The end of the affair

IT HAS BEEN a week of romantic second-chances in the business world. On March 11th Barrick Gold, the world’s most valuable gold producer, said it would no longer pursue its $17.8bn hostile quest for Newmont Mining, its nearest rival. Instead both parties agreed to form a joint venture (JV) to create the world’s largest gold-mining site, in north-eastern Nevada. The tie-up cemented the view that the state is the easiest place to get hitched in America.

A day later in Japan, the partners in what had become the business world’s most spectacular falling-out announced a “new start” to their ménage-à-trois. Renault, Nissan and Mitsubishi launched a “consensus-based” board to replace the command-and-control structure imposed by Carlos Ghosn, who chaired all three companies until his arrest in Japan on charges of financial misconduct (which he denies). The aim is to rekindle the romance that began when Renault first rescued Nissan from near-bankruptcy in 1999.

Such JVs and strategic alliances, however schmaltzy, receive too little attention as business entities. They lack the swashbuckling allure of mergers and acquisitions (M&A). Investment bankers shun them because they generate few fees. Yet they are indispensable. They enable businesses to collaborate without entering the touchy terrain of changing who controls them....



via Business Feeds

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