Netherlands

Europe’s chip darling may fall victim to its hype

20 January 2021

ASML’s market value has risen by two-thirds in the past year to $230 bln, helped by surging demand for its kit. Yet CEO Peter Wennink will struggle to meet investors’ heady growth hopes. A drawn-out trade war between China and America would make his job even harder.

Akzo’s Finnish paint splurge is no Rembrandt

18 January 2021

The European chemicals group bid $1.7 bln for Helsinki-based Tikkurila, trumping an offer from PPG. It comes just three years after the firm led by Thierry Vanlancker fended off a takeover by its U.S. rival. Whoever wins this fight will struggle to gloss over the hefty price tag.

Philips’ cardiac deal carries heart-stopping price

18 December 2020

CEO Frans van Houten agreed to buy U.S. group BioTelemetry for $2.8 bln including debt. It’s wise to push further into “telehealth”, where doctors treat and monitor patients remotely rather than in hospital. But the valuation he’s paying will make it hard to earn a good return.

Drahi’s hedge fund spat ends in acceptable defeat

16 December 2020

The telecoms mogul raised his lowball offer to buy out shareholders in his group Altice to 6.4 bln euros. That has won support from activists including Elliott, avoiding a legal tussle. Still, a final valuation below some peers suggests the gambit has partially succeeded.

Del Vecchio channels Arnault spirit on eyewear bid

10 December 2020

Like the LVMH founder, the Ray-Ban billionaire is suffering from buyer’s remorse. His EssilorLuxottica may rethink its pre-pandemic 7 bln euro bid for GrandVision. The glasses retailer won’t easily find another buyer. As with Tiffany, a lower price is the most likely outcome.

Activists shove Unibail towards chastening Plan B

10 November 2020

French mogul Xavier Niel blocked the mall owner’s planned $4 bln rights issue. That’s embarrassing enough for Unibail boss Christophe Cuvillier. But the only realistic way to fix the balance sheet holes from the Westfield acquisition he masterminded is to sell valued U.S. assets.

European rivals give SocGen a lesson in efficiency

5 November 2020

Like the French bank, ING and UniCredit saw third-quarter net profit fall due to reduced revenue and more bad debt. Low interest rates will keep squeezing income. That puts SocGen, whose costs ate up 75% of its top line this year, at a disadvantage to its Dutch and Italian peers.

Naspers finds one bargain internet stock: its own

30 October 2020

The $82 bln South African group and its Amsterdam-listed offshoot have lagged behind a surge in big technology stocks this year. A $5 bln buyback highlights the discount to its stake in China’s Tencent and shows it won’t chase overpriced deals. Other investors should take notice.

Unilever finds better recipe with new growth focus

22 October 2020

The Magnum maker’s sales jumped in the third quarter. CEO Alan Jope hopes price cuts and higher spending on marketing will ensure this is not a one-off. Sacrificing a goal of lifting the operating margin is the right thing to do. But more guidance would inspire more confidence.

Unibail activist riot leaves leaky roof exposed

15 October 2020

Telecom mogul Xavier Niel and the mall operator’s former CEO want to block its $4 bln rights issue. Their plan to sell the U.S. business instead would save money but is trickier if Covid-19 persists. Doubling down on Europe also leaves the group more at risk from online shopping.

KPN adds Dutch fibre to Europe telco buyout buffet

12 October 2020

Private equity firm EQT is sizing up the Dutch phone operator, according to Bloomberg. Worth 16 bln euros including debt, it’s a major meal even before the government weighs in. Smaller operators in Europe’s bombed-out telecoms sector may make simpler and tastier treats.

Long-shot Dutch exit tax is warning for Unilever

13 August 2020

Lawmakers in the Netherlands want to charge the Dove maker an exit fee for unifying its head office in London. The proposal, which would cost Unilever 11 bln euros, may not be legally or politically viable. Still, it’s a reminder that chasing efficiency risks a public backlash.

ABN Amro makes case for deep investment bank cuts

12 August 2020

The 4 bln euro Dutch lender is lopping 35% off its wholesale business after losses. Though shrinking is expensive and lengthy, and the outlook for retail lending remains grim, investors hailed the move. Rival lenders whose traders made money in the crisis face a harder choice.

Weakened Shell offers dim hope for pre-virus glory

30 July 2020

The $122 bln oil major’s sales fell nearly two-thirds in the second quarter, as the pandemic hurt crude prices. A dividend cut looks prudent. But a legacy of high debt, less investment and weak demand for fossil fuels mean investors are unlikely to see fat payouts restored soon.

Oil majors’ Atlantic divide shows up in valuation

2 July 2020

U.S. and European producers’ divergence in climate change action is becoming increasingly obvious. Yet investors value Exxon Mobil and Chevron higher than Royal Dutch Shell and BP. At least for now, investors seem reluctant to view energy transition awareness as a good thing.

Unilever’s fairness agenda gets harder to manage

26 June 2020

The Anglo-Dutch giant is renaming skin-lightening products popular in India which generate $500 mln in sales. Dropping them, like J&J, would better fit with CEO Alan Jope’s values-driven ethos. Multinationals trying to be global and progressive will face more of these dilemmas.

Breakup pledge will keep Unilever boss on his toes

22 June 2020

Alan Jope promised to list the consumer giant’s food and drink unit in Amsterdam if it’s spun off. That’s not happening now: Unilever shares largely reflect the division’s 50 bln euro value. But the hypothetical vow gives investors ammunition if the Dove maker underperforms.

Viewsroom: Global takeaway and Cathay

11 June 2020

Nothing sums up pandemic dealmaking quite like this: As a merger of America’s top shopping mall operators crashed and burned, two of the world’s biggest food-delivery companies joined forces. Also, Cathay gets a bailout and so might the Mets. Breakingviews columnists discuss.

Just Eat investors may refuse to swallow Grubhub

11 June 2020

Shares in the Anglo-Dutch meal-delivery company dropped 13% after it unveiled a $7.3 bln acquisition of a struggling U.S. peer. The return on investment looks low. Just Eat Takeaway shareholders have both the means and motive to veto CEO Jitse Groen’s transatlantic expansion.

Unilever’s reverse reunification is win for FTSE

11 June 2020

Two years after UK shareholders rejected plans to create a single parent company in Rotterdam, the $143 bln Anglo-Dutch giant is unifying around a London listing. Investors in the Netherlands will struggle to throw up the same obstacles. The payoff is more M&A flexibility.