Today’s Top Stories
- London Attacker, Born in U.K., Had Criminal Convictions, Was Probed for Extremism (WSJ.com: World News)
- Pro-settlement hardliner Friedman confirmed as US envoy to Israel (BBC News - Home)
- Investing In Soccer (Forbes - Business)
- Eurovision: Russia rejects offer for Julia Samoilova to perform 'via satellite' (BBC News - Home)
- Mexico may 'step away from NAFTA' if deal isn't good (Business and financial news - CNNMoney.com)
- London Attacks Highlight Balancing Act for Big Cities (WSJ.com: World News)
- New GOP bill costs more, but doesn't cover more (Business and financial news - CNNMoney.com)
- MarketWatch First Take: Micron profits from memory price spike, expects party to continue (MarketWatch.com - Top Stories)
- Rolling Back EPA's Clean Car Standards Is Bad For America. Here's Why. (Forbes - Business)
- Republicans delay health vote as rebels defy Trump (Europe homepage)
- Republicans delay health vote as rebels defy Trump (UK Homepage)
Other Blog Headlines
- 5 Filters of the Mass Media Machine (The Big Picture)
- The Natural Rate of Interest: Estimates for the Euro Area (Economist's View)
- A few Comments on February New Home Sales (Calculated Risk)
Monthly Archives: December 2012
As we approach the end of another year, and in the interest of intellectual honesty, I thought now would be a good time to revisit some of the predictions I’ve made regarding cross-border deals over the years.
Tesco’s entry into the U.S. Market – Several years ago I suggested that Tesco would face some serious headwinds in the U.S. market (see Tesco’s Venture into the U.S.). Consistent with my expectations, it now seems Tesco is considering ending its presence in the U.S. because the “journey to scale and acceptable returns will take too long relative to other opportunities” (see Supermarket Tesco says ready to exit U.S.).
Tata JLR – I was skeptical of Tata’s acquisition of JLR (see Foreign Takeover Troubles?, Tata and Jaguar/Rover Revisited, Update: Tata and Jaguar/Rover, Progress Report: Tata Motors and JLR, Buyers Remorse: Will Tata Rue the Purchase of Jaguar and Land Rover?). Although Indian firms have had a pretty bad track record acquiring companies overseas, the JLR acquisition has bucked the trend. JLR sales have, so far, exceeded expectations (see Tata Profit Up on JLR Sales). So as of today, I’ve gotten this one wrong. Of course, these things take years to play out, and I still think we need a few more JLR product cycles to reach a definitive conclusion. But as the Magic 8-Ball used to caution, I think it’s only fair to say, “Outlook not so good” for my prediction thus far.
On the Fence
Fiat Chrysler - Again, I was very skeptical about this deal (see Fiat-Chrysler Darts Forward, Fiat/Chrysler Revisited, Can Fiat Really Pull It Off, and Is Fiat Nuts?). Fiat is certainly struggling; however, Chrysler has experienced something of a revival (see Fiat Europe Struggling). I cannot say for sure whether Fiat will ultimately succeed in the U.S., and/or with its ownership interest in Chrysler, but so far, my predictions for Chrysler’s demise have been postponed, …perhaps indefinitely??
Anyhow, business predictions aside, here’s to wishing you all a happy and healthy New Year!