Luxury’s great divide will get more striking 17 Apr 2024 Sales at $420 bln LVMH rose a dull 3% in the first quarter. The Tiffany-to-Dior behemoth’s insipid performance points to a broader fragility within the sector. With revenue in the luxury industry flattening, the gap between winners and losers is set to grow wider.
Berlusconis have narrow window for German TV bid 16 Apr 2024 The Italian clan’s broadcasting group MFE had banks lined up for a potential $4 bln offer for ProSiebenSat.1, Reuters reported. If they could replicate the savings from a past Spanish merger, the numbers work. The risk is the target’s shares keep rising, undermining the logic.
Prysmian finds sparky US fix for dim cable outlook 15 Apr 2024 The world’s biggest maker of telco and power lines is buying a cash-rich US rival. At $4 bln, the deal is not cheap, and heavy investment in grids has slowed. Still, adding heft to the more attractive North America market should improve the $15 bln Italian company’s prospects.
Eni’s green shoots are taking time to blossom 28 Mar 2024 Italy’s $53 bln energy major trades at a discount to rivals. An overhang from Rome’s potential stake sale and falling gas prices are drags. But CEO Claudio Descalzi’s plan to raise cash by spinning off energy transition-focused business units is also yet to fully shape up.
Swisscom’s Italy foray works best as a first step 15 Mar 2024 The $30 bln Alpine telco predicts 600 mln euros of annual savings from its 8 bln euro Vodafone Italia buy. Yet investors don’t yet seem to be assuming a big windfall. Revamping mobile services in the highly competitive Italian market to drive returns requires further M&A.
Generali has some scope to think bigger on M&A 12 Mar 2024 Under CEO Philippe Donnet, the $38 bln insurer did smallish deals. Targeting big players like $16 bln Aviva, to shrink a gap with rivals, may require clashing top investors to back an equity hike. But Generali could also fund a large buy by running down its chunky capital buffer.
Vodafone’s Italy exit puts speed before valuation 28 Feb 2024 The UK telco looks poised to sell its hard-pressed local business to Swisscom for 8 bln euros in cash. The price tag is lower than a previous Iliad offer. But it’s a cleaner exit, and advances boss Margherita Della Valle’s goal of prompt M&A to make her company less sprawling.
The green agenda’s best shot at a revival 13 Feb 2024 Economic distress prompted by globalisation undermines support for the energy transition, climate change economist Valentina Bosetti tells The Exchange podcast. That matters as key US and EU elections approach. Using proceeds from carbon taxes to address inequality is paramount.
Europe’s wilting bourses get fresh cause to unite 12 Feb 2024 The likely de-listings of Italy’s Saras and Tod’s add to a wider exodus from euro zone stock exchanges. Part of the problem is a lack of new European companies to replace them. But Europe could also help itself if its equity market rules and trading were less fragmented.
A pinch of salt could unsettle electric-car order 7 Feb 2024 Carmakers Stellantis and BYD are betting on sodium-based batteries. The cells’ bulk and need for more frequent charging mean they may struggle to drive lithium tech off the road. But affordability and the prospect of loosening China’s grip on the industry will spur adoption.
UniCredit has ways to keep defying gravity 5 Feb 2024 The 50 bln euro bank pledged to match record 2023 net profit this year, and to keep showering investors with cash. CEO Andrea Orcel can use lower costs to offset higher loan losses and costlier deposits. If he can do so, and avoid flashy deals, his valuation can rise further.
Italy is fighting a rearguard battle on Stellantis 2 Feb 2024 Rome may invest in the $73 bln carmaker. Matching France’s 6% stake would cost 4 bln euros, hurting the government’s privatisation effort, and may spook Italian business. Saving jobs at the former Fiat is a natural concern, but Italy is no longer the group’s centre of gravity.
Iliad rebuff raises the bar for Vodafone in Italy 31 Jan 2024 The UK telco rejected its French rival’s 10 bln euro offer to merge operations in the tough southern European market, a fresh snub to Xavier Niel. CEO Margherita Della Valle needs to quickly plan another deal. Tie-ups with Telecom Italia, Swisscom or Wind all have complications.
Political push would unlock EU defence M&A spree 10 Jan 2024 Despite decades of gradual consolidation, Europe’s military industry is fragmented. The sound balance sheets of players like Thales or Leonardo make them fit to team up. A key merger hurdle would be removed if war at the borders pushes governments to align their defence policies.
EU hitches anti-Orbán plot to Draghi trial balloon 9 Jan 2024 European Council chief Charles Michel’s decision to leave early means Hungary’s Viktor Orbán could take charge of leaders’ meetings and represent them in high-profile summits. Doing whatever it takes to fill the void, even tapping Italy’s former PM for a short time, makes sense.
Permira risks tripping on rushed Golden Goose IPO 21 Dec 2023 The buyout shop may list the fast-growing Super-Star sneakers brand. With its track record tainted by bootmaker Dr. Martens’ poor post-listing performance, the investment firm has little room for error. Hurrying a share sale while the luxury segment faces headwinds seems unwise.
Vodafone may have to answer Iliad’s Italian call 18 Dec 2023 French tycoon Xavier Niel’s new bid for his UK rival’s business in Italy values it at a chunky 10.5 bln euros. That’s near what he offered last year despite falling earnings at Vodafone’s local arm. CEO Margherita Della Valle may struggle to find a more attractive exit strategy.
Stellantis will cruise with GM and Ford 18 Dec 2023 The maker of Jeeps and Opels run by Carlos Tavares is one of Europe’s lowest-valued carmakers. Yet it generates much of its income in the US, and boasts industry-leading profit margins. Keeping a single New York listing could see its valuation match Detroit rivals.
Pricey Campari cognac deal requires a steady hand 15 Dec 2023 Bob Kunze-Concewitz is paying $1.2 bln for French brandy house Courvoisier, the CEO’s biggest purchase yet. At 17 times last year’s EBITDA the price looks punchy while demand for cognac slows in the US and China. Lowering the Italian group's growing debt pile could be hard.
EU payments tie-up would build wider M&A defence 11 Dec 2023 Worldline’s market value has shrunk by 60% to $5 bln in a year, making it vulnerable to a takeover by US rivals. Teaming up with Italian peer Nexi is a worthy alternative. While sorting out the ownership structure looks tricky, the reward is greater regional clout and savings.