M&A winter hits a rare inflation-proof hotspot
20/06/2022 11:44
(The author is a Reuters Breakingviews columnist. The opinions
expressed are their own.)
LONDON, June 20 (Reuters Breakingviews) - Inflation and a
possible recession are deterring most chief executives from
dealmaking. Yet in the niche world of customer-service
outsourcing, it may be a boon. Groups like Sitel and 2.6 billion
euro Majorel MAJ.AS handle everything from phone calls, social
media, web chats and other queries on behalf of large companies.
Their services should be in demand as rising labour and
materials costs force businesses to cut expenses and simplify.
The sector is extremely fragmented, with the top 10 players
accounting for just 27% of the market, according to UBS.
Hence a deal https://ir.majorel.com/websites/majorel/English/99999/pdf-download.html?filename=Creating_a_new_global_leader_in_the_CX_industry__Majorel.pdf&lg=en
announced on Monday, in which Majorel shareholders will get 440
million euros in cash plus 44% of the new combined company. It’s
a little hard to work out whether that’s a good deal. Most of
the offer is in privately held Sitel’s stock, which doesn’t
trade. Majorel’s shares went up 9% on Monday morning, which
compares with a more normal change-of-control premium of around
30%. None of that will bother the two sides’ bankers, JPMorgan
JPM.N and Lazard LAZ.N , who are probably just excited to
have something to do. (By Liam Proud)
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(Editing by George Hay and Oliver Taslic)
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