Nippon Paint’s run at Axalta looks off-colour 22 Nov 2017 The Japanese group has lobbed in a cash bid for its U.S. rival, Reuters reports, ending the target's merger talks with Akzo Nobel. A deal valued at some $12 bln including debt, even assuming hefty savings, would destroy value. Fulfilling global ambitions may be costly for Nippon.
Akzo Nobel-Axalta merger is a hostage to history 8 Nov 2017 A proposed blend of the two paint makers could produce colourful cost savings. That must mean job losses – and Akzo is the less efficient. Yet the $23 bln Dutch group deflected a bid from PPG saying cuts were a no-go. It’s hard to see how it could do the requisite U-turn now.
Broadcom faces down ghost of chip LBOs past 6 Nov 2017 The $111 bln soon-American-again chipmaker offered $105 bln for Qualcomm. If the unsolicited bid goes anywhere, borrowing nearly $90 bln would send debt-to-EBITDA ratios towards leveraged buyout territory. Two former chip LBOs – Freescale and NXP – give pause for thought.
Axalta is a chip in DowDuPont’s paintwork 2 Nov 2017 Activist Nelson Peltz once pilloried chemicals giant DuPont for selling its coatings business to private equity. He was right. Axalta is now weighing a merger with Akzo Nobel. With a bit more love, it might have given investors in what’s now DowDuPont a 29 percent annual return.
Shell and BP stuck incinerating shareholder value 2 Nov 2017 After years adjusting to cheap oil, Shell and BP are beating earnings estimates and throwing off enough cash to cover dividends. BP will soon be buying back shares, too. It’s a start. But even if prices hold up, it will be years before their returns top their cost of capital.
Axalta deal complicates Akzo’s juggling act 30 Oct 2017 Fresh from deflecting a takeover, the Dutch group is considering a merger of its paints unit with its U.S. rival. A combination makes sense. But new CEO Thierry Vanlancker is already grappling with weak results and a chemicals spinoff. That raises the risk of dropped balls.
AB InBev grows bigger without getting better 26 Oct 2017 A year after acquiring SABMiller, the world’s No.1 brewer said cost savings from the deal will be higher than expected. Bulking up allows the Belgian company to buy on better terms. Yet it looks worryingly weak at persuading consumers to drink more of its beer.
Unilever struggle gives hope to predators 19 Oct 2017 The consumer giant that fended off Kraft Heinz earlier this year reported weak third-quarter sales. Growth in developed markets is slow and consumers are fickle. CEO Paul Polman is sprucing up brands, but the more pedestrian Unilever’s performance, the more vulnerable it becomes.
Private equity margarine bet needs activist backup 18 Oct 2017 Buyout firms may pay up to 7 billion euros for Unilever’s spreads unit. The new owners will need to stem falling sales as shoppers shun artificial produce. Acquiring other brands from food companies under pressure from uppity shareholders could be one way of boosting returns.
Nestlé turnaround plan is bravely boring 26 Sep 2017 Under activist pressure, Europe’s largest food group is aiming to boost profitability. But the newish CEO isn’t inclined to flashy moves like a sale of the L’Oréal stake or a big acquisition. That’s praiseworthy in a way, but it will disappoint Nestlé’s more impatient investors.
Unilever gets more than beauty tips from Carver 25 Sep 2017 The Pot Noodle owner is paying 2.3 billion euros for fast-growing Carver Korea, maker of “Eye Cream for Face” serums. Owners Bain Capital and Goldman Sachs pocket a hefty profit. Unilever gains access to a booming Asian market, and exposure to e-commerce and duty-free outlets.
Heineken tries its hand at conscious uncoupling 19 Sep 2017 The brewer’s second-largest investor, Femsa, has sold a stake worth 2.5 billion euros. A spat over Brazilian distribution was a hiccup in an otherwise successful relationship. Co-dependence in the lucrative Mexican market is a good reason for both sides to keep things friendly.
Consumer giants’ disclosure is near sell-by date 25 Aug 2017 Firms that make food and personal-care products are pouring money into startups and young brands. Unilever, the most acquisitive, has made 15 such deals since 2014. Yet they don’t give investors enough information to judge their dealmaking nous. It could be their loss.
Unilever can butter up price for margarine unit 18 Aug 2017 Private equity consortiums are reported to be circling the Anglo-Dutch giant’s spreads business. A bidding war and the rich price paid for Reckitt’s food brands may help Unilever pocket more money. But unappetising returns await any buyer who pays more than 7 billion pounds.
Elliott finds part-victory in Akzo defeat 16 Aug 2017 The U.S. activist failed to arm-twist the Dulux paint maker into a merger with PPG. The Dutch group has, though, committed to a full breakup and put two solid new members on the board. It’s a decent result for Akzo’s investors – although less than Elliott’s might have wanted.
Akzo and Elliott are trapped in a lose-lose battle 11 Aug 2017 The Dutch paint maker has won a legal victory over its biggest shareholder, which is trying to oust the chairman. The increasingly pointless fight is likely to drag on beyond September’s shareholder meeting unless new CEO Thierry Vanlancker can make both sides see sense.
Charter bid would be a deal too far even for Drahi 10 Aug 2017 Altice, controlled by French billionaire Patrick Drahi, wants to buy U.S. cable group Charter Communications. The $180 bln price makes a cash bid tricky. Altice could use its own stock too, but the group’s leverage and poor voting rights may deter Charter shareholder John Malone.
Unilever puts a high price on control 10 Aug 2017 The Marmite maker is paying up to 450 mln euros to buy back preference shares worth less than a third of that price. The premium reflects the securities’ outsize voting rights. Buying them out helps clean up Unilever’s complex share structure – and boost its takeover defence.
ABN Amro can profit from blissful domesticity 9 Aug 2017 A thriving Dutch economy and divestments helped the state-owned lender boost first-half net income by 82 pct year-on-year. CEO Kees van Dijkhuizen wants to grow small business lending and ABN’s international operations. Cost-cutting would provide a surer route to earnings growth.
Akzo adds new gloss to disdain for investors 25 Jul 2017 The Dutch paint maker has to convene an emergency meeting to formally appoint Thierry Vanlancker as the new CEO. Its timing is designed to prevent irate activists from forcing a vote on Chairman Antony Burgmans’ future. This is an ill-advised disregard for shareholder democracy.