Belgium

Frère hands minorities two carrots and one stick

12 March 2020

GBL, the holding company of Belgium’s Frère and Canada’s Desmarais families, wants minorities to swap shares in its parent for shares in itself. The catch is the families get double voting rights. The appeal is the offer looks reasonable and the new structure could create value.

Dutch grocer can afford $7 bln U.S. shopping spree

20 February 2020

Ahold Delhaize, the $28 bln owner of Stop & Shop supermarkets, churned out cash after another strong quarter. The success suggests it could hoover up smaller U.S. players. Several grocers might be an option, though Ahold might have to compromise on its preferences.

AB InBev’s Oz M&A party leaves antitrust headache

12 December 2019

The world’s biggest brewer’s $11 bln sale of its Australian unit to Asahi has been challenged by the country’s watchdog. Its tough stance on beer and cider competition may hurt boss Carlos Brito’s plan to cut debt. The Corona-maker has other options, albeit less appetising ones.

Packaging sale can cure AB InBev’s hangover faster

28 November 2019

The $133 billion brewer’s U.S. bottle and can production unit is worth up to $6 bln. A sale of even a minority stake can bring net debt below 2 times EBITDA a year earlier in 2022. Soothing investor fears over indebtedness is worth having to rely on another company for vessels.

Consumer giants’ housekeeping turns into hard work

1 November 2019

Big groups slimmed down by selling businesses from margarine to beer. But now Pernod Ricard is cooling on a sale of its wine brands, while Nestlé is taking a while to offload its cooked meats unit. Unrealistic price expectations and pumped-up valuations are partly to blame.

AB InBev gets dragged back into M&A dilemma

25 October 2019

The Budweiser maker said profit in the third quarter was stagnant, and volumes declined in China. That puts pressure on boss Carlos Brito to do more deals. Yet the world’s top brewer is still working off a debt hangover, and the weak performance makes dealmaking harder.

Deutsche Bank’s new director isn’t worth the fuss

9 October 2019

It’s hard to find experienced board members with no conflicts of interest. But the German lender’s latest appointee Juerg Zeltner runs and owns a stake in wealth management rival KBL. That’s unusual even for incestuous European banks. Chairman Paul Achleitner should think again.

Hong Kong’s IPO debutants rely on helping hands

24 September 2019

AB InBev raised $5 bln through a relaunched float of its Asia unit, but only after pre-selling stock and pricing it low. There’s appetite for listings in the city despite ongoing protests, but at a discount and with cornerstone support. Followers may need to take the same tack.

Asahi Aussie deal passes all but one sobriety test

22 July 2019

The Japanese brewer is buying AB InBev’s Australian unit for $11 bln. It’s a highly profitable business that ticks lots of boxes for Asahi, but justifying the price requires clever cost savings. Asahi will have to take a more proactive approach than usual to make the deal work.

AB InBev’s deal machine goes into smart reverse

19 July 2019

The brewer’s sale of its Aussie unit to Asahi for $11 bln will cut debt. The Japanese are paying a valuation less than AB InBev wanted from its botched Asia IPO but probably more than investors ascribed to the unit. It keeps the door open for boss Carlos Brito to try again.

Frere family’s private push is double-edged sword

10 July 2019

GBL, the holding company of Belgium’s Frere and Canada’s Desmarais families, may buy part of a 2.4 bln euro call-centre operator from KKR. CEO Ian Gallienne’s shift into unlisted assets could boost returns. But thin disclosure means his shares will suffer from a steeper discount.

AB InBev’s debt belly needs more than fizzy growth

7 May 2019

Pricier beer helped the brewer’s first-quarter sales rise faster than expected. Yet AB InBev still has an unsightly debt pile and is battling falling volumes in key regions. An IPO of its Asian operations sooner rather than later would help investors breathe more easily.

AB InBev shareholders get more smoke, less 3G

20 March 2019

The brewer nominated former Altria CEO Martin Barrington as chairman. Though he’s not linked to the Brazilian investment firm that jointly controls the $143 bln company, the Marlboro maker is a shareholder. Investors who want a more radical shake-up have an opportunity to say no.

Goudet exit shows AB InBev model’s last dregs

6 March 2019

Chair Olivier Goudet is leaving the brewer because of conflicts with his role at JAB. Both groups share a taste for buying assets, and cutting costs. Yet the tension with JAB’s Snapple or Dr Pepper brands shows the strategy’s limits, and AB InBev’s need to go beyond alcohol.

AB InBev’s Asia sale needs breathalyser test

14 January 2019

The Belgian brewer is said to be mulling an IPO of its Asian unit. The region is a fast-growing jewel in the drinks giant’s crown, yet it faces stiff competition in China, and still struggles in India and Southeast Asia. The mooted $70 bln valuation will be tough to keep down.

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.