Divestment

Altice Portugal sale would fuel Drahi M&A machine

22 October 2021

CVC and Blackstone are eyeing a 7 bln euro deal for the telecom tycoon’s Iberian unit, Bloomberg reported. They could net a tidy return since it has already done the heavy lifting on fibre investment. A sale would give the Sotheby’s owner cash to fund a tilt at France’s Eutelsat.

Time to end Richemont’s online fashion drag

18 October 2021

The Cartier owner may sell its e-commerce business YNAP just three years after taking it over. A deal with Farfetch or other rivals might reap at most 3.6 bln euros. Yet, by cutting exposure to a lossmaking unit, boss Johann Rupert would smarten up his company’s dowdy valuation.

Telefonica can play hard to get in fibre sale

6 October 2021

The 23 bln euro Spanish telco may flog a chunk of its super-fast domestic broadband network. With the fibre rollout almost done and debt vaguely in check, Telefonica isn’t desperate for the cash. That means it can wait for a buyer ready to top the reported 15 bln euro valuation.

Elliott’s UK power play rests on blue-sky thinking

23 September 2021

The activist has built a stake in SSE and may seek a spinoff of its renewable generation arm. That could hike the $23 bln utility’s value. But it requires hefty assumptions about wind growth, and the state’s readiness to allow tinkering of a stable model amid an energy crisis.

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

17 September 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.

Cigarless Swedish Match has pull for Marlboro Man

15 September 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.

DSM rejig needs stronger growth flavour

14 September 2021

The 31 bln euro food ingredients maker is looking to sell its industrial materials unit. It’s an overdue step that will give the shares only a modest bump. If the Dutch group can grow its sales more quickly, a Givaudan-style valuation and sweeter gains could follow.

UK’s Smiths faces tough physio after M&A surgery

8 September 2021

The $8 bln engineer is flogging its health unit to ICU Medical for $2.4 bln, three years after walking away from the same bidder. The sale is a win for new boss Paul Keel. But for Smiths to warrant a jazzier rating, he will have to work similar magic on languishing margins.

Viewsroom: China’s Afghanistan question

19 August 2021

Beijing was able to expand its influence in central Asia while America and its allies held back the Taliban. The Islamic fundamentalists’ return to power presents China with new challenges – and opportunities. Plus: CEO Mike Henry shakes up mining giant BHP.

Aviva’s next challenge is to show it can grow

12 August 2021

CEO Amanda Blanc is returning 4 bln pounds to investors in the British insurer after flogging assets worth more than 7 bln pounds. The knottier problem is to extract more earnings – and dividends – from a smaller, simpler business. Reduced debt leaves some room for acquisitions.

Capital Calls: Olympics on TV, Abrdn

10 August 2021

Concise views on global finance: NBC Universal's prime-time viewers for the Tokyo games were only half as many as for London 2012, boding ill for traditional U.S. TV; the British asset manager formerly known as Standard Life Aberdeen may be turning the corner.

Capital Calls: Moderna, Qualcomm, US tax, ViacomCBS

5 August 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.

Fear of fatness fuels Pepsi’s $3.3 bln juice deal

3 August 2021

The maker of Mtn Dew Cake-Smash is selling seemingly healthier juices lines like Tropicana. Though he’s keeping a finger in the bottle, CEO Ramon Laguarta seems focused on flogging zero-calorie tipple to increasingly obese consumers. That’s why French LBO firm PAI got it cheap.

ABB offers lesson in virtue of simplicity

26 July 2021

The $75 bln Swiss industrials giant is selling a power transmission unit to RBC Bearings for $2.9 bln. The rich price vindicates CEO Bjorn Rosengren’s plan to slim down and focus on electrification and robots. That will likely cement a premium valuation versus rival Siemens.

GSK’s messy split opens door to cleaner M&A cure

26 July 2021

The British drugmaker could sell its consumer unit after pressure from activist Elliott. The maker of Advil painkillers might be worth $70 bln to a bidder like Procter & Gamble. A sale would mean a faster exit and raise more cash than CEO Emma Walmsley’s spinoff plan.

European payments jewels are wasted in bank vaults

23 July 2021

BNP, SocGen, Santander and others process billions of card transactions but the potentially valuable units get no credit within stodgy banks. CEOs may resist spinoffs for fear of missing future growth. Yet sitting on a subscale business means losing ground to digital upstarts.

Capital Calls: Covid fibs, M&A flop, Hard seltzer

23 July 2021

Concise views on global finance: Forcing social media to take down vaccine misinformation is a good step on U.S. content rules. Meanwhile, a German real estate deal fails to get enough shareholder votes, and Boston Beer’s hard seltzer sales fizzle.

BHP’s oil exit would be better sooner than later

21 July 2021

The mega-miner is reported to be mulling a $15 bln sale of its petroleum arm. The subsidiary’s status as a profit engine amid rising energy prices makes it a tough decision. But even if done at a knock-down rate, CEO Mike Henry can burnish BHP’s allure with oil-hating investors.

Ackman music SPAC flop makes second album trickier

19 July 2021

The billionaire’s $4 bln blank-cheque vehicle will seek a new deal after U.S. regulators questioned its purchase of 10% of Universal Music. The false start could put off future targets. For all its investor-friendly features, the vehicle’s backers may end up singing the blues.

Tate & Lyle’s hybrid breakup can sweeten valuation

12 July 2021

The $5 bln ingredients maker is selling half its commercial sweeteners unit to a private equity buyer. It gets $1.3 bln in cash and a 20-year deal to keep access to manufacturing plants and corn. The hope is its remaining business will now trade in line with faster-growing peers.