Restructuring

Body Shop sale may give Natura skin-deep makeover

30 Aug 2023

After offloading Aesop for top dollars, the Brazilian beauty giant may struggle to fetch the cosmetics brand’s original $1 bln price tag in a sale. The M&A spree reversal will simplify Natura’s structure. But sprucing up its surviving Avon arm and other labels looks hard.

Alphabet moonshots are ready for launch

29 Aug 2023

Google’s parent lost $6 bln last year on experimental ventures, such as health-data cruncher Verily and self-driving outfit Waymo. As CFO and former tech banker Ruth Porat takes charge of the unit, it’s probably a good time to consider carving out some and refocusing on others.

Tupperware preserves lessons for Mark Zuckerberg

25 Aug 2023

The iconic food-storage company narrowly avoided collapse after becoming a meme stock. Ironically, viral buzz, often from stay-at-home moms, has been its secret sauce, just as it is for the Facebook founder’s $780 bln empire. Fickle influencers also can spoil the party.

China Evergrande throws its creditors a brick

18 Jul 2023

The world’s most indebted property developer released results for 2021 and for 2022, a last-ditch move to keep its stock listing. Any resumption in the trading of its shares will also provide a clue on the value of its restructuring plan for some $20 bln of offshore debt.

UK water meltdown resurrects bank crisis dilemmas

29 Jun 2023

The government may take over indebted 18 bln pound utility Thames Water. Funding a big potential capital hole via bills and taxpayer cash injections could be as politically toxic as 2008-era bailouts of RBS and peers. But imposing losses on creditors may spark even more turmoil.

Capital Calls: US IPOs

29 Jun 2023

Concise views on global finance: Thrift store chain Savers Value Village is the latest consumer goods company to enjoy a successful stock market debut in New York.

Swire’s Coca-Cola sale gives investors sugar rush

29 Jun 2023

Handing its US drinks subsidiary to its parent for $3.9 bln allows the Hong Kong conglomerate to pay a tasty dividend, cut net debt and still run the division for a fee. It’s a sweet deal for investors, as long as property, airline Cathay Pacific and other holdings recover soon.

Capital Calls: Intel Outside, Amazon Prime beef

21 Jun 2023

Concise views on global finance: The chipmaker struck a deal to sell 20% of a tool-making subsidiary, which should benefit from being put on a path to independence. Meanwhile, the $1.3 trln e-commerce company’s subscription service is unlawfully hard to cancel, says the US FTC.

Capital Calls: Zee, Embracer

13 Jun 2023

Concise views on global finance: India’s securities regulator banned the media group’s CEO from holding any key managerial positions, putting its merger with Sony’s local unit under a cloud; the $3 bln video-game group’s new strategy hits the right buttons.

Private equity hurtles towards hard Asia reset

7 Jun 2023

China is the area’s powerhouse, but funds are under pressure from investors to limit exposure to the People’s Republic. Sequoia splitting the country off from the rest of emerging Asia formalises a growing trend, but an industry pivot to politically safer shores may sap returns.

UK race to the bottom spreads to credit safeguards

19 May 2023

German property group Adler has managed to push a restructuring through London courts that violates normal principles of debtholder fairness. That might encourage other companies to follow suit. But as with watering down equity listing standards, it carries a cost.

New UBS investor pitch fits better than old one

25 Apr 2023

Rescuing Credit Suisse is a risky move. But first-quarter results show that the buyer’s existing business is struggling to grow. The merger offers large savings and creates a wealth giant with $3.5 trln of assets. The return of proven cost-cutter Sergio Ermotti as CEO helps.

A rare Tata IPO signals India’s auto smarts

12 Apr 2023

Engineering outsourcer Tata Tech is helping China’s Nio and Vietnam’s VinFast roll out electric vehicles faster and cheaper. Its listing, the conglomerate’s first debut in 18 years, will be a leading indicator of India’s ability to drive a key part of the global auto industry.

E-commerce can be open sesame to Alibaba’s worth

6 Apr 2023

Boss Daniel Zhang plans to spin off faster-growing, money-losing bets like its cloud and logistics units. Valuing them is more art than science. He’ll get more bang for his breakup bucks by convincing investors that the main shopping business of the $260 bln group can still grow.

Movie theater chain’s spotlight will stay dark

23 Feb 2023

A Pennsylvania pension fund is suing AMC over a decision to issue preferred stock without a vote. The CEO speaks of empowering investors, an irony given his decisions. And ultimately he is missing the point – AMC’s business is too far gone, and will likely need restructuring soon.

Rejigged Renault-Nissan alliance looks headless

30 Jan 2023

The French and Japanese automakers clinched a deal to save their 24-year partnership. Renault will only vote 15% of its stake in Nissan, which now has a similar say in its partner. It avoids a messy divorce, but the lack of a clear leader may make decision-making trickier.

Capital Calls: TikTok’s Beltway visit

30 Jan 2023

Concise views on global finance: The social media app’s CEO Shou Zi Chew is going in front of a U.S. Congressional committee. But it’s leaders outside of Washington that Chew needs to convince.

Snam rethink reflects Europe’s new energy reality

19 Jan 2023

The $18 bln network operator is hiking spending to boost gas flows into Italy and the EU. Stable revenues from such investments can help new CEO Stefano Venier lift EBITDA. But a lighter push into hydrogen and green projects suggests a slower European shift from fossil fuels.

The complexities of EY’s big breakup bet

6 Dec 2022

The Big Four firm is pushing a plan to separate its auditing unit from its consulting business. In this Exchange podcast Andy Baldwin, global managing partner, discusses the challenges of convincing partners in over 70 countries to back the split – and what happens if it fails.

Vodafone CEO exit limits room for quick turnaround

5 Dec 2022

Nick Read is leaving the 25 billion pound telecom group after just four years. Finding a permanent successor may take time, and the board’s focus meanwhile is on completing two deals and improving the group’s weak performance. Bold moves like a breakup may take a back seat.