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The Sands Expo and The Palazzo resort are shown in Las Vegas, Nevada, U.S., August 25, 2016. Picture taken August 25, 2016. To match special report USA-VEGAS/SHELL REUTERS/David Becker
HONG KONG (Reuters Breakingviews) - Las Vegas Sands’ Sin City sale might fund a pivot to Australia. The casino company has cash in hand after negotiating a rich $6.3 billion for its Las Vegas assets. Crown Resorts is an affordable addition to its Asian empire, and the group founded by the late Sheldon Adelson would be welcomed by watchdogs Down Under, too.
The mathematics makes this more attractive than other opportunities. Sands is selling out of its American casinos at a valuation of 13 times EBITDA for 2019, according to Bernstein. Meanwhile, James Packer’s beleaguered business is currently valued around 8 times EBITDA for the same year, setting aside non-recurring items. Although the Australian outfit boasts a brand new property and mature resorts in Melbourne and Perth, share
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FILE PHOTO: Renesas Electronics Corp s logos are pictured at the company s conference in Tokyo, Japan, April 11, 2017. REUTERS/Toru Hanai/File Photo - RC2RNL9CK2W3
HONG KONG (Reuters Breakingviews) - Japan’s Renesas Electronics is in danger of overheating its deal engine. The company disclosed on Monday that it was in advanced talks to buy UK-based Dialog Semiconductor less than two years after taking over similarly sized Integrated Device Technology. Booming demand for chips used in cars makes another acquisition strategically appealing, but the financial logic looks less impressive.
This latest takeover plan coincides with a worldwide semiconductor shortage. A faster-than-expected recovery in cars, smartphones and other electronics is wreaking havoc across the automotive industry. That should bode well for $21 billion Renesas, already the world’s third-largest chip supplier to carmakers, according to Fitch Ratings. As vehicles become greener and hig