Divestment

Saudi-Clariant chemical deal is murky concoction

18 September 2018

The Swiss group is setting up a joint venture with 25 pct shareholder Saudi Basic Industries. At the same time SABIC will contribute a new Clariant CEO and four board directors. Though the venture should make sense, the company’s governance becomes more complicated.

Naspers takes first step to shrinking Tencent gap

18 September 2018

The South African group is valued at a hefty discount to its $120 bln stake in the Chinese internet giant. Floating its African TV unit should therefore provide some relief to frustrated investors. To unlock more value, though, Naspers may need to shed its remaining operations.

Investec fund float could attract predators

14 September 2018

The Anglo-South African financial group is listing its asset management arm in London. Decent growth and increased focus should support a healthy valuation. With assets of 109 billion pounds, it may also make a choice morsel for a bigger rival.

Chinese $5 bln winter sports bid is hard to beat

11 September 2018

Fujian-based Anta has approached Finnish ski-wear maker Amer. The offer values the group at a hefty 17 times EBITDA. Anta’s need to fend off U.S. peers in its home turf suggests it will pay more than any rival. Still, the target’s share price suggests investors aren’t convinced.

Coca-Cola pays big price for global coffee fix

31 August 2018

The soda giant is spending $5.1 bln on the Costa chain of cafes. Justifying the frothy 16 times EBITDA multiple requires Coke to order up new markets for hot drinks. It’s another reminder of consumer groups’ lust for coffee. Investors in seller Whitbread are the big winners.

Only trophy hunters would bid $3 bln for Chelsea

29 August 2018

That’s what Roman Abramovich wants for the barely-profitable London soccer club, the Times says. But Chelsea’s dependence on selling players and the need to rebuild its stadium makes it hard for a new owner to earn a return. Any buyer would have to put glory ahead of money.

Saudi’s investment fund: the view from 2023

20 August 2018

The kingdom wants to expand the assets of its Public Investment Fund by 60 percent by 2020 as it diversifies away from oil. That involves it taking some big, risky bets. Breakingviews imagines the letter its chief executive will write five years hence.

Wrangler jeans breakup gets a dressing down

13 August 2018

Owner VF is separating its denim brands from the rest of its wares. The Wrangler and Lee jeans division will be more indebted and pay a higher dividend. But VF’s pieces add up to less than its $37 bln valuation, which takes the impact out of the company's big reveal.

HNA aircraft arm flies higher with $2.2 bln deal

8 August 2018

Selling a 30 percent stake in its Avolon leasing unit to Japan’s Orix lets the cash-strapped Chinese group repay debt. The deal could also help reassure creditors the division is insulated from the parent’s woes. If elevated borrowing costs fall, all shareholders will benefit.

Standard Life Aberdeen needs more activist touch

7 August 2018

The asset manager formed from last year’s merger of Standard Life and Aberdeen keeps losing funds. Cutting costs and returning capital have failed to close the discount at which the company trades to peers. Selling the India business and ditching a twin-CEO structure might help.

Vivendi disposals give Bolloré scary M&A war chest

30 July 2018

Vincent Bolloré’s acquisitive media group raised $2.7 bln from disposing of stakes in Ubisoft and Fnac Darty, and could borrow more. Possible targets are video games and live music. Yet given a dicey Italian foray and stretched valuations, investors may prefer cash to more M&A.

Atos picks good second best with $3.4 bln U.S. buy

23 July 2018

The French group is purchasing IT outsourcer Syntel after missing out last year on European peer Gemalto. Its original target was a more logical fit but the transatlantic deal gives Atos an entry pass to its new target’s U.S. bank clients and will create value after a few years.

Nordic telecom mash-up gives might to challenger

17 July 2018

Sweden’s Telia is beefing up its Norwegian operations by buying rival TDC’s local business for $2.6 bln. That gives it a sturdier platform to challenge incumbent Telenor. Cost savings should help deliver a decent return – as long as it avoids price wars or a regulatory clampdown.

Fox’s toppy Sky bid is just a new price floor

11 July 2018

Rupert Murdoch’s group is bidding 14 pounds a share for the UK group’s equity it doesn’t own, valuing Sky at 24.5 bln pounds. Yet a ruling by Britain’s Takeover Panel may push that even higher, while rival bidder Comcast can hit back. Sky investors may be far from peak altitude.

Smucker sells inconvenient Doughboy

10 July 2018

The jam maker is shedding Pillsbury and other baking brands for $375 million because of soft sales. It sees a brighter future in snacks, coffee and pet food. But as PepsiCo’s Frito-Lay unit shows, consumers aren’t shunning unhealthy foods, just those that require a little effort.

New Fox bid would take Sky into crazy territory

10 July 2018

Rupert Murdoch’s group may launch a 25 bln pound offer for the UK pay-TV group this week, the FT reports. The mooted price is close to the level Britain’s Takeover Panel may require, but is too high for a buyer to make a decent return. That’s mostly a problem for Fox suitor Disney.

Dan Loeb hits limits of “constructivism” on Nestlé

2 July 2018

A year after disclosing a stake, the activist investor called on the Swiss giant to shake up its business and board. Though his ideas make sense, progress has been slow and the stock has lagged. He could take a more muscular approach, but only if other shareholders go along.

Micro Focus $2.5 bln sale amplifies growth problem

2 July 2018

The British tech group’s disposal of an open-source software unit is helping its share price, which halved in March. Yet the source of its problems, a troubled former HP division, now accounts for more of the group’s revenue. A tricky turnaround has become even harder to execute.

Novartis contact lens spinoff defies messy optics

29 June 2018

Separating its Alcon eyecare division is an admission of failure for the Swiss pharma group, which spent $52 bln on the unit seven years ago. Though the listing won’t unlock much value, it should help Alcon’s recovery, and let new boss Vasant Narasimhan focus on making drugs.

Caixabank wisely exits Spain property party early

29 June 2018

The lender has sold real estate assets worth 12.8 bln euros to Lone Star, at a better valuation than deals by Santander and BBVA. With prices recovering, Caixa could have got an even better outcome by waiting. Given the mess the sector has made, moving now makes more sense.