Netherlands

Nestlé and Unilever switch focus to shopping lists

19 April 2018

The consumer giants reported strong sales growth in the first quarter; a welcome change after two years of sluggish demand. With share prices flatlining, though, a further shake-up of their brands is likely. There are growing signs of where both companies are looking to buy.

KPMG woes force South Africa to consider Big Three

18 April 2018

The audit firm’s future in the country is in doubt after it was sacked by the government – its biggest client – following the second scandal in under a year. Regulators have long worried about losing one of the Big Four global firms. South Africa provides a reluctant test case.

French telco jigsaw missing key regulatory piece

17 April 2018

Bouygues could bid for Altice’s French business, Bloomberg reports, to end a painful price war. It’d make more sense than failed 2016 talks with state-owned Orange. But regulators may still prefer four less-profitable operators to three stronger groups with power to raise prices.

Qualcomm’s future stuck on slow boat to China

16 April 2018

The chipmaker’s strategy depends heavily on closing its $44 bln NXP deal. A possible trade war leaves Chinese regulators in no mood to approve the U.S. company’s purchase, though. Qualcomm does have one bright spot: its long-running spat with Apple may be coming to a head.

Review: America’s founding was all about the money

13 April 2018

“New World, Inc.” explores the role of British merchant adventurers in laying the groundwork for the colonial settlements in Virginia and Plymouth. The book is a prequel of sorts to the Pilgrim creation myth that suggests Mammon, not religious freedom, drove America's creation.

DSM has ingredients for long-term health

12 April 2018

Shares in the Dutch vitamin and chemicals group hit a record high after it reported strong first-quarter sales. A fire at German rival BASF’s plant cut supply, prompting a spike in vitamin E prices. A healthy underlying business shows the valuation boost needn’t be temporary.

Cerberus Alitalia carve-up would not fly with Rome

11 April 2018

The private equity firm is reported to be plotting a three-headed bid for the Italian airline. It would see easyJet take short-haul routes and Air France-KLM long ones, while Cerberus puts up the cash. But a breakup plan will not pass muster with a new nationalist government.

Dutch lawmakers give Ahold backup in activist spat

10 April 2018

Activist CIAM wants the supermarket to scrap its foundation that can be used to block takeovers. But with the Netherlands eyeing new laws to stymie hostile bidders, companies may not need these arcane tools much longer. Shareholders will suffer either way.

Unilever-FTSE standoff is test of index power

28 March 2018

The benchmark compiler must decide whether to keep the Marmite maker in the FTSE 100 after it opted for a Dutch head office. Recent tax changes and activist pressure may prompt similar rejigs at heavyweights Shell and BHP. The index may have to bend its rules to retain its clout.

Carlyle’s $12.6 bln Akzo deal has good chemistry

27 March 2018

The U.S. private equity group is buying a speciality chemical unit that the Dutch company put on the block after a failed PPG bid. Carlyle knows the industry and has slashed costs at Axalta. While there may be less scope for huge cuts this time, decent returns are still on offer.

Altice investors require a stomach of steel

16 March 2018

Patrick Drahi’s telecom group has lost half its market value in less than five months. Spinning off the U.S. arm is sensible. But the slimmed-down parent’s 31 billion euros of net debt is almost 15 times its implied equity value. That is a recipe for wild share price swings.

Unilever exit is double setback for London

15 March 2018

The Dove soap maker has picked Rotterdam as its global base in a corporate streamlining. Scrapping its Dutch trust office will help reassure investors that the move is not a takeover defence. However, the reshuffle may also rob the FTSE 100 index of one of its larger members.

ING pay fiasco confirms banking’s utility status

13 March 2018

The Dutch lender has withdrawn a 50 percent salary hike for its CEO following a public outcry. Political opprobrium stems from past state support for banks. The inevitable consequence is that bosses become glorified civil servants. Directors and shareholders take a back seat.

Shell investors could live with a BHP shale punt

9 March 2018

The Anglo-Dutch oil major may bid with Blackstone for the miner’s $10 bln U.S. shale assets, Sky says. The business would be less risky for Shell’s balance sheet than drilling for traditional oil. And private equity’s high return targets could reduce the danger of overpaying.

AB InBev is one step short of a strong footing

1 March 2018

The world’s top brewer served up better-than-expected EBITDA in the fourth quarter and a welcome chaser of volume growth. That will soothe investor worries that ruthless cost cuts are hurting sales. Now it needs to reverse falling market share in its most important U.S. market.

Vodafone-Liberty can appeal to Europe’s size envy

12 February 2018

The telco may buy some of John Malone’s European cable assets. European regulators blocked past telecom M&A, like Hutchison’s bid for O2. They might look more favourably on a deal that creates a viable rival to Deutsche Telekom and adds cross-border scale to a fragmented market.

Heineken’s number two status brings marginal costs

12 February 2018

The Dutch brewer is one of the few global groups still increasing beer volumes. However, acquisitions will weigh on operating margins in 2018. Heineken needs to invest in its new Brazilian brands to take on market leader AB Inbev. That limits the scope for boosting profitability.

Shell is flush enough to afford mistakes

1 February 2018

After negative free cash flow in 2016, the energy giant is back in the black. Shell can both comfortably pay shareholders and invest to ensure its survival after demand for oil peaks. The margin for error is welcome – it’s hard to predict how soon crude will fall out of favour.

Unilever success hinges on quick house-cleaning

1 February 2018

The Dove soap owner is on track to meet sales and profit targets that it set after rejecting Kraft Heinz’s $143 billion bid. Its next big tasks are to pick a new head office and the next CEO. Getting both out of the way quickly will allow the company to focus on taking on rivals.

Philips still waiting for valuation health-check

30 January 2018

The Dutch group has shed its consumer electronics legacy and now earns almost all its income from health technology. Low profitability means CEO Frans van Houten has yet to be rewarded with a valuation worthy of the sector. Full-year results for 2017 at least show he’s on track.