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Tag: merger

  • GoTo Celebrates First-Ever Quarterly Profit, Signaling Turnaround After Gojek-Tokopedia Merger

    GoTo Celebrates First-Ever Quarterly Profit, Signaling Turnaround After Gojek-Tokopedia Merger

    GoTo, a prominent Indonesian ride-hailing firm, recently announced its first-ever quarterly net profit. This is a significant milestone for the company, which has seen strong revenue growth and increased cost control measures begin to pay dividends.

    The Turnaround

    GoTo was established in 2021 as a result of the merger between Gojek and Tokopedia. Despite its combined strengths, the company has faced difficulties in generating profits due to intense market competition and high operating expenses.

    However, the tides have turned for GoTo, with the company recording a net profit of 171 billion rupiah (US$9.94 million) for the quarter ending March 31. This is a stark contrast to the loss of 367 billion rupiah it incurred during the same period the previous year.

    GoTo’s diverse service offering, which includes ride-hailing, food delivery, logistics, and financial services, has contributed to its improved financial performance. The company announced a 26% year-on-year increase in net revenue for the first quarter, bringing it to 5.3 trillion rupiah.

    Outpacing Costs

    GoTo’s Chief Financial Officer, Simon Ho, explains that the company’s revenue growth has significantly overshadowed its rising costs across both fintech and on-demand services. There has also been a decrease in the cost to serve, as the company’s tech and AI strategies begin to take effect.

    Additionally, GoTo reported an attributable profit of 257.94 billion rupiah for the quarter, a considerable improvement from last year’s loss of 283.33 billion rupiah.

    Looking Forward

    Despite the current global macroeconomic uncertainty, GoTo has maintained its full-year adjusted EBITDA forecast of between 3.2 trillion rupiah and 3.4 trillion rupiah. The company, which enjoys support from Japan’s SoftBank Group and Singapore’s sovereign wealth fund GIC, has previously been the subject of merger rumors with Singapore-based competitor Grab, though no agreement has been formalized.

    Questions & Answers

    What was GoTo’s net profit for the quarter ending March 31?

    GoTo’s net profit for the quarter ending on March 31 was 171 billion rupiah (US$9.94 million).

    What services does GoTo offer?

    GoTo offers a variety of services including ride-hailing, food delivery, logistics, and financial services.

    What is GoTo’s full-year adjusted EBITDA forecast?

    Despite the current global macroeconomic uncertainty, GoTo has maintained its full-year adjusted EBITDA forecast of between 3.2 trillion rupiah and 3.4 trillion rupiah.

  • Mars and Kellanova Unite: $36B Mega Merger to Reshape Global Snacking Industry

    Mars and Kellanova Unite: $36B Mega Merger to Reshape Global Snacking Industry

    Mars, the multinational confectionery manufacturer, has received the final approval needed to complete a $36 billion acquisition of Kellanova. The European Commission’s unconditional approval sets the stage for the finalization of the deal, which is set to close on December 11th, subject to the customary closing conditions.

    Expanding Portfolio

    Upon completion, the acquisition will see Kellanova’s variety of snack products integrated into Mars’ existing offerings. Kellanova’s portfolio, known for popular products such as Pringles, Cheez-It, Pop-Tarts, Rice Krispies Treats, RXBar, and a variety of international Kellogg’s cereal brands, will join Mars’ globally recognized brands including Snickers, M&M’S, Twix, Skittles, Extra, and Kind.

    The new, combined Snacking division of Mars is estimated to generate approximately $36 billion in annual revenue. The portfolio will include nine individual billion-dollar brands under this division, which will operate across more than 145 markets worldwide.

    A Welcomed Merger

    Mars is eager to welcome the new addition to their family. “We are looking forward to the Kellanova team joining us at Mars and together establishing a global snacking leader with a wide range of much-loved brands,” commented Andrew Clarke, the global president of Mars Snacking.

    Clarke expressed confidence in the merger, stating that “Mars Snacking and Kellanova will be better together, leveraging the strengths of our respective legacies and capabilities to unlock new opportunities and promote growth.”

    The acquisition agreement, with its immense potential for growth and expansion, was first announced on August 14th of the previous year.

    Questions & Answers

    What are the benefits of Mars acquiring Kellanova?
    By acquiring Kellanova, Mars will be able to expand their product portfolio to include popular snack brands, giving them a wider range of products and potentially increasing their market share.

    How much is this acquisition expected to increase Mars’ annual revenue?
    The acquisition is set to increase Mars’ annual revenue to approximately $36 billion.

