Has­bro toy­ing with Mat­tel mega-merger

Daily Mail - - City & Finance -

TOY gi­ant Has­bro has made an ap­proach to ac­quire ri­val Mat­tel in a multi-bil­lion pound bid that would cre­ate a global pow­er­house.

The po­ten­tial deal would unite Has­bro’s My Lit­tle Pony, Mo­nop­oly and Nerf brands with Mat­tel’s Bar­bie dolls and Hot Wheels toys.

TV and movie tie-ins are an es­sen­tial part of the toy busi­ness, and the com­bined com­pany would have ex­tra fire­power in ne­go­ti­a­tions for lu­cra­tive mer­chan­dis­ing rights.

Sources fa­mil­iar with the mat­ter told Reuters that Mat­tel’s po­si­tion is un­clear and it is far from cer­tain a deal will ma­te­ri­alise. Has­bro and Mat­tel de­clined to com­ment. Mat­tel shares jumped 20pc when US mar­kets opened yes­ter­day, with Has­bro shares ris­ing about 6pc.

Has­bro has a mar­ket value of £9.2bn. Mean­while, Mat­tel is worth about £4.6bn af­ter a share slump of 47pc this year – mak­ing it a ripe takeover tar­get.

Mat­tel pre­vi­ously blamed the bank­ruptcy of Toys ‘R’ Us for its weak sales. It sus­pended its div­i­dend two weeks ago and warned it was set to miss fore­casts.

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