Divestment

Glencore’s activist is misguided but not unhelpful

30 Nov 2021

Bluebell is pushing the $63 bln miner-trader to spin off coal. Thungela’s plans to dig up more of the mineral after its Anglo spinoff weaken the argument, and prices are at record highs. Still, if it makes Glencore quit coal quicker than its 2050 target, it’s a job well done.

Capital Calls: Eni spinoff

22 Nov 2021

Concise views on global finance: The $50 bln Italian oil group has a new name for the renewable energy and retail arm it plans to partially list.

Viewsroom: European bank M&A, De-Dutching Shell

18 Nov 2021

Big lenders in the euro zone are doing deals, but not the kind investment bankers dream about. BNP Paribas is in U.S. retreat, BBVA bulks up in Turkey and KBC goes Bulgarian. Liam Proud explains. George Hay explains why the Anglo-Dutch oil major is dropping the Dutch bit.

BNP Paribas U.S. exit would be wise but messy

15 Nov 2021

The French bank may sell BancWest for up to $15 bln. Offloading the subscale unit makes sense, though a dearth of buyers means CEO Jean-Laurent Bonnafé may have to take a low price if he wants a clean break. The risk for investors is that he squanders the proceeds on risky M&A.

Toshiba split edges it slowly down the right path

12 Nov 2021

The $19 bln conglomerate plans to break into three, days after fellow former titan GE did the same. For Japan Inc, it’s revolutionary. More focused units should attract better managers and valuations. But the two-year timetable seems designed to discourage more vocal investors.

AstraZeneca’s virus fix becomes awkward appendage

10 Nov 2021

The $195 billion drug group is moving its Covid-19 jab and related treatments into a new unit. That could open the door to a sale to a peer like Johnson & Johnson. But the drug’s uncertain future and messy political history make any deal tricky and unlikely to deliver much value.

GE breakup is common sense, at least in theory

9 Nov 2021

Carving up the $120 bln conglomerate is no longer the drastic step it would have seemed under CEO Larry Culp’s predecessors. After Culp’s cleanup, three separate, more focused businesses could be worth more. But financial engineering often disappoints – especially at GE.

Unilever’s tea makes for a tasty buyout brew

2 Nov 2021

The Dove maker is selling brands like PG Tips and Pukka, worth perhaps 4 bln pounds. Bringing sales to a proper boil could give private equity giants like Carlyle or Advent an invigorating 19% return. CEO Alan Jope’s struggling personal care lines may not hit the same sweet spot.

Novartis’ generic surgery will improve its health

26 Oct 2021

The $207 bln drugmaker is considering the future of its ailing copycat-drugs unit. With few obvious buyers, CEO Vas Narasimhan may have to accept a knockdown price or sell it in pieces. Either option should deliver a better prognosis for the rest of his business.

Altice Portugal sale would fuel Drahi M&A machine

22 Oct 2021

CVC and Blackstone are eyeing a 7 bln euro deal for the telecom tycoon’s Iberian unit, Bloomberg reported. They could net a tidy return since it has already done the heavy lifting on fibre investment. A sale would give the Sotheby’s owner cash to fund a tilt at France’s Eutelsat.

Time to end Richemont’s online fashion drag

18 Oct 2021

The Cartier owner may sell its e-commerce business YNAP just three years after taking it over. A deal with Farfetch or other rivals might reap at most 3.6 bln euros. Yet, by cutting exposure to a lossmaking unit, boss Johann Rupert would smarten up his company’s dowdy valuation.

Telefonica can play hard to get in fibre sale

6 Oct 2021

The 23 bln euro Spanish telco may flog a chunk of its super-fast domestic broadband network. With the fibre rollout almost done and debt vaguely in check, Telefonica isn’t desperate for the cash. That means it can wait for a buyer ready to top the reported 15 bln euro valuation.

Elliott’s UK power play rests on blue-sky thinking

23 Sep 2021

The activist has built a stake in SSE and may seek a spinoff of its renewable generation arm. That could hike the $23 bln utility’s value. But it requires hefty assumptions about wind growth, and the state’s readiness to allow tinkering of a stable model amid an energy crisis.

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.

Cigarless Swedish Match has pull for Marlboro Man

15 Sep 2021

The $15 bln oral tobacco maker is spinning off its stogies to quit the combustion business. With its ambitious smoke-free revenue targets, Philip Morris may be keen on what’s left. Judging by its pumped-up takeover of inhaler firm Vectura, it may take the hit, however pricey.

DSM rejig needs stronger growth flavour

14 Sep 2021

The 31 bln euro food ingredients maker is looking to sell its industrial materials unit. It’s an overdue step that will give the shares only a modest bump. If the Dutch group can grow its sales more quickly, a Givaudan-style valuation and sweeter gains could follow.

UK’s Smiths faces tough physio after M&A surgery

8 Sep 2021

The $8 bln engineer is flogging its health unit to ICU Medical for $2.4 bln, three years after walking away from the same bidder. The sale is a win for new boss Paul Keel. But for Smiths to warrant a jazzier rating, he will have to work similar magic on languishing margins.

Viewsroom: China’s Afghanistan question

19 Aug 2021

Beijing was able to expand its influence in central Asia while America and its allies held back the Taliban. The Islamic fundamentalists’ return to power presents China with new challenges – and opportunities. Plus: CEO Mike Henry shakes up mining giant BHP.

Aviva’s next challenge is to show it can grow

12 Aug 2021

CEO Amanda Blanc is returning 4 bln pounds to investors in the British insurer after flogging assets worth more than 7 bln pounds. The knottier problem is to extract more earnings – and dividends – from a smaller, simpler business. Reduced debt leaves some room for acquisitions.

Capital Calls: Olympics on TV, Abrdn

10 Aug 2021

Concise views on global finance: NBC Universal's prime-time viewers for the Tokyo games were only half as many as for London 2012, boding ill for traditional U.S. TV; the British asset manager formerly known as Standard Life Aberdeen may be turning the corner.