    When was the definitive agreement for this acquisition announced?
    The definitive agreement for the acquisition of Kellanova by Mars was announced on August 14th of the previous year.

  • Sigma Healthcare Resets Merger Synergy Target With Chemist Warehouse Amidst Significant Revenue Surge

    Sigma Healthcare Resets Merger Synergy Target With Chemist Warehouse Amidst Significant Revenue Surge

    Sigma Healthcare has revised its merger synergy target with Chemist Warehouse, following a significant increase in both its top and bottom line results last year.

    New Merger Synergy Targets

    Sigma Healthcare has now set its synergy target for the merger at $100 million per annum, a substantial increase from the previous target of $60 million. The company aims to attain this goal within a span of four years.

    The last fiscal year ending June 30 saw an 82.2 per cent surge in revenue to $6 billion. Chemist Warehouse reported a 14 per cent increase in retail network sales, and a notable 11.3 per cent rise in like-for-like sales across the Australian network.

    Brand Expansion and Financial Performance

    Over the past year, Sigma increased its portfolio of proprietary and exclusive brand products, with a notable release of 269 products in the Wagner generics range last November. The sales of proprietary and exclusive label products saw an increase of over 20 per cent.

    When it comes to the bottom line, statutory earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 33.6 per cent to $824 million, while the net profit after tax (NPAT) reported a slight decline of 2.1 per cent to $530 million. However, normalized EBITDA saw a rise of 41.4 per cent to $884 million, and NPAT also increased by 40.1 per cent to $579 million.

    By June 30, the net debt stood at $752 million, significantly lower than the initial net debt range of $1 billion to $1.3 billion as indicated in the merger prospectus.

    Anticipated Growth and Future Plans

    Sigma CEO and MD, Vikesh Ramsunder, stated that the merger with Chemist Warehouse has resulted in a more robust, integrated healthcare business with enhanced scale, capability, and market reach. He emphasized that the FY25 results highlight the group’s momentum and potential for sustained growth.

    As part of its plan for the new fiscal year, Sigma intends to continue the expansion of Chemist Warehouse stores both domestically and internationally at a steady pace. It also plans to introduce new proprietary and exclusive label products to enhance margins.

    Sigma also announced the closure of distribution centres in South Guildford, WA, and Port Adelaide, SA, with services being moved to existing centres in Canning Vale and Pooraka. The company also plans to gradually close brick-and-mortar Chemist Warehouse stores in China over the next few years, focusing on achieving profitable growth, with the Chinese market being serviced through online channels thereafter.

    Questions & Answers

    What is the new merger synergy target set by Sigma Healthcare?
    The new merger synergy target set by Sigma Healthcare is $100 million per annum, up from the previous target of $60 million.

    What are Sigma Healthcare’s plans for the new fiscal year?
    Sigma plans to expand Chemist Warehouse stores in Australia and internationally, launch new proprietary and exclusive label products, and shift services from closing distribution centres to existing ones.

    What is Sigma Healthcare’s strategy for the Chinese market?
    Sigma Healthcare plans to gradually close Chemist Warehouse physical stores in China over the next few years, focusing on servicing the Chinese market through online channels.

  • Bank Australia’s Merger with Qudos: A Strategic Move to Enhance Competitive Edge in Retail Banking

    Bank Australia’s Merger with Qudos: A Strategic Move to Enhance Competitive Edge in Retail Banking

    Bank Australia (BAL) has strengthened its foothold in the competitive banking landscape with its recent merger with Qudos Bank. The two entities joined forces on 1 July 2025, with Qudos transferring all its assets and liabilities to BAL, which will now operate under both the Bank Australia and Qudos Bank brands. This merger is seen as a significant step toward enhancing BAL’s capital position, which is projected to remain robust.

    Upcoming Australian Unity Bank Acquisition

    In an additional strategic move, BAL is set to acquire the assets and liabilities of Australian Unity Bank in fiscal 2026. Overall, these ventures are estimated to impact BAL’s risk-adjusted capital (RAC) ratio, which S&P Global Ratings predicts will decline to between 16.2% and 16.7% in fiscal years 2026 and 2027.

    Healthy Growth Amid Challenges

    S&P has expressed confidence in BAL’s stability, indicating the newly merged entity is unlikely to experience disruptions to its core activities. The agency believes that underlying loan growth will remain slightly above the average for the Australian banking sector. The RAC ratio serves as a critical metric for assessing a bank’s resilience against economic volatility.

