Pandora adds green polish to its lab-diamond bet 28 May 2021 The $13 bln Danish trinket maker is switching to all synthetic stones, a move driven more by profit than sustainability. Man-made rocks can be 90% cheaper than natural ones, putting them in Pandora’s mass-market ambit. The reduced carbon footprint adds some millennial sparkle.
Danish shipping raid heralds consolidation wave 27 Apr 2021 DSV Panalpina is loading Kuwait’s Agility into its hold in return for $4.1 bln in new shares. With its flotilla of medium-sized players, the global freight sector is ripe for M&A. Disruption from the pandemic and recent Suez blockage present a window for bigger players to pounce.
Nexi bulks up for next round of payments M&A 16 Nov 2020 The Italian group’s 7.8 bln euro swoop on rival Nets, following its takeover of Sia, turns it from prey into predator. With a likely market value of around 22 bln euros, Nexi will compete with French rival Worldline for future deals. Bank-owned payment assets are the next target.
Vestas wind blows holes in BP’s green ambition 12 Aug 2020 The oil major is late to the party it called in 2000 with its “Beyond Petroleum” rebranding. Renewables were cheap to enter back then, when the Danish wind turbine maker was worth under $2 bln. Not so easy now, with soaring orders and revenue puffing up Vestas’s value to $29 bln.
Scandi airline rescue is formation-flying lesson 30 Jun 2020 Sweden and Denmark are taking an equal share of the knotty $1.5 bln rescue of regional carrier SAS. If equity and debt holders agree, it’s an exception to the rule that national priorities impede cross-border bailouts. Air France-KLM’s fractious state owners should take note.
Carlsberg premium rating’s days are numbered 4 Feb 2020 The Danish brewer’s Chinese exposure means investors value it more highly than peers. But with the coronavirus shutting nightclubs and half of restaurants in the $22 bln group’s biggest market, that will change. Boss Cees ‘t Hart needs a plan B.
Vestas buttresses Denmark’s wind-power primacy 7 Nov 2019 The Copenhagen-listed turbine maker’s order books have bulged to 33 bln euros. More importantly, margins are withstanding the buffeting of subsidy removals, unlike at rival Siemens Gamesa. Alongside operator Orsted, tiny Denmark is king of the $1 trillion wind business.
Danske’s sunny 2023 targets jar with Baltic chill 1 Nov 2019 The $12 bln lender wants investors to focus on a 9%-10% return on equity target in four years. They’re rightly sceptical, since 2020 returns may be half that level. A risk of fines from investigations into possible Estonian money laundering further cement a cut-price valuation.
Oil bosses have a love-hate relationship with wind 30 Oct 2019 With fossil fuels increasingly frowned on, rapid growth in renewables should appeal to greenish majors like Total and Royal Dutch Shell. Oil’s much higher returns are a reason to demur. Yet plunging offshore wind costs and the risk of price falls give them little choice.
Carlsberg can relax with a brew in second half 15 Aug 2019 Unlike larger peers AB InBev and Heineken, the Danish brewer’s recently increased year-end targets look easy to reach. Still, the end of a cost-cutting programme may bring slower gains in profitability. After strong share price gains, the beer maker’s valuation has enough fizz.
Nordea’s defences are in need of repair 18 Jul 2019 Low rates and competition for mortgages knocked 35% off pre-tax profit at the Nordic region’s largest bank in the first half. That casts further doubt over its promise to keep raising dividends. CEO Casper von Koskull will have to cut costs closer to peers, or step aside early.
AB InBev checks into prolonged debt detox 15 Jul 2019 Cancelling the IPO of its Asian unit leaves CEO Carlos Brito with few options to quickly reduce net debt of $102 bln. Flogging Budweiser and Corona should bring borrowing below 2 times EBITDA, but not until 2023. The deal-happy group has no choice but a period of abstention.
Nordic banks’ soft regulators invite U.S. wrath 19 Jun 2019 Shares in Danske and Swedbank have fallen sharply due to concerns about American probes into money laundering. A $900 million fine by Dutch regulators helped ING escape U.S. ire for similar breaches. Laws limiting penalties in Scandinavia mean banks there may not be so lucky.
StanChart delivers a brittle show of strength 30 Apr 2019 The Asia-focused bank will buy back $1 bln of shares after a strong first quarter. With U.S. legal risks largely banished and the bank trading at a discount, the chutzpah is understandable. But one-off gains mean CEO Bill Winters is still some way from his 10 pct return goal.
Cox: Danish capitalism is alive but not all well 4 Apr 2019 The Nordic economy is a model for U.S. leftists like Bernie Sanders. The White House argued in a much-dissed paper that living standards in the region are lower due to socialism. The reality is otherwise. But as Danske Bank’s woes suggest, there’s no such thing as utopia.
Swiss freight group gets pirate’s bounty from DSV 1 Apr 2019 The Danish logistics company is handing over shares worth $4.6 bln for Panalpina after a months-long spat involving activist Cevian and a charitable foundation. The price is too good to turn down. Expert acquirer DSV will have to beat its own track record to make the deal pay.
AB InBev sets itself an easy target 28 Feb 2019 The Corona brewer pleased investors by unveiling healthy revenue growth and plans to cut net debt to below four times EBITDA by end-2020. The goal is feasible even without a mooted IPO of its Asia unit. Just as well since the company can ill afford big cuts in its marketing spend.
Asian drinkers justify Carlsberg’s premium price 6 Feb 2019 The Danish brewer trails bigger rivals AB InBev and Heineken in terms of profitability, yet trades on a higher multiple of earnings. That reflects the promise of higher margins, and greater exposure to growth in China and India. A $491 million share-buyback plan helps too.
Swiss $4 bln freight battle has questionable cargo 16 Jan 2019 Activist investor Cevian has helped solicit a bid for subscale freight group Panalpina. Would-be owner DSV could face competition from Switzerland’s Kuehne + Nagel, handing shareholders a sweeter price. It’s less clear that either will make a return from a much higher offer.
Bond markets shrug off Danske dirty-money risks 11 Jan 2019 The bank at the centre of a money-laundering scandal saw its cost of issuing risky debt more than double. Still, its yields are far below those of Italy’s UniCredit. The troubles at the Danish lender may have further to run, and are harder to predict, than Rome’s political drama.