Thais hope for third time lucky with $10bn F&N bid 13 Sep 2012 The Bangkok beer moguls twice failed to get their hands on Asia Pacific Breweries, but prodded Heineken into a higher bid. Now they’re offering to buy the 70 pct of parent company Fraser & Neave they don’t own. At S$8.88 per share, every extra share they get looks a bargain.
Thais belly up for bigger gulp of Heineken’s cash 29 Aug 2012 Thai Beverage has raised its stake in Singapore’s Fraser & Neave close to 30 percent. Its billionaire founder may be trying to block Heineken’s $10.9 billion offer for Asia Pacific Breweries. But it’s more likely he’s just angling for a larger share of the Dutch brewer’s payout.
UK shows white collar crime not so easily forgotten 20 Aug 2012 After 22 years, Asil Nadir has been found guilty of theft in the collapse of Polly Peck, a one-time London stock market darling he led. Those frustrated by the paucity of financial crisis convictions must be heartened to see the long arm of the law retaining muscle decades later.
Thais have done well in APB bluff against Heineken 20 Aug 2012 The Dutch brewer blinked after a Bangkok beer family threatened to block it from full ownership of the Singapore brewery. Heineken raised its bid to $4.46 bln. The Thais could try for still more, but risk a devastating loss if Heineken balks. They’d be savvy to cash in now.
Noodle king Tingyi bulks up in lean China market 20 Aug 2012 Chinese consumers are becoming more frugal, even over staples like bottled drinks and instant noodles. Yet market leader Tingyi grew sales in a weak market by taking share from rivals. Lower palm oil and sugar prices also helped produce a 24 percent rise in first-half profits.
Market geniuses don’t even get milk 9 Aug 2012 When the most pedestrian of groceries can surprise investors, something is clearly awry. Along with an unexpected profit, Dean Foods unveiled a corporate split - of one sort of milk from another. By unlocking 40 pct of value, the dairy engineering exposed glaring inefficiencies.
Heineken should call Thai bluff for Tiger beer 8 Aug 2012 A Thai mogul has pipped the Dutch brewer’s S$50 a share bid for Asia Pacific Breweries with a higher offer, but only for a minority stake. Heineken shouldn’t bite. It loses little even if its bid fails. It may just end up with a debt-laden partner it can buy out cheaply later.
Heineken’s $6 bln deal should trigger aftershocks 3 Aug 2012 The Dutch brewer is paying a hefty 17 times EBITDA to take control of Asia Pacific Breweries from partner F&N. Heineken had little choice, as it couldn’t let APB slip through its fingers. This sets up F&N’s next act - the dismemberment of the rest of the conglomerate.
Pepsi owners face the Indra Nooyi challenge 30 Jul 2012 Under her stewardship, shareholder returns have lagged Coke’s. President Obama may offer the CEO the path to a graceful exit while activist investor Ralph Whitworth holds out hope for splitting soda from snacks. But Nooyi shows no signs of budging from Pepsi or breaking it up.
Asian conglomerate owners owe Heineken a toast 25 Jul 2012 The Dutch brewer’s $6bn bid for its beer venture with Fraser and Neave should prompt the Singapore drinks and property group’s independent directors to consider a full-blown breakup. Even after the recent rally in its shares, the pieces are worth some 20 pct more than the whole.
Heineken tries to take the Asian Tiger by the toe 20 Jul 2012 The Dutch brewer launched a $6 bln bid to take control of Asia Pacific Breweries, its longtime Asian partner and Tiger brand owner, pitting it against a thirsty Thai beer mogul and Kirin. It’s a bold move for conservative Heineken that will test Singapore’s corporate governance.
Thai Bev dons beer goggles for taste of Tiger 19 Jul 2012 Thai Beverage has spooked Heineken by paying $3 bln for a piece of the Dutch brewer’s Singaporean partner. It is paying a hefty premium and racking up big debts for less than a fifth of the target. It needs more to make the finances stack up. That will be a tall order.
Heineken can’t let Asia Pacific Breweries get away 18 Jul 2012 A Bangkok beer mogul has upset the equilibrium in a JV that’s been key to the Dutch brewer’s Asian footprint since 1931. Thai Bev is jockeying to take control of Fraser and Neave from Singaporean bank OCBC. Heineken may need to dig deep to ensure its position in the region.
Global warming adds to food inflation risk 13 Jul 2012 Corn prices spike after the hottest U.S. six months ever. Russian wheat is also afflicted. Does global warming threaten a food price shock? For now, the risk is mitigated by a big commodity price retreat from 2011’s speculative bubble. But in the long term, the threat is serious.
What’s next on Carlos Brito’s shopping list? 9 Jul 2012 AB InBev will need some time to digest its purchase of Mexico’s Modelo and pay down debt. At that point it’s hard to believe the hyper-acquisitive CEO will be finished. Yet with few independent brewers of any size left, his next deal may be a whopper like SABMiller or even Pepsi.
Carlos Brito pays through the nose for Modelo 29 Jun 2012 The Bud boss is drawing a cool $20 bln from the keg to acquire the half of the Mexican brewer he doesn’t already own. To make that work Brito is going to need to brew up more than the $600 mln of synergies he is promising. History suggests that is possible - but it’s a stretch.
Coke, IKEA show India story hasn’t gone flat 27 Jun 2012 There’s plenty of pessimism around Delhi’s policy dithering. But growth continues, and the long-term prospects remain robust. Two flagship bets on India’s consumers will help steady nerves, and could serve as a catalyst for foreign direct investment from other sources, too.
AB InBev can pay top dollar to gulp down Modelo 25 Jun 2012 The brewing giant is considering buying the rest of the Mexican beer maker it doesn’t own. That would give it another leg up over regional rival Heineken and let CEO Carlos Brito cut costs. Just matching Modelo’s operating margin to its own would justify a $15 bln price tag.
Brazil’s meat champ gets rude welcome to big-time 8 Jun 2012 JBS, now the world’s largest meat producer, is vowing to sue Greenpeace after the environmentalists accused the company of damaging the rainforest. The spat showcases the risks that can come from quickly scaling up to become a global player. It’s a coming of age moment for JBS.
Douwe Egberts listing has to create its own buzz 4 Jun 2012 Sara Lee’s $5 bln-plus coffee spin-off is percolating towards the Amsterdam exchange. The maker of Douwe Egberts is uncomfortably big in sleepy bits of the coffee market. But the cast-off could thrive if its top team capitalises on lessons learned in beer and baby food.