    Navigating Integration Risks

    Of course, with growth comes challenges, particularly in the form of integration risks associated with the Qudos merger. S&P points out that as BAL works to consolidate systems, it must also contend with the financial strain posed by merger-related costs. The bank is anticipated to act as a price taker in the competitive Australian lending and deposit markets, facing pressure from larger regional and major banks.

    Following the merger, BAL will carve out a modest market presence, holding around 0.4% of Australia’s residential lending market. However, S&P remains optimistic, stating that the merger is unlikely to significantly raise the underlying risk in BAL’s consolidated lending and funding portfolios. The agency forecasts the bank’s credit losses to remain impressively low at approximately 0.05% of customer loans, which is below the systemwide average. This indicates a well-capitalized future for BAL, with expectations that its RAC ratio will stabilize between 16.2% and 16.7% until 2027.

    A Bright Future Ahead

    In a landscape marked by change, Bank Australia is poised to navigate its mergers while maintaining stability, a feat that may surprise even the most seasoned industry watchers.

    Questions & Answers

    What impact will the merger with Qudos Bank have on BAL’s capital position?
    The merger is expected to boost BAL’s competitive standing while maintaining a strong capital position, estimated to remain between 16.2% and 16.7% in the coming fiscal years.

    What challenges does BAL face post-merger?
    BAL must address integration risks associated with consolidating systems and manage costs related to the merger while remaining competitive in the Australian lending market.

    How does BAL’s market share compare after the merger?
    After the merger, BAL will hold about 0.4% of Australia’s residential lending market, a modest share that suggests it remains a small player amidst larger regional banks.

  • Indonesia’s antitrust body looking into risks from reported Grab-GoTo merger

    Indonesia’s antitrust body looking into risks from reported Grab-GoTo merger

    The Indonesian competition authority has initiated an investigation to identify potential risks associated with a potential merger between tech behemoths Grab and GoTo, according to the head of the agency.

    Muhammad Fanshurullah Asa, the head of the agency, stated that a comprehensive review could be carried out once the merger occurs and both firms officially notify them of their actions.

    Although there is no official confirmation from either company about the speculated merger, recent months have seen an increase in speculation about this potential merger.

    It was suggested by individuals familiar with the situation last week that the two companies were aiming to finalize a deal within the second quarter of this year.

    Questions & Answers

    What is the nature of the investigation being conducted by the Indonesian competition authority?
    The investigation is designed to identify any potential risks that could arise from a possible merger between tech giants Grab and GoTo.

    Have Grab and GoTo confirmed their plans for a merger?
    No, both companies have yet to officially confirm their plans for a merger, though speculation has been rife in recent months.

    When are the two companies expected to finalize their deal?
    Sources familiar with the matter suggested that the companies are aiming to finalize the deal in the second quarter of this year.

  • Softbank, Line merger foretells the birth of a new tech powerhouse

    Softbank, Line merger foretells the birth of a new tech powerhouse

    The alliance between the two Japanese companies is estimated to be worth $30 billion and is expected to be concluded by October next year. The merger’s combined revenue could see it totaling $11 billion, easily surpassing its domestic competitor Rakuten.

    Tech analysts have lauded the merger, stating that this agreement would give Z Holdings and Line the opportunity to extend their reach towards a larger consumer base and increased negotiating power with its advertisers. Softbank and Naver, which owns Line, will each control 50% of the share in Z holdings.

    “We were driven by a sense of crisis about global competition and the pace of change in AI,” said Takeshi Idezawa, co-Chief Executive at Line. “The timing arrived for us to move on to the next phase [with this merger].”

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  • Natura and Avon announce Major merger

    Natura and Avon announce Major merger

    Brazilian parent of Aesop and the Body Shop to take over 130-year-old Avon business.

    Cosmetics firm Natura is acquiring Avon Products in an all-share transaction, creating one of the world’s largest “pure-play” beauty groups.

    The combination of Natura and Avon will create as a multi-brand and multi-channel beauty group with direct connections to consumers on a daily basis. Going forward, the group will hold a strengthened hand in relationship selling through Avon’s and Natura’s more than 6.3 million consultants and representatives; a global footprint through 3200 stores, as well as an expanded digital presence across all companies.

    The combined group is expected to have annual gross revenues of more than US$10 billion, more than 40,000 associates, and a presence in 100 countries.

    “We have always looked at Avon with respect and admiration,” said Natura cofounder Luiz Seabra. “Natura was founded on its passion for beauty and relationships, and today’s transaction creates a major force in the direct-to-consumer space. Direct selling was a social network before the word even existed, and the arrival of technology and globalization only multiplied opportunities to connect with consumers in a meaningful way.

