Construction

Rebuilding Ukraine depends on luring private money

10 May 2023

International agencies and allied governments are taking care of the war-torn country’s immediate needs. An estimated $400 bln reconstruction bill, however, requires additional investors. Economic incentives and new laws would help attract them even before Russia’s invasion ends.

DR Horton plays ‘heads I win, tails I also win’

20 Apr 2023

Rising cost of funding should be bad for homebuilders, but America’s largest posted stronger than expected earnings. Listings are down 25% from last year as homeowners want to hold on to their cheap mortgages. With scarce inventory, builders benefit from both low and high rates.

CRH’s firm foundations go beyond where it lists

2 Mar 2023

The $38 bln cement maker’s stock rose amid plans to move its primary listing to the U.S. The shift may indeed prompt a re-rating of CRH shares. But the main driver of the latter will be its even greater focus on an infrastructure subsidy-rich market, and on higher-margin work.

Capital Calls: Eli Lilly

1 Mar 2023

Concise views on global finance: The drugmaker is reducing the list price on its insulins by 70%. Problem is, few actually pay anything close to the sticker price. Insurers will probably prefer to use insulins from rivals, assuming they can keep negotiating big discounts.

Capital Calls: UBS fintech U-turn, UK housebuilder

5 Sep 2022

Concise views on global finance: CEO Ralph Hamers cancels the $1.4 bln acquisition of robo-adviser Wealthfront; Countryside Partnerships accepts a 1.3 bln pound offer from UK rival Vistry just three months after rejecting a higher bid.

St-Gobain activist hits right nails at wrong time

12 May 2022

Bluebell wants the 27 bln euro French construction group to rebuild by ditching its chairman and less profitable units. The upstart investor’s ideas have firm foundations. Its only problem is new CEO Benoit Bazin is already on the case, and the results are starting to show.

Capital Calls: ABB’s car chargers, Airport M&A

10 Feb 2022

Concise views on global finance: The Swiss engineering group’s listing plans come at an unfortunate moment; Britain’s John Menzies takes a risk with rejection of “opportunistic” approach from Kuwaiti air services group NAS.

Capital Calls: UK housebuilder tumble

13 Jan 2022

Concise views on global finance: Countryside Properties shares fell as much as 26% after it failed to capitalise on a UK housing boom.

Capital Calls: SEC, UK housing, Marijuana

10 Jan 2022

Concise views on global finance: The U.S. watchdog wants more private company transparency; The UK government’s decision to hit housebuilders with a four billion pound repair bill has lessons; and cannabis producer Tilray gives a glimpse of its life after its merger with Aphria.

China’s property crisis infects top-shelf market

15 Dec 2021

Shimao Group’s shares plunged after a deal between two affiliates appeared designed to raise cash quickly. On paper, the developer is in sound health; some of its crashing bonds enjoy investment-grade ratings. If those scores aren’t credible, more volatility is on the way.

Saint-Gobain’s U.S. deal will cement its Sika envy

6 Dec 2021

The $34 bln French construction firm tried and failed to buy its Swiss rival, which then went on a growth spurt. Saint-Gobain’s $2.3 bln offer for U.S. group GCP will help it decarbonise. The catch is that Sika made a similar move last month, and the returns on that look better.

Ariston IPO is enticing play on green energy wave

17 Nov 2021

The family-owned maker of heat pumps and water heaters is going public in Milan at a valuation of up to 4 bln euros. With demand for energy-efficient heating systems set to boom, it’s in a sweet spot. A discount to rivals A.O. Smith and NIBE Industrier should help inflate demand.

Goldman’s cosy Japan deal is ripe for rival bid

15 Nov 2021

The Wall Street bank and refiner Eneos are forging ahead with a contested plan to take full control of $4 bln roadbuilder Nippo. Even with a richer premium, a leveraged buyout would deliver a healthy return, Breakingviews calculates. It’s a fresh test of Japan Inc’s dozy ways.

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.

Capital Calls: Genetic gold rush

28 Jun 2021

Concise views on global finance: A company has shown biotechnology called CRISPR can precisely edit defective genes in humans, fueling investment and squabbles.

Capital Calls: GameStop is a SPAC now

22 Jun 2021

Concise views on global finance: The meme-stock video-game retailer has raised more cash, making it look like an overvalued cash shell.

Battery deficit risks UK driving electric jalopy

22 Jun 2021

Britain needs more so-called gigafactories to supply power for green cars, ahead of import caps and a ban from 2030 on gas guzzlers. Current expansion plans may electrify just 20% of local output from BMW, Nissan and others. Prime Minister Boris Johnson faces an uphill drive.

Capital Calls: Netflix, Flackless SPAC

21 Jun 2021

Concise views on global finance: The streaming service strikes an agreement with Steven Spielberg’s Amblin Partners; Helicopter-taxi company Blade’s phony spokesperson speaks poorly to investors.

Capital Calls: Bitcoin, Procore

20 May 2021

Concise views on global finance: Getting paid in cryptocurrencies loses allure in U.S. President Joe Biden's tax plan; the $11 bln building software firm is a bargain compared to peers.

Capital Calls: AT&T’s bankers, Blackstone in Italy

17 May 2021

Concise views on global finance: The U.S. telecom giant’s unwinding of its purchase of Time Warner is a gift for advisers on Wall Street; a court rules that the U.S. private equity firm’s 2013 purchase of Corriere della Sera’s HQ was valid.