Divestment

J&J breaks with legal and valuation uncertainty

5 Jan 2023

The $470 bln healthcare giant is jettisoning brands like Listerine and Band-Aid while also putting liabilities related to Tylenol into the new group. The fluctuating valuation of a similar GSK spinoff last year shows the difficulty in valuing potential court settlements.

Sky spinoff is Comcast’s least-bad option

3 Jan 2023

The U.S. cable giant spent $40 bln on Rupert Murdoch’s European pay-TV provider in 2018. Now consumers are under duress and it’s probably worth less than half that sum. Though boss Brian Roberts is a reluctant seller, listing Sky will shortcut challenges on the horizon.

Capital Calls: Rio Tinto, Grocery delivery M&A

9 Dec 2022

Concise views on global finance: After a shambolic process, the $118 bln miner has succeeded in buying out the 49% of Turquoise Hill Resources it doesn’t own; Turkish grocery delivery player Getir gobbles up German rival Gorillas for $1.2 bln.

Capital Calls: Funky debt shock

29 Nov 2022

Concise views on global finance: Germany property group Aroundtown won’t be the last to flout bond market convention on hybrid debt.

Naspers swaps one Tencent headache for another

17 Nov 2022

The South African investor’s valuation discount to its $100 bln stake in the Chinese tech giant has narrowed since it started selling the shares to fund buybacks. But Tencent's plunging value is another factor. Though Naspers' prized asset has become a drag, exiting is tough.

Tencent’s investor giveaway buys welcome respite

16 Nov 2022

The Chinese web giant is handing a $20 bln stake in food delivery firm Meituan to shareholders. The second such move in a year comes on top of increased share buybacks. The focus on boosting returns goes a long way to make up for slowing growth in Tencent’s video-game business.

Capital Calls: Jeff Bezos

15 Nov 2022

Concise views on global finance: The Amazon founder is telling consumers to batten down the hatches. Yet the e-commerce giant has plenty of room to capture more online market share.

Credit Suisse’s fuzzy Apollo deal better than none

15 Nov 2022

Boss Ulrich Körner is offloading $55 bln of assets in a securitised product unit, chiefly to the U.S. behemoth. Credit Suisse did not reveal the price, and it will pay Apollo to manage the remaining assets. But at least Körner avoided selling at a discount amid tricky markets.

If Credit Suisse loves its bankers, set them free

21 Oct 2022

The Swiss bank may bring outside investors into its dealmaking unit, to insulate it from parental turmoil. The business could be worth up to $6 bln, valued in line with boutique advisory shops. Yet the best way to hit such a price tag is for Credit Suisse to cut it loose.

Grocery deal could have European interloper

20 Oct 2022

Kroger’s $25 bln deal for Albertsons inks its position as the second largest U.S. grocer. That has lawmakers nervous. But Stop & Shop owner Ahold is a more palatable partner. Plus jumping into the fray puts it in prime spot to make its competitor pay more or pick up castoffs.

Total’s Russia foot-dragging is investor problem

18 Oct 2022

The French energy giant owns a stake in gas group Novatek, and is in theory entitled to a $430 mln dividend. CEO Patrick Pouyanné won’t say whether he’s selling. He may hope that long-held Kremlin ties can secure a clean exit, but the uncertainty is a shareholder concern.

Renault, Nissan messy breakup is least-bad option

10 Oct 2022

Signs that the $9 bln carmaker might cut a 43% stake in its Japanese partner hiked its share price. Renault CEO Luca de Meo’s gambit could mean more EV investment, but the French state would have to OK any reduction in its influence. Still, Renault has few good alternatives.

HSBC Canada exit could be a nice clean break

4 Oct 2022

The Anglo-Asian lender is diminutive in a market dominated by a few giants. That, though, might make it easier to sell its profitable Canadian operations without too much antitrust and politics. Tiptoeing away from Canada’s carbon-intensive energy sector can’t hurt either.

Beware spins from Danaher’s well-oiled M&A machine

4 Oct 2022

The $200 bln conglomerate plans to separate yet another division, this time packaging and water filtration. Its acquisition nous generates strong returns, but recent castoffs have disappointed. Transferring the parent’s kaizen-based system to its progeny is proving difficult.

SocGen’s new insider CEO requires outsider mindset

3 Oct 2022

The French lender trades at a third of tangible book value – lower than almost all its rivals. Next boss Slawomir Krupa previously ran investment banking and eastern Europe, both of which arguably drag down its shares. Breaking with the past may require shrinking his old charges.

Alan Jope exit is easiest step of Unilever revival

26 Sep 2022

Shares in the $111 bln Dove maker rose after it said its CEO would leave by end-2023. A botched bid for GSK’s personal health arm hit Jope’s credibility. But even with a new broom Unilever will struggle to pull off a big deal, and selling lower-growth units looks harder to do.

Capital Calls: Novartis

22 Sep 2022

Concise views on global finance: The Swiss drugmaker hopes to fix its growth problem by listing its generic drug business and focusing on the U.S. market.

Disney’s big ESPN choice, Rio Tinto Mongolia drama

15 Sep 2022

Activist Dan Loeb backed away from his demand that the $203 bln media firm sell its sports network. In this Viewsroom podcast, Breakingviews columnists debate whether it’s the right move. And the $94 bln mining giant’s attempt to secure copper supply may need heavier machinery.

Capital Calls: T-Mobile US transmits clear signal

9 Sep 2022

Concise views on global finance: The telecom carrier is planning a $14 bln buyback program as it beats rivals in shareholder return.

Capital Calls: ECB rate hike

8 Sep 2022

Concise views on global finance: Europe’s central bank risks recession to combat inflation.