Tata Steel deal crystallises overseas M&A pain 20 Sep 2017 The Indian group’s deal with ThyssenKrupp will shore up the ailing business it bought in 2007. But the joint venture will assume just a quarter of the European unit’s 9.5 bln euros of liabilities. That’s bad for Tata Steel shareholders. At least its rich parent is supportive.
Tata Steel JV pays ThyssenKrupp four dividends 20 Sep 2017 A historic joint venture with India's Tata will unshackle the German group from the fickle, capital-intensive steel industry. Lower pension liabilities, a share of synergies worth 3 bln euros and a more robust balance sheet are further benefits. Workers will fare better too.
Russian bank aid plea tests too-big-to-fail triage 20 Sep 2017 B&N Bank, the country’s 12th-largest lender by assets, has asked for help less than a month after the central bank rescued rival Otkritie. Support would blur the line between systemically important banks and others. But rejecting the request could cause problems to spread.
Kingfisher’s DIY skills show room for improvement 20 Sep 2017 The power drill-to-paint retailer’s first-half pre-tax profit beat expectations – welcome for a company that has lost a fifth of its value since May due to a messy business transformation. In a supposedly recession-proof sector, Kingfisher’s woes are largely self-inflicted.
HBOS audit probe shows limits of bank accounting 19 Sep 2017 KPMG was right to accept the UK bank as a “going concern” shortly before its near-collapse in 2008, a watchdog has concluded. Pre-crisis audits deserve scrutiny, but accountants cannot replace regulators. Besides, publicly flagging HBOS’ frailty would have accelerated its demise.
Deutsche Bank investors are stuck with John Cryan 19 Sep 2017 Some shareholders are understandably frustrated at the lack of recovery at the German lender. But replacing the chief executive wouldn’t boost low returns on equity, and might hinder restructuring. Cryan needs an unlikely investment banking recovery to hit his targets.
EU aims torpedo at asset managers’ Brexit defence 19 Sep 2017 Europe’s market regulator may be given new powers to prevent national watchdogs from turning a blind eye to funds that outsource jobs to the UK in the hope of luring business to their shores. London-based funds could face more upheaval than expected after Britain leaves the EU.
Heineken tries its hand at conscious uncoupling 19 Sep 2017 The brewer’s second-largest investor, Femsa, has sold a stake worth 2.5 billion euros. A spat over Brazilian distribution was a hiccup in an otherwise successful relationship. Co-dependence in the lucrative Mexican market is a good reason for both sides to keep things friendly.
What we’ve learned about Brexit so far 19 Sep 2017 Britain’s divorce from the European Union is reaching the critical stage where talks are meant to shift from principle to detail. Progress is being slowed by bickering, technicalities and economic fog. Despite the risk of Brexit fatigue, five clear lessons stand out.
Climate-investing deal targets sustainable returns 18 Sep 2017 London-based Impax’s purchase of U.S. rival Pax stacks up financially and creates one of world’s largest climate-change specialist investors - with $13 bln in assets. Rising environmental risks should heat up demand for such funds, but also draw competition from bigger players.
Pirelli IPO leaves long-term questions unanswered 18 Sep 2017 The Italian tyremaker, sold to ChemChina in 2015, is seeking to raise up to $4 bln in a listing. A shift towards luxury tyres has boosted sales and margins. But growth targets look ambitious and there is no clarity on who will succeed long-term boss Marco Tronchetti Provera.
Jes Staley’s share price misery is undeserved 18 Sep 2017 Though the Barclays CEO has delivered on his targets the bank’s shares are down 16 pct this year, making it the UK’s worst-performing major lender. Self-inflicted regulatory and litigation worries haven’t helped. But concerns about headwinds in the U.S. and Britain are overdone.
Asian bid for Pret A Manger won’t cut the mustard 18 Sep 2017 Filipino fast-food joint Jollibee is eyeing the fancy sandwich chain, says Reuters, potentially uniting Chickenjoy buckets and posh ploughman’s baguettes. But a mooted price of more than $1 bln looks far too downmarket. It might need to double that to derail Pret’s IPO plans.
Qatar jet deal a win for BAE but a loss for London 18 Sep 2017 A deal to buy Typhoon fighter jets will secure thousands of UK manufacturing jobs. But building stronger defence ties with the sheikhdom is a risk when its squabble with Saudi Arabia is unresolved. That could backfire if the kingdom reacts by vetoing a London listing for Aramco.
Paris fashion IPO will struggle for luxe valuation 18 Sep 2017 SMCP, the French owner of the Sandro and Maje labels, is planning a listing. Pitched between luxury and the high street, the Chinese-owned group has sales growth and an efficient supply chain to rival retail leader Zara. But its smaller size and high debt will weigh on its worth.
Breakdown: Colour-coding Germany’s election 18 Sep 2017 GroKo, black-green or Jamaica? Angela Merkel is almost certain to win a fourth term, but the race to be her partner is wide open. The outcome matters for Germany – and for Europe. Breakingviews decodes the colourful jargon, and looks at the consequences of different outcomes.
Lure of scale drives Axa asset management union 15 Sep 2017 The insurer may seek a partner for its European fund arm, Bloomberg reports. Joining forces with French rival Natixis would create a European giant with assets of more than 1.5 trln euros. The threat to margins from low-cost passive investments makes cost savings unavoidable.
“Angry Birds” may struggle to float on thin air 15 Sep 2017 Rovio, known for the popular mobile game, plans to list with a value up to 900 mln euros. Though the price is more sensible than initial reports, it’s still flighty for a one-game franchise. Another warning sign is that many existing investors are using the offering to fly off.
Blue Bottle gives Nestlé little more than a buzz 14 Sep 2017 The Swiss food giant is buying control of the hipster coffee chain at a high-octane $700 mln valuation. It's a premium upgrade for the Nescafé maker, which is also offloading its U.S. candy arm. It may prove challenging, though, for such a niche brand to jolt the bottom line.
Saudi can afford to scrap Aramco IPO plan 14 Sep 2017 Achieving the desired $2 trillion valuation for its crown jewel is going to be tricky. Instead of rushing the job, Riyadh may delay listing 5 percent beyond next year. Even then, political and pricing problems will remain. If it wants money, the kingdom has better alternatives.