Industrials

Iceland butcher hopes for a killing by moving out

29 May 2019

High-tech abattoir-maker Marel, Iceland’s biggest company, is raising up to 390 mln euros through a secondary listing in Amsterdam. Opening up to global investors should help the 3 bln euro group expand. The big risk is climate-change pressure putting the knife into meat-eating.

Thyssenkrupp belatedly stumbles on best M&A option

16 May 2019

The 8 bln euro German conglomerate has two choices for its prized elevator unit: a quick IPO, which CEO Guido Kerkhoff prefers, or merger with Finnish peer Kone. The second would create more value, and be more likely to gain antitrust approval than its recent failed steel deal.

GE owners give Culp wrong kind of endorsement

8 May 2019

Shareholders of the U.S. conglomerate offered qualified support for the boss’s turnaround. They strongly backed his directors while casting a protest vote on pay. So it’s regrettable that they rejected a call for an independent chair, which could help avoid future problems.

Siemens self-medicates with weak activist tonic

8 May 2019

The $96 bln industrial giant’s plan to slim down by spinning off its power business looks designed to pre-empt a shareholder rebellion. But the new entity’s complex structure and its odd bundle of clean and dirty energy assets could still draw the attention of a pushy investor.

Bayer can do more to defuse investor rage

1 May 2019

Shareholders cast a vote of disapproval against the German group’s management following cancer-related lawsuits linked to the acquisition of Monsanto. Yet neither side wants a new CEO or strategy. Revamping the board and boss Werner Baumann’s pay might quell the revolt.

GE’s decent quarter won’t stop the shrink

30 Apr 2019

The $85 bln conglomerate burned less cash than feared in the first quarter, but problems with Boeing’s 737 MAX jet bring new risk to the one division that was thriving. That leaves CEO Larry Culp with no growth engines, and the prospect of cutting GE into still smaller pieces.

Bayer shareholder revolt rests on shame factor

25 Apr 2019

BlackRock and others want to punish the German chemicals group for its takeover of Monsanto, which destroyed $33 bln of value. But the likely vote of disapproval is more bad PR than a binding order. It’s a sign of the limits of shareholder activism in Germany.

Alpine stability helps Swiss scale IPO peak

23 Apr 2019

Train maker Stadler and medical devices group Medacta raised a combined $1.9 bln in Zurich listings this month, defying a European market becalmed by Brexit and trade woes. Relative stock market strength is fuelling the rush. As valuations flatten, other venues will catch up.

CEO exit puts ABB overhaul on firmer footing

17 Apr 2019

The Swiss-Swedish group has abruptly parted company with boss Ulrich Spiesshofer – who presented ABB’s revamped strategy only two months ago. There’s no immediate replacement. Still, a 5 pct share bump suggests even if investors like the new direction, they fancy a new helmsman.

Nippon Paint buys pricey pot of Aussie gloss

17 Apr 2019

The Japanese brand is paying $2.7 bln for DuluxGroup, sending its Australian peer’s shares to record highs. The hefty premium reflects a shortage of targets and the buyer’s eagerness for expansion. Given a cooling economy Down Under, it may have been better to keep the brush dry.

U.S. garbage deal is non-toxic bet on growth

15 Apr 2019

The $43 bln Waste Management is buying smaller rival Advanced Disposal for $3 bln. Financially the purchase looks like neither trash nor treasure. But steadily rising demand, bolstered by China’s rejection of many U.S. recyclables, makes bulking up a low-risk option.

Delta climbs clear of rivals’ 737 MAX woes

10 Apr 2019

Selling more premium seats helped the $39 bln airline to a strong first quarter. With American, Southwest and even United constrained by the grounding of Boeing’s new jets, Delta’s Airbus fleet positions it nicely to take further advantage of a booming travel market.

UK army contractor’s next target lies overseas

3 Apr 2019

Submarine-fixer Babcock has hired Ruth Cairnie as its new chair. She inherits a moribund share price and a firm weighted to UK contracts that may wither if the opposition Labour party gains power. Further hiking overseas revenues is the first thing to push for.

Roundup crisis could snarl Bayer in activist weeds

29 Mar 2019

The chemicals maker has lost 40 bln euros in value since U.S. juries said its glyphosate herbicide causes cancer. With science on Bayer’s side, delaying any settlement makes sense. But the longer the German group’s shares remain low, the more vulnerable it looks to interlopers.

UK $3 bln satellite deal hits escape velocity

20 Mar 2019

A private-equity consortium is preparing to launch an offer for Inmarsat months after the company aborted a bid from U.S. peer EchoStar. Handling maritime communications is shakier than a year ago while services like in-flight Wi-Fi remain risky. The deal deserves to go into orbit.

Italian Silk Road gambit is a double-edged sword

15 Mar 2019

Marco Polo’s daring travels turned Venice into a wealthy gateway to China; 750 years on, Rome wants to rebuild that special bond through infrastructure deals. Improving ties with a key trading partner makes sense. The risk of leaning East is that Italy loses clout in the West.

Larry Culp struggles to get new GE off the ground

14 Mar 2019

The $90 bln company’s CEO is warning investors to brace for a dismal first quarter and cash flow turning negative this year. His plan to sell more assets and overhaul the troubled power unit could eventually help, but it’s slow going. And a number of risks are out of his control.

Melrose’s latest deal is missing its magic touch

7 Mar 2019

The UK engineer, which swallowed 8 billion pound rival GKN last year, boosted sales and margins without slashing investment. Still, the sluggish car industry could challenge Melrose’s “buy, improve and sell” model. Investors will need to see more evidence of improvement.

Private equity gives Evonik auto shock absorber

5 Mar 2019

The German chemicals group has sold its Plexiglas division to Advent International for 3 billion euros. Given it’s a cyclical business exposed to the car sector, that’s a decent price. With its shares flat compared to five years ago, investors may now value Evonik more richly.

GE-Danaher pharma deal is a win-win remedy

25 Feb 2019

CEO Larry Culp is unloading the conglomerate’s biologics unit to his old employer for $21 bln. It’s his boldest downsizing move yet and will help cut leverage. Danaher gains scale in its health business at a reasonable price while Culp needed a sale, not necessarily top dollar.