Capital Calls: GE’s Larry Culp learns to say “no” 25 Jan 2022 Concise views on global finance: It will be a while before the industrial conglomerate’s markets normalize, and its planned breakup takes place. In the meantime GE is trying to cut costs and be more selective. That means less revenue, at least at first.
Eni’s quirky rejig may turn rivals green with envy 24 Jan 2022 Italy’s $54 bln oil major may list stakes in its green energy and biofuels arms, as well as a Norwegian subsidiary. That’s different from rivals which are financing green investments by selling fossil fuels. Yet if Eni’s spinoffs get cheaper financing, others may follow suit.
Viewsroom: Credit Suisse chair, Unilever’s GSK bid 20 Jan 2022 As António Horta-Osório quits the Swiss lender after less than a year, Liam Proud explains what happened and offers career advice. And Unilever’s 50 bln pound offer for the pharma giant’s consumer unit puts both CEOs on the spot, say Aimee Donnellan and Dasha Afanasieva.
GSK’s consumer promise will be hard to live up to 19 Jan 2022 The drugmaker’s CEO Emma Walmsley rebuffed Unilever’s 50 bln pound bid for its personal health unit. Yet her plan to spin the division off would need rosy sales growth and a premium valuation to trump the Marmite maker’s offer. It’s a risk some investors may be prepared to take.
Capital Calls: Dan Loeb’s gadfly circles again 18 Jan 2022 Concise views on global finance: The U.S. activist’s activists up the ante with call for independent director.
Unilever’s health kick is risky prescription 17 Jan 2022 CEO Alan Jope wants to expand in healthcare, beauty and hygiene while selling slower-growing food brands. But raising his 50 bln pound bid for GSK’s toothpaste unit will dent returns, while other big targets are scarce. Already grouchy investors have more reasons to grumble.
Battery IPO leaves LG Chem low on power 17 Jan 2022 The South Korean group's $11 bln spinoff was partly designed to unlock value. But the parent now trades at a discount to its 82% stake in its newly unleashed subsidiary. Its unloved petrochemicals-to-materials rump is failing to electrify investors. That looks harsh.
Boots buyout 2.0 requires growth shot in the arm 12 Jan 2022 Private equity firms CVC and Bain may be eyeing a bid for Walgreens’ UK pharmacy chain for a mooted $8 bln, some 15 years after KKR’s acquisition. This time round, new owners could juice up its online sales and health business. The threat from Amazon makes it a riskier bet too.
Capital Calls: HSBC and China, Dr. Martens 6 Jan 2021 Concise views on global finance: The Asia-focused lender has a chance to take greater control of its mainland brokerage after recent positive noises from Beijing; buyout firm Permira picks a good time to offload shares in the $5 bln bootmaker.
Companies will take breakup pitch too far in 2022 31 Dec 2021 Now that General Electric and J&J are splitting up, bankers will recycle the book for tech, energy and car firms. Many have outgrown the conglomerate model. But those trying to transition their businesses have financial and operational overlap that is important to retain.
Delivery Hero U-turn shows bleaker times for tech 22 Dec 2021 The $28 bln food delivery group is leaving the German market after less than a year. However embarrassing, the move looks rational given the country’s cutthroat competition. Rising interest rates and more volatile markets mean loss-making companies need to keep investors sweet.
Capital Calls: Hedge fund fine 22 Dec 2021 Concise views on global finance: Britain’s FCA fines BlueCrest Capital 41 mln pounds, a third of the fund’s U.S. penalty.
Bolloré’s happy Africa exit hints at more deals 21 Dec 2021 French tycoon Vincent Bolloré may sell his African logistics business to shipping group MSC for 5.7 bln euros. It’s a rich price for an asset tainted by a bribery scandal. He could use the cash to buy more cheap shares in his media group Vivendi, or his own investment company.
Capital Calls: Wise, Swedish oil 30 Nov 2021 Concise views on global finance: The 8 bln pound money-changer raised its revenue targets; $10 bln Swedish oil company Lundin Energy may be considering M&A options.
Glencore’s activist is misguided but not unhelpful 30 Nov 2021 Bluebell is pushing the $63 bln miner-trader to spin off coal. Thungela’s plans to dig up more of the mineral after its Anglo spinoff weaken the argument, and prices are at record highs. Still, if it makes Glencore quit coal quicker than its 2050 target, it’s a job well done.
Capital Calls: Eni spinoff 22 Nov 2021 Concise views on global finance: The $50 bln Italian oil group has a new name for the renewable energy and retail arm it plans to partially list.
Viewsroom: European bank M&A, De-Dutching Shell 18 Nov 2021 Big lenders in the euro zone are doing deals, but not the kind investment bankers dream about. BNP Paribas is in U.S. retreat, BBVA bulks up in Turkey and KBC goes Bulgarian. Liam Proud explains. George Hay explains why the Anglo-Dutch oil major is dropping the Dutch bit.
BNP Paribas U.S. exit would be wise but messy 15 Nov 2021 The French bank may sell BancWest for up to $15 bln. Offloading the subscale unit makes sense, though a dearth of buyers means CEO Jean-Laurent Bonnafé may have to take a low price if he wants a clean break. The risk for investors is that he squanders the proceeds on risky M&A.
Toshiba split edges it slowly down the right path 12 Nov 2021 The $19 bln conglomerate plans to break into three, days after fellow former titan GE did the same. For Japan Inc, it’s revolutionary. More focused units should attract better managers and valuations. But the two-year timetable seems designed to discourage more vocal investors.
AstraZeneca’s virus fix becomes awkward appendage 10 Nov 2021 The $195 billion drug group is moving its Covid-19 jab and related treatments into a new unit. That could open the door to a sale to a peer like Johnson & Johnson. But the drug’s uncertain future and messy political history make any deal tricky and unlikely to deliver much value.