EMEA

Change is coming to UK’s macroeconomic policy

31 May 2024

The opposition Labour Party, the strong favourite to win the upcoming election, has promised continuity in its fiscal and monetary approach. An ugly economic inheritance at home and global challenges abroad make that ambition unrealistic. Investors should prepare for a shift.

AI will power up buyout barons’ green-energy spree

30 May 2024

Brookfield offered $6.6 bln for French solar and wind firm Neoen after EQT and KKR struck renewables deals worth $4.6 bln. Buyout barons have cash to meet the investment requirements of energy-hungry artificial intelligence, and future rate cuts mean valuations may have bottomed.

Next UK leader will bang head against fiscal roof

30 May 2024

Britain’s election in July is likely to hand power to the opposition Labour Party. In this Viewsroom podcast, Breakingviews columnists discuss how constrained finances could mean higher taxes. For business leaders, the promise of more stability may be as good as it gets.

Niel can be less stingy to fulfil his salsa dream

30 May 2024

The French Iliad owner may buy out Millicom, a $4 bln Latin American telco in which he owns a 29% stake. His potential $24-a-share bid implies a tiny 2% premium. Even with the stock up nearly 40% this year, he can offer more for a growing, profitable company.

ECB has almost vanquished its final inflation foe

30 May 2024

Steeper bills for hotels, transport and other experiences are the European Central Bank’s key remaining enemy. Last month, services accounted for 68% of the rise in consumer prices. But those pressures, and wage growth, are waning, freeing rate-setters to start a series of cuts.

Failed Anglo bid is net negative for BHP CEO

29 May 2024

Mike Henry has ditched the Australian miner’s $47 bln attempt to buy its UK-listed rival. He misjudged the difficulty of pushing Anglo to divest South African assets. But he avoided upsetting investors by overpaying, and if his target’s breakup plan falters he can try again.

Royal Mail deal defies nationalist anti-M&A trend

29 May 2024

Czech tycoon Daniel Kretinsky agreed a $4.6 bln buyout of the UK postal service’s parent group. Britain’s likely next government seems OK with it despite the chance of jobs cuts and a breakup. As countries pull up the drawbridge on sensitive takeovers, there are still exceptions.

Technocrat PM will save Dutch voice inside the EU

29 May 2024

By choosing civil servant Dick Schoof, The Hague put pragmatism before politics in the premier’s slot. Far-right Geert Wilders won at the polls but elected to pass on the job. This will help the Netherlands keep its sway over key issues like EU debt and the green transition.

Saudi expands strategic toolbox with Lenovo deal

29 May 2024

A PIF unit is the sole investor in the laptop maker’s $2 bln convertible bond. It pays no interest and can’t be swapped for stock until 2027. The real value to the kingdom is Lenovo’s pledge to build a new factory and regional HQ there to bolster Riyadh’s manufacturing goals.

CEO pay is hidden factor in US relisting trend

29 May 2024

Plumbing supplier Ferguson almost doubled its boss’s compensation after moving to New York, while $55 bln CRH is reviewing its remuneration after switching too. It’s not something boards like to talk about. But investors might support US-style pay if it attracts the best talent.

Swiss wealth M&A may kill two birds with one stone

28 May 2024

Julius Baer and EFG held merger talks, Reuters and others reported. With just $640 bln of combined assets under management, they’d be unlikely to threaten UBS. Yet a deal would make financial sense, and EFG CEO Giorgio Pradelli could fill a leadership void at its larger peer.

UBS succession menu looks unnecessarily short

28 May 2024

The $100 bln bank ruled out external candidates to replace CEO Sergio Ermotti in about three years, the FT reported. Grooming home-grown successors is good planning. But none of the internal frontrunners currently offer what UBS will most need: a convincing US growth strategy.

Rio Tinto’s dual listing belongs in history books

28 May 2024

Activist fund Palliser is overegging the 44% boost holders of the miner’s London stock could get if Sydney became its primary bourse. But there’d be some uplift. And CEO Jakob Stausholm could use a more level M&A playing field as BHP potentially kicks off a wave of consolidation.

Macron’s Draghi sales pitch is a long shot

24 May 2024

The French leader wants to install former ECB head and Italian PM Mario Draghi in a top EU job. The two men agree on economic policy and how to reform Europe. But anointing a political heavyweight may alarm other member states, and parties’ bickering could scupper Macron’s bid.

Antitrust worries risk clipping EU airlines’ wings

24 May 2024

Groups like Lufthansa and IAG are seeking greater scale to better compete globally. But Brussels frets that regional tie-ups will lead to higher fares and reduced consumer choice. Blocking the $8 bln German firm’s play for smaller peer ITA could mean other deals won’t take off.

Big Macs are pricing out American shoppers

23 May 2024

The driving force of the world’s largest economy, US consumers, may be buckling under higher costs on everything from lattes to burgers. In this Viewsroom podcast, Breakingviews columnists debate whether Main Street stalwarts like Starbucks or McDonald’s face a reckoning.

Latest cheap UK target can flip refusenik script

23 May 2024

Hargreaves Lansdown rejected an initial $6 bln tilt from a group including CVC. Like other recent British corporate prey, the financial adviser’s board sees the attention as opportunistic. But Hargreaves needs to cut its fees, and that may be better done away from public markets.

Copper’s M&A mania obscures a dysfunctional market

23 May 2024

The red metal is the main driver of BHP’s $46 bln bid for Anglo American. But despite expectations that the energy transition will boost demand, prices are still too low to tempt miners into expanding production. Mergers may help break the deadlock, but aren’t certain to do so.

BHP boss hopes a week is a long time in dealmaking

23 May 2024

Mike Henry has won an extra seven days to try to seal a deal with Anglo American. The trick will be to persuade his harried quarry that its own breakup plan is more risky than BHP's three-step approach. It's a battle of egos, and may yet require upping the $46 bln proposal.

UK’s election gamble ends messy stalemate

22 May 2024

Prime Minister Rishi Sunak has called a national vote on July 4, much earlier than expected. His Conservative party trails Labour by 21 percentage points. The PM will point to a better economy but won’t offer more tax cuts. Still, a summer poll will provide much-needed clarity.