Switzerland

Holcim’s US sure thing is now a wait-and-see

25 Mar 2025

The $62 bln Swiss materials group reckons its soon to be New York-listed North American arm can grow strongly up to 2028. Assuming it hits its targets, 'Amrize' may yet get the re-rating that underpins the split’s logic. But the newly wobbly US economy makes that less certain.

Blackstone pushes pharma investors their cash fix

13 Feb 2025

Drug companies like Novartis must constantly add new therapies as old ones gain new competition. Snag is, shareholders want stodgy giants to pay dividends, not splurge on research. A $3 bln deal shows how the buyout shop can tend farmed-out programs, for a hefty price.

Answer to UBS’s chronic US problem may be M&A

4 Feb 2025

CEO Sergio Ermotti’s key Americas wealth unit manages $2.1 trln but has a tiny 9% pre-tax margin. He wants to get that figure to 15%, which is still miles below Morgan Stanley’s equivalent number. Buying a US money manager, or even an investment bank, could help close the gap.

Davos presents elites with economic Rorschach Test

27 Jan 2025

Delegates in the Swiss ski resort hailed Donald Trump’s deregulatory plans and got starry-eyed about AI. Others worried about inflation, debt, and fossil fuels, while Europeans bemoaned their back yard. Assessing the “mood in Davos” reveals more about the observer than the world.

Richemont shine casts fuzzy light on luxury rally

16 Jan 2025

The $94 bln Swiss group’s shares rose 16% as the Cartier owner smashed quarterly sales forecasts. The numbers pushed up rival stocks like LVMH. That seems premature. US consumers may offset weak Chinese spending but most of its competitors lack Richemont’s jewellery focus.

Politics will test Franco-Swiss $33 bln megamerger

15 Jan 2025

Parisian testing and certification group Bureau Veritas is discussing a tie-up with Geneva-based peer SGS. In theory, a deal in the fragmented sector could bring helpful scale and diversification. But the French government’s 4% stake may make it hard to extract racy cost savings.

European software deal runs on servers of hope

19 Dec 2024

Microsoft supplier SoftwareOne is paying a mere 13% premium to buy Norway’s Crayon Group for $1.4 bln, mostly in shares. Private equity could swoop for the enlarged entity, improving the picture for the target’s investors. Right now, they’re obliged to rely too much on hope.

Amcor’s cheap packaging deal hides a fragile item

20 Nov 2024

The Switzerland-based company is paying $8.4 bln for US rival Berry. It’s a low price when compared with the cost savings on offer, but the target brings with it debt and a business that is struggling to grow. Rapid consolidation among peers also raises the pressure to merge.

New Nestlé CEO wakes up and smells the bad coffee

19 Nov 2024

The KitKat maker’s boss Laurent Freixe unveiled a plan to get the $230 bln group moving again. Yet a 4% sales-growth target and unchanged operating margin seem low. Cutting $2.8 bln of costs to invest in marketing makes sense, but he’ll have to battle rising ingredient prices.

Trump 2.0 will see more European firms do a Holcim

18 Nov 2024

The $56 bln Swiss building materials group is splitting off its US unit and listing it separately. Some CEOs may think President-elect Donald Trump will spur a growth spurt. Fear of missing out, and a huge valuation gap, will make other European companies ponder similar moves.

Robust banks impair pleas for lighter regulation

31 Oct 2024

Lenders on both sides of the Atlantic are doing relatively well, despite concerns over the effect of shifting rates. In this Viewsroom podcast, Breakingviews columnists debate what is driving growth, and why CEOs are simultaneously bemoaning increased scrutiny from watchdogs.

UBS can share more M&A savings with investors

30 Oct 2024

CEO Sergio Ermotti keeps upping the pace of cost cuts from buying Credit Suisse, with his 2024 target now $7.5 bln. Yet expenses elsewhere in the bank seem to be offsetting those gains. To please shareholders, UBS may have to let more of the bounty drop down to the bottom line.

Swiss finish would take shine off UBS’s M&A gift

21 Oct 2024

The bank’s $3.8 bln takeover of Credit Suisse was described as the 'deal of the century'. But $19 bln of extra capital charges so far, and another looming hit from local regulators, will lower the returns. The next time a bank rescues a rival, it may push for even sweeter terms.

Richemont exits online hell, but heaven is way off

9 Oct 2024

The $70 bln luxury group is offloading its ailing platform YNAP in exchange for a stake in US-listed buyer Mytheresa. Chair Johann Rupert gets rid of a loss-making arm. But the sector’s dubious economics make it hard to see how he winds up with a holding that offsets his blushes.

New consumer CEOs start life in the slow lane

24 Sep 2024

Nike joined Campari, Nestlé and Starbucks in abruptly ditching its boss. There’s plenty of scope for the new CEOs to remedy their predecessors’ missteps. But a common thread at the four groups is slowing sales amid consumer weakness, making the turnaround jobs much tougher.

Nestlé L’Oréal sale would add sugar to sour fix

5 Sep 2024

The Kit Kat maker’s new CEO Laurent Freixe may have to sacrifice profitability to claw back market share. Flogging part of the consumer group’s 20% stake in the $234 bln beauty giant could help fund buybacks or special dividends, taking the sting out of a painful turnaround.

Nestlé’s CEO switch serves up unappetising menu

23 Aug 2024

The $275 bln consumer-goods group is replacing its boss of eight years, Mark Schneider, with insider Laurent Freixe. Weak sales and a sliding valuation probably justify the abrupt change. But investors will fear it heralds a more painful turnaround than they previously expected.

Europe’s dealmakers begin tough redemption journey

19 Aug 2024

The market share of BNP, Barclays, UBS, SocGen and Deutsche seems to have troughed at around 8% in M&A and 6% in equity underwriting. The days of ever-increasing US dominance may be over. Getting investors to attach more value to these volatile units, though, is the harder job.

Growth is missing piece in UBS valuation puzzle

14 Aug 2024

The $100 bln lender is speeding up its cost cuts and shrinkage of Credit Suisse’s investment bank. But the bits of UBS investors like, such as wealth management and Swiss banking, seem sluggish. Changing that will be key to closing the value gap with rivals like Morgan Stanley.

Glencore may be the next UK listing to head west

7 Aug 2024

The $61 bln miner had planned to spin off its coal unit via a New York IPO. Given the pollutant’s profit remains alluring, it now won’t. But Glencore boss Gary Nagle could weigh up US investors’ greater fondness for fossil fuels, and opt to move the whole company instead.