Shell-BG bargain evaporates on closer look 13 Apr 2015 The target’s shares are trading at a tantalising 10 pct discount to Shell’s bid. That suggests a big arbitrage opportunity. In fact the gap is explicable: this is a year-long deal that must jump many hurdles, and Shell’s owners will get more dividends in the meantime.
Shell’s BG pounce puts major rivals on the spot 8 Apr 2015 The energy giant’s $70 bln swoop on its UK competitor may draw counterbids from Exxon or BP. The former hinted it’s open to a mega-deal, and the latter needs to get bigger and dilute exposure in Russia. BP could even be a target, though Conoco and Anadarko make easier prey.
Shell could win from bold $70 bln swoop on BG 8 Apr 2015 The oil major is offering a fat 50 pct premium for its UK rival. But the share price was depressed and the synergies are attractive. The deal could prove a smart and opportunistic way to boost growth via deepwater assets and liquid natural gas – provided Shell keeps costs down.
Shell-BG highlights rise of the micro-boutiques 8 Apr 2015 The $70 bln deal needed just three advisers: Merrill, Goldman, and minnow Robey Warshaw. Rivals like Zaoui & Co have also won major mandates. For big M&A shops, two worrying trends are intersecting: CEOs seem ready to hire fewer banks per deal and to use much smaller outfits.
Royal Dutch Shell and BG open mega-deal pipeline 7 Apr 2015 The $200 bln energy giant is in advanced talks to buy its $46 bln gas rival. It could be an opportunistic move for Shell, whose vulnerable target has a new CEO. There could yet be other suitors for BG. Any deal is also bound to kick off other big transactions in the sector.
Philips earns credibility with lighting selloff 31 Mar 2015 The Dutch group sold 80 pct of its lighting components unit for $2.8 bln. An Asian tech fund paid a surprisingly high 1.65 times last year’s sales. Buyout firms’ hunger for corporate cast-offs helped lift the price. A bigger test looms: splitting off the main lights business.
Reed at $38 bln rubs up against new class of peers 23 Feb 2015 Reed Elsevier is set to report another year of metronomic financial performance. As the threat of “open access” journals fades, optimists will argue the Anglo-Dutch group now looks more like Nestle than a humble publisher. That still looks a bit of a stretch.
ING looks good in band of 2008 EU bank disasters 11 Feb 2015 The Dutch lender is the first of the big state-rescued banks to repay capital and resume dividend payments. The lack of an investment bank and of bad pre-bailout deals helped. And the government couldn’t pressure ING to show a profit on its equity stake – since it didn’t own one.
Shell refuses to hit panic button 29 Jan 2015 The Anglo-Dutch major, which met its 2014 targets, doesn’t want to overreact to the oil price rout. It has cut three-year capex plans by a modest 14 percent and is maintaining the dividend. Shell has a strong balance sheet, but even it will need a sharper axe if oil stays low.
ASML shows benefits of market power 21 Jan 2015 Shares in the $46 bln chip equipment manufacturer hit record highs after full-year results showed soaring demand from memory chipmakers. At 25 times forward earnings, ASML’s valuation would be toppy in most sectors. But, like chip designer ARM, the Dutch firm dominates its market.
Big Oil’s dividends look safe – for now 20 Jan 2015 Leverage is low and costs and capex can be cut, so the likes of Shell and Total don’t need to slash payouts now. But the current oil price drop has a 1986 feel. Then it took five years to regain the previous peak. If the pain lasts that long, payouts will have to be sliced.
Dutch optician can pass IPO market test 12 Jan 2015 GrandVision, the world’s largest optical retailer, is planning to float. It is stable, cash-generative, and well placed to benefit from an ageing world. That augurs well for a deal which could raise about 1 bln euros. The payback in emerging markets looks further off, however.
Heineken resilience to UK beer reform is a puzzle 2 Dec 2014 Shares in British pub companies fell sharply last month when lawmakers voted to give so-called “tied” outlets freedom to choose where they buy their beer. Shares in Heineken, owner of 1,300 pubs, have risen. The impact is hard to quantify but is unlikely to help the Dutch brewer.
New Shell chairman has a tough job on his hands 30 Oct 2014 Charles Holliday arrives at the Anglo-Dutch major as oil prices slump towards $85 a barrel. After a dismal 2013, Shell is making good progress. But while Holliday has sound experience at DuPont and Bank of America, he will need to learn the tricks of his new trade quickly.
Shell pipeline IPO blowout heralds more shrinkage 30 Oct 2014 The $230 bln oil giant’s tax-advantaged U.S. pipeline spinoff popped 46 pct on its debut on Wednesday. With an enterprise value of $4.6 bln, it trades on eight times the valuation ratio its parent gets. That kind of uplift makes it a no-brainer for Shell to offload more assets.
Nutreco’s $3 bln buyout shows value of food chain 20 Oct 2014 The Dutch fish and animal-feed giant is about to be gobbled up in a $3.4 bln friendly deal. The buyer is SHV, the family outfit behind the Makro cash-and-carry chain. With no synergies, this deal is better seen as a long-term bet on growing global demand for protein.
Philips discount may survive breakup 23 Sep 2014 The Dutch electronics group has put reality ahead of its 120-year history by spinning off lighting, and merging healthcare and consumer. There’s no quick fix for the former. The rump may still suffer a conglomerate discount. Philips’ problems can’t be solved by flicking a switch.
SAB could brew up more value without AB InBev 15 Sep 2014 Buying Heineken could create more value for SABMiller investors than the widely anticipated endgame of a sale to Anheuser-Busch InBev. It’s a shame the Heineken family said no. With partners Castel and Molson Coors unlikely to trade, SAB lacks good alternatives.
SAB/Heineken could leap antitrust hurdles 15 Sep 2014 Heineken calls SABMiller’s bid approach “non-actionable.” Competition problems do exist in Europe, India, Africa and elsewhere. But these could be fixed and a $130 bln tie-up would create an emerging markets titan. The rebuff suggests family control is the real sticking point.
What’s stopping a Heineken tie-up with SABMiller? 14 Sep 2014 The $44 bln Dutch brewer reportedly rebuffed an approach from its London-listed rival. Yet a deal could yield huge cost cuts and outwit sector giant AB InBev. Shareholders should ask if the price was wrong - or whether the Heineken family just wants independence at all costs.