Netherlands

Apollo SPAC offers cheap ride on EV hype freeway

28 Jul 2021

Electric vehicle charging group Allego is listing through one of the buyout firm’s blank-cheque companies for $3 bln. It’s a crowded space, but a valuation multiple of 5 times 2024 sales is less racy than rivals. Still, only booming battery car demand will avoid a short-circuit.

Unilever’s inflation struggle is a mixed basket

22 Jul 2021

Higher costs squeezed the $155 bln Marmite maker’s profitability in the first half, forcing CEO Alan Jope to dump his goal of higher operating margins. Hefty marketing spend gives Unilever scope to raise prices faster. But investors are placing a bigger discount on future growth.

European tech titans’ sweet spot may turn sour

21 Jul 2021

Both $300 bln ASML and $170 bln SAP upped their revenue-growth projections. They’re riding trends like soaring demand for chips and cloud computing. But much of the good news is already priced in to their expensive shares. The next surprise for investors may be less encouraging.

UK credibility on China inward M&A gets wafer-thin

8 Jul 2021

Britain’s government initially declined to review Chinese-owned Nexperia’s $87 mln deal to buy the country’s largest semiconductor plant. It has now U-turned, which makes sense given the world chip shortage. But the mixed messages hardly inspire confidence in the process.

EssiLux has clear view to Dutch deal discount

22 Jun 2021

The Ray-Ban maker’s target, GrandVision, breached terms of a 7.2 bln euro takeover agreed in 2019. EssilorLuxottica can walk away, but a better option would be to negotiate a lower price. Lopping off 15% would reflect GrandVision’s weaker earnings and lack of alternative buyers.

Just Eat Takeaway risks heartburn with U.S. deal

16 Jun 2021

The Dutch food delivery group has swallowed Grubhub, its second big bite in just over a year. At 3 times expected 2023 sales, the $19 bln company is valued well below rival DoorDash. Boss Jitse Groen has repeatedly bested European competitors, but investors fear indigestion.

Shell’s U.S. rethink betrays lack of wiggle room

14 Jun 2021

The Anglo-Dutch driller may sell assets worth $10 bln in Texas. Not so long ago the U.S. Permian Basin was a key oil major growth area, but now Shell is under pressure to cut emissions. Restricting carbon while earning a financial return is increasingly determining strategy.

Viewsroom: Big Oil’s global blow

27 May 2021

A small activist fund upended Exxon Mobil’s board while Shell was dealt a setback in a Dutch courtroom. At the same time, Chevron shareholders backed a proposal to cut more emissions. The interests of both stakeholders and shareholders are rapidly aligning in fossil fuels.

Dutch court hands Shell chairman shakeup stick

26 May 2021

A Hague judge has told the oil giant to toughen up its targets for cutting carbon emissions. Besides appealing, Shell could try to dodge the ruling by moving its headquarters. Alternatively, new chair Andrew Mackenzie could shunt the group in the direction of rivals BP and Total.

Naspers goes all-in to crush South Africa discount

12 May 2021

The $100 bln internet group will swap shares with Dutch offshoot Prosus, removing some pressure on its stock. The resulting cross-shareholding is as far as CEO Bob van Dijk can go. Shrinking Prosus’ persistent shortfall to its $212 bln stake in China’s Tencent is a harder task.

KPN LBO looks doomed by arithmetic, nationalism

3 May 2021

The 12 bln euro Dutch phone company flatly rejected takeover approaches by buyout shops EQT and KKR, smacking its share price. Paying more would curb so-so prospective returns. Overcoming potential Dutch government resistance to a debt-laden bid is another challenge entirely.

Total is least-bad pick for confused oil investors

29 Apr 2021

First-quarter results show the French group and rivals BP and Royal Dutch Shell rebounding from last year’s woes. Yet BP’s turn to wind and solar may be too sharp and Shell’s too relaxed. For now, Total’s balanced green ambition and fat dividend look more appealing.

Naspers remains strapped to Tencent roller coaster

8 Apr 2021

Selling a $14.6 bln stake in the Chinese internet giant restocks the South African group’s war chest. But its residual $220 bln shareholding towers over other investments. The best hope for investors is that Naspers finds a way to shrink its weighting on the Johannesburg bourse.

Air France-KLM’s latest rescue tests marriage bond

6 Apr 2021

The European carrier is swapping a loan from the French state for hybrid equity and raising 1 bln euros from investors. The capital rejig should help it stay aloft if the recovery is delayed. But Paris’ increased stake will strain its already tricky relationship with the Dutch.

Naspers can tackle one-third of Tencent problem

19 Mar 2021

Despite listing a Dutch subsidiary in 2019, the South African company still trades at a big discount to its $239 bln stake in the Chinese internet giant. Its inability and unwillingness to sell are enduring factors. An outsize weight on the Johannesburg bourse is easier to fix.

JDE Peet’s spilt milk has lessons for IPO hopefuls

9 Mar 2021

Shares in the $19 bln JAB-backed coffee group dived after weak 2021 guidance. Rivals Illy and Unilever, which may spin off its tea arm, will shudder at the L’OR maker trading below its May IPO. More marketing spends and premium drinks could set them apart in any future listings.

Carlos Slim’s KPN cash call includes buyout cover

24 Feb 2021

The Mexican mogul raised 2.1 bln euros from negative-yield bonds that can flip into a 16% stake in the Dutch telecom operator. If KPN treads water, Slim can keep his stock and repay less than he borrowed. If it’s snapped up by a predator, he still gets some of the upside.

Shell’s new plan tests investors’ green resolve

11 Feb 2021

The Anglo-Dutch group’s decarbonisation strategy will see it stay big in oil longer than BP. European investors now have a choice between Shell’s walking pace and its rival’s handbrake turn into wind and solar. It could become a gauge of how seriously investors take green issues.

Europe’s payments king faces fight to keep throne

10 Feb 2021

Netherlands-based Adyen is one of the region’s few successful listed fintechs, giving it scarcity appeal. Its reliance on large customers like Facebook could one day be a problem, and competition in the bloc is hotting up. A rich $76 bln valuation leaves little room for error.

Europe’s chip darling may fall victim to its hype

20 Jan 2021

ASML’s market value has risen by two-thirds in the past year to $230 bln, helped by surging demand for its kit. Yet CEO Peter Wennink will struggle to meet investors’ heady growth hopes. A drawn-out trade war between China and America would make his job even harder.