largest train companies in the world. Previous talks between Siemens and Canada based Bombardier failed but showed the mood in the market was towards consolidation. A merger between two leading European companies is necessary if Europe is to remain relevant. The Chinese CRRC is armed with massive resources and is pressing ahead with highly advanced technology. The importance of the ability of Europe to compete was underlined by the decision of the French government sold… Read more

Discovery Communications seeking to merge with Scripps Networks Interactive

MarketLine

Due to the emergence of online streaming services such as Netflix, Amazon Prime and Hulu, the demand for traditional TV broadcasting has taken a hit. As consumers especially those belonging to the younger demographic have slowly made their way towards substitutes, advertisement too has followed suit. In fact according to some sources 2016 was the first year in which online advertisement overtook the value of traditional TV advertisement, clearly emphasizing the change that has taken place. Given these recent developments in the TV broadcasting market, it comes as no surprise… Read more

AT&T and Time Warner looking to complement each other as part of merger deal

MarketLine

In October 2016, Time Warner and AT&T agreed to merge as part of a deal which would see AT&T paying $85.4bn for the merger to take place. The total transaction value would further take the deal up to $108.7bn adding in Time Warner’s debt. Despite the hefty cost, the merger deal makes perfect sense from a business point of view since through a merger with telecommunications giant AT&T, Time Warner is able to broadcast its globally recognized digital content to a much wider audience. AT&T meanwhile will be able to… Read more

President Park Impeached: Relations with chaebols could change forever

MarketLine

Legislation designed to curtail the strength of chaebols has traditionally failed to discover parliamentary approval; now amendments to several acts have found new impetus following the impeachment of the president. Whilst voters await the coming election, prospective candidates are seeking to assert their case for a change in how chaebols operate in the South Korean economy. However, despite the rise in support, problems will need to be overcome for lasting change to occur. Previous efforts have fallen flat; this time there is a far greater chance of success. Moon Jae-in,… Read more

Tesco-Booker: The Squeeze on Small Businesses

MarketLine

Tesco, one of the largest retailers in the world, is the most dominant supermarket in the UK market. Its recent announcement to merge with Booker was a surprise to all. Booker occupies a very different area of the market, primarily offering bulk-purchase supply to small retailers, both independent and franchised stores under brands it owns, such as Londis and Budgens. At first glance then, this seems an odd target for Tesco; to merge operations with a company whose target market is so different to its own. Indeed, no one considers… Read more

Market maturity and intense competition forces banks to expand overseas

MarketLine

Overseas expansion is a key trend in the global banking industry as many major players look to reduce their reliance on mature and intensely competitive domestic markets. The push for overseas expansion is beginning to kick start M&A activity within the sector. CCB, ICBC, Credit Agricole, and Mitsubishi UFJ have all engaged in M&A deals that involve the purchase of at least a stake in a non-domestic player since 2013. As explored in detail in the MarketLine case study Top ten global banks: An analysis of financial performance, growth opportunities… Read more

Shell to Acquire BG

MarketLine

Royal Dutch Shell is to buy BG Group in one of the largest energy company acquisitions seen in a decade. The deal is worth £47 billion ($77 billion), representing a 50% premium on BG’s share price as of 7 April 2015, and the combined entity will be the largest company in the FTSE 100. Shell is a vertically-integrated company, whose operations range from exploration and production of oil and natural gas, refining, petrochemical production, and marketing of fuels and other products. BG Group is more focused on upstream activities. In… Read more

Pfizer and AstraZeneca: merger of majors cancelled or just postponed?

MarketLine

Pfizer is currently the world’s largest research-based pharmaceutical company, with 2013 revenues (excluding consumer health) of $47.9 billion. Recently, it made a bid for the UK’s AstraZeneca (2013 revenues of $25.7 billion) equivalent to £50 ($78) per share. This valued the company at more than £63 billion ($98 billion). A lot of money, you might think, but AstraZeneca lost no time in rejecting the offer. The same thing happened back in January this year, when the American company valued AstraZeneca at around £59 billion. Its CEO commented of the latest… Read more