Hyundai is primed for a chaebol tune-up 23 Oct 2020 Days after heir Euisun Chung officially ascended to run the South Korean conglomerate, it warned of another $3 bln charge for engine problems. The results, however, should show how electric cars are paying off. That would provide momentum to tackle a broader restructuring.
Viewsroom: Asia’s richest man, China dependency 22 Oct 2020 Mukesh Ambani can divide his $200 bln Reliance Industries and still rule, says India editor Una Galani. Meantime, European and U.S. multinationals are growing increasingly reliant on Chinese growth, seeding future financial and political risks, Rob Cox and columnists discuss.
Ferragamo’s overhaul hinges on family letting go 22 Oct 2020 Owners of the struggling $3 bln Florentine shoemaker have explored a stake sale. Bringing in private equity worked for fellow bling merchants Versace and Valentino. But Ferragamo’s plight is such that its family owners would have to allow buyout players to hold the whip hand.
Crown Resorts disabused of gambler’s conceit 22 Oct 2020 A protest vote by shareholders has belatedly targeted the $4 bln casino operator’s cosy and inexperienced board. At least it’s forcing the Australian company to concede a shakeup is needed to clean up its mess. It’s a good reminder about why the right sorts of directors matter.
New UBS CEO faces a cost-cutting odyssey 20 Oct 2020 Ralph Hamers takes over a $44 billion bank with slim growth prospects and high expenses. With the easy savings already found, he’ll have to get creative. That means shedding subscale units, further shrinking investment banking, replacing bankers with robots, and potentially M&A.
Ambani succession is chance to divide and rule 20 Oct 2020 Asia’s richest man could divvy up the $200 bln Reliance empire between his three children. That would help avoid a repeat of his epic sibling feud. Yet scale and breadth bring influence. A carve-up that manages to keep family interests aligned could create a legacy to rival the Agnellis.
Danone shakeup needs bigger ESG splash 19 Oct 2020 The French dairy group is reviewing assets to restore its flagging growth. Yet disposals covering just 2% of sales look lacklustre. Selling the shrinking water unit would give CEO Emmanuel Faber cash for deals and boost the 37 bln euro company’s appeal with sustainable investors.
Lufax may find three’s a China fintech IPO crowd 19 Oct 2020 It’s like the proverbial bus: long waits before multiple new share sales arrive at once. The Ping An-backed outfit, last valued at $39 bln, is touting small-business bona fides to stand apart from Ant and JD Digits. New York could be a tougher venue to make the case, however.
Vedanta’s failed buyout is Agarwal’s comeuppance 12 Oct 2020 The indebted tycoon’s effort to take private his $5 bln Mumbai company has backfired. Technical glitches compounded a quirky delisting process that empowers minority investors. After years of Agarwal’s opportunistic toying with the stock market, shareholders have the upper hand.
Corona Capital: NBA, Polish e-commerce, Tesco 12 Oct 2020 Concise views on the pandemic’s corporate and financial fallout: A major basketball bake-off fails to pull in the online crowds; Poland’s biggest e-commerce company flies from the shelves; and UK grocer Tesco wrestles with supply chain problems.
Citi’s past mistakes send new CEO back to future 8 Oct 2020 A U.S. regulator has fined the mega-bank $400 mln for repeatedly failing to bring risk management and other controls up to snuff. It helps explain why gaffe-prone Citi trades at just half its book value. Incoming boss Jane Fraser will start the job fighting decade-old problems.
Daimler drives into faster lane with luxury refit 6 Oct 2020 The German automaker plans to cut costs by 20% at its Mercedes brand by 2025 and double sales of Maybach luxury cars. Hitting the goals could grow operating profit by nearly two-thirds. Even so, boss Ola Kaellenius may at best catch up with, rather than overtake, rival BMW.
Guest view: CEOs learn value of long-term vision 5 Oct 2020 The disruption of the pandemic underscores the importance of planning ahead, write Mark Machin of Canada’s CPP and McKinsey’s Kevin Sneader. Long-term management not only creates more jobs and greater value. It’s also embedded in behaviors that CEOs and board members can learn.
Altice’s vexed minorities may have a trump card 5 Oct 2020 Minority investors are livid at Patrick Drahi’s lowball 4.9 bln euro take-private offer for the European telco. On the face of it, the Franco-Israeli billionaire can use his 78% voting rights to steamroller their views. But a new piece of Dutch law may give them the last laugh.
The Exchange: UBS CEO exit interview 29 Sep 2020 After 10 years leading Switzerland’s biggest bank, Sergio Ermotti is handing off to Ralph Hamers and becoming chairman of Swiss Re. In a wide-ranging conversation with Rob Cox, he shares his views on banking, M&A, his tenure as CEO and the advice he offered his successor.
Corona Capital: Shale merger, Logistics startup 28 Sep 2020 Concise views on the pandemic’s corporate and financial fallout: Two Permian Basin oil drillers agree to merge to share their coronavirus demand-shock woes; and delivery upstart ShipBob gets some SoftBank cash to help it compete with Amazon.
Daimler’s new driver can jump-start electric drive 28 Sep 2020 Ex-CEO Dieter Zetsche is not taking charge of the $55 bln Mercedes maker’s supervisory board. That’s a rare win for critical shareholders. Still, the company’s plans to almost double its share of battery cars are behind rival BMW. Daimler could use an outsider at the wheel.
Review: GE’s decline is the story of corporate BS 25 Sep 2020 This is the main lesson from “Lights Out”, an account of how America’s once-admired industrial conglomerate lost its way. GE bosses from Jeff Immelt on down believed they, and the company they worked for, were infallible. Mistaking a story for a strategy is how companies die.
Corona Capital: Vaccines, Olive Garden, Oil 24 Sep 2020 Concise views on the pandemic’s corporate and financial fallout: Vaccine concerns are bad for the economy; cravings for never-ending pasta bowls return; and oil practitioners tell sad truths.
Joe Biden has edge in assembling economic talent 22 Sep 2020 If the former vice president wins in November, he’ll have a bevy of business execs and ex-bureaucrats to help him. Rival President Donald Trump has cycled through dozens of aides, leaving him a hollow bench. Breakingviews imagines their economic roster in an interactive graphic.