Netherlands

Mondelez cookie monster fueled by Dutch java deal

7 May 2014

With the sale of its coffee business, the $65 bln Oreos-to-Cadbury group gets $5 bln of cash and a more focused snack-foods portfolio. A simultaneous restructuring should allow it to cut more costs and limber up for new deals, starting with director Nelson Peltz’s bugbear, Pepsi.

Philips can still shine despite darker outlook

22 Apr 2014

The $30 bln electronics group’s flatlining revenue in Q1 has dimmed near-term growth hopes. Troubles with traditional lighting and healthcare scanners could persist. But the basic investment case for Philips looks sound, especially if weaker emerging markets rebound. 

Hugo Dixon: Euroscepticism may have silver lining

10 Feb 2014

Arguments used by those who want to break up the European Union - such as last week’s report saying the Netherlands would be better off out - are exaggerated and full of holes. But the rise of euroscepticism should embolden those trying to make the EU more competitive.

ASML’s pricey punt keeps Moore’s Law hopes alive

22 Jan 2014

The Dutch semiconductor equipment maker paid up to buy Cymer in 2012. ASML hoped this would help double the volume of transistors it can cram on its chips every two years, as seen in long-running industry trends. Robust demand in its latest results shows it made the right call.

Unilever washes off emerging-market uncertainties

21 Jan 2014

Currencies and slowing growth are working against the consumer staples giant. But forex aside, the trends in developing economies remain firmly positive. For Unilever, the declines in developed markets’ revenues and profits are more worrying.

Altice IPO asks cable investors to get bolder

7 Jan 2014

The cable and telecoms operator wants help to de-gear and then buy more assets. Good job Europe’s IPO market is hot, as is the sector. Owner and Chairman Patrick Drahi has a good track record. But an odd mix of businesses makes Altice a harder sell than rivals.

Uruguay’s weed spoils could get even higher

12 Dec 2013

The country is first to legalize marijuana trade, with production from co-ops, sales to locals only and prices fixed. Relaxing such restrictions, however, could really spark up the economy. The Dutch did well from cannabis tourism, but agribusiness could be the winner in Uruguay.

Ziggo has ways to put pressure on Liberty

12 Dec 2013

The Dutch cable firm is in bid talks with Liberty Global, already a big shareholder. Liberty is prudent and patient, and could seek creeping control via a low offer. But synergies would suffer. And there is value in moving quickly: brilliant debt markets won’t last forever.

BNP Paribas pays up for Polish promise

5 Dec 2013

The $1.4 bln deal for Rabobank’s retail business in Poland is what cross-border banking M&A looks like post-crisis. BNP is paying a premium to book value for a business with low returns. The French bank avoided a costly auction but needs synergies and growth to make the deal pay.

Dutch downgrade is a lagging indicator

29 Nov 2013

The Netherlands’ loss of triple-A status stems from weaker growth. The economy is recovering slowly from a housing bust that has pulverised household finances. But property prices are bottoming, debt is low and reform is underway. Other euro zone members are bigger worries.

Europe’s pay populism makes a useful distinction

27 Nov 2013

Swiss voters rejected broad salary limits for top executives. Yet the Dutch are plotting a banker bonus cap that makes existing EU curbs seem generous. The discrepancy is understandable. While pay shouldn’t be regulated, the taxpayer-rescued finance industry isn’t showing much restraint.

DSM’s pill deal oddly blends carve-out and LBO

19 Nov 2013

The world’s top vitamin maker is merging its drug-production arm with a private equity-backed rival. The unit was a subscale distraction. But the cost benefits of the $2.6 bln tie-up are hard to fathom. And DSM cedes control of the unit without cutting its economic exposure.

ING solves first of its two home-grown problems

6 Nov 2013

The Dutch bancassurer is on course to repay 2008 state bailout money with interest, and restructure itself sooner than others that overstretched themselves. But with its own government keener than most to bash banks, ING still faces more regulatory curveballs than European peers.

Conoco shows rivals splitting up is great to do

31 Oct 2013

The driller had a bumper Q3 thanks to hiving off refining and pipelines 18 months ago. Shares in Conoco and its two spinoffs have also bested its full-service brethren, despite similar overall performance. The benefit of a breakup is getting harder for Exxon and Shell to ignore.

Local difficulties dent Heineken’s world view

23 Oct 2013

The Dutch brewer has centred its strategy around owning one of the few global brands in beer. Yet disappointing quarterly results reveal country-specific problems in Russia and elsewhere. Management would do well to lavish more attention on local markets.

Philips can only go so far with cost-cutting

21 Oct 2013

The Dutch electronics group trebled Q3 profit after slashing costs. The shares are up 25 pct since June. Yet revenue growth was tepid. The biggest of Philips’ three businesses, healthcare, looks the most infirm. Peers have done better and Obamacare reforms could pile on the pain.

Carlos Slim dented, not defeated, in KPN tussle

16 Oct 2013

Facing a poison pill, the tycoon dropped a buyout bid for the Dutch telco. Slim has been clumsy, and his 30 pct stake in KPN has lost money. But this is a tactical retreat showing financial discipline. He can return later. For now this usefully frees up funds to spend elsewhere.

Ziggo’s best defence against Malone is the market

16 Oct 2013

The $8 bln Dutch cable company has rebuffed an “inadequate” approach from John Malone’s Liberty Global. But the cable tycoon has already opportunistically bagged 29 pct of Ziggo, so a white knight defence is out. It’s up to the market to bid up the shares against him.

Doubling down on Alitalia bad idea for Air France

3 Oct 2013

After having burnt 1.1 billion euros since its 2009 “fresh start”, the loss-making Italian carrier is once again close to the brink. It is trying to convince Air France-KLM to add to its 25 percent stake. The French group isn’t overly excited at the prospect - for good reasons.

Unilever’s emerging weakness is a strategic hazard

1 Oct 2013

The Anglo-Dutch consumer products outfit is suffering from slower growth in the developing world. Brazil and India are tricky and currency swings are hurting too. Unilever has to be wary of complacency. But its broad plan, to run hard at faster-growing markets, remains right.