When Two Isn’t Always Better Than One.

After the fallout from Reliance Jio’s entry into the Indian mobile market, investors in Indian telecom companies got excited over the weekend with the news of a potential tie-up between Vodafone Group Plc’s mobile unit in that country and Idea Cellular Limited, currently India’s third largest mobile provider.

While India has a massive population and offers significant long-term growth potential in the form of both voice traffic and data (not even considering mobile money applications like MPesa), the billions of dollars needed to build out networks and continually invest in spectrum combined with 11 mobile providers meant that profits remain far lower than had hoped for.

Cell phones in India have become a commodity, and its not uncommon to see people with two mobile phones. Consolidation in the market was long overdue and while I was expecting the likes of Telenor India and Tata DoCoMo to lead a march toward consolidation, I’m glad the possibility of it actually happening is increasing.

You can read the Bloomberg article here:

https://www.bloomberg.com/news/articles/2017-01-30/vodafone-in-talks-to-merge-india-unit-with-idea-cellular

Battle Of The Billionaires (Berlusconi versus Bolloré).

I can’t wait to see how this plays out:

http://www.forbes.com/sites/marcelmichelson/2016/12/15/bollore-squares-up-to-berlusconi-in-italian-media-war/#568d22f66fac

http://www.economist.com/news/business/21711957-doing-so-he-taking-silvio-berlusconi-former-italian-prime-minister-frances-corporate

 

Penske Automotive Group (NYSE: PAG) Expands Network With Italy Buy.

The deal was announced on October 3:

http://www.prnewswire.com/news-releases/penske-automotive-expands-presence-in-italy-300337902.html

Click below for my take on why I believe PAG is a good investment:

Kicking The Tires On A New Car…And On A New Investment.

Diapers Get Messy…But Could Be A Good Business To Be In.

A Morgan Stanley-backed investment fund recently announced it has taken a  stake in baby and adult diaper maker DSG International Thailand:

http://www.reuters.com/article/us-dsg-intl-th-morgan-stanley-m-a-idUSKCN12B10H

Groupe Bruxelles Lambert, a Belgium-based investment holding company which I believe is a good long-term hold and is up nearly 15% in EUR terms since my post (ABC, DEF, GBL?), also has exposure to a similar business via its investment in Belgium’s Ontex (www.ontexglobal.com).

I am going to go out on a limb here, but it looks like the smart money may be in diapers.

 

This Owl Was Hungry! Alimentation Couche-Tard Continues To Lead Consolidation In The Convenience Store Industry.

Convenience store powerhouse Alimentation Couche-Tard continued along its consolidation path Continue reading