Spain’s utility saga calls for tough balancing act 18 Apr 2024 The UAE wants to buy 40% of 22 bln euro Naturgy from its private equity owners. That would usually require a full takeover, but Madrid has form on protecting key infrastructure. Spain will have to balance its desire to retain control with the need not to scare its bidder away.
Motor-racing deal faces quick antitrust pitstop 11 Apr 2024 F1 owner Liberty Media is doubling down on sports broadcasting rights with its $4.5 bln buy of MotoGP’s parent. CVC’s 2006 attempt to own both racing series got an EU antitrust black flag. The rise of streaming channels means mogul John Malone will have an easier ride this time.
Rabanne-owner IPO offers a scent of prestige 9 Apr 2024 Perfumes-to-skincare conglomerate Puig wants to list in Madrid. At a discount to beauty giants L’Oréal and Estée Lauder, the Spanish group may be worth $18 bln. European markets remain fragile, but premium fragrances’ rising appeal may turn the listing into a rare bright spot.
Europe’s green giant is focusing on safer bets 21 Mar 2024 Iberdrola is upping investment on ageing power grids. The $79 bln Spanish utility is also buying out US unit Avangrid and allocating its biggest chunk of capex to the States. Both bets look likelier to pay off than renewable power and geographies with less generous subsidies.
European telcos’ new deal hopes face reality check 1 Mar 2024 Executives gathered in Barcelona this week to plead for lighter regulation, cheaper spectrum and some financial help. Policymakers are unlikely to agree. Deutsche Telekom, Telefónica and others will have to convince investors that future growth requires more investment today.
Spain’s Saudi telecoms shield is pricey and futile 20 Dec 2023 Madrid is buying 10% of Telefonica to protect it from the kingdom’s stake-building. But Prime Minister Pedro Sánchez already has tools to block the Gulf investor taking a board seat or a bigger share. Splurging taxpayer money unnecessarily looks risky for a new government.
Romanian telco upstart will be M&A party pooper 30 Nov 2023 Originally a mobile provider for Bucharest expats, Digi Communications is expanding across Europe. It is taking market share thanks to a low-cost model and as regulators force merging rivals to shed assets. A wave of consolidation in Spain and elsewhere may yield some surprises.
Telefónica $2 bln German swoop is cheap but risky 7 Nov 2023 The Spanish telco is offering to buy out its Teutonic arm’s minority investors. On the surface, it’s a good time to pounce given the unit’s recent slump. But the immediate financial benefits are sketchy, and the debt-laden parent may have to wait years for a German turnaround.
Vodafone CEO’s iffy Spain deal is better than none 31 Oct 2023 Margherita Della Valle is selling her unit in the country for 5 bln euros to a tiny investment vehicle. Part of her payment comprises shares in the highly leveraged buyer, which is yet to raise equity of its own. But even if that effort fails, the deal still works for Vodafone.
Europe’s investment-bank push is far from a shove 25 Oct 2023 Deutsche Bank has bought a $500 mln UK boutique, BNP is bulking up in markets and Santander has hired 50 Credit Suisse bankers. Yet no one is trying to go back to 2010, when the region had 48% of the debt-trading business. That’s good for US rivals, and the Europeans’ investors.
Stingy UK bank saving rates may become a non-issue 10 Aug 2023 Regulators dislike the fact that lenders are passing on rate hikes more quickly to borrowers than to savers. But unlike in Spain, British banks like NatWest are no longer swimming in spare deposits. That suggests they’ll have to pay up for funds, solving the problem before long.
Spain’s next PM will have to fix economy pronto 21 Jul 2023 Left-wing incumbent Pedro Sánchez trails his conservative rival ahead of Sunday’s poll. Whoever forms a government will need to move fast. Robust growth – and 161 bln euros in EU funds – offer an opportunity to tackle joblessness, low investment and loose public finances.
History is against UK and Spanish telecoms M&A 12 Jul 2023 Vodafone and Orange have deals worth $40 bln on antitrust agencies’ desks. Europe has only once approved a similar merger without competitive remedies, which involved a tiny Dutch player. The telcos may have to make big concessions, undermining their tie-ups, or accept defeat.
Summer vote can dissipate Spain’s economic clouds 31 May 2023 Prime Minister Pedro Sánchez is gambling on a snap general election after a rout in local polls. Frictions within his ruling coalition irked voters. Strong popular backing would give him the mandate to tackle the country’s fiscal woes, pension costs and high unemployment.
Cellnex could use an outsider with a sharp knife 30 Mar 2023 Hedge fund TCI has accused the Spanish tower operator of “mishandling” an ongoing CEO search. Once an M&A machine, the $27 bln firm needs to cut its debt load markedly. That requires a new boss with a fresh perspective, not an insider.
How Ana Botín can defeat the Santander sceptics 21 Dec 2022 The Spanish bank suffers from a lower valuation, relative to its return on tangible equity, than rivals. If its executive chair can keep costs low and show the group is worth more than the sum of its parts, that might change. If not, it’s time to sell assets, starting in the U.S..
European banks’ perfect moment will prove fleeting 26 Oct 2022 Rates are rising, traders are busy, and customers are paying their debts. That helpful backdrop helped Barclays, Deutsche and Santander average a punchy 11% return on tangible equity so far in 2022. But with recession looming, and bad-debt buffers looking low, it may not last.
Bank mortgage tweaks presage bigger political hit 14 Oct 2022 Spain’s CaixaBank proposed a rate freeze, while UK lenders favour ad hoc relief for struggling borrowers. As interest costs soar, these won’t be enough to avoid a mess. Since cash-strapped governments can’t help, they may hammer banks with Polish-style blanket payment holidays.
Spain’s ropey bank tax will have European copycats 13 Jul 2022 The country’s left-wing government is raiding banks for 1.5 bln euros a year. Taxing lenders based on their future benefits from rising interest rates represents shaky logic. But with inflation soaring across Europe, such populist measures will become more enticing.
Santander picks anti-Orcel as new CEO 17 Jun 2022 After bungling the hiring of the former UBS banker in 2019, Executive Chair Ana Botín and the board have picked a safe choice in Héctor Grisi. The insider won’t require a hefty payout and has experience running a retail bank. He’ll need it given Santander’s lowly share price.