Consumer Products and Services

Unilever bows to corporate version of Brexit revolt

5 Oct 2018

The Anglo-Dutch group ditched a vote to move its head office to the Netherlands after UK shareholders rebelled. The saga shows the limits of the special treatment that large multinationals can ask from politicians. It also demonstrates what investors can do when they join forces.

KKR takes sides in Southeast Asia’s tech battle

5 Oct 2018

The buyout firm is investing in a leading Filipino payments startup, alongside Tencent. The main rival is backed by Alibaba. Chinese giants and SoftBank have been burning cash to win users in a regional war of attrition. KKR may get caught in the crossfire.

Unilever should delay its head office vote

3 Oct 2018

A growing number of UK shareholders oppose the Persil maker’s choice of Rotterdam as its base. Postponing the vote would give investors more clarity on Dutch tax changes, and Unilever more time to spell out the benefits of the shift. Pushing ahead risks an embarrassing defeat.

BHP can hide behind Unilever dual-listing mutiny

2 Oct 2018

Some big shareholders oppose the Dove soap maker’s plan to switch to one, Dutch, headquarters. Pushy investor Elliott has been calling for a similar corporate overhaul at the world’s largest miner. There are differences, but the campaign for simplicity just got more complicated.

H&M gets too much credit for a patchy new look

27 Sep 2018

A glitchy supply chain sent the 23 billion euro fast-fashion retailer’s pre-tax profit down a fifth in the third quarter. Strong online demand was a rare bright spot. Investors who bid up the stock 10 percent ignore high levels of unsold stock and sales growth well below targets.

China’s tariff cuts are silver lining of trade war

27 Sep 2018

Import taxes on many industrial goods are coming down, expanding earlier reductions and lowering the overall rate to 7.5 pct from 9.8 pct. That may blunt charges of protectionism abroad and help companies at home. Expected savings also should result in a stronger Chinese economy.

Unicorns spawn new fantastical tech beasts

27 Sep 2018

Just a few years ago, a mythology sprang up around startups with a $1 bln paper valuation. India’s Oyo Hotels just became the latest to raise at least that much cash in one go. For the unbridled chaos these investment creatures represent, they might best be labelled centaurs.

Chinese pharma R&D mixes up a potent IPO formula

26 Sep 2018

WuXi AppTec, a $13 bln group which carries out research and clinical trials for the likes of Pfizer, will list in Hong Kong. An overhaul of mainland rules to spur local drug development means business is booming. After a healthy debut in Shanghai, investors will take note.

Unilever has itself to blame for investor revolt

25 Sep 2018

A growing group of shareholders want to block the Pot Noodle maker’s plan to pick Rotterdam over London as its global HQ. The move’s benefits are overshadowed by uncertainty over how UK investors will be taxed. Rushing the decision has left Unilever more vulnerable to opposition.

Casino is loser in slanging match with Carrefour

24 Sep 2018

The troubled French grocer says it talked with its larger rival about a potential tie-up. The latter denies anything of the sort. An informal chat may have occurred but the Rallye-owned supermarket has scuppered a potential fix for its problems by revealing too much too early.

Chinese movie app IPO misses the red carpet

21 Sep 2018

The owner of ticket seller Maoyan wants to raise up to $1 bln in Hong Kong. Revenue has been climbing, but the unprofitable group is fending off Alibaba in a subsidy war. Box office numbers have cooled too, after a crackdown on fraudulent sales figures and several major flops.

Jack Ma’s American dream clashes with China First

20 Sep 2018

Alibaba’s retiring founder rescinded a promise to create 1 mln U.S. jobs. He blamed tariff tensions, but Kroger and other foreign brands have not had a level playing field on the global Tmall site. Unless that changes, the company will be more of a trade problem than solution.

Meituan IPO shows how to tempt investor appetites

20 Sep 2018

Shares of the takeaway-to-taxi app rose as much as 7 pct in their Hong Kong debut, lifting its value to $56 bln. Phone maker Xiaomi’s fumbled start in July dented confidence. But Meituan anchored expectations and brought in big funds. It’s a sensible recipe for others too.

Indonesia’s Go-Jek can hitch ride on Meituan IPO

17 Sep 2018

The smartphone-based taxi service is raising about $2 bln. New cash will help Nadiem Makarim’s unicorn expand in the region and even into online shopping. A successful market debut by its Chinese backer Meituan Dianping also should fuel Go-Jek’s quest to be a multi-purpose app.

Unilever shows wisdom of snubbing Kraft’s recipe

13 Sep 2018

The Dutch maker of Ben & Jerry is expanding faster, becoming a leaner company, and its investments are paying off. Kraft, meanwhile, looks light on ideas. Had Unilever accepted a merger offer two years ago, shareholders would be 15 pct worse off today.

Spotify value is out of tune with musical reality

13 Sep 2018

The $33 bln streaming service is growing quickly and inching towards profitability. Yet investors are already giving the group credit for its ambitious targets. Powerful labels like Universal have every reason to make life difficult for boss Daniel Ek.

Meituan Dianping feeds into Chinese tech fears

13 Sep 2018

The Tencent-backed super-app owner raised over $4 bln in its IPO. Big fund managers could scarcely afford not to buy shares, but mom and pop investors were less enthusiastic than for other recent market debuts in the sector. It’s a good indication of waning investor appetites.

UK landlords’ lifeboat has a Debenhams-shaped leak

11 Sep 2018

As British retailers flounder, the groups that rent them floor space have been pointing to continuing robust demand for prime locations. Debenhams’ potential restructuring not only threatens a key source of rental income. It also undermines landlords’ main counterargument.

Didi falls way behind Uber on road to IPO

11 Sep 2018

Both burn heaps of cash, but new figures reveal that the $56 bln Chinese app pockets just two cents of every rider dollar. For $72 bln Uber, the roughly equal sum after subsidies is 23 cents. Differences are getting clearer even if neither looks ready to ride onto public markets.

Private equity confronts plastic risk in RPC swoop

10 Sep 2018

The UK group that makes packaging for the likes of Nestlé is being sounded out by Apollo and Bain. Given the global war against plastic, a deal would be risky. But with RPC less exposed to throwaway items, the buyout groups can make a high enough return to make it worthwhile.