After deals in Nigeria and Kenya, $50 bln U.S. operator Digital Realty is buying most of South African rival Teraco. The $3.5 bln price tag is eye-catching given the risky location. But the continent’s growing population and rising data demand make the long-term numbers add up.
Instalment financing, rebranded as “buy now, pay later,” has been the hot consumer financial innovation powering groups like Klarna and Afterpay. Look for the next iteration to entice consumers beyond shopping and leisure, including doctor’s visits, utilities and even taxes.
Soaring container fees pushed the valuations of seaborne transport companies to record highs. Those trends will reverse in tandem. Still, with sacks of cash on board, ocean-goers like Maersk can buy landlubbing logistics rivals in preparation for the next supply-chain crunch.
Aker BP is acquiring Lundin Energy’s fossil fuel assets using cash and stock. Both sides emerge with a stake in a low-cost big hitter, better able to negotiate oil’s decline. The billionaire Lundin brothers get a smoother path out of the sector, and arguably a small premium.
The two rivals are fighting over access to battery metals, including stakes in volatile startups. BHP just withdrew from a pricey battle for a wannabe nickel maker, but Rio is pressing on with an $825 mln bid for a nascent lithium firm. Investors are wise to be wary.