Hasbro to buy 'Peppa Pig' owner for $4 billion

WASHINGTON - US toymaker Hasbro announced Thursday that it is acquiring studio Entertainment One, which owns popular cartoon series "Peppa Pig" among other children's content, for approximately $4 billion.

Under the all-cash transaction, Entertainment One shareholders will receive 5.6 pounds ($6.86) per share, according to a statement from Hasbro.

In addition to Peppa Pig, the popular swine with a British accent who loves jumping in muddy puddles, the purchase includes the successful children's cartoon "PJ Masks," about a trio of young friends who become superheroes at night.

"The acquisition of highly profitable and merchandisable preschool brands is a strategic growth opportunity for Hasbro," the company said.

"Peppa Pig" has extended itself to new profit streams that continue its success, it added.

Meanwhile "PJ Masks" growth outlook "is supported by new formats, its current rollout in China, the launch of new seasons in multiple regions, a live touring event and new toy lines."

Hasbro is additionally banking on the success of the launch of yet another Entertainment One character, Ricky Zoom, a little red rescue bike, which it calls a "unique storyline with highly merchandisable content."

The cartoon will launch on September 9 on US children's network Nickelodeon, and in other major markets.

Hasbro plans for the acquisition to save it $130 million through in-sourcing and other synergies by the year 2022.

Three quarters of the acquisition will be carried out with the proceeds of debt financing thanks to a loan of just under a year from Bank of America Merrill Lynch. Approximately $1-$1.25 billion will be financed in cash.

Hasbro said it is committed to doing everything within its power to maintain an investment grade rating.

vog/bfm/wd

source: news.abs-cbn.com

Spotify aims to become podcasting power player

NEW YORK - Spotify, the world's leading music streaming platform, on Wednesday announced an ambitious plan to become a top streamer of podcast content.

The Sweden-based company plans to invest $500 million on non-music streaming this year, seeking to dominate its listener base by scooping up American podcasting companies Gimlet Media and Anchor.

Spotify already boasts a presence in podcasting, having acquired shows from actress and comedian Amy Schumer and rapper Joe Budden.

But snagging Gimlet -- the New York-based narrative podcasting company founded in 2014 -- along with Anchor, a platform to create, distribute and monetize podcasts, the streaming group aims to "meaningfully accelerate our path to becoming the world's leading audio platform" and "give users around the world access to the best podcast content," the company's CEO Daniel Ek said in a statement.

Spotify did not specify the cost of acquiring the podcasting companies but did say it would invest between 400 and 500 million dollars this year for multiple acquisitions.

The platform also announced in Wednesday's quarterly results that it had 96 million paying subscribers at the end of December, 36 percent more than at 2017's close.

The growth is largely related to positive results from the company's partnership with Google Home as well as its promotional holiday campaign.

Including those who use the platform's free option that includes advertising, Spotify claims 207 million monthly active users.

The platform generated sales of 1.5 billion euros for the quarter, up 30 percent year-on-year, while its net profit totaled 442 million euros.

The company founded in 2005 saw a net loss of 78 million euros for 2018, however, and an operating loss of 43 million euros.

In 2019, the company will likely remain in the red: it anticipates an operating loss between 200 and 360 million euros.

Shortly after opening trades on the New York Stock Exchange, the company's stock had dipped about five percent.

Agence France-Presse

Eli Lilly to acquire Loxo Oncology for $8 billion

WASHINGTON - Pharmaceutical giant Eli Lilly will acquire cancer treatment specialist Loxo Oncology in a cash deal valued at around $8 billion, the companies said on Monday.

The firms "announced a definitive agreement for Lilly to acquire Loxo Oncology for $235.00 per share in cash, or approximately $8.0 billion," a statement said.

The deal -- which represents a premium of some 68 percent over Loxo Oncology's closing share price on Friday -- is expected to close by the end of the first quarter, the statement said.

The announcement is the latest in a series of major pharmaceutical deals: last week, Bristol-Myers Squibb said it would buy biotech firm Celgene in a $74 billion cash-and-stock agreement, creating a rival to the world's largest drug makers.

Other recent large pharma deals include French company Sanofi's purchase of US hemophilia group Bioverativ for $11.6 billion and Novartis' $8.7 billion acquisition of rare-disease treatment company AveXis.

source: news.abs-cbn.com

With eye on China, Germany toughens rules for foreign buyouts

BERLIN - Germany was Wednesday set to toughen rules on non-EU share purchases and acquisitions of its strategic companies, amid growing disquiet about takeovers by Chinese firms.

It plans to lower the threshold where reviews apply to foreign purchase offers of 10 percent of companies, down from 25 percent now.

Germany and other EU states have voiced growing concern in recent years as Chinese companies have bought up, or purchased controlling stakes in, high-tech firms, airports and harbors.

Chancellor Angela Merkel's cabinet planned to approve the change to the Foreign Trade Regulation, and Economy Minister Peter Altmaier was then to give a statement at 1130 GMT.

The update would strengthen government powers to review and possibly block foreign purchases in companies that are crucial to Germany's defense or "critical infrastructure."

This would include military, IT security and power companies but also, for example, large food producers, reported the business daily Handelsblatt.

"The test criterion is whether an acquisition endangers the public order or security of the Federal Republic of Germany," an economy ministry spokesman told AFP.

Alarm has grown in Germany about losing valuable know-how since Chinese appliance giant Midea in mid-2016 took over German industrial robotics supplier Kuka.

In mid-2017 Germany tightened scrutiny of non-EU takeovers of strategic companies, doubling to four months the time for reviews, and broadening the range of sectors.

'NATIONAL SECURITY'

In February, Germany raised no objections when Chinese billionaire Li Shufu bought a near 10-percent stake in the Mercedes-Benz parent company Daimler.

