Netherlands

Germany’s electricity headache has an M&A cure

6 Mar 2023

Berlin may spend over 20 bln euros on the local unit of Dutch-owned TenneT. Every country’s power grid needs an overhaul to make it fit for the green transition, but Germany’s need is especially pressing. Still, relatively low debt also makes it easier to take swift action.

Banks’ state shareholders can afford slow selldown

2 Mar 2023

The Belgian and Dutch governments took advantage of a market rally to offload chunks of BNP and ABN. Valuations have risen but are still low relative to lenders’ returns. That means Britain and Germany would be wise to move gradually with their NatWest and Commerzbank holdings.

Euronext may have to dig deeper to snare Allfunds

22 Feb 2023

The 8 bln euro exchange offered 5.5 bln euros for the wealth technology group, the latest in a slew of deals. Boss Stéphane Boujnah would get much-needed diversification away from sluggish markets. Yet the price is not a knockout, and rivals like Deutsche Boerse could barge in.

Payments darling wisely resists tech layoff trend

8 Feb 2023

Shares in $40 bln Adyen fell 12% after a hiring spree crimped its earnings. Adding more staff is conspicuous at a time when rivals like Stripe are doing the opposite. But boss Pieter van der Does has still-chunky margins, and needs to boost his small in-store payments business.

Rough chip waters give ASML little room for error

25 Jan 2023

The Dutch giant expects sales to grow by a chunky 25% in 2023. Clients’ fear of missing out on an economic rebound is propping up demand for its equipment. Yet rising costs and the risk of a widening export ban to China may take the shine off the $264 bln group’s rich valuation.

Chip dilemma will buy Beijing precious time

19 Dec 2022

America is pushing Asian and European allies to stifle semiconductor progress in China. But antagonising the $466 bln market will be costly for South Korea's Samsung and Dutch ASML as global demand slows. Their hesitancy to fully embrace the blockade will benefit Beijing.

Energy crisis gives beermakers a lasting hangover

26 Oct 2022

Heineken’s shares fell 10% after reporting weaker-than-expected sales. Inflation is eroding punters’ disposable income, making it harder for brewers to raise prices like in previous crises. Soaring costs for fuel and wheat, which bite next year, pose a further threat to margins.

Philips’ supply shock will haunt earnings season

12 Oct 2022

The medical-kit maker lost more than 7% of its value after saying chip shortages curbed sales. It’s a setback for the ailing group’s turnaround under new CEO Roy Jakobs. For automotive and manufacturing companies, it’s a sign that supply bottlenecks may last longer than hoped.

Naspers “put” tackles one of its Tencent problems

27 Jun 2022

The South African firm and its Dutch offshoot will buy back stock by slowly trimming their $133 bln stake in the Chinese tech giant. Tax liabilities and clunky governance remain valuation drags. But investors can worry less about Naspers blowing its riches on other startups.

BNP-ABN deal could put old bank M&A ghosts to rest

17 Jun 2022

The 59 bln euro French lender signalled an interest in its 10 bln euro state-owned Dutch peer. A tie-up would build on an inauspicious history: A pre-2008 carve-up of ABN prompted government bailouts. Yet a cheap stock and simpler cost-cutting logic argue for a second chance.

Samsung opens its wallet to a wary chip market

16 Jun 2022

Boss Jay Y. Lee's European trip has sparked hope that the South Korean conglomerate will finally use its $84 bln cash pile for M&A. Beat-up valuations at mooted targets like NXP make consolidation attractive. Appeasing concerned governments, though, will be a tough sell.

DSM stocks up on ingredients trend with Swiss deal

31 May 2022

The $29 bln Dutch producer of food supplements is swallowing family-owned Firmenich for shares and 3.5 bln euros in cash. That boosts its appeal with consumer groups seeking to manipulate taste, smell and texture. By making concessions on governance, DSM has got a decent price.

Just Eat investors are stuck with its founder

27 Apr 2022

Some shareholders want to oust the Dutch takeaway group’s finance chief and supervisory board. Yet they have no obvious replacement for CEO Jitse Groen, architect of its disastrous U.S. expansion. It exposes the limits of investors’ ability to challenge powerful entrepreneurs.

Just Eat Takeaway faces humiliating U.S. exit

20 Apr 2022

The food delivery group may sell Grubhub, a business it bought last year for $7.3 bln, an embarrassing U-turn for CEO Jitse Groen. Expanding into the tough U.S. market always looked tricky. Getting out when there are few buyers, just as consumers are squeezed, will be harder.

Dutch $64 bln payments star is cure for tech gloom

9 Feb 2022

Adyen’s stock surged 10% after its results showed accelerating revenue. Following the rout in shares like PayPal and Netflix, it’s a reminder that piggybacking on the digital economy is a good bet. The catch for investors is that the best firms still trade at crazy valuations.

Viewsroom: Credit Suisse chair, Unilever’s GSK bid

20 Jan 2022

As António Horta-Osório quits the Swiss lender after less than a year, Liam Proud explains what happened and offers career advice. And Unilever’s 50 bln pound offer for the pharma giant’s consumer unit puts both CEOs on the spot, say Aimee Donnellan and Dasha Afanasieva.

GSK’s consumer promise will be hard to live up to

19 Jan 2022

The drugmaker’s CEO Emma Walmsley rebuffed Unilever’s 50 bln pound bid for its personal health unit. Yet her plan to spin the division off would need rosy sales growth and a premium valuation to trump the Marmite maker’s offer. It’s a risk some investors may be prepared to take.

Unilever’s health kick is risky prescription

17 Jan 2022

CEO Alan Jope wants to expand in healthcare, beauty and hygiene while selling slower-growing food brands. But raising his 50 bln pound bid for GSK’s toothpaste unit will dent returns, while other big targets are scarce. Already grouchy investors have more reasons to grumble.

Philips crisis breathes new life into breakup case

12 Jan 2022

The health-technology group has lost 20 bln euros of value since April due to supply snags and possibly carcinogenic ventilators. Even after recent disposals, CEO Frans van Houten has a vast, toothbrushes-to-CT-scanners stable of gadgets. The variety is getting harder to justify.

KPN could be buyout barbarians’ next telco target

5 Jan 2022

The Dutch operator rebuffed takeover approaches in May. But KKR’s $37 bln Telecom Italia tilt shows the scale of private equity raiders’ appetites. Spain’s Telefonica and Britain’s BT are probably too big. Without a government shareholder, the $13 bln KPN looks vulnerable.