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In Mizuho | Greenhill’s Beyond The Obvious podcast channel, we uncover the value that others miss.
Our podcast is a source for the latest discussions on topics related to capital markets, dealmaking activity, business leadership and more.
Delve into insights from our investment & corporate banking thought leaders to hear their unique perspectives on current trends and market influences.
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00:00:05:22 - 00:00:08:19
The most prominent reasons are to
consider M&A in Europe.
00:00:08:26 - 00:00:12:00
Well, you can't really break it down to one point.
00:00:12:01 - 00:00:14:09
It's multiple points and it changes over time.
00:00:14:20 - 00:00:15:28
Europe is in a special situation.
00:00:16:05 - 00:00:19:22
We have a softening economic environment and that
00:00:19:22 - 00:00:21:09
is putting a lot of stress on companies
00:00:21:09 - 00:00:24:21
which are facing significant challenges from
00:00:24:21 - 00:00:27:12
a changing environment, technological challenges
00:00:27:12 - 00:00:28:20
and so forth which need to be addressed.
00:00:29:11 - 00:00:33:19
With the industry softening that obviously reduces cash
00:00:33:19 - 00:00:35:22
available for the businesses and as a result
00:00:35:22 - 00:00:39:03
the solution is that people have to focus,
00:00:39:06 - 00:00:41:15
they have to reduce their scope of where
00:00:41:15 - 00:00:43:08
they're investing and effectively
00:00:43:08 - 00:00:45:05
decide and proceed with
00:00:45:05 - 00:00:47:04
divesting some of their businesses and have to
00:00:47:04 - 00:00:47:29
define a new core.
00:00:48:04 - 00:00:50:26
Germany does differ a bit from the European angle.
00:00:51:15 - 00:00:53:09
It faces the same challenges but at the
00:00:53:09 - 00:00:56:00
same time Germany's backbone
00:00:56:00 - 00:00:57:15
is really challenged these days.
00:00:57:15 - 00:00:59:10
It's challenged because we don't have the access
00:00:59:10 - 00:01:03:02
to cheap energy and it's challenged because our
00:01:03:02 - 00:01:06:09
dominant position in the automotive industry is clearly
00:01:06:09 - 00:01:09:29
challenged by the Chinese these days
00:01:09:29 - 00:01:11:27
and Germany needs to adapt about this.
00:01:12:05 - 00:01:13:17
They need to adapt in a fast fashion
00:01:13:17 - 00:01:16:27
by reducing cost, focusing on other areas and
00:01:16:27 - 00:01:18:05
becoming more competitive again.
00:01:18:10 - 00:01:20:18
You also have to look at the geopolitical
00:01:20:18 - 00:01:22:01
side of things these days.
00:01:22:06 - 00:01:24:07
The Ukrainian crisis has obviously left a major
00:01:24:07 - 00:01:26:24
impact on Germany both in terms
00:01:26:24 - 00:01:28:22
of the overall economic environment
00:01:28:22 - 00:01:30:15
but also in terms of rethinking
00:01:30:15 - 00:01:32:07
what the focus needs to be on.
00:01:32:14 - 00:01:34:23
And what we're clearly seeing is the significant
00:01:34:23 - 00:01:37:20
trend of deploying substantial capital into defense.
00:01:37:28 - 00:01:40:06
Tariffs is obviously another major aspect to consider.
00:01:40:11 - 00:01:42:25
Tariffs have really led companies to rethink how
00:01:42:25 - 00:01:44:07
they can balance their portfolios.
00:01:44:17 - 00:01:46:10
Also for the European companies.
00:01:46:10 - 00:01:47:08
Companies in Europe
00:01:47:08 - 00:01:48:25
want to be global but they need to
00:01:48:25 - 00:01:51:02
ensure these days that they are also local.
00:01:51:09 - 00:01:53:05
So a lot of the M&A activities
00:01:53:05 - 00:01:54:28
is really focused on being balanced in terms
00:01:54:28 - 00:01:57:12
of production bases around the world.
00:01:57:23 - 00:01:59:13
So while I've spoken a lot about crisis,
00:01:59:27 - 00:02:01:01
at the end of the day, every crisis
00:02:01:01 - 00:02:03:16
also creates an opportunity and we're very excited
00:02:03:16 - 00:02:05:14
here at Mizuho | Greenhill to help our clients
00:02:05:14 - 00:02:09:18
to face these crises, grab the opportunity and
00:02:09:18 - 00:02:10:29
come out stronger at the end.