However in July, the state took a minority stake in electricity transmission firm 50Hertz, citing national security reasons, to thwart Chinese investors from buying into it.

Germany has been discussing similar protective steps at the EU level with France and Italy.

"The aim is to be able to intervene nationally, in individual cases, against state-controlled or state-financed strategic direct investments," said the economy ministry.

This could apply where the home country of the purchasing company financially supports a takeover bid at above-market prices or through political incentives.

German business groups criticized Berlin's move Wednesday as overly protectionist and ultimately harmful.

The Chamber of Commerce and Industry called the change "problematic", warning that it sends a "negative signal to our foreign partners."

And the Mechanical Engineering Industry Association charged that it "is politically motivated and creates additional uncertainty among foreign investors."

"Germany relies on open markets, including foreign investment," said its chief executive Thilo Brodtmann. "Conversely, we also expect open investment markets from our partner countries outside the EU."

The economy ministry insisted that "this is not about more prohibitions but about strengthening the capacity to find out whether legitimate security interests of Germany are affected."

Germany had reviewed 80 to 100 purchase offers annually in recent years "without discrimination and regardless of origin of the buyer" and had so far never blocked an offer, he said.

This proved that "Germany remains one of the world's most open investment locations."

source: news.abs-cbn.com

Jollibee takes full ownership of Smashburger

MANILA - Jollibee Foods Corp on Friday said it has taken full ownership of US-chain Smashburger, raising its stake from 85 to 100 percent.

In a disclosure to the stock exchange, JFC said its subsidiary Bee Good! Inc has acquired Smashburger Master LLC's 15 percent stake for $10 million.

"JFC is now the sole owner of the Smashburger business," the restaurant operator said.

"We look forward to the development of Smashburger into a very strong brand and business in the United States," JFC Chairman Tony Tan Caktiong said in a statement.

Current Country Head for North America Jose Minana will assume additional responsibility as President of Smashburger, JFC said.

Smashburger has 351 stores, mostly in the United States. Jollibee, meanwhile, operates a total of 3,079 restaurant outlets in the Philippines.

-- with a report by Michelle Ong, ABS-CBN News

source: news.abs-cbn.com

Coach to buy rival handbag maker Kate Spade for $2.4-B

Handbag and accessory maker Coach reached a deal to acquire rival Kate Spade for $2.4 billion, the companies announced.

The agreement will boost the marketing opportunities for both luxury New York-based designers of handbags, shoes and various accessories, the companies said, at a time when sales are declining at department stores where they have sold their goods.

By combining, they expect to save about $50 million a year in inventory management and other operational efficiencies, the companies said a joint press release announcing the deal.

Coach chief executive Victor Luis said the acquisition would boost the firm's prospects with millennials. In December, Coach, which dates to 1941, announced a marketing partnership with actress and singer Selena Gomez, in an effort to woo this key demographic group.

"In addition, we believe Coach's extensive experience in opening and operating specialty retail stores globally, and brand building in international markets, can unlock Kate Spade's largely untapped global growth potential," Luis said.

Kate Spade chief Craig Leavitt said the company, which was launched in the 1990s, now will be positioned "for long-term success as we continue our evolution into a powerful, global, multi-channel lifestyle brand."

Under the transaction, Kate Spade shareholders will receive $18.50 in cash, a 27.5 percent premium on the price prior to media speculation about a takeover of the company.

Shares of Kate Spade rose 8.1 percent to $18.34 in morning trading, while Coach gained 6.4 percent to $45.39.

source: news.abs-cbn.com

Mexico's Coca-Cola hopes to finalize PH acquisition by year-end

MEXICO CITY - Mexico's Coca-Cola Femsa said on Wednesday that if its planned acquisition of a controlling stake in Coca-Cola Co operations in Philippines succeeds it will open the doors to other markets in Asia.

The company, a joint venture of Coca-Cola Co and Mexico's Femsa, added that while there are limited purchase chances left in Latin America, it will continue to tread the region for opportunities.

Coca-Cola Femsa , Latin America's biggest coke bottler, said third-quarter profit jumped 53 percent on recent acquisitions and it hoped to decide on another purchase in the Philippines by year-end.

The company said earnings increased to 3.54 billion pesos ($276 million) from 2.31 billion pesos a year earlier.




The results beat market expectations. Analysts polled by Reuters were looking for earnings of 3.15 billion pesos. Revenue jumped 20 percent to 36.19 billion pesos, helped by the integration of Mexican rivals Grupo Tampico, Grupo CIMSA and Grupo Fomento Queretano, the company said. About 1,000 people have been laid off as a result of these transactions so far this year and more headcount reduction could take place in the current quarter, the company said.

Philippines deal

The company, which is in talks to buy a controlling stake in Coca-Cola Co operations in the Philippines, said it expected a decision on the deal by year-end.
"We think it has a very good potential ... we are finalizing negotiations with Coca-Cola Co. As they say in baseball, it's not over till it's over," the company said during a conference call with analysts Wednesday morning.

This deal could mean the beginning of more activity in Asia for the Mexican company although it did not give details about a possible next target.

Coca-Cola Femsa added during the call that while there were limited purchase chances left in Latin America, it would continue to tread the region for more opportunities.

The company operates in Mexico, Central America, Colombia, Venezuela, Brazil and Argentina.
Analysts have said acquisitions combined with more-stable prices of raw materials have greatly helped the company's results in recent quarters.

"After facing a very tough commodity and volatile currency environment over the past several quarters, we look forward to a strong close of the year," said Carlos Salazar, chief executive officer.

Coca-Cola Femsa shares, up 29 percent so far this year, rose 0.34 percent to 172.26 pesos on Wednesday.

 source: abs-cbnnews.com