UK $4 bln insurance mash-up may yet motor 28 Feb 2024 Direct Line rejected a cash and share offer from its $8 bln Belgian rival Ageas. The target’s depressed share price suggests it has good reason to hold out for more. And synergies related to the two groups’ capital should give Ageas scope to hike its offer.
Russia risk looms over Euroclear profit windfall 22 Feb 2024 The Brussels-based clearing house is a reluctant depository for sanctioned Russian assets. It made 5.7 bln euros before tax last year thanks to cash sitting on its balance sheet. But the bonanza also makes it a target. A blow to financial stability would far exceed one-off gains.
Toilet maker artfully unclogs bondholder backup 29 Sep 2023 Embattled Ideal Standard has struck a $640 mln deal to be bought by Germany’s Villeroy & Boch. The key was persuading creditors to accept less than par on 2026 debt. Other struggling companies could make use of similar financial plumbing.
Banks’ state shareholders can afford slow selldown 2 Mar 2023 The Belgian and Dutch governments took advantage of a market rally to offload chunks of BNP and ABN. Valuations have risen but are still low relative to lenders’ returns. That means Britain and Germany would be wise to move gradually with their NatWest and Commerzbank holdings.
Belgian biotech is pricey cure for Big Pharma ills 28 Jul 2022 Rare-disease specialist Argenx reported surging sales of its main treatment. That increases its allure to drugmakers like Pfizer, whose revenue is threatened by expiring patents. But the $21 bln firm’s soaring shares since a recent U.S. drug approval make it anything but cheap.
AB InBev’s low-alcohol miss has sobering effect 27 May 2022 The world’s biggest brewer wants 20% of its beer volume in 2025 to contain little or no alcohol. Hitting the booze-free target requires unlikely growth of 30% a year. That puts a dampener on CEO Michel Doukeris’s do-gooder vibes, as well as his sales and margin potential.
EU funds can ease, not end common energy pain 18 May 2022 Brussels has earmarked 300 bln euros to cut fossil fuel ties with Russia. Rising rates make cheap, repurposed Covid-rescue loans more attractive to many EU states, increasing the chance they’ll be used. But higher fuel purchases will still have to come from national budgets.
Viewsroom: European bank M&A, De-Dutching Shell 18 Nov 2021 Big lenders in the euro zone are doing deals, but not the kind investment bankers dream about. BNP Paribas is in U.S. retreat, BBVA bulks up in Turkey and KBC goes Bulgarian. Liam Proud explains. George Hay explains why the Anglo-Dutch oil major is dropping the Dutch bit.
EU banks march east towards muddy investment case 15 Nov 2021 BBVA may take full control of its Turkish unit for 2.2 bln euros and KBC is spending 1 bln euros on a Bulgarian rival. There’s logic to the deals. But boosting emerging-market risk and geographic sprawl carries a valuation penalty. Investors would rather have the cash themselves.
Belgian biotech casualty defies Darwinian logic 15 Oct 2021 Galapagos has few drugs, a departing CEO and is worth just 3.1 bln euros, less than the cash on its books. It should be a takeover candidate, but the influence of key investor Gilead is a complication. It’s a cautionary tale of the challenges of drug discovery and creative M&A.
Solvay activist’s Greenpeace costume doesn’t wash 4 Oct 2021 Smug from shaking up Danone, Bluebell Capital is chiding the chemicals group for dumping limestone on a Tuscan beach. With only token economic exposure, its bid to oust boss Ilham Kadri lacks heft. It’s also unclear what other investors gain from joining its eco-warrior campaign.
Temping giant pays rich price for staying power 28 Jul 2021 Switzerland’s Adecco will buy Belgium’s Akka for $2.3 bln. The deal accelerates its shift towards technology consulting and away from low-growth businesses like short-term office workers. But the returns seem thin and rely partly on revenue boosters, which look challenging.
AB InBev’s new CEO will inherit debt hangover 6 May 2021 The $120 bln brewer picked insider Michel Doukeris to replace Carlos Brito. He’ll lead a shift to investing in brands, away from the M&A and cost control that defined his predecessor’s 15-year tenure. Any stumbles will threaten AB InBev’s plan to halve net debt of 4 times EBITDA.
Pandemic speeds AB InBev’s necessary revamp 25 Feb 2021 More drinking at home and higher raw materials costs will pressure the $100 bln brewer’s margins in 2021. After years of zero-based budgets, it needs looser purse strings to revive sales. But with $83 bln of debt, its valuation discount to less profitable rivals will persist.
Pandemic complicates AB InBev’s debt rehab 29 Oct 2020 The $93 billion brewer canned its interim dividend but its ideal leverage of 2 times EBITDA remains out of reach. CEO Carlos Brito is expected to step down soon, his successor will need cash to invest in brands hit by Covid-19. Selling another chunk of the Asian unit would help.
AB InBev jumps a very low bar 30 Jul 2020 The $95 bln drinks group reported a smaller-than-expected slump in second-quarter sales. Improved performance in June was down to restocking but the rebound will be slow. While pubs are reopening, coronavirus-wary drinkers aren’t returning in droves. Real cheer is some way off.
Frère hands minorities two carrots and one stick 12 Mar 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 Feb 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 Dec 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 Nov 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.