Netherlands

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.

Behold the unversion: an inversion in all but name

8 Aug 2014

U.S.-based data protection firm SafeNet may slash its tax rate as part of a cross-border deal. Instead of doing so by acquiring overseas, though, it is simply selling itself to Dutch digital security company Gemalto. It shows the limitations of a possible ban on inversions.

Mall rats join up to take on Zara and Amazon

29 Jul 2014

Klepierre is buying Corio, a weaker Dutch rival, for 7.2 bln euros including debt. That’s a reasonable price and will turn the French group into Europe’s biggest dedicated mall owner. With retail giants and e-commerce making life harder for shopping centres, scale matters.

Low-cost plan at Air France-KLM is a bad idea

25 Jul 2014

The Franco-Dutch carrier is mulling a move on Europe’s no-frills carriers. Air France-KLM has reaped rewards from a painful but mostly successful cost-cutting programme. It could undo the good work by challenging super-efficient budget airlines Ryanair and easyJet.

Philips lighting split is a bright idea

30 Jun 2014

The Dutch conglomerate is restructuring again, moving high-powered LEDs and car lights into a standalone unit with 1.4 bln euros in sales. The business is fast-growing and would benefit from outside capital. Stepping out of the parent’s shadow should help.

EU shows tax dodging is a government business

12 Jun 2014

Brussels will probe three member states for their favourable tax rulings on multinationals. It alleges the decisions might have amounted to illegal state aid. That is a clever way to clamp down on tax evasion – by acknowledging that governments are aiding and abetting.

Mondelez cookie monster fueled by Dutch java deal

7 May 2014

With the sale of its coffee business, the $65 bln Oreos-to-Cadbury group gets $5 bln of cash and a more focused snack-foods portfolio. A simultaneous restructuring should allow it to cut more costs and limber up for new deals, starting with director Nelson Peltz’s bugbear, Pepsi.

Philips can still shine despite darker outlook

22 Apr 2014

The $30 bln electronics group’s flatlining revenue in Q1 has dimmed near-term growth hopes. Troubles with traditional lighting and healthcare scanners could persist. But the basic investment case for Philips looks sound, especially if weaker emerging markets rebound. 

Hugo Dixon: Euroscepticism may have silver lining

10 Feb 2014

Arguments used by those who want to break up the European Union - such as last week’s report saying the Netherlands would be better off out - are exaggerated and full of holes. But the rise of euroscepticism should embolden those trying to make the EU more competitive.