Nestlé water sale would flush out some old habits 11 Jun 2020 The food giant may offload some North American brands like Poland Spring, with sales of $3.6 bln. That’s a good start. Bottled water is a potent symbol of anti-sustainability and marketing spin. Selling less of it would help CEO Mark Schneider show he’s turning the page.
Viewsroom: Global takeaway and Cathay 11 Jun 2020 Nothing sums up pandemic dealmaking quite like this: As a merger of America’s top shopping mall operators crashed and burned, two of the world’s biggest food-delivery companies joined forces. Also, Cathay gets a bailout and so might the Mets. Breakingviews columnists discuss.
Just Eat investors may refuse to swallow Grubhub 11 Jun 2020 Shares in the Anglo-Dutch meal-delivery company dropped 13% after it unveiled a $7.3 bln acquisition of a struggling U.S. peer. The return on investment looks low. Just Eat Takeaway shareholders have both the means and motive to veto CEO Jitse Groen’s transatlantic expansion.
Unilever’s reverse reunification is win for FTSE 11 Jun 2020 Two years after UK shareholders rejected plans to create a single parent company in Rotterdam, the $143 bln Anglo-Dutch giant is unifying around a London listing. Investors in the Netherlands will struggle to throw up the same obstacles. The payoff is more M&A flexibility.
Ocado cash call delays profit delivery slot 11 Jun 2020 The 15 bln pound online retailer raised over 1 bln pounds to fulfil global demand for its warehouses. CEO Tim Steiner’s plan takes advantage of a near-doubling in its share price since the pandemic. But capital-intensive investments mean investors face a longer wait for earnings.
Just Eat-Grubhub deal requires fistful of antacid 10 Jun 2020 The European food-delivery service is to buy its U.S. counterpart for $7.3 bln. There are some benefits, not least access to more capital for Grubhub. But little overlap means few cost savings – and Just Eat enters a cut-throat U.S. race against Uber Eats, DoorDash and Postmates.
Street-vendor snub hampers China’s poverty fight 9 Jun 2020 Some cities let noodle and knick-knack stalls back onto roadsides after Premier Li Keqiang endorsed reviving them. His idea is already being rolled back after attacks by state media. Wealthy urbanites who prefer hiding the poor to helping them are sabotaging worthwhile stimulus.
Corona Capital: U.S. recession, Grubhub, Airlines 8 Jun 2020 Concise views on the pandemic’s corporate and financial fallout: U.S. falls into a recession, Grubhub looks for leverage, airlines have optimistic investors.
Corona Capital: ZoomInfo IPO, U.S. trade 4 Jun 2020 Concise views on the pandemic’s corporate and financial fallout: ZoomInfo goes public with a big pop despite Covid-19; and America’s goods-trade deficit with Europe will test Washington’s mood.
Corona Capital: Crisis loans, Jet fighting 3 Jun 2020 Concise views on the pandemic’s corporate and financial fallout: Bank customers are no longer making a dash for cash, loan drawdowns suggest. Meanwhile, a U.S. block on Chinese passenger flights suggests domestic battles haven’t dimmed President Trump’s desire to make China pay.
Corona Capital: Bank fears, Payments M&A, Coal 2 Jun 2020 Concise views on the pandemic’s corporate and financial fallout: A new U.S. regulator wants cities to reopen to prevent bank robberies. Western Union may bid for struggling rival MoneyGram. And the pandemic is hastening the decline of U.S. coal.
Corona Capital: Saving/not spending, Pandemic Pig 29 May 2020 Concise views on the pandemic’s corporate and financial fallout: what to make of falling spending and the growing taste for meat alternatives.
JAB’s $23 bln coffee unit is priced to take away 26 May 2020 The investor is offering shares in JDE Peet’s at a decaffeinated 20% discount to Nestlé. Consumers stuck at home are giving packaged brands like Kenco a boost, but prices per cup can still grind higher when cafes reopen. Europe’s biggest float this year can brew a robust return.
Vegan boom is heading for a meat-fuelled bust 26 May 2020 Sales of animal product-free food soared in May, bumping up shares in the likes of Beyond Meat. Viral outbreaks at slaughterhouses suggest vegan supply chains are more durable. But as beef giant Tyson cuts prices and a slump looms, appetite for pricier foods could wane.
Meituan Dianping cooks up some tasty scraps 25 May 2020 Covid-19 hit China’s $83 bln takeaway-to-taxis company, whose quarterly sales fell 13%. The outlook is shaky, but more restaurants have signed up and new initiatives like contactless delivery should provide value longer-term. Merging Western peers are in comparative disarray.
Luckin spill will get China coffee war brewing 25 May 2020 The reeling chain once worth $12 bln is getting booted off the Nasdaq for fraud. Its brand might be toxic, but it has assets and ideas that Yum China, Tim Hortons and HeyTea could buy or adapt. Such deep-pocketed competitors may present a more formidable challenge to Starbucks.
Moscow finds oil and vodka make a poor cocktail 21 May 2020 The former owners of Yukos, the energy group founded by Vladimir Putin foe Mikhail Khodorkovsky, are going after the Kremlin by grabbing trademarks for brands like Stolichnaya. These won’t make up for their lost $57 bln but may give aggrieved investors some negotiating leverage.
Corona Capital: China on Wall Street, Wind power 20 May 2020 Concise views on the pandemic’s corporate and financial fallout: U.S. senators want Chinese firms to share their audited accounts – or face being kicked off American stock exchanges. Plus: why wind energy is the key to an economic and social, as well as environmental, resurgence.
Diageo can go on India bender for virtual pittance 20 May 2020 The liquor giant has built up a 56% stake in $5 bln United Spirits, which accounts for almost a fifth of its global sales and is growing fast. With the virus hitting the Indian firm’s valuation, Diageo has a chance to buy out minorities - even if it might cost its dividend.
Corona Capital: Natural gas, Disney, Brazil 19 May 2020 Concise views on the pandemic’s corporate and financial fallout: Investors are too optimistic about natural gas; theme-park veterans take key roles at Disney; and Sao Paulo’s idea of bringing forward holidays to improve social distancing proves confusing.