Belgium

Albert Frere’s heirs can eliminate market discount

5 December 2018

The death of Belgium’s richest man casts a spotlight on GBL, the 13 bln euro group he co-founded. Despite past canny investments, it’s valued at a hefty discount to stakes in companies like Adidas and Pernod Ricard. Selling assets and beefing up private deals could change that.

AB InBev debt detox points to flat future

25 October 2018

The Bud owner halved its dividend to pay down a debt mountain from buying SABMiller. This should free up $4 bln annually, but it could take eight years to hit its leverage targets. Any more trouble in emerging markets will mean an even longer wait for clear heads.

Supermarket buying pacts dodge primary problem

16 July 2018

Alliances to pool purchases, like one signed by Carrefour and Tesco, have in the past boosted grocers’ operating margin by up to 1.5 percentage points. Wringing savings without all the hassle of a merger is great. It does less to stop Aldi and Lidl grabbing market share.

Billionaire’s Burberry sale is fashionably early

9 May 2018

The luxury brand’s top investor, a vehicle of Albert Frere, has sold its 6.6 pct stake. It’s an odd move for the typically long-term owner. But Burberry’s valuation rivals peers like LVMH, and boss Marco Gobbetti’s turnaround will be a lengthy process. It’s a good time to exit.

Dutch lawmakers give Ahold backup in activist spat

10 April 2018

Activist CIAM wants the supermarket to scrap its foundation that can be used to block takeovers. But with the Netherlands eyeing new laws to stymie hostile bidders, companies may not need these arcane tools much longer. Shareholders will suffer either way.

AB InBev is one step short of a strong footing

1 March 2018

The world’s top brewer served up better-than-expected EBITDA in the fourth quarter and a welcome chaser of volume growth. That will soothe investor worries that ruthless cost cuts are hurting sales. Now it needs to reverse falling market share in its most important U.S. market.

Sanofi’s M&A bloodlust comes at a high price

29 January 2018

The French group is buying blood disorder biotech Ablynx for 3.9 bln euros. That’s 50 pct more than rival Novo Nordisk bid, including protections against drug flops. Combined with last week’s $11.6 bln purchase of a haemophilia group, Sanofi’s new acquisitiveness lacks caution.

Novo can pump its $3.1 bln blood bid even higher

8 January 2018

The Danish pharma group offered to buy Belgium’s Ablynx, which is developing a bleeding-disorder treatment. The returns look healthy for Novo Nordisk, which will also get a cheap option on two other potential drugs. That suggests rival bidders may not be far behind.

AB InBev grows bigger without getting better

26 October 2017

A year after acquiring SABMiller, the world’s No.1 brewer said cost savings from the deal will be higher than expected. Bulking up allows the Belgian company to buy on better terms. Yet it looks worryingly weak at persuading consumers to drink more of its beer.

Where to put Europe’s bank regulator? Try Bulgaria

26 May 2017

Brussels has invited member states to bid to host the European Banking Authority when its current host, Britain, quits the EU. The EBA hasn’t exactly dazzled in its handling of bank stress tests. But it could be a decent trophy for a non-euro country that feels unloved by the bloc.

Lloyd’s exemplifies London’s phantom Brexodus

30 March 2017

The insurance marketplace is creating a new company in Brussels. Yet safeguarding access to European clients only means moving a maximum of a tenth of staff. Companies are readying their parachutes, but this is a long way from threatening the city’s pre-eminence.

Complexity blunts AB InBev’s cost-cutting flair

2 March 2017

The mega-brewer expects savings from its SABMiller tie-up to reach $2.8 billion, 14 percent more than its initial estimate. Yet the upgrade is significantly smaller than it managed with previous deals. Taking on ever-bigger targets is testing its knack for squeezing expenses.

Best of Breakingviews 2016: Our readers’ top picks

30 December 2016

You demonstrated a varied, voracious appetite for insight in 2016. The most-clicked columns, podcasts and graphics encompassed the rise of Trump and Brexit Britain to Singapore, Saudi Arabia, negative rates, tech titans and an ethical dilemma for Harvard's business school dean.

Asahi pays frothy price for a flat beer market

13 December 2016

The Japanese brewer is paying 7.3 billion euros for AB InBev’s eastern European beer brands. At 15 times trailing EBITDA, the valuation is close to what it paid for Grolsch and Peroni in February. That’s an exuberant price for so-so brands in a difficult region for brewers.

Politics hampers delivery of good postal bid

1 December 2016

Belgium's Bpost has made a final offer of 2.5 billion euros for Dutch rival PostNL. The deal is a play for the fast-growing parcel business. With the target's shares trading below the offer, Dutch government opposition may scupper delivery of a good deal for investors.

Free trade can survive its Wallonian wobble

25 October 2016

The tiny Belgian region is holding up a trade pact between Europe and Canada. That doesn’t mean such deals are impossible, though - they just need even more time and creative thinking. The messy process also undermines the notion that ordinary people have no say in globalisation.

German airlines leave logic in the ejector seat

28 September 2016

In most sectors, a heavily loss-making company with liabilities that exceed its assets would disappear. Yet German carrier Air Berlin is still airborne, and Lufthansa may take on a chunk of its fleet. Aviation bosses continue to think they can defy financial gravity.

AB InBev adds dash of cynicism to raised SAB offer

26 July 2016

A raised 79 bln pound offer for SABMiller should give agitating hedge funds a dignified exit. But it mostly ignores the fall in the value of the Budweiser brewer's offer - and makes a share-based alternative offer targeted at SAB’s biggest shareholders slightly more attractive.

Mega beer merger develops case of the shakes

21 July 2016

An offer of 71 billion pounds that SABMiller accepted from AB InBev in November no longer looks generous - and not just because sterling has plunged. SAB’s board still has time to push for a better deal, or at least get a second opinion.

Cox: An appeal to London’s Brexit banker castoffs

16 June 2016

If Britain votes to leave the EU, global financial institutions have said they’ll need to relocate thousands of jobs to the continent. A fictional letter from Antwerp’s mayor to JPMorgan’s Jamie Dimon sums up the pre-emptive pitch cities and regions are sure to make.