Investors coax Walgreens Boots to swallow Rite Aid 27 Oct 2015 Scooping up the No. 3 U.S. drug chain strengthens $98 bln Walgreens as it battles domestic leader CVS. Antitrust is an obvious question given the rough ride Staples has faced with Office Depot, but the hurdles look manageable. Shareholders are certainly not worried.
Big cost cuts strengthen case for Fnac-Darty deal 26 Oct 2015 French retailer Fnac probably will have to improve its 800 mln euro offer to win its bid for homeware specialist Darty. The bidder’s estimate that the merged company will secure 85 mln euros of annual cost savings suggests a takeover is worth doing at a higher price.
Google and Amazon grapple happily with maturity 22 Oct 2015 Alphabet, the new holding company for the search giant, is returning cash to shareholders. Amazon delivered profits. Both operations are growing so fast, and throwing off so much cash, that they can act as responsible stewards of capital while still chasing the next big thing.
McDonald’s investors finally get goodies to savor 22 Oct 2015 The Big Mac purveyor reversed a stubborn sales slump in Q3. It’s too soon to declare CEO Steve Easterbrook’s turnaround a success, but the business is stabilizing as the fast food giant grapples with changing consumer tastes. Shareholders can enjoy their happiest meal in ages.
Wal-Mart outpaced by mass-market trends 14 Oct 2015 The mega-retailer’s shares fell almost 10 pct, wiping out more than $20 bln of value, after it warned pay and tech spending would hit next year’s profit unexpectedly hard. Changing shopping habits – think Amazon – and wage pressures are stronger headwinds than investors thought.
Yum’s China indigestion strengthens spinoff case 7 Oct 2015 The U.S. fast-food giant reported surprisingly slow third-quarter growth, due mainly to weak Chinese demand. That cut the stock price a fifth, and may derail Middle Kingdom expansion. Operations there have big upside, though, and liberating them now should top the company’s menu.
Rob Cox: Wal-Mart just shy of target on gun front 6 Oct 2015 Like CVS with smokes, the retailer stopped selling AR-15 rifles, the kind used in an Oregon college shooting, because it’s bad business. Yet Wal-Mart blocked a Wall Street parish’s plan to make that and similar policies permanent. The church’s case merits Supreme Court review.
SABMiller’s growth focus raises Budweiser stakes 6 Oct 2015 The South African-born brewer used the G-word six times in the first three sentences of an ostensibly ordinary Q2 trading statement. The intention looks clear. Seven days ahead of Anheuser’s deadline to launch a formal $100 bln-plus offer, SAB is saying: pay up or shut up.
Albertsons may have limited investment shelf life 2 Oct 2015 The U.S. grocer is seeking $2 bln in an IPO. Although it’s larded with $11 bln in debt from a nine-year shopping spree under buyout firm Cerberus, deal-related cost savings make it worth dropping in the trolley for now. Growth for Albertsons, however, probably has an expiry date.
Alibaba delivery arm is a financial blind spot 2 Oct 2015 The Chinese e-commerce group is a minority investor in the business that arranges delivery of billions of its packages. Yet Alibaba has spent over $6.3 bln on logistics-related deals in the past three years. Even if the investments make strategic sense, shareholders are in the dark.
Darty may squeeze more from French suitor 1 Oct 2015 The electricals retailer is mulling a merger with French rival Fnac. Darty would get 45 pct of the merged group, ease its strained balance sheet and enjoy some cost savings. Even though 14 pct shareholder Knight Vinke supports the plan, there’s room for improvement on price.
Ralph Lauren’s new CEO saddled with high hopes 30 Sep 2015 The fashion icon passed over his son to hire Gap’s Stefan Larsson to run the family-controlled clothier. Corporate America is increasingly open to outside bosses, despite notable failures. Expectations also can be excessive. After all, investors have valued Larsson at $1.6 bln.
Sainsbury draws blood in UK grocer fightback 30 Sep 2015 Shares in the supermarket group popped as much as 14 percent as it said sales and pre-tax profit are beating expectations. Price cuts and cost savings seem to be kicking in. To make sustained progress on earnings, however, established grocers need to win back pricing power.
Richemont triggers premature luxury share surge 16 Sep 2015 Surprisingly strong five-month sales from the Cartier owner sent shares up 7 percent. Peers’ stock also bounced. There’s a boost from tourist flows in Europe and relief after a summer of China woes. But it’s far from certain that luxury has turned itself around.
Inditex has capacity to give shareholders more 16 Sep 2015 The 89 bln euro Zara clothes retailer can sustain double-digit growth. Having invested heavily in logistics, IT and stores, profit rose 26 pct in the first half. Inditex is hardly stingy but it has 4.4 bln euros net cash and enough financial strength to jack up the dividend.
Quiksilver’s next wave may turn mushy 14 Sep 2015 The once far out surf-wear pioneer’s Chapter 11 filing has been a long time coming. Oaktree is bankrolling a revamp, but Quiksilver’s glide downward in sales and a consistently weak ride from competitors like Billabong suggest it’s unlikely to get serious air any time soon.
Morrisons revamp points to takeover end game 10 Sep 2015 The 4 bln stg UK grocer is refocusing boldly on traditional outlets. Compared to convenience stores and online, these have less exciting growth prospects. But a chain of solidly profitable supermarkets would make a tidy morsel if Morrisons’ new bosses decide to sell the group.
Whitbread’s two-pronged approach is a winner 8 Sep 2015 With a new CEO in waiting, breakup ideas may resurface at the 8.5 bln stg group. Whitbread’s coffee shops and budget hotels business make odd bedfellows. But demerger proponents have a problem. Whitbread looks to be valued at more than the sum of its parts.
Tesco sells Seoul for a decent price 7 Sep 2015 The UK grocer is offloading its South Korean unit for $6 bln-plus in Asia’s largest-ever buyout. That’s a solid result given wider market wobbles and falling margins at Homeplus. South Korea’s burgeoning private equity market and a paucity of big deals in the region helped.
Tesco’s global hopes can survive Korea sale 4 Sep 2015 Britain’s biggest grocer is close to selling its supermarkets in South Korea, reports say. The mooted 4.3 bln stg proceeds would cut net debