The M&A train powered through instability this year, keeping a pace dealmakers worry won’t be maintained in 2020.
Global mergers and acquisitions weathered geopolitical tensions and roiling markets to post US$2.99 trillion in volume this year, a 1.5 per cent dip from 2018 though still the fifth-best year ever.
The number of deals this year through Friday dropped 4.2 per cent to 29,015, according to data compiled by Bloomberg. The biggest was United Technologies Corp.’s agreement in June to buy Raytheon Co., creating an aerospace and defense player worth more than US$100 billion.
“The current M&A market has proven to be unstoppable,” said Dusty Philip, Goldman Sachs Group Inc.’s co-head of global mergers and acquisitions. “Despite spikes in market volatility and macro concerns regarding trade and political uncertainty, we’ve seen a flurry of large scale M&A transactions in recent weeks.”
The bank’s “backlog is clearly up from the beginning of the year,” Philip said.
Goldman Sachs remained the top-ranked dealmaker in 2019, advising on 281 deals worth US$1 trillion, according to data compiled by Bloomberg.
JPMorgan Chase & Co., neck and neck with Morgan Stanley for the No. 2 slot, followed with 258 deals worth US$872 billion. Morgan Stanley advised on 233 deals worth US$813 billion.
While last year they were buoyed by a flush of private equity deals and transactions in the middle-market, this year was propped up by a rush of mega mergers. The top three investment banks were also helped as turmoil in Europe stung the region’s dealmakers.
Board rooms have plenty to worry about next year: the tumultuous U.S. presidential campaign, the U.K.’s Brexit deadlines, tariff-fueled trade tensions and regulatory regimes targeting the world’s largest companies.
There will likely be fewer large deals in 2020, partly because of regulatory issues, said Robert Kindler, Morgan Stanley’s global head of mergers and acquisitions. Kindler expects the number of transactions to be comparable to this year, even as volumes shrink.
“I don’t expect that in anticipation of the election there will a rush to do deals out of concern with the possibility of a change in administration,” he said. “I don’t think there’s that much of a difference between the current administration and what some of the Democratic candidates are saying.”
Some deal drivers have not let up, such as shareholders pushing for buyout paydays over stock buybacks. As global economic activity grows more subdued, companies seeking growth are fighting over fewer desirable assets.
Private equity firms, flush with an estimated US$1.4 trillion in dry powder, are benefiting from cheap financing and finding partners to buy bigger targets. The largest this year was the US$14.3 billion buyout of fiber network company Zayo Group Holdings Inc. announced in May, in which Stockholm-based private equity firm EQT AB joined Digital Colony Partners.
Several private equity firms have been circling Germany’s Thyssenkrupp AG, which could fetch more than 15 billion euros (US$16.7 billion), people familiar with the matter have said.
Alison Harding-Jones, head of M&A for Europe, the Middle East and Africa at Citigroup Inc, expects a busy first half of the year.
“There’s support for strategic deals that are fairly priced — demand for high quality companies is strong across strategics and private equity,“ she said.
Health-care M&A volumes hit an all-time high in 2019, reaching $461 billion. Mega deals included Bristol-Myers Squibb Co. buying Celgene Corp. and AbbVie Inc. acquiring Allergan Plc.
Christina Dix, Bank of America Corp.’s head of health-care banking for Europe, the Middle East and Africa, said pharmaceutical companies will focus on optimizing their portfolios amid drug pricing pressure and U.S. health-care reform.
Jonathan Davis, an M&A partner at Kirkland & Ellis who advised AbbVie on the Allergan deal, said the deals pipeline is strong but he is watching whether companies show increased caution next year.
“There are a lot of positive conversations going on, but that is balanced by a few pronounced headwinds, including an upcoming election cycle and associated political and regulatory uncertainty, high valuations and recent choppiness in the credit markets.” Davis said.
To combat future market swings, companies are using stock to fund deals at the highest level in almost 20 years. Acquisitions by U.S. companies in which part of the payment is stock have surged 41 per cent to US$753 billion, higher than any previous full year since 2000.
Paying in stock, which ties a deal’s risk to the market, will remain a popular option to hard cash, said Anu Aiyengar, JPMorgan’s head of M&A for North America.
“When you have a large amount of uncertainty in the world,” she said, “one way to address that is to do stock for stock deals.”
Grindstone Theatre's political satire videos gaining popularity online – CTV Edmonton
A theatre in Edmonton is getting a lot of attention online for its politics – or, rather, its lampooning of politicians.
The Grindstone Theatre is getting tens of thousands of views of its parody videos poking fun at the press conferences being held by Premier Jason Kenney.
