CVC insiders’ delayed payday is still pretty sweet 22 Apr 2024 The soon-to-list buyout shop will bar employees from selling stakes for three years, and then only let them do so slowly. It helps get IPO investors on board, and suits bosses too. By the time they cash out, CVC should be worth a lot more than its 13 to 15 bln euro float price.
Shell’s value gap is more strategy than geography 19 Apr 2024 CEO Wael Sawan may shift the $230 bln UK oil giant’s listing to New York if a discount to rivals like Exxon Mobil persists beyond 2025. But Shell’s shifting priorities, slower growth, and unreliable dividends weigh on its valuation. Those factors defy a superficial fix.
Rabanne-owner IPO offers a scent of prestige 9 Apr 2024 Perfumes-to-skincare conglomerate Puig wants to list in Madrid. At a discount to beauty giants L’Oréal and Estée Lauder, the Spanish group may be worth $18 bln. European markets remain fragile, but premium fragrances’ rising appeal may turn the listing into a rare bright spot.
US bid has paper-thin lead in packaging M&A race 5 Apr 2024 Tennessee-based International Paper pegged the savings from a proposed all-share deal with DS Smith at $500 mln. If they’re viable, they help keep the US group’s investors on side. The onus is now on rival bidder Mondi to offer more, or show its own cost cuts would be higher.
Europe’s IPO window opens slowly for buyout barons 28 Mar 2024 CVC floated beauty retailer Douglas, whose shares fell, while EQT received a warmer welcome for skincare group Galderma. In this Viewsroom podcast, Breakingviews columnists explain how to interpret the mixed message for private equity groups sitting on $3 trln of unsold assets.
European private equity IPO door is only half open 22 Mar 2024 Buyout firms tested the market with cautious pricing for two beauty companies’ listings. Although Galderma performed, Douglas’s debt pile spooked investors. For sellers sitting on $3 trln of unsold assets the message is clear: discounts work, but only for healthy businesses.
Even bitcoin has room for VIPs 19 Mar 2024 Digital asset manager Grayscale has become a victim of its own crusade for US ETFs tracking the cryptocurrency. The exodus from its trailblazing trust now exceeds $10 bln because of low-fee rivals. It’s offering goodies to keep customers, but a premium fund also holds value.
LSEG’s big data dividend is still in the cloud 29 Feb 2024 Three years after absorbing information purveyor Refinitiv, CEO David Schwimmer has hit his growth and margin targets. Yet investors still value the $60 bln London Stock Exchange owner like a bourse operator. An upgrade depends on persuading Microsoft users to pay for LSEG data.
Europe shares’ granola rush will become thin gruel 26 Feb 2024 The STOXX 600 Index has hit a record, but local funds are seeing outflows. As in the US a small bunch of companies – the so-called GRANOLAS group – are behind the good news. But in the Old Continent they’re more dependent on weak economic growth rather than the AI revolution.
Russia risk looms over Euroclear profit windfall 22 Feb 2024 The Brussels-based clearing house is a reluctant depository for sanctioned Russian assets. It made 5.7 bln euros before tax last year thanks to cash sitting on its balance sheet. But the bonanza also makes it a target. A blow to financial stability would far exceed one-off gains.
The rocky road to an ‘eBay for carbon credits’ 20 Feb 2024 Markets that trade the right to emit greenhouse gases have a ropey history. Still, in this Exchange podcast Harvard University Fellow Ely Sandler argues that companies and countries may increasingly pay carbon taxes via emission permits – and unlock cash for the green transition.
US markets grapple with mysterious contradictions 13 Feb 2024 The S&P 500 Index hit new heights, led by tech stocks. At the same time, derivatives traders expect the Federal Reserve to slash rates. The latter will not happen without a recession. One of the camps is destined to be wrong. Equity investors should root for slower rate cuts.
Capital Calls: TUI decamps 13 Feb 2024 Concise views on global finance: Europe’s largest travel firm is encouraging investors to vote in favour of cancelling its London listing, but the UK need not mourn the loss.
Europe’s wilting bourses get fresh cause to unite 12 Feb 2024 The likely de-listings of Italy’s Saras and Tod’s add to a wider exodus from euro zone stock exchanges. Part of the problem is a lack of new European companies to replace them. But Europe could also help itself if its equity market rules and trading were less fragmented.
Holcim split cements deglobalisation trend 29 Jan 2024 The $43 bln Swiss building materials giant is separating its fast-growing North American arm from its remaining operations in an attempt to unlock value. The striking thing is that investors appear to view Holcim’s global scale as a brake on value, rather than a driver of it.
Shein’s waste factor is its ultimate IPO risk 19 Jan 2024 The China-linked retailer’s lean production model helps it keep inventory low. Yet its polyester garments are carbon-intensive and hard to recycle. Regulators’ growing unease about textile pollution, and the cost of addressing the mess, may require giving up clients or margins.
CVC’s German perfume float may fail the smell test 15 Jan 2024 The buyout fund wants to list beauty retailer Douglas in Frankfurt, valuing its equity at roughly 7 bln euros. It’s time for CVC to offload an asset it’s held since 2015. But high debt and slower online sales than peers are reasons for investors to turn up their noses.
Green investors will learn the art of stockpicking 21 Dec 2023 Wind and solar stocks had a torrid 2023, as stars like Orsted crashed. But renewables investment is strong, input cost inflation is abating and rates may have peaked. Investors able to pick developers in the right sector, or suppliers in the right regions, may find bargains.
Stellantis will cruise with GM and Ford 18 Dec 2023 The maker of Jeeps and Opels run by Carlos Tavares is one of Europe’s lowest-valued carmakers. Yet it generates much of its income in the US, and boasts industry-leading profit margins. Keeping a single New York listing could see its valuation match Detroit rivals.
New Hong Kong bourse CEO picks up unfinished task 15 Dec 2023 Under Nicolas Aguzin, the $42 bln market operator failed to win big IPOs and the stock lagged its Singapore rival. His successor Bonnie Chan needs to diversify the business. She is starting from a low base in ropey markets and faces investor aversion to China. It’s a tough job.