Sweden

Nordic drug buyout flop highlights hidden gem

3 Dec 2021

The $8 bln takeover of Swedish Orphan Biovitrum failed after buyers could not secure 90% of the shares. The market reaction suggests the deal is dead. But investor AstraZeneca’s role in the failed bid and its interest in a respiratory disease treatment provides some comfort.

Ericsson makes puzzling $6.2 bln ascent into cloud

22 Nov 2021

That’s how much the Swedish telecom kit maker is paying for web-based communications firm Vonage. With few cost savings on offer CEO Börje Ekholm will take years to generate a decent return. Moving into a fast-growing but ultra-competitive sector highlights his need to diversify.

AstraZeneca’s virus fix becomes awkward appendage

10 Nov 2021

The $195 billion drug group is moving its Covid-19 jab and related treatments into a new unit. That could open the door to a sale to a peer like Johnson & Johnson. But the drug’s uncertain future and messy political history make any deal tricky and unlikely to deliver much value.

Swiss bank-tech buyout would hit returns glitch

27 Oct 2021

Private equity firm EQT may bid for $10 bln software group Temenos. The Geneva-based outfit should gain from banks outsourcing more IT to specialists. Yet a deal would need a large chunk of equity, and making the numbers work in an increasingly competitive sector could be tricky.

Volvo Cars’ IPO valuation is suitably smoggy

19 Oct 2021

The marque owned by China’s Geely could be listed at around $21 bln. Hiving off the combustion engine unit was meant to boost its green bona fides. Yet a reliance on gas guzzlers and optimistic battery targets mean the Swedish group will struggle to stand out from dirty rivals.

Sweden’s tiny tech investor is proxy bet on Klarna

8 Oct 2021

Sebastian Siemiatkowski is listing his investment firm in Stockholm, including a small stake in the $46 bln buy-now-pay-later lender he runs. Klarna will account for less than a third of the $31 mln portfolio. Still, Flat Capital offers rare exposure to the group before it lists.

Acquisitive Swedes may turn into overseas turnips

7 Oct 2021

Serial acquirer Storskogen has listed in Stockholm and is worth $8 bln. It makes its money hoovering up cheap, small companies from jewellery suppliers to trailer manufacturers. But rapid overseas expansion beyond its home territory will bring fresh risks, and more competition.

Viewsroom: Electric-car global roundup; Facebook

7 Oct 2021

Rivian drops its IPO prospectus, Volvo readies its public market return, Hertz brings on a car guy and GM gets a thumbs up from Engine No. 1. Antony Currie puts it all together. And what does Facebook’s outage mean for shareholders? Gina Chon and Richard Beales weigh in.

Polestar SPAC offers sober detour on EV hype road

27 Sep 2021

The Swedish electric-car maker is merging with Guggenheim Partners’ blank-cheque vehicle at a $20 bln valuation. A suitably racy revenue multiple needs turbocharged growth to avoid future potholes. But unlike rival Lucid, Chinese-owned Polestar at least has existing production.

EQT $3.9 bln pet bid typifies PE growth obsession

27 Sep 2021

The Swedish buyout firm topped Hellman & Friedman’s offer for online dog-food seller Zooplus. An absence of debt funding and limited scope for cost cuts mean the numbers only work if sales grow at a greyhound-worthy 15%. A possible counteroffer would stretch things even further.

Viewsroom: Breaking up Ant, smokes and flavors

16 Sep 2021

Beijing’s crackdown on Jack Ma’s fintech giant continues, but there may be some silver linings to the latest wrinkle, Robyn Mak tells Pete Sweeney. Meantime Dasha Afanasieva explains what a cigar spinoff at Swedish Match and carveouts at Royal DSM have in common.

Cigarless Swedish Match has pull for Marlboro Man

15 Sep 2021

The $15 bln oral tobacco maker is spinning off its stogies to quit the combustion business. With its ambitious smoke-free revenue targets, Philip Morris may be keen on what’s left. Judging by its pumped-up takeover of inhaler firm Vectura, it may take the hit, however pricey.

Juicy Nordic drug buyout needs safety label

2 Sep 2021

Advent and GIC are paying $8 bln for Swedish Orphan Biovitrum, which specialises in rare-disease treatments. The new owners will need to invest in fresh products and fend off rivals, all while keeping staff. The potential returns look appealing but come with a fair dose of risk.

Klarna’s list of suitors may not be that extensive

4 Aug 2021

Following the $29 bln swoop on Afterpay by Jack Dorsey’s Square, its $46 bln Swedish instalment-payment rival could be in play. Yet Klarna is pricey, not a pure pay-later player, and might not sell to a credit card giant. Stripe and PayPal look the most likely bidders.

Self-driving is pricey route to car parts future

23 Jul 2021

Magna International is paying $3.8 bln for Sweden’s Veoneer, which makes systems that help cars steer themselves. It reduces the $25 bln Canadian group’s exposure to combustion engines. But CEO Swamy Kotagiri will have to put his foot down to keep financial returns on the road.

EQT makes hay while clouds begin to gather

22 Jul 2021

The $46 bln buyout group’s shares rose 11% after first-half earnings soared. CEO Christian Sinding is selling companies in frothy markets while return-hungry investors pile into his funds. Higher interest rates would undermine both trends, as well as EQT’s richly priced equity.

Cigar exit is next strike in Swedish Match revamp

20 Jul 2021

Most of the $14 bln group’s sales come from oral tobacco and nicotine pouches which are less harmful than cigarettes, giving it a rich valuation. But rivals like Philip Morris are catching up. Getting out of stogies could raise $2 bln and give its stock a brighter ethical flame.

Swedish tech investor benefits by slimming down

12 Jul 2021

Most listed investment firms trade at a discount to the net value of their assets. Kinnevik’s recent decision to hand its stake in e-tailer Zalando to shareholders has made it an exception. Shedding future winners from its $9 bln portfolio will be vital to preserving its status.

Combustion shift helps electrify Volvo IPO

8 Jul 2021

The Swedish carmaker is steering its petrol engine unit into a joint venture with parent Geely before a stock market listing. Focusing on future electric car sales helps drive Chairman Li Shufu closer to a racy valuation. Still, ongoing gas guzzler sales dent green bona fides.

Oatly IPO pumps fresh air into plant-based stocks

20 May 2021

The Swedish group that makes dairy substitutes out of oats surged 30% on its debut, valuing it at $13 bln. Despite heavy losses and growing competition, investors clearly believe the shift in consumption habits is more than a fad. It bodes well for other stock market hopefuls.