Spain

Spain’s utility goof is thin end of net-zero wedge

17 Sep 2021

Madrid’s $3 bln raid on the coffers of its power sector is a clear climate-change own-goal. The political sensitivity of energy prices means it won’t be Europe’s last. The bigger risk is Brussels watering down the carbon-trading scheme partly responsible for gas prices soaring.

Santander performs an acceptable U.S. U-turn

24 Aug 2021

The Spanish bank is paying $2.5 bln to buy out a 20% minority stake in its profitable U.S. consumer financing arm. It only listed the business in 2014, and has had to hike its offer price. But Santander is doing the same deals elsewhere, and it makes capital and earnings sense.

Reheated CVC soccer plan faces better Spanish odds

5 Aug 2021

The sporty buyout fund wants to invest 2.7 bln euros in La Liga, mirroring a proposal that flopped in Italy’s Serie A. At just over 10 times commercial revenue, the higher-flying Spanish league’s valuation is lower. Yet the latest deal’s chances of finding the net look safer.

The Exchange: Spanish PM Pedro Sánchez

27 Jul 2021

In his attempt to revive the economy, Pedro Sánchez wants investors to give Spain more love. Local and global politics make that a challenging proposition. John Foley met with the prime minister as he set out for Wall Street, Silicon Valley and Hollywood but not Washington, D.C.

Greener Acciona comes with stiff family discount

11 Jun 2021

The $9 bln Spanish group’s valuation is yet to reflect the potential uplift from spinning off its renewables unit. That may be because the clan that owns Acciona will also control the new entity. Even so, investors may warm to the fact it could be worth more than its parent.

Investment behemoth IPO can fly without Reddit mob

7 Apr 2021

Asset management platform Allfunds will list in Amsterdam. Its model of channelling banks’ clients into funds means it will miss the amateur share trading frenzy. But its 1.2 trln euros of assets, profitability and growth record make a mooted 7 bln euro valuation attractive.

Cellnex reloads for phone mast M&A shoot-out

4 Feb 2021

The acquisitive Spanish telecoms tower firm is asking investors for another 7 bln euros. That’s more than it needs for its latest 5.2 bln euro purchase. CEO Tobias Martinez will have spare ammunition to fight off heavyweight invaders like American Tower and Britain’s Vodafone.

Naturgy offers cut-price route to green transition

26 Jan 2021

IFM is spending 5 bln euros on 23% of the Spanish utility. Naturgy’s depressed shares and the Australian fund’s use of debt will juice its returns. Moreover, it’s a cheaper way of surfing the renewable energy wave than boarding rivals like Iberdrola.

U.S. intruder cranks up European phone mast party

13 Jan 2021

American Tower is paying 7.7 bln euros for Telefonica’s 31,000 sites in Europe and Latin America. The rich price tag makes the Spanish firm a clear winner. By creating a new rival to leader Cellnex, the deal may also help peers like Orange or Deutsche Telekom sell their assets.

Repsol stake sale could speed up green shift

16 Dec 2020

The 13 bln euro Spanish oil group may offload 25% of its gas stations arm. Flogging a chunk of what is a relatively highly valued business could raise 2.5 billion euros. That would provide critical firepower to get Repsol’s renewable energy capacity closer to rivals like Total.

Cellnex M&A machine scales top of valuation tower

7 Dec 2020

After two years of frenetic dealmaking, the telecom-mast firm’s market value has hit 25 bln euros. With cash flow from existing contracts accounting for maybe 90% of that worth, it’s getting little credit for future M&A. As rivals belatedly muscle in, that may be just as well.

Sabadell takeover is still only a matter of time

27 Nov 2020

The Spanish lender broke off takeover talks with larger rival BBVA after rejecting an offer worth 2.5 bln euros. Cost savings potentially worth double that mean a deal still makes sense. Boss Jaime Guardiola must hope a vaccine-led rebound allows him to demand a higher price.

BBVA need not spend all its U.S. winnings on M&A

17 Nov 2020

After selling assets to PNC for 10 bln euros, the 24 bln euro Spanish bank is in talks to buy domestic peer Sabadell. Doing so would leave boss Carlos Torres with enough excess capital to buy the rest of its Turkish lender. Higher returns in Mexico are a better use of resources.

U.S. bank M&A is a money box waiting to be raided

16 Nov 2020

PNC’s merger with BBVA’s American business will unlock $900 mln of savings, the lenders think. That would cover two-thirds of the purchase price. With over 4,000 banks in the country, there’s vast scope for consolidation, if regulators can stomach it. They have reason to do so.

BBVA shows European banks how to exit the U.S.

16 Nov 2020

The Spanish lender is selling its struggling American unit to PNC for $11.6 bln, a chunky premium to book value. The deal gives boss Carlos Torres firepower to expand elsewhere. Rivals Santander and HSBC should follow suit, but face a shortage of similarly deep-pocketed buyers.

CK Hutchison nails its colours to the Cellnex mast

12 Nov 2020

The Spanish phone tower juggernaut is hoovering up 24,600 sites from Hong Kong tycoon Li Ka-shing’s group. The 10 bln euro price is steep. But UK and Italian network overlaps should mean savings. Partial payment in Cellnex shares also gives Hutch a taste of any valuation boost.

Spain’s cheapest bank is only for the brave

30 Oct 2020

Sabadell is worth less than a fifth of its 11 bln euro book value. With rivals consolidating, it could become a target for BBVA or Santander. While lowly capital buffers leave little room for a spike in bad debts, cost savings worth 6 bln euros mean a deal could still make sense.

Santander’s global blessing may be a virus curse

27 Oct 2020

Quarterly earnings at the $34 bln Spanish bank rallied, helped by booming loans in Brazil. That justifies boss Ana Botin’s Latin America growth focus. But with over half of profit from states with high Covid-19 infection rates, her global reach may not remain an advantage.

Iberdrola’s green deal is pricy bet on Biden win

21 Oct 2020

The $82 bln Spanish utility is buying U.S.-based PNM Resources for $8.3 bln including debt. Without synergies, the price looks punchy. But given wind and solar assets could get even dearer if Joe Biden becomes president and oil majors charge in, moving now has some logic.

Vinci slump makes case for $6.1 bln energy deal

20 Oct 2020

The industrial group has warned of a steep fall in earnings partly due to lost airport sales. That fortifies the logic for a recent cash-and-shares offer for ACS’s energy division. Trading a 5% stake to the Madrid-based company for a steadier business looks increasingly sensible.