Chemicals

UAE’s $20 bln chemical IPO is pricey for a reason

26 May 2022

ADNOC and Borealis’ joint venture Borouge is to be Abu Dhabi’s largest listing. The company is priced at a premium to rivals like BASF and SABIC, at a time when higher shipping costs are starting to bite. Yet the group’s cash and dividend profile support a princely valuation.

Capital Calls: Coinbase is conjoined to crypto

11 May 2022

Concise views on global finance: The exchange saw users and volumes fall, revenues slashed and lost over $400 mln in the first quarter. When cryptocurrencies slump, Coinbase has no choice but to follow.

Bayer has 29 bln reasons to say bye-bye to CEO

29 Mar 2022

Four years on, the 61 bln euro group’s Monsanto purchase has left it with cancer litigation and a clunky structure. Its current worth may be 32% less than the value of its bits, arguing for a breakup. That’s hard while boss Werner Baumann, the deal’s architect, is in place.

Capital Calls: Clariant’s whistleblower woes

14 Feb 2022

Concise views on global finance: The $6 bln Swiss chemical firm’s shares fell by as much as 20% after it delayed 2021 results due to an accounting probe.

The Exchange: Hydrogen wave

27 Jan 2022

Can green hydrogen decarbonise big chunks of our economies? Air Products CEO Seifi Ghasemi, who’s backing the carbon-free gas in a major Saudi Arabia project, thinks so. He tells Lisa Jucca how his $61 bln group plans to be the world’s top green hydrogen producer in five years.

Battery IPO leaves LG Chem low on power

17 Jan 2022

The South Korean group's $11 bln spinoff was partly designed to unlock value. But the parent now trades at a discount to its 82% stake in its newly unleashed subsidiary. Its unloved petrochemicals-to-materials rump is failing to electrify investors. That looks harsh.

Climate-change money will flow freely to Plan B

24 Dec 2021

COP26’s so-so outcome makes damaging temperature rises more likely. At some point, optimal portfolios may require guns and canned food. Until then investors will lean towards shares in Syngenta, Veolia and other companies that aid adaptation to global warming not just mitigation.

Rentokil’s latest U.S. gambit looks a stretch

14 Dec 2021

The $15 bln pest control giant is paying a 47% premium for stateside rival Terminix. Rentokil has picked an opportunistic moment to cement its expansion into the U.S. market. But the valuation still looks ambitious for a company notorious for over-eager dealmaking in the past.

Saint-Gobain’s U.S. deal will cement its Sika envy

6 Dec 2021

The $34 bln French construction firm tried and failed to buy its Swiss rival, which then went on a growth spurt. Saint-Gobain’s $2.3 bln offer for U.S. group GCP will help it decarbonise. The catch is that Sika made a similar move last month, and the returns on that look better.

Sika has scope to focus on grander form of defence

11 Nov 2021

The $55 bln Swiss group is paying $6 bln for BASF’s old construction chemicals unit. Two years ago, bulking up helped see off hungry French rival Saint-Gobain. Now three times the size, Sika can use deals like this to position itself at the good end of a hard-to-green sector.

DuPont financial tinkering comes at too high price

2 Nov 2021

The chemical giant’s $5 bln purchase of peer Rogers is a logical attempt to shift its focus to future-proof industries. It looks to be overpaying, though, which risks destroying value for shareholders – much like the years of buys, spinoffs and sales that preceded it.

Solvay activist’s Greenpeace costume doesn’t wash

4 Oct 2021

Smug from shaking up Danone, Bluebell Capital is chiding the chemicals group for dumping limestone on a Tuscan beach. With only token economic exposure, its bid to oust boss Ilham Kadri lacks heft. It’s also unclear what other investors gain from joining its eco-warrior campaign.

Capital Calls: China/TPP, Flavourings, Chill-boxes

17 Sep 2021

Concise views on global finance: China formally applies to join the Pacific trade pact; EQT-owned Azelis has a strong market debut; Sweden’s Dometic is shelling out a cool $677 mln for Texan chill-box maker Igloo.

Capital Calls: U.S. jobs, $7 bln tax settlement

3 Sep 2021

Concise views on global finance: Slow U.S. job growth signals caution for the Fed; meanwhile, a giant deal between hedge fund executives and the IRS gives legs to President Biden's tax plans.

The Exchange: Good chemistry

10 Aug 2021

Jean-Marc Gilson, the first foreigner to run industrial giant Mitsubishi Chemical, is streamlining a conglomerate with fingers in everything from pharma to batteries. He talks with Pete Sweeney about clean energy, better governance and how outsiders fit into Japan Inc.

Capital Calls: Moderna, Qualcomm, US tax, ViacomCBS

5 Aug 2021

Concise views on global finance: The Covid-19 vaccine maker is looking past the pandemic; the telecoms group is offering $4.6 bln for Veoneer; U.S. Democrats are trying to close the carried-interest loophole; ViacomCBS is betting "South Park" can boost its streaming service.

Inflation complicates Reckitt’s tricky turnaround

27 Jul 2021

The Strepsils maker’s stock fell as much as 9%, as rising costs hurt its profitability. The shares are now down since CEO Laxman Narasimhan took over in 2019, highlighting the challenges he faces in reviving the group’s fortunes. A likely boom in cold medicine sales should help.

Syngenta plants listing seed in rich Chinese soil

23 Jun 2021

The Swiss agrochemical giant’s Beijing-backed owners are cultivating a Shanghai IPO with a possible $60 bln valuation. That’s punchy. But with local investors desperate for global exposure and farm-produce prices soaring, an ambitious price tag may be achievable.

Capital Calls: Airbus signals liftoff, Bill Gates

27 May 2021

Concise views on global finance: The global aircraft industrial complex got a boost after the European plane maker said it hopes to churn out more of its A320 short-haul workhorses per month than expected; Microsoft founder’s huge private investment vehicle under scrutiny.

Market jitters make energy IPOs suddenly look good

4 Mar 2021

Wintershall Dea is preparing to list. Fears over higher borrowing costs make cash-generative oil and gas companies look relatively attractive compared to the high growth stocks investors have been dumping this year. Stabilising crude prices could make for an even sweeter spot.