The videos are written by Derek Johnson who says recent political events such as MLAs travelling over the holidays inspired him to make the videos
“It’s been interesting to kind of just see a couple things unravel, so we have to jump on what’s hot right now,” said Johnson.
The videos posted on the Grindstone Theatre’s YouTube page and TikTok account have over 100,000 views.
“It’s starting to take off a little bit,” says Johnson.
Donovan Workun, who plays Kenney in the videos, says the time is ripe for political satire.
“When people get outraged or people are really happy that’s when it’s the easiest to lampoon some things.”
Workun says it was tough to do an impression of Kenney at first.
“I think the key to the Jason Kenney impersonation is not knowing what you’re going to say until you’re actually saying it.”
Johnson says having politicians keep talking is all he needs to keep writing scripts for the comedy videos.
“Sometimes there’s a couple of people who say things and you’re like, I don’t think you know what you’re saying but we’re definitely going to be pulling on that.”
The videos keep pulling in so many viewers that they intend to keep making more and Workun says he hopes they catch the attention of the premier.
“I would love to hear from him. I would love to do Jason Kenney for Jason Kenney,” said Workun.
But Johnson says Kenney might not be the only politician getting satirized in their videos.
“Everyone is fair game, you might say.”
Historic U.S. inauguration of Joe Biden, Kamala Harris
Almost nine months after it closed its doors permanently, Saint John’s Cherry Brook Zoo still has six inhabitants waiting to go to their new homes. All that remains of the once-bustling zoo are two lions, two tigers and two snakes. All six have found new homes, but the hold-up is with the four big cats, explains zookeeper Erin Brown, who has been overseeing the relocation of the zoo’s animals. Because they’re going to the United States, there’s a complicated permit process that often takes six to 12 months, explained Brown. Essentially, the zoo has to prove that the big cats were legally obtained, and that their transfer follows all of the guidelines laid out under the Convention on the International Trade in Endangered Species (CITES). Brown said all of the permits required on the Canadian side of the border have been obtained. The hold-up is in the U.S. She said the COVID-19 pandemic and political unrest south of the border may also have contributed to the delay. “It could be making policies move a little more slowly,” she said. When the zoo announced it would close for good last May, there were 80 animals — from 35 different species — living at the zoo, and all had to find new homes, said executive director Martha McDevitt. She said staff spent a lot of time checking out prospective new homes to make sure the animals would be safe and well cared for. “It was a big task,” said McDevitt. The zoo had a number of farm-type animals, like miniature donkeys, goats and pigs that went to hobby farms, mostly in New Brunswick. The more exotic animals required a bit more work and they’re now spread out at facilities from Nova Scotia to Vancouver. “The big cats were the hardest to find homes for,” Brown said. The first step was to notify Canada’s Accredited Zoos and Aquariums, an accreditation and advocacy group better known as CAZA. But there weren’t any facilities in Canada willing or able to take the big cats. Brown said they eventually started reaching out to sanctuaries, although that wasn’t her first choice for the felines. That’s when they heard from Popcorn Park in New Jersey, which is part zoo, part sanctuary. The facility has agreed to take the lions and has lined up a new home for the tigers, since it already has a number of tigers. So, until the proper permits are ready to go, the four big cats will remain in Saint John. For McDevitt, they’re the hardest animals to say goodbye to. “You can’t help but create these special bonds with these animals, especially specific ones,” she said outside the tiger enclosure Tuesday morning. “For me personally, it’s the big cats, the tigers. When I was a little… child, I wanted to be a tiger when I grew up. “That’s impossible, I found out. So being able to work with them has been an absolute dream come true.” McDevitt has been with the zoo since 2016 and the lions arrived shortly after she did. The tigers have been at the Cherry Brook Zoo since the summer of 2017. All four were hand-raised at an Ontario zoo before it closed in 2016. “So seeing them leave — and especially them going across the border — is really hard because I may not ever see them again. So that’s been hard,” said McDevitt. And because they were hand-raised, Brown said the big cats actually like people. “They love interacting with visitors,” she said. It was a factor zoo staff considered when they looked at facilities willing to take them. “We had several facilities that offered space as a sanctuary situation, but we chose Popcorn Park because they’re going to be in a zoo situation. A lot of these sanctuaries are really more suited to cats that don’t like people.” She said cats that come from abusive or neglectful situations prefer to live a quiet life with as little human interaction as possible. “But our cats love human interaction. They love seeing visitors. So choosing Popcorn Park was on purpose so that they could have that interaction with visitors.” Once all the permits are in place, Popcorn Park will send its own relocation team to fetch the felines. They’ll have specialized equipment and people, including a veterinarian. They have specialized cages with wheels that will be rolled right up to the door of their enclosure, and with a little food inside the crate as an added incentive, they cats should go in and be ready to be loaded into a specialized trailer for the ride to New Jersey. In the meantime, thanks to monthly donors who continue to contribute to the zoo — and the occasional one-time donation — life goes on for the big cats. With fewer animals to tend to, staff members have a bit more time to hand-feed and train the cats. With her bucket of cut-up deer meat, zookeeper Megan Gorey puts the lions, Aslan and Frieda — littermates who were born in 2014 — through a series of behaviours that she doesn’t like to call tricks. The cats sit and lie down, and offer the correct paw on the fence as instructed. They also stand on their hind legs on command — all for a treat, of course. Gorey also demonstrates how she can draw blood and give injections with Luna, a five-year-old tiger who’s been at the zoo since 2017. From the safety of the other side of the fence, Gorey tells Luna to lie down along the fence and as someone else feeds her meat treats, she barely reacts when the needle is used. Long goodbye Brown said she initially worried that a long delay before some of the animals left would be a painful way to say goodbye, but she’s actually grateful for it now. She said each animal was able to get fussed over and given extra attention before they departed for their new homes. And with the four cats being among the last to go, it gave staff extra time with the zoo’s most popular inhabitants — who just happen to be the biggest eaters as well. McDevitt said it costs a couple hundred dollars per cat per month — and that’s even with the donations of roadkill from the Department of Natural Resources. One such donation just happened to arrive Tuesday morning and zookeepers were preparing to hoist entire deer legs up on poles in the cat enclosures to allow them to hunt and earn their meal. Once the big cats leave the Cherry Brook Zoo, the snakes will go as well, said Brown. The snakes will go home with one of the zookeepers, but as long as the zoo remains open for the lions and tigers, the snakes will stay as well.
Source: – Yahoo News Canada
Omdahl: Politics: When enough Is enough – INFORUM
North Dakota Republicans own the executive branch, the legislative branch and the judicial branch of state government, lock, stock and barrel. But having absolute power at the state level is not enough politics for some who now want to open up county, city, township, school board and other local offices to partisan elections by starting with an innocent marking on the ballot of party preference.
A strong two-party system is necessary for a democracy to function. There are policy issues streaming from voter ideologies that must be resolved. Local governments make secondary decisions, most of which are tightly controlled by state legislation. In reality, local governments are administrative units of the state government.
One advocate of partisan elections pointed to all the money local governments spend. He apparently wants to apply a more conservative financial system to local government. Apparently, he hasn’t been around enough to know that local finances involve mostly “sunk” costs or state regulations that permit local governments limited financial flexibility.
Other than creating political opportunities for the two parties, what are the benefits of a partisan system at the local level? A more conservative spending ideology?
Local governments in North Dakota are pretty clean. Our governments are small; almost everyone in the county knows what is going on in the courthouse, including the unofficial as well as the official. About the only transgressions committed in local government are long coffee breaks.
For sure, partisan elections will not make local governments more effective, more efficient or any more honest.
In fact, they will do just the opposite.
Local offices will be flooded with junior politicians who will see public office not as an opportunity to serve the public so much as a stepping stone to some higher partisan office.
Partisan ballots will generate new levels of conflict in local governments as parties fight for offices or as party loyalists fight each other to gain a rung in the political ladder. Everyone will spend more time campaigning and less time serving the public.
With politically-minded partisans running local government, how often will political considerations be uppermost when choices have to be made and priorities established? Will politics decide on highways? On arrests? On human services?
Partisan ballots will eliminate at least half of the county officials. Even if they are Republicans, the partisan atmosphere day-in and day-out does not fit their idea of public service. In some local governments, ambitious partisans will run against incumbents regardless of party.
Many local officials do not have competition because the public is satisfied with their service. Partisan elections will create competition where competition isn’t necessary and it will force any officeholders to raise new money for races they never had in nonpartisan offices. There will be new personal costs to serving the people. That will discourage present officeholders.
With the rancor permeating both parties at present, this is hardly the time to bring that sort of partisan disease into local governments that have been performing so well. When it comes to partisan politics, at some point we must say that enough is enough. Enough.
Omdahl is a former N.D. lieutenant governor and retired University of North Dakota political science teacher. Email firstname.lastname@example.org
This column does not necessarily reflect the opinion of The Forum’s editorial board nor Forum ownership.
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