EssilorLuxottica’s boardroom truce is fuzzy 13 May 2019 Chairman Leonardo Del Vecchio and his French counterpart have asked their lieutenants to jointly lead strategy at the $54 bln eyewear giant. The ceasefire averts damaging litigation at the newly merged group. But it won’t make the search for an external CEO much easier.
Bernard Arnault dances to Rihanna’s fashion tune 10 May 2019 The French billionaire is hooking up with the pop icon to launch a label for fancy clothes and bags. A repeat of Rihanna’s wildly popular Fenty cosmetics line would add just 1% to LVMH’s sales. Still, tapping into 70 mln Instagram fans is faster and cheaper than buying a brand.
Europe’s $9 bln tower group offers clear 5G signal 7 May 2019 Mobile-mast specialist Cellnex should benefit from super-fast data networks even if telecom operators fail to recoup their heavy investments. Its latest 2.7 bln euro deal with France’s Iliad and a Swiss group, though, also shows fierce competition for infrastructure-like assets.
Air France-KLM descent is double Dutch blow 3 May 2019 The airline’s Dutch arm swung to a first-quarter operating loss, weeks after the Netherlands government bought a 14 pct stake. KLM is still faring better than its French partner. But the wobble undermines demands for special treatment and leaves its political backers red-faced.
BNP requires more than one-off trading boost 2 May 2019 The French lender enjoyed a 3 percent jump in investment banking revenue in the first quarter, implying CEO Jean-Laurent Bonnafé gained market share from peers. But he will only convince sceptical investors that he will hit his 2020 return target if he can maintain such growth.
Cox: Ghosn affair shoves Japan two steps back 2 May 2019 Harsh treatment by prosecutors has amazingly elicited some sympathy for the Nissan boss. Neither greed nor running the automaker like a deity is a crime. And the presumption of guilt on other matters is unseemly. It may scare off foreign executives just as Japan Inc goes global.
Renault M&A plan is lesser of two evils for Nissan 26 Apr 2019 The Gallic carmaker is once again pushing for closer integration with its partner, Nikkei says. If the Japanese company were to win concessions, such as board seat parity or an equal stake in a merged group, a deal would make more sense than the current mess.
Cox: Emmanuel Macron is succumbing to shortcuts 24 Apr 2019 The French president’s plan to close ENA, the elite school that churns out civil servants and CEOs, smacks of symbolism. So does his pledge to fix Notre-Dame in five years. Reforming the economy, like rebuilding a great cathedral, demands tough choices, not political gimmicks.
Casino sales merely keep its head above water 23 Apr 2019 The indebted 4.2 bln euro French retailer has sold 470 million euros of supermarkets to U.S. buyout firm Apollo. The valuation looks adequate and the group’s shares are well above September lows. But leasing back its own stores will act as a drag on Casino’s recovery.
Climate risk gets the right kind of oversight 18 Apr 2019 Central banks presiding over almost half the planet’s GDP plan to treat global warming as a threat to financial stability. It’ll add heft to existing pressure from investors and make it harder for companies and their lenders to ignore the longer-term impacts of climate change.
Unilever could use a few Nestlé diet tips 18 Apr 2019 Decent first-quarter revenue growth at both consumer giants means their 2020 margin goals can live another day. But Unilever’s foods business expanded just 1.5 percent organically compared to 3.4 percent overall at Nestlé. The Anglo-Dutch group needs to overhaul its pantry.
Chinese millennials create M&A urgency for Kering 18 Apr 2019 Gucci’s success, especially with the mainland’s young affluent, is a blessing and a curse for Francois-Henri Pinault’s luxury empire. The Italian brand accounts for 61 pct of sales. Finding another marque, like Valentino or Patek Philippe, to balance the business won’t come cheap.
Hadas: Big Notre-Dame gifts bring mixed messages 17 Apr 2019 When the Paris cathedral needed only invisible repairs, the government and billionaires weren’t interested. After this week’s big blaze, everyone is opening their wallets. That is often how charity works – a bit random and a little prideful, but better than not giving at all.
Danone leaves itself little room for error 17 Apr 2019 The 48 bln euro yogurt maker’s first-quarter sales rose 0.8 pct organically, in line with expectations. Danone expects that to accelerate, but missteps could threaten the company’s full-year target of 3 percent. Any shortfall could encourage attention from activists.
Notre-Dame melts France’s philanthropic froideur 16 Apr 2019 Luxury tycoon Bernard Arnault and oil giant Total are among those to have pledged a total of more than 600 mln euros to rebuild the fire-ravaged cathedral. France lags Germany and the UK for charitable giving. But restoring a national treasure makes moral and financial sense.
Buyback plan gives Bolloré a Vivendi backstop 16 Apr 2019 The French media giant’s shareholders have approved plans to buy back a quarter of its stock at 25 euros a share. That’s a handy insurance policy for billionaire Vincent Bolloré. If the stock drops, he has scope to gain greater control of the company at no personal cost.
Publicis’ biggest buy distracts from deeper issues 15 Apr 2019 Chief Executive Arthur Sadoun is spending $4.4 bln on Alliance Data Systems’ Epsilon digital marketing unit. It’s a bold bet on more targeted advertising, but does little to help the French group hit next year’s 4 pct organic revenue growth target, or lure back lost clients.
Franco-Italian nexus gets its own bankers 11 Apr 2019 Mediobanca is buying Paris M&A boutique Messier Maris in another high-profile cross-Alps deal. Despite close cultural ties, board rows at EssilorLuxottica and Telecom Italia show getting along is hard. Therapists may be as useful as bankers in bringing Italy and France together.
SocGen trading cuts are just a start 9 Apr 2019 The bank run by Frederic Oudea is streamlining its investment bank and axing 1,600 jobs. Shutting down commodities and proprietary trading is overdue for a unit that earned a 6 pct return on equity last year. The bank’s slim capital buffer may rule out a deeper restructuring.
Engie gets the gas but without the gearing 8 Apr 2019 The French utility’s $8.6 billion deal to buy Petrobras’ Brazilian gas pipelines enables expansion in one of its core areas. Doing so with Canada’s CDPQ limits the extent it needs to push up its debt. That should help keep its new three-year strategy on the road.