Netherlands

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.

Just Eat-Grubhub deal requires fistful of antacid

10 June 2020

The European food-delivery service is to buy its U.S. counterpart for $7.3 bln. There are some benefits, not least access to more capital for Grubhub. But little overlap means few cost savings – and Just Eat enters a cut-throat U.S. race against Uber Eats, DoorDash and Postmates.

Crisis exposes flaws in EU’s second-tier banks

13 May 2020

ABN Amro and Commerzbank, both former bailout recipients, lost money in the first quarter. The cause, virus-induced bad debt, is common. But a narrow focus and low profitability make them particularly exposed, leaving taxpayers stuck with some of the lowest returns in Europe.

Shell’s dividend surrender is a necessary evil

30 April 2020

Given it hadn’t reduced shareholder payouts since WW2, the Anglo-Dutch major’s two-thirds cut hurts its pride. But amid an epic price crash boss Ben van Beurden couldn’t have kept Shell’s rating and paid to transition from oil. Stubbornly clinging on would have been even worse.

Messy Air France-KLM rescue has lessons for others

27 April 2020

The French and Dutch governments are lending their respective parts of the ailing carrier up to 11 bln euros. The tricky bailout exposes the frailty of the 2004 merger. Germany’s Lufthansa, which owns Swiss and Austrian, and Anglo-Spanish operator IAG may face similar challenges.

Just Eat puts convertibles at top of bankers’ menu

23 April 2020

Dutch food delivery group Just Eat Takeaway.com sold 300 million euros of funky debt that converts into equity. It’s a cheap way to raise funds when stock markets are volatile. The products’ stable performance during the coronavirus crisis means investors should stay hungry.

Hoarding to extend sell-by date of tired brands

17 April 2020

Consumers stockpiled pantries and freezers with long-life grub, boosting dowdy products like frozen Hot Pockets. Unilever and Nestlé had been tilting towards higher-end brands. Lockdowns will force CEOs and investors to reconsider the value of what’s in their cupboards.

Shell helps avoid net-zero focus on climate change

16 April 2020

The oil major has followed BP in toughening its long-term carbon reduction ambitions. As with those of peers, the new goals are still not much more than a start. Still, with Covid-19 forcing Big Oil into crisis mode, their main virtue is to keep global warming on the radar.

Corona Capital: Ackman’s hedge, Oil stockpiles

26 March 2020

Concise views on the pandemic’s corporate and financial fallout, including investor Bill Ackman’s surprise reversal of fortune, and the U.S. shale oil bailout that wasn’t.

Lockdowns mean heartburn for meal-delivery market

16 March 2020

The $123 bln sector, which includes Uber and Meituan, may sound like a winner as the coronavirus keeps diners indoors. Yet the key office-lunch market is collapsing, and panic buying has filled home kitchens with groceries. Paying sick drivers will add to the financial strain.

Dutch grocer can afford $7 bln U.S. shopping spree

20 February 2020

Ahold Delhaize, the $28 bln owner of Stop & Shop supermarkets, churned out cash after another strong quarter. The success suggests it could hoover up smaller U.S. players. Several grocers might be an option, though Ahold might have to compromise on its preferences.

Air France lays down worrying coronavirus marker

20 February 2020

The Franco-Dutch airline’s shares fell 7% as it warned of a 200 mln euro hit from the virus. Rivals BA-owner IAG and Lufthansa will also feel the travel drag. Yet Air France-KLM’s estimates count on a quick resolution. That suggests even more pain could be ahead for investors.