Consumer Products and Services

Capital Calls: Siemens Gamesa, Psych SPAC

21 Jan 2022

Concise views on global finance: The 11 billion euro wind turbine manufacturer serves up its third profit warning in nine months; Hope for drugs to treat depression is tempered after rivals suffer mishaps.

Viewsroom: Credit Suisse chair, Unilever’s GSK bid

20 Jan 2022

As António Horta-Osório quits the Swiss lender after less than a year, Liam Proud explains what happened and offers career advice. And Unilever’s 50 bln pound offer for the pharma giant’s consumer unit puts both CEOs on the spot, say Aimee Donnellan and Dasha Afanasieva.

GSK consumer fiasco leaves Unilever vulnerable

19 Jan 2022

The Dove maker ruled out raising its 50 bln pound bid for the pharma group’s toothpaste unit. Investors will be relieved CEO Alan Jope isn’t overpaying. But he’s now stuck with a food portfolio he’s clearly not happy with. His rash strategy will increase pressure for a breakup.

GSK’s consumer promise will be hard to live up to

19 Jan 2022

The drugmaker’s CEO Emma Walmsley rebuffed Unilever’s 50 bln pound bid for its personal health unit. Yet her plan to spin the division off would need rosy sales growth and a premium valuation to trump the Marmite maker’s offer. It’s a risk some investors may be prepared to take.

Microsoft’s Activision deal has on virtual goggles

18 Jan 2022

The software giant is paying $69 bln for the gaming firm, a 45% premium, though less than Activision’s value a year ago. It’s a good fit and gives Activision shareholders a way to cash out. But it is likely to catch the eyes of watchdogs, who have mostly let Microsoft skate by.

Goldman Sachs goes back to the balance sheet

18 Jan 2022

The Wall Street firm’s trading and advisory fees hit a record in 2021, but momentum is fading. Goldman’s newer banking arm, which lends to consumers via credit cards and installment loans, should pick up as interest rates rise. But with lots of rivals, growth isn't coming cheap.

Unilever’s health kick is risky prescription

17 Jan 2022

CEO Alan Jope wants to expand in healthcare, beauty and hygiene while selling slower-growing food brands. But raising his 50 bln pound bid for GSK’s toothpaste unit will dent returns, while other big targets are scarce. Already grouchy investors have more reasons to grumble.

Unilever piles pressure on GSK spinoff plan

17 Jan 2022

GlaxoSmithKline rebuffed the sauce-to-soap group’s 50 bln pound bid for its consumer unit. Unilever’s plan faces challenges. But a listing is unlikely to earn a higher valuation for the Advil maker. To placate investors, GSK boss Emma Walmsley needs other buyers like J&J and P&G.

Unilever can still avoid Danone’s fate

14 Jan 2022

The $137 bln Dove maker’s stock has lagged rivals, activist Nelson Peltz may be circling, and other investors are grumbling. The recent ouster of the French yoghurt maker’s boss is a warning. CEO Alan Jope could pre-empt any revolt with clearer targets to sell struggling brands.

Capital Calls: Biogen hits Medicare wall

12 Jan 2022

Concise views on global finance: An unusual decision by the U.S. government program to restrict payment for the firm’s Alzheimer’s drug is likely to be an exception rather than becoming the rule.

Inflation will dent U.S. consumers’ rosy mood

12 Jan 2022

Prices of goods and services rose 7% in December, the fastest annual pace in 40 years. The hit to their wallets has yet to puncture Americans’ optimism about the economy. Persistent hefty increases in housing costs and other basics could, however, change that this year.

Citi’s Mexico exit leaves it neater but not better

12 Jan 2022

Boss Jane Fraser is shrewdly selling a business that she once oversaw, and which her predecessor Mike Corbat stubbornly refused to jettison. The lender is growing more focused under its new chief executive but what’s left, in particular Citi’s U.S. consumer bank, lacks oomph.

Turo IPO falls short of being Airbnb for autos

12 Jan 2022

The car-sharing startup backed by Barry Diller’s IAC has filed to go public. If it can keep growing as an intermediary like Airbnb, it could be worth $7 bln. The risk is it ends up with heavier cost burdens like Uber - or even Hertz, which would peg its worth below $2 bln.

Boots buyout 2.0 requires growth shot in the arm

12 Jan 2022

Private equity firms CVC and Bain may be eyeing a bid for Walgreens’ UK pharmacy chain for a mooted $8 bln, some 15 years after KKR’s acquisition. This time round, new owners could juice up its online sales and health business. The threat from Amazon makes it a riskier bet too.

Jefferies’ lucrative SPACs deliver a triple thwack

11 Jan 2022

The investment bank has made a niche for itself in underwriting, advising and sponsoring blank-check firms. Its profitable work in all three roles has left regular investors underwater. Jefferies isn’t the only one, but a smaller firm could take a bigger hit to its reputation.

Digital ad hogs leave room at the trough

11 Jan 2022

Google and Facebook dominate U.S. online advertising, but the overall pie is growing quickly. Even if the twin giants take their usual share, that leaves an additional $50 bln up for grabs, Breakingviews estimates. That’s an opportunity for the likes of Snap and Microsoft.

Disney can follow WarnerMedia breakup blueprint

7 Jan 2022

Mickey Mouse’s parent company has a sprawling business that, like AT&T’s soon-to-be-former content service, isn’t getting full credit for its value. WarnerMedia’s decision to ditch one of its networks has sticking points. But Disney could benefit from doing a spinoff 2.0.

Nelson Peltz needs to choose his asset manager

7 Jan 2022

The activist's Trian wants board representation at Janus Henderson, backed by its 17% stake. But Trian also owns 10% of Janus competitor and potential merger partner Invesco. If it came to a deal between the two, Peltz would look conflicted and that could discredit his arguments.

Walmart gets taste of the Lotte treatment in China

7 Jan 2022

Officials lambasted the U.S. retailer for network security problems, in what looks like blowback over allegations that Xinjiang-made products were yanked from shelves. The South Korean chain was hounded out of China by similar methods. Worst case, Walmart could share that fate.

Capital Calls: HSBC and China, Dr. Martens

6 Jan 2021

Concise views on global finance: The Asia-focused lender has a chance to take greater control of its mainland brokerage after recent positive noises from Beijing; buyout firm Permira picks a good time to offload shares in the $5 bln bootmaker.