Netherlands

Banks belatedly realise money laundering is bad

11 September 2018

ING’s finance director will leave after the bank’s illicit fund failings incurred a 775 million euro hit from Dutch prosecutors. In the past, miscreants have got away with paying fines. Now shareholders are pushing the issue as well as politicians, accountability is improving.

Europe’s $50 bln payment upstarts can justify hype

10 September 2018

Investors can’t get enough of groups like Wirecard, which is replacing Commerzbank in Germany’s main stock index. As with peer Adyen, the risk is that a crowded sector caps growth. To hit their targets, the pair need to double their share of the payments pie. That’s doable.

Consumer giants have bigger problems than Turkey

28 August 2018

Unilever and Nestlé can resist a crisis in Turkey, which accounts for little of their revenue. But both will suffer if troubles spread across emerging markets, which account for about half of group sales. All the more so since Western shoppers are unlikely to take up the slack.

Unions the first of many fights for Air France CEO

17 August 2018

As the airline’s first foreign boss, Ben Smith will face labour strife that ousted his predecessor and has cost 335 million euros. But the former Air Canada executive must also tackle the weak governance, competition and soaring costs that threaten the carrier’s survival.

Franco-Dutch utility deal muddies U.S. M&A waters

31 July 2018

Suez is selling a fifth of its stateside unit to pension manager PGGM for 30 times earnings. The $601 mln transaction looks even pricier than the takeover battles for two other U.S. water utilities. With asset scarcity making the market frothy, buyers risk ending up high and dry.

Heineken short on ideas to close AB InBev chasm

30 July 2018

The Dutch brewer’s shares fell after it said operating margins would dip this year instead of rise. The gap between its profitability and that of bigger rival AB InBev is widening. And beyond more craft beer, Heineken has few convincing ways to close it.

Shell and Total can hand investors even more cash

26 July 2018

The Anglo-Dutch major has begun a $25 bln share buyback, months after its French peer. That may signal Shell lacks growth ideas, yet investing in new oil projects and green energy is also risky. Sharing windfalls from high oil prices with shareholders is the lesser of the evils.

Unilever has a first-world problem to fix

19 July 2018

Supermarket price wars and greater competition from other manufacturers hit second-quarter sales in the U.S. and Europe. That leaves the Magnum ice cream maker reliant on more volatile regions for growth. Bolder acquisitions would be one way to address the issue.

EU finally does right thing on taxing bank capital

4 July 2018

Under pressure from the European Commission, the Dutch government removed a benefit for banks that issue hybrid bonds. Other countries will follow. Tax breaks helped lenders rebuild capital after the crisis. The sector’s relative health means it no longer needs special treatment.

DSM extracts vigorous returns from healthy planet

20 June 2018

The Dutch company which once mined coal now makes food supplements and fibres. New targets suggest sustainable businesses can deliver high single-digit EBITDA growth. Though investors’ expectations are already high, up to 3 bln euros for acquisitions promises a further boost.

Adyen’s $17 bln pop flags bipolar IPO market

13 June 2018

The Dutch payments group’s shares doubled on its market debut, defying a recent trend for flops like publisher Springer Nature. It shows investors are putting a premium on companies that promise growth. The risk is that, as with Adyen, they end up giving away most of the upside.

Dutch $8 bln payments IPO banks fat growth premium

5 June 2018

Amsterdam-based Adyen is listing shares at a higher multiple than peers. That’s arguably justified by booming sales and racy customers like Netflix and Facebook. But card groups like Visa and tech giants are vying for a slice of the payments pie, likely hurting intermediaries.

Shell investors take a narrow view of climate risk

22 May 2018

The oil major easily fought off an attempt by shareholders to turn carbon-reduction ambitions into hard targets. That prevents it being hamstrung compared with rivals. But even the relatively enlightened Shell assumes oil demand forecasts that are vulnerable to political shifts.

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.