    “The peer-to-peer sales model is evolving towards social selling and the power of digital allows the group to go beyond providing products and advice, and advances women’s empowerment, through financial independence and enhanced self-esteem. We believe that business can be a force for good and together with Avon, we will amplify our pioneering efforts to bring social, environmental and economic value to an ever-expanding network,” said Seabra.

    Avon and Natura both reach customers through a force of independent, primarily female micro-entrepreneurs, who act as brand ambassadors and beauty advisors.

    Natura expects the combination to result in target synergies estimated at $150 million to $250 million annually, some of which will be reinvested to further enhance capabilities in digital and social selling, research and development and brand initiatives and to continue to grow the group’s geographic footprint.

    “Following the acquisitions of Aesop in 2013 and The Body Shop in 2017, Natura is taking another exciting, decisive step to build a global, multi-brand, multi-channel, purpose-driven group,” said Natura executive chairman Roberto Marques. “Together we will enhance our growing digital capabilities, our social network of consultants and representatives and leverage our global store footprint and distinctive brands, connecting, touching and influencing millions of consumers with different profiles daily, making our group unique and creating a formidable platform for growth.”

    “This combination is the start of an exciting new chapter in Avon’s 130-year history,” said Avon CEO Jan Zijderveld. “It stands as a testament to the progress of our efforts to ‘Open Up Avon’, and we believe it will allow us to significantly accelerate our strategy and further expand into the online channel. Over the past year, we have started a transformation to strengthen Avon’s competitiveness by renewing our focus on Her, simplifying our operations, and modernizing and digitizing our brand. Together with Natura, we will have broader access to innovation and a portfolio of products, stronger e-commerce, and digital platform, and improved data and tools for representatives to drive growth and enhance value for shareholders.”

  • Trussardi Acquired by Quattro R

    Trussardi Acquired by Quattro R

    Trussardi, the family-owned Italian luxury brand specialising in leather goods, has been acquired by private equity firm Quattro R, local media reports. BoF has not yet been able to independently confirm the report. According to Italian news site Pambianco, Quattro R will take an 80 percent stake in Trussardi for at least 50 million euros (around $57.1 million). Trussardi has not responded to BoF’s request for comment, and Quattro R has declined to comment on the matter.

    The deal will see ownership of Trussardi pass from its founding family — who has controlled it for four generations — for the first time in 107 years. Quattro R, which was established in 2015, specialises in turning around Italian companies in financial difficulty, and is backed by the likes of Italy’s state lender Cassa Depositi e Prestiti (CDP) and pension fund Cassa Forense.

    If Quattro R has indeed sealed the deal, it will mark the fund’s first investment in the fashion sector, though its chairman Andrea Morante — being the chairman of Italian shoemaker Sergio Rossi — is no stranger to the industry.

    According to Pambianco, Trussardi’s chief executive Tomaso Trussardi will hold the remaining 20 percent stake in the company. Tomaso’s sister Gaia Trussardi will no longer be a shareholder of the company, while shares belonging to Tomaso’s mother Maria Luisa Gavazzeni will be diluted. Meanwhile, managing director Massimo Dell’Acqua will be leaving his post, and the new management team will be announced when the deal closes in March.

    The brand has been experiencing difficulties for years, with acquisition rumours not far behind. In 2015, Trussardi received a 51.5 million euros (around $58.8 million) loan from six local banks and stipulated a capital increase of 5 million euros (around $5.7 million), soon followed by the shuttering of the house’s diffusion line Tru Trussardi. In April, Trussardi was hit by the unexpected resignation of Gaia Trussardi from her role as creative director.

    Trussardi operates 177 boutiques and over 1,500 points of sale in 47 countries worldwide. If the reports of a sale are confirmed, Trussardi will diverge from the surge of Italian heritage brands passing to foreign hands in recent months — from American Michael Kors’ acquisition of Versace in September, to the Hong Kong-based Sitoy Group’s taking the reins at A. Testoni in November.

  • India’s Jabong merges with Myntra

    India’s Jabong merges with Myntra

    Myntra has announced the integration of Jabong with the brand and Ananth Narayanan will continue to lead the team.“Since Myntra’s purchase of Jabong in mid-2016, the two brands have been steadily integrating key business functions and streamlining processes. This has resulted in revenue growth and a significant improvement in the customer experience. As the next step in this process, Myntra and Jabong will now fully integrate all the remaining functions including technology, marketing, category, revenue, finance and creative teams,” said company spokesperson.

