Sober wrote:jmbada wrote:Ericsson wrote:jmbada wrote:Ericsson wrote:The bank wasn't going to survive in the coming years.The owners are happy for that deal.
Pretty sure that there will be swift regulatory approval. May not bode well for the NIC deal though.
NIC deal will also go through.
Doubt that CBA can absorb and digest 2 different corporate cultures, balance sheets and client bases in one fell swoop.
My suspicion is that the earlier NIC announcement was intended to serve as a red herring to divert attention from other discussions on more easily-digestible acquisitions. Look specifically at the difference in tone betweeen the 2 announcements (as we all suspect by now, most journos are basically told what to write and what tone to set).
One announcement was riddled with caveats and prevarication, while the 2nd announcement has been published as a fait accompli.
I believe the NIC deal was handles more carefully because of the long relations betweet the 2 big families. Additionally the deal included the CMA and other small shareholders like me with 100 shares i.e publicly listed company.
As for JBB, the deal can be equated to buying an item after a hawker flashing it to you on Tom Mboya Street as you head home one evening.
And that is a sober assessment.
1) JBB, unlike NIC, is not listed so the CMA isn't involved.
2) JBB is much smaller than NIC so Due Diligence can be completed sooner.
3) JBB has fewer shareholders (50%+) while NIC has Ndegwas with (officially) 25% + others.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett