Nestlé without KitKats is logical next step 21 Oct 2020 The $340 bln Swiss giant’s food and drink business is shrinking, while CEO Mark Schneider is bulking up in pet care and health science. Covid-19 is accelerating the shift. Selling or spinning off confectionery, worth say $30 bln, could unlock value and sidestep a sugar backlash.
Remy’s Chinese premium may leave sour aftertaste 20 Oct 2020 The Cointreau maker’s shares are up over 40% this year while rivals have struggled. The main difference: it’s more exposed to China, whose economy is dealing with Covid-19 better. Yet its valuation premium doesn’t leave much space for geopolitical surprises.
Ambani succession is chance to divide and rule 20 Oct 2020 Asia’s richest man could divvy up the $200 bln Reliance empire between his three children. That would help avoid a repeat of his epic sibling feud. Yet scale and breadth bring influence. A carve-up that manages to keep family interests aligned could create a legacy to rival the Agnellis.
Danone shakeup needs bigger ESG splash 19 Oct 2020 The French dairy group is reviewing assets to restore its flagging growth. Yet disposals covering just 2% of sales look lacklustre. Selling the shrinking water unit would give CEO Emmanuel Faber cash for deals and boost the 37 bln euro company’s appeal with sustainable investors.
Panic buying scrambles tech circuitry 16 Oct 2020 The world's top contract chipmaker, TSMC, expects a 30% rise in sales this year. That’s flattered by customers from Apple to Huawei stockpiling semiconductors amid supply chain disruptions and U.S.-China tensions. Such hoarding makes it harder than usual to discern future demand.
CICC seeks edge in increasingly cutthroat market 15 Oct 2020 The investment bank leading Ant’s IPO is planning a $1 bln secondary listing in Shanghai. It could fund mergers as officials push industry consolidation and help fend off Wall Street rivals. Local peers are also angling for super-broker status, making more capital essential.
Australia’s Crown trapped inside its gilded cage 15 Oct 2020 The $4 bln casino empire is facing intense regulatory scrutiny for allegedly dodgy dealings involving Chinese high-rollers. It puts a new resort licence in jeopardy. Billionaire James Packer also has conceded the ownership structure may need changing, but it could be a hard sell.
P&G learns climate rebuke is no longer glacial 14 Oct 2020 BlackRock joined other shareholders to reject the $359 bln firm’s claim that it does plenty to protect forests. Reporting on efforts to save trees is an easy ask that companies, like Exxon, have worked around. Still, it gives investors a launching pad to push for more.
Corona Capital: Black Friday, JPMorgan’s new tower 14 Oct 2020 Concise views on the pandemic’s corporate and financial fallout: Walmart’s Black Friday rejig makes for a curious experiment; JPMorgan goes all-in on New York real estate.
Breakdown: The scramble to secure super-app status 13 Oct 2020 The buzzword is closely associated with China’s internet giants and emerging market upstarts. As rivals like Facebook’s WhatsApp and old-world businesses like India’s Tata and AirAsia seek to burnish their all-in-one app credentials, Breakingviews unpicks how they might prosper.
China tensions reach skyscraper heights in Sydney 12 Oct 2020 Sovereign fund CIC wants to take control of office tower Grosvenor Place at a $1.4 bln valuation. Canberra’s recent intervention in a dairy sale suggests Chinese investment cannot be taken for granted. Blocking this property deal would make a splintering relationship worse.
Telemedicine SPAC deal wraps promise up in hype 9 Oct 2020 An Oaktree-backed blank-check company is paying a relative bargain for fast-growing online drug seller Hims. But the target is expanding from easily sold drugs for hair loss and erectile dysfunction into harder categories such as diabetes. That’ll limit its efficacy.
Corona Capital: Fiscal stimulus, Fitness riches 6 Oct 2020 Concise views on the pandemic’s corporate and financial fallout: Central bankers including the Federal Reserve’s Jerome Powell urge more fiscal help as Covid-19 cases rise again; and the owner of NordicTrack treadmills raises cash at a $7 billion-plus valuation.
LG Chem will get a charge from battery spinoff 6 Oct 2020 The $40 bln South Korean conglomerate’s separation plan failed to energise investors. Although it’ll take time for the structure to take shape, it’s fairly clear the Tesla-supplying division’s true value is lost inside a chemical maker. There’s an electric-car spark yet to come.
Corona Capital: Donald Trump, Kenzo Takada 5 Oct 2020 Concise views on the pandemic’s corporate and financial fallout: U.S. President Donald Trump’s fight with the coronavirus could lead to a less fiercely contested election result; the death of Japanese designer Kenzo Takada comes at a bad time for the global fashion industry.
Daniel Kretinsky’s grocer grab has sliver of sense 1 Oct 2020 The Czech billionaire has bought $1.5 bln worth of shares in European supermarkets like J Sainsbury and Casino. Anaemic growth and low margins suggest that’s unwise. But if his targets can slash costs and take advantage of an online boom, his bet may begin to look shrewd.
Corona Capital: Covid-19 tests, Bed Bath & Beyond 1 Oct 2020 Concise views on the pandemic’s corporate and financial fallout: Diagnostic company Quidel predicts a quarterly earnings bonanza; meanwhile the pandemic turns a struggling retailer into a winner, at least temporarily.
Walmart pays price for late UK checkout 30 Sep 2020 The retail giant may sell grocer Asda to buyout firm TDR and two petrol station tycoons for $8.3 bln. It’s a cheaper and riskier exit than a planned union with peer J Sainsbury, thwarted by watchdogs last year. Online competition, a pandemic, and Brexit have weakened its hand.
Evergrande can charge up its car fantasy, and more 30 Sep 2020 The property giant’s $22 bln electric-car unit plans to add a Shanghai listing. Acquisitive boss Hui Ke Yan is accelerating plans to build a vertically integrated auto group. It’s the quirkiest of China’s Tesla-wannabes. It’s daring for investors too, given the parent’s debt woes.
Heady Polish e-commerce IPO calls for brisk tempo 29 Sep 2020 Allegro’s float values it at $12 bln including debt. That’s a punchy 32 times EBITDA, in line with global rival Amazon. As it processes 36% of the country’s online sales, a promise of speedy growth relies on new revenue sources. Meanwhile, competition will squeeze margins.