Swire’s Coca-Cola sale gives investors sugar rush 29 Jun 2023 Handing its US drinks subsidiary to its parent for $3.9 bln allows the Hong Kong conglomerate to pay a tasty dividend, cut net debt and still run the division for a fee. It’s a sweet deal for investors, as long as property, airline Cathay Pacific and other holdings recover soon.
Capital Calls: Virgin Galactic 16 Jun 2023 Concise views on global finance: Shares of Richard Branson’s space tourism company rocketed 30% higher on news it would launch its first commercial flight in two weeks. The customer demand required alongside competition from Elon Musk and Jeff Bezos make the valuation a moonshot.
Diageo’s Ivan Menezes was all-round exception 7 Jun 2023 The CEO of the $94 bln drinks giant, who has died at 63, defied corporate stereotype. He helped engineer a successful merger of equals, delivered index-beating returns while promoting diversity, and seamlessly stepped aside after a decade. It’s a record others should aspire to.
Mediterranean chain Cava caters to starved market 5 Jun 2023 The falafel and hummus eatery is aiming for an IPO valuation of up to $2.2 bln, 70% higher than a private assessment in 2021. The company’s fast growth will be tantalizing despite a lack of profit. After a long dry spell for new equity issuance, though, it’s easy to overindulge.
Syngenta’s bumper IPO will test Chinese appetite 1 Jun 2023 The seeds-to-pesticides group is planning a $9 bln stock market float in Shanghai this year. In this Viewsroom podcast, Breakingviews columnists explain how investors need to get comfortable with its high debt levels and use of toxic chemicals that could hurt its valuation.
Syngenta’s IPO is more relief than triumph 30 May 2023 The agritech giant’s $9 bln listing looks ripe. State players will handhold it to the bell and proceeds will help cut debt from its parent’s costly 2017 buy. Sadly, the poster child of China’s acquisitions abroad has few to inspire, and not many foreign investors are invited.
Glencore’s Bunge redux may yield Teck benefits 26 May 2023 The Swiss commodity giant could merge the agri-trader it part-owns with its $14 bln US-listed peer. A Bunge deal would be oddly timed, and Glencore has other ways to raise cash. But the bid may offer a way to spur Glencore’s share price as it mulls a new offer for Canada’s Teck.
‘Greedflation’ loosens its grip on food retailers 24 May 2023 Suppliers like Unilever and Kraft Heinz are easing inflation-busting price rises that hit grocers hard. That will benefit profit margins at the likes of Kroger and Carrefour. Their next challenge will be convincing cash-strapped consumers to pay, and buy, more in supermarkets.
Chickens alone can’t save Tyson Foods 8 May 2023 The world's second-largest meat producer known for its poultry production is struggling as inflation squeezes margins for red meats such as beef and pork. But even a surge in demand for chicken can’t inoculate Tyson from the volatility of the commodity market.
At Starbucks, hot is the new cold 3 May 2023 Shares in the $130 bln coffee company dropped 8% after it said it would keep doing what it’s doing. That’s harsh. Since the last downturn, Starbucks’ focus on mobile has given it an edge. It is more recession-proof, which is key against low-cost competitors.
Capital Calls: US GDP, Eli Lilly, EU budget 27 Apr 2023 Concise views on global finance: Consumer spending provided fragile support for the US economy in the first quarter. Meanwhile pharma group Eli Lilly is racing against rising obesity expectations, and the European Commission faces German hurdles to replacing its budget rules.
Capital Calls: AT&T’s magic number falls short 20 Apr 2023 Concise views on global finance: The $140 billion telecom giant, now free from its tangled M&A past, has one metric to deliver on: cash to support its dividend. But that figure fell 64% in its first-quarter results.
Baijiu is fiery palate cleanser for Hong Kong IPOs 17 Apr 2023 A KKR-backed Chinese liquor group’s $800 mln listing is the city's largest this year. Beijing is directing funding onshore to strategic industries, and that will force more consumer companies to Hong Kong. Investors will be alert to see if that pushes more risk their way too.
Chipotle’s burrito spat heats up restaurant wars 6 Apr 2023 The US fast-casual eatery sued rival salad chain Sweetgreen for trademark infringement over its signature chicken bowl. Although the fight ended amicably, it demonstrates the lengths to which scrappy restaurant operators will go to chase consumer dollars, and what’s at stake.
Investors put Starbucks in the grinder 29 Mar 2023 The coffee chain’s shareholders voted for an investigation into the way the company treats its workers. Had Starbucks proactively agreed to the proposal like Apple did, it could have saved its worker-friendly image. Instead, new boss Laxman Narasimhan starts on the wrong foot.
Capital Calls: Syngenta IPO delay 28 Mar 2023 Concise views on global finance: The Shanghai Stock Exchange has canceled a hearing to review the agrichemicals group's listing plans, leaving investors fearing the worst in China.
War on cow farts is stinky but necessary job 24 Mar 2023 Cattle’s digestion is a big driver of harmful gas emissions. To curb them, New Zealand is taxing farmers and Europe may shrink livestock numbers. Both steps have angered harvesters and may inflate food prices. The noise will teach consumers to treat beef like fossil fuels.
John Lewis needs a breakup more than a rescue 23 Mar 2023 The UK employee-owned retailer wants to raise $2.5 bln to improve its ailing stores. But that could leave a new investor owning nearly half the company, undermining its mutual status. Merging its grocer Waitrose with rival M&S would bring in cash and forge a more viable player.
Bayer’s sunk boss leaves high water mark 21 Mar 2023 In one of his last acts before bowing to activist pressure, Werner Baumann is pledging the $60 bln drugs-to-seeds company will slash rice’s H2O needs by 25%. Leaving aside his legacy as the architect of the Monsanto deal, his ambition is worth emulating.
Capital Calls: FedEx delivers, for now 17 Mar 2023 Concise views on global finance: Shares in the delivery company shot up over 10% on Friday, as cost-cutting measures pay off. Those benefits could easily dwindle.