    “The closer integration of Myntra and Jabong is a necessary step in our continuing development. To remain the leader in fashion eCommerce in India, we have to find ways to operate more effectively and innovate more quickly. By better aligning our resources with our long-term plans, we can put the best structure in place to serve our sellers and brand partners and ultimately benefit our customers.” it added.

    According to the company, Myntra’s independence as a business will be preserved. Myntra team will continue to operate independently to achieve even greater success.

    “We will continue to lead the market, serve our customers, and do what we do best,” according to the company.

    From a consumer perspective, the well-loved Jabong brand will remain.

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  • Vingroup acquires mobile phone retailer Vien Thong A

    Vingroup acquires mobile phone retailer Vien Thong A

    Vietnam’s biggest private conglomerate Vingroup has officially confirmed its acquisition of major tech products retailer Vien Thong A.

    In its financial statement for the third quarter of 2018, Vingroup lists Vien Thong A Import Export Trading Production Corporation as a fully-owned subsidiary.

    On September 14, Mai Thu Thuy, board member of the Vincom Retail Joint Stock Company and Chairwoman of the Vincom Mega Mall Royal City, was appointed legal representative of the acquired company.

    Established in November 1997 in Ho Chi Minh City, Vien Thong A is the oldest retail technology chain in Vietnam. It has nearly 200 stores, including independent shops and a “shop-in-shop” model in BigC supermarket, CoopMart, and 100 service centers.

    In early 2017, Vien Thong A CEO Hoang Ngoc Vy revealed plans to restructure the company and seek investors to expand its business.

    Last month, VinCommerce, a member of Vingroup, bought Fivimart from domestic company Nhat Nam JSC and Japanese retailer AEON, which held 70 percent and 30 percent stakes, respectively.

    In the first nine months of this year, retail sales of Vingroup reached VND12.89 trillion (nearly $555 million), a 41 percent year-on-year surge.

    Vingroup, Vietnam’s biggest property conglomerate, dominates the housing and property markets with Vinhomes.

    It has also entered the healthcare market with Vinmec, runs a chain of supermarkets called Vinmart, and entertains tourists at Vinpearl resorts.

  • Aditya Birla makes extra with Complete

    Aditya Birla makes extra with Complete

    Aditya Birla Retail, which owns almost 500 Extra-branded supermarkets and hypermarkets throughout India, is to purchase the rival superstore enterprise Jubilant Agri and Shopper Merchandise.

    The deal will add 4 Complete Superstore hypermarkets to its community, together with model, warehouse and provide chain amenities.

    “The acquisition of Complete is an effective strategic match for ABRL when it comes to its retailer places and catchment areas,” stated Pranab Barua, enterprise director, attire & retail enterprise, of Aditya Birla Group.

    According to the accepted transaction, ABRL will purchase in an all money deal, the leasehold rights for the hypermarkets in Bangalore together with movable and immovable belongings, a warehouse, an workplace premise, working capital, logos, mental property and different rights.

    The Complete Superstore enterprise has an combination retail footprint of 280,000 sqft.

    The transaction is topic to the approval of shareholders of JACL and Jubilant Industries, together with mandatory regulatory approvals.

    Aditya Birla Retail’s Extra boasts the second largest grocery store community in India with a complete flooring area of two million sqft throughout India.

    The corporate posted gross sales of Rs 25,110,000,000 (US$391 million) final monetary yr.

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  • Future Group merger creates Indian giant

    Future Group merger creates Indian giant

    Future Group, one of India’s highest profile retailers, has agreed to merge its operations with Bharti Retail to create a retail powerhouse with more than 570 stores.

    Bharti Retail currently runs more than 200 Easyday branded stores of multiple formats across 114 Indian cities, traversing Punjab, Haryana, National Capital Region, Western Uttar Pradesh, Uttarakhand and Bangalore.

    Future Group has more than 17 million sqft of retail space in a variety of formats and categories in 166 Indian cities.

    Post merger, the combined group will comprise two organisations, both listed. One, named Future Retail will run the combined store network. The other, Future Enterprises, will manage the assets, and infrastructure of the two companies.

    Post-merger, Future Retail will run stores in 243 cities with 18.5 million sqft of floor space. The network will include 203 Big Bazaar and Easyday hypermarkets, 197 Food Bazaars and Easyday supermarkets and 171 other retail shops including eZone, Foodhall, Home Town and FBB.

    Kishore Biyani, founder and CEO of Future Group said the Bharti operations and network “complement perfectly” with Future Retail’s.

    “It will bring us closer to millions of consumers and provide new opportunities for our supply partners. The operational efficiencies that can be derived from the merger will create significant value for our shareholders,” he said.

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