Netherlands

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.

Europe’s vaccine bazooka is more like sniper rifle

18 Nov 2021

Germany may join Austria in imposing curbs on the unvaccinated to tackle soaring Covid-19 infections. Restricting freedoms is harsh but worked in France and the United States, which both saw inoculation rates pick up. It also avoids the economic pain of blanket lockdowns.

Elliott seeks hidden tech treasure in dull grocer

17 Nov 2021

Paul Singer’s fund took a 3% stake in $35 bln retailer Ahold Delhaize. Rather than cost cuts, the activist’s interest lies in the Dutch group’s online unit, worth perhaps $8 bln. But competition is fierce and rich valuations may not last. Elliott’s bet also needs good timing.

Shell’s Dutch exit comes with legal side benefits

15 Nov 2021

Shifting its tax residency to the UK, along with its head office and CEO, simplifies the $170 bln oil major’s structure. It also makes it easier to reorganise for the energy transition. The implied snub to the Dutch court which ordered Shell to cut emissions is an added bonus.

FX risks dilute appeal of Heineken’s Africa tipple

15 Nov 2021

The Dutch brewer is buying South Africa’s Distell for $3 bln and taking over Namibia Breweries. With modest cost savings, CEO Dolf van den Brink can make a spirited return. But he’ll have to flog more Amarula liquor beyond the continent to ease the headache of wobbly currencies.

Unilever’s tea makes for a tasty buyout brew

2 Nov 2021

The Dove maker is selling brands like PG Tips and Pukka, worth perhaps 4 bln pounds. Bringing sales to a proper boil could give private equity giants like Carlyle or Advent an invigorating 19% return. CEO Alan Jope’s struggling personal care lines may not hit the same sweet spot.

Shell’s Loeb parry uses cash, capex and chutzpah

28 Oct 2021

The $190 bln oil major needs to deflect activist Third Point’s call to split itself up. High crude prices make it easier to promise fat cash returns and invest more in green energy. Given Shell should have done that anyway, fending off Dan Loeb also requires a certain brass neck.

Europe’s chip champion can weather tech cold war

30 Sep 2021

ASML, which supplies machines to semiconductor makers, expects sales to grow 11% a year for a decade. That’s key to the Dutch company’s $310 bln market value. Despite restrictions on exports to China, countries seeking to secure chip supplies will provide an extra boost.

Dutch lingerie sale looks surprisingly chaste

24 Sep 2021

Sexy-underwear seller Hunkemoller is on the block after a post-pandemic rebound. Owner Carlyle’s digital push is helping it win market share. Yet investors seem more excited by trendy sportswear than saucy lingerie. Capping the price at 1 bln euros looks suitably modest.

Fiat offspring are racy hedge against anti-rich Xi

23 Sep 2021

BMW, Mercedes and others would be hit hard if China’s “common prosperity” drive extends to premium vehicles. Ferrari can power through, while Stellantis’ low sales in the world’s top car market would offer investors cover, if rivals don’t offload vehicles on the cheap elsewhere.

Universal spin makes case for even slimmer Vivendi

21 Sep 2021

Tycoon Vincent Bolloré has enriched himself and other shareholders by listing the $53 bln label behind artists like Taylor Swift. But his remaining media business still trades with a hefty discount. Offloading his Italian holdings, and putting a stop to M&A, would help fix that.

DSM rejig needs stronger growth flavour

14 Sep 2021

The 31 bln euro food ingredients maker is looking to sell its industrial materials unit. It’s an overdue step that will give the shares only a modest bump. If the Dutch group can grow its sales more quickly, a Givaudan-style valuation and sweeter gains could follow.

Prosus pushes hard on Indian fintech door

31 Aug 2021

The tech investor is paying $4.7 bln for payment processor BillDesk. That transforms its PayU operation and provides a profitable base to extend credit. The multiple of 19 times revenue is punchy, but a fraction of Paytm. And it’s a strong foothold in a big emerging market.

Goldman’s European fund foray may be a taster

19 Aug 2021

David Solomon’s bank bought Dutch insurer NN Group’s asset management arm for 1.6 bln euros. It gives it a boost in sustainable investing, but the real benefit looks like greater scale at a time of slow growth. On that metric, Goldman probably needs to do more deals.

Just Eat Takeaway is looking like an M&A leftover

17 Aug 2021

The 15 bln euro delivery company made a smaller-than-expected loss in the first half. It’s still battling a tough U.S. market and needs to step up investment in Europe. A cheap valuation and restive shareholders would make it hard for CEO Jitse Groen to fend off an offer.

Big Oil’s generosity has limited shelf life

29 Jul 2021

Royal Dutch Shell and Total will return billions of dollars to investors. High crude prices mean they can cut debt, invest in green energy and crank up payouts. Such largesse may get harder given growing pressure to cut emissions. Prudent payouts will limit future disappointment.

Apollo SPAC offers cheap ride on EV hype freeway

28 Jul 2021

Electric vehicle charging group Allego is listing through one of the buyout firm’s blank-cheque companies for $3 bln. It’s a crowded space, but a valuation multiple of 5 times 2024 sales is less racy than rivals. Still, only booming battery car demand will avoid a short-circuit.

Unilever’s inflation struggle is a mixed basket

22 Jul 2021

Higher costs squeezed the $155 bln Marmite maker’s profitability in the first half, forcing CEO Alan Jope to dump his goal of higher operating margins. Hefty marketing spend gives Unilever scope to raise prices faster. But investors are placing a bigger discount on future growth.

European tech titans’ sweet spot may turn sour

21 Jul 2021

Both $300 bln ASML and $170 bln SAP upped their revenue-growth projections. They’re riding trends like soaring demand for chips and cloud computing. But much of the good news is already priced in to their expensive shares. The next surprise for investors may be less encouraging.

UK credibility on China inward M&A gets wafer-thin

8 Jul 2021

Britain’s government initially declined to review Chinese-owned Nexperia’s $87 mln deal to buy the country’s largest semiconductor plant. It has now U-turned, which makes sense given the world chip shortage. But the mixed messages hardly inspire confidence in the process.