Divestment

Vivendi’s discount haunts Bollorés post-breakup

17 Dec 2024

The media group split in four to shed a conglomerate valuation penalty. The bits are now collectively worth just 8 bln euros, implying no upside from the move. One lesson is that the discount was always down to the controlling Bolloré clan’s influence rather than the structure.

AstraZeneca lacks good medicine for Chinese limbo

13 Dec 2024

Executives at the $205 bln drugmaker have been detained by Beijing, hitting its shares. One way for CEO Pascal Soriot to ringfence China risk from the rest of AstraZeneca might be to list or spin off the unit. Yet that might just highlight fresh reasons to mark down the stock.

Comcast rescripts its stale convergence plotline

20 Nov 2024

The $160 bln cable operator is spinning off CNBC and other networks while heralding integration. In truth, it’s a concession that the logic behind its bold NBC Universal deal has changed. At $12 bln, per Breakingviews estimates, the unit is small but nevertheless significant.

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.

Vodafone M&A spree leaves German problem untouched

12 Nov 2024

CEO Margherita Della Valle has spent the past 18 months remodelling the $23 bln telco by striking deals in Britain, Spain and Italy. But the shares have trailed European rivals’. To change that, the former finance chief will have to tell a better Teutonic growth story.

German M&A flurry is powered by lasting tailwinds

4 Nov 2024

Teutonic deal volumes are below their 2021 peak, like everywhere else. Yet a burst of activity, including the $15 bln privatisation of DB Schenker and $16 bln Covestro sale, show signs of life. Radical changes to the country’s industrial model imply an enduring rebound.

Vivendi activist’s critique falls on deaf ears

1 Nov 2024

Pushy fund CIAM reckons a planned carveup of the 10-bln-euro media empire favours the controlling Bolloré clan. That’s true. Yet the split at least eases a conglomerate discount. And since voting it down would be a leap into the unknown, investors will probably just stay in line.

Sanofi sale is critical health check for mega LBOs

10 Oct 2024

The French pharma company is deciding whether to sell its consumer drugs unit to Clayton Dubilier & Rice or PAI for $17 bln, says Bloomberg. It helps that volatile equity markets make an alternative listing riskier. A successful deal could give large buyouts a shot in the arm.

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.

German IPO gives buyout shops scant cause to cheer

4 Oct 2024

Academic publisher Springer Nature rose 7% on its Frankfurt debut. But it had been offered at a tangible discount to help owner BC Partners offload a long-held stake. Private equity sellers in a similar position won’t get much encouragement to take the plunge too.

Greece is unlikely victor in bank selldown race

3 Oct 2024

Athens sold 10% of National Bank, effectively ending the privatisation of the major lenders it rescued. Germany, the Netherlands, the UK and Ireland still own bank stakes. Greeks can thank continued government support and a strong economy, fuelled by rising investment.

Germany gives DSV a sweet deal on freight takeover

12 Sep 2024

The Danish group will acquire Schenker, the logistics arm of indebted German railway operator Deutsche Bahn, for 14 bln euros, beating a higher CVC offer. Berlin may be hoping that an industry player will be a more stable owner. But DSV’s share price jump shows it got a bargain.

Fuji Soft’s $4 bln sale needs a rethink

9 Sep 2024

Shares of the IT software specialist are trading 7% above the price of an agreed takeover offer from buyout firm KKR, and above a higher price its rival sponsor Bain is dangling at the target. After wrestling with a sale, the Japanese company has left too much value on the table.

Saudi fund’s prudence pivot is only half complete

20 Aug 2024

The $925 bln Public Investment Fund is spending more money locally. That should do more to help Saudi’s diversification push than past international forays. But the domestic projects are often speculative, implying low returns and a continued shortage of foreign co-investors.

Power grids’ low-wattage resources may spark M&A

13 Aug 2024

European electric utilities have to invest big to meet rising demand. Yet balance sheets are laden with debt and raising equity is tough. Some will have to sell assets, or whole companies. Iberdrola’s $5 bln acquisition of a UK peer at a decent premium could be the first of many.

Woodside’s deal poses a new green conundrum

13 Aug 2024

Months after shareholders rejected its climate transition plan, the oil driller is buying an ammonia facility in Texas for $2.4 bln to help hit its emissions reduction goals. But the tech and end-uses are questionable. The return gives investors little to cheer, too.

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.

Continental breakup tracks novel M&A route

6 Aug 2024

The 11 bln euro manufacturer is considering spinning off its struggling auto parts unit. That should help reveal its healthier tyres division’s hidden value. The automotive sector’s need to cut costs to face the green transition may entice suitors for both businesses.

SocGen’s valuation salvation may lie in a breakup

29 Jul 2024

The 19 bln euro French bank trades at a 60% discount to rivals – the widest gap in a decade. None of its core units are particularly attractive, making a revival tough. But selling listed holdings, worth 8 bln euros, could fund a deeper restructuring and make M&A more plausible.

Rose-colored Ray-Bans shade brand rehab realities

26 Jul 2024

EssilorLuxottica is paying $1.5 bln for Supreme, whose cachet suffered under Vans owner VF. Streetwear strays from the buyer’s eyewear expertise and the imputed return on capital looks modest. American Apparel also serves as one of many cautionary tales on fashion after it frays.