Divestment

Just Eat Takeaway faces humiliating U.S. exit

20 Apr 2022

The food delivery group may sell Grubhub, a business it bought last year for $7.3 bln, an embarrassing U-turn for CEO Jitse Groen. Expanding into the tough U.S. market always looked tricky. Getting out when there are few buyers, just as consumers are squeezed, will be harder.

SocGen avoids the worst in costly Russian exit

11 Apr 2022

The French bank is selling Rosbank back to the oligarch it bought the unit from 16 years ago. Despite a 3 bln euro writeoff, the hit to its capital ratio is less than half the worst-case scenario it outlined last month. It’s a fitting end to a long and unhappy Russian story.

National Grid gas sale has green edge on Macquarie

28 Mar 2022

The $54 bln UK company is selling 60% of its gas pipelines arm to a group led by the Australian finance house. The $13 bln deal has financial benefits for both. But National Grid’s switch to electricity is more immediate than the buyers’ plan to pump hydrogen through the pipes.

Capital Calls: White-collar crime, Rusal rejig

7 Mar 2022

Concise views on global finance: The U.S. attorney general wants to go after more individuals as well as companies for corporate crimes. Even law firm Wachtell says top bosses should pay attention; a plan to separate Rusal’s non-Russian bits looks like a challenge.

Capital Calls: McDonald’s, Porsche

22 Feb 2022

Concise views on global finance: With a miniscule stake, activist Carl Icahn is asking for board seats at the $190 bln fast food giant over treatment of pigs; the luxury marque could be worth perhaps 85 billion euros, but may retain a complex shareholder structure.

Capital Calls: Worldline and Apollo’s buyout fix

21 Feb 2022

Concise views on global finance: The payments group’s sale of its terminal business to Apollo for up to 2.6 billion euros relies on preference shares to bridge the gap between buyer and seller.

Reckitt baby food is problem child best kept home

17 Feb 2022

Offloading the sluggish Enfamil unit would boost the Nurofen maker’s growth. But rivals Nestlé or Abbott would face regulatory hurdles, while a buyout group would probably pay less than the unit’s 5.4 bln pound book value. CEO Laxman Narasimhan is better off holding on.

Naturgy split may be less than sum of its parts

11 Feb 2022

The 25 bln euro Spanish power group is putting renewable energy and gas under one roof and fencing off its regulated network business. It could create value if investors see gas as less worthy of a discount than they have in the past. But that’s a pretty big if.

Arm IPO marks sober end to SoftBank chip party

8 Feb 2022

Under pressure from competition authorities, Nvidia dropped its deal to buy the UK chip designer from Masayoshi Son’s group. Arm’s sensitive position makes a listing the only realistic option. But Son will probably need to accept a valuation below the $32 bln he paid in 2016.

Capital Calls: GE’s Larry Culp learns to say “no”

25 Jan 2022

Concise views on global finance: It will be a while before the industrial conglomerate’s markets normalize, and its planned breakup takes place. In the meantime GE is trying to cut costs and be more selective. That means less revenue, at least at first.

Eni’s quirky rejig may turn rivals green with envy

24 Jan 2022

Italy’s $54 bln oil major may list stakes in its green energy and biofuels arms, as well as a Norwegian subsidiary. That’s different from rivals which are financing green investments by selling fossil fuels. Yet if Eni’s spinoffs get cheaper financing, others may follow suit.

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’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.

Capital Calls: Dan Loeb’s gadfly circles again

18 Jan 2022

Concise views on global finance: The U.S. activist’s activists up the ante with call for independent director.

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.

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.

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.

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.

Companies will take breakup pitch too far in 2022

31 Dec 2021

Now that General Electric and J&J are splitting up, bankers will recycle the book for tech, energy and car firms. Many have outgrown the conglomerate model. But those trying to transition their businesses have financial and operational overlap that is important to retain.

Delivery Hero U-turn shows bleaker times for tech

22 Dec 2021

The $28 bln food delivery group is leaving the German market after less than a year. However embarrassing, the move looks rational given the country’s cutthroat competition. Rising interest rates and more volatile markets mean loss-making companies need to keep investors sweet.