Chemicals

Sika has scope to focus on grander form of defence

11 Nov 2021

The $55 bln Swiss group is paying $6 bln for BASF’s old construction chemicals unit. Two years ago, bulking up helped see off hungry French rival Saint-Gobain. Now three times the size, Sika can use deals like this to position itself at the good end of a hard-to-green sector.

DuPont financial tinkering comes at too high price

2 Nov 2021

The chemical giant’s $5 bln purchase of peer Rogers is a logical attempt to shift its focus to future-proof industries. It looks to be overpaying, though, which risks destroying value for shareholders – much like the years of buys, spinoffs and sales that preceded it.

Solvay activist’s Greenpeace costume doesn’t wash

4 Oct 2021

Smug from shaking up Danone, Bluebell Capital is chiding the chemicals group for dumping limestone on a Tuscan beach. With only token economic exposure, its bid to oust boss Ilham Kadri lacks heft. It’s also unclear what other investors gain from joining its eco-warrior campaign.

Capital Calls: China/TPP, Flavourings, Chill-boxes

17 Sep 2021

Concise views on global finance: China formally applies to join the Pacific trade pact; EQT-owned Azelis has a strong market debut; Sweden’s Dometic is shelling out a cool $677 mln for Texan chill-box maker Igloo.

Capital Calls: U.S. jobs, $7 bln tax settlement

3 Sep 2021

Concise views on global finance: Slow U.S. job growth signals caution for the Fed; meanwhile, a giant deal between hedge fund executives and the IRS gives legs to President Biden's tax plans.

The Exchange: Good chemistry

10 Aug 2021

Jean-Marc Gilson, the first foreigner to run industrial giant Mitsubishi Chemical, is streamlining a conglomerate with fingers in everything from pharma to batteries. He talks with Pete Sweeney about clean energy, better governance and how outsiders fit into Japan Inc.

Capital Calls: Moderna, Qualcomm, US tax, ViacomCBS

5 Aug 2021

Concise views on global finance: The Covid-19 vaccine maker is looking past the pandemic; the telecoms group is offering $4.6 bln for Veoneer; U.S. Democrats are trying to close the carried-interest loophole; ViacomCBS is betting "South Park" can boost its streaming service.

Inflation complicates Reckitt’s tricky turnaround

27 Jul 2021

The Strepsils maker’s stock fell as much as 9%, as rising costs hurt its profitability. The shares are now down since CEO Laxman Narasimhan took over in 2019, highlighting the challenges he faces in reviving the group’s fortunes. A likely boom in cold medicine sales should help.

Syngenta plants listing seed in rich Chinese soil

23 Jun 2021

The Swiss agrochemical giant’s Beijing-backed owners are cultivating a Shanghai IPO with a possible $60 bln valuation. That’s punchy. But with local investors desperate for global exposure and farm-produce prices soaring, an ambitious price tag may be achievable.

Capital Calls: Airbus signals liftoff, Bill Gates

27 May 2021

Concise views on global finance: The global aircraft industrial complex got a boost after the European plane maker said it hopes to churn out more of its A320 short-haul workhorses per month than expected; Microsoft founder’s huge private investment vehicle under scrutiny.

Market jitters make energy IPOs suddenly look good

4 Mar 2021

Wintershall Dea is preparing to list. Fears over higher borrowing costs make cash-generative oil and gas companies look relatively attractive compared to the high growth stocks investors have been dumping this year. Stabilising crude prices could make for an even sweeter spot.

Swiss chemical buyout can just about wash face

9 Feb 2021

Bain and Cinven are paying drugmaker Lonza $4.7 bln for its skin sanitiser-ingredient unit. Aided by leverage, the pair should be able to eke out an acceptable return. But that hinges on changes to personal hygiene trends rather than just cost-cutting.

Bayer’s dismal M&A harvest boosts breakup pressure

1 Oct 2020

The German drugs-to-seeds company’s shares collapsed after it said earnings will fall next year. On top of legal woes from the Monsanto acquisition, the crop science business has been hit by the virus, and tough competition. The case for separating its sickly units is growing.

BP’s $5 bln chemicals sale is easy bridge to burn

29 Jun 2020

The UK oil major is offloading its remaining petrochemicals assets to privately held Ineos. Selling out of a growth area for an unspectacular price would usually seem like a strategic goof. But BP was a small player, and CEO Bernard Looney needs cash for his zero-carbon pivot.

Aramco’s SABIC saga ends in unhappy compromise

17 Jun 2020

The $69 bln that the oil giant has ended up paying for a 70% stake in the chemicals firm is a lot more than its current value. Aramco’s consolation is that it can pay SABIC’s owner, a Saudi wealth fund, over a longer period. But neither buyer nor seller is getting what they want.

Saudi’s $69 bln asset rejig collides with reality

11 May 2020

Giant Aramco is trying to cut the price of last year’s deal to buy 70% of chemicals firm SABIC. A discount would give Riyadh’s Public Investment Fund less cash to pivot Saudi’s economy away from oil. Budget concerns make helping the kingdom’s corporate cash cow more important.

EQT finds LBO immunity formula for virus era

7 Apr 2020

Air Liquide is in talks to sell its disinfectant unit to the Swedish private equity firm for around 900 mln euros. Even with rising medical demand, the purchase looks brave given its rich valuation. Still, the risk of future epidemics could see the buyout group double its money.

U.S. regulators didn’t have to meddle with Altria

2 Apr 2020

The FTC is suing the Marlboro maker to undo its 35% stake in Juul claiming it eliminated competition. The $12.8 bln investment has been a disaster for Altria and highlights one of many problems from buying disruptors. The market can beat watchdogs to the punch.

DuPont adds old catalyst back to corner office

18 Feb 2020

Veteran Ed Breen is taking the CEO job as well as remaining executive chairman. The board wants faster improvements at the $39 bln chemicals group than ousted Marc Doyle managed. The success of the creation and three-way split of DowDuPont, partly led by Breen, is in the balance.

Bayer settlement only slightly eases Monsanto pain

24 Jan 2020

The German chemicals group may spend $10 billion compensating alleged cancer victims of its acquisition’s Roundup weed killer. That would be better than CEO Werner Baumann’s worst fears. But it barely makes his ill-starred $66 billion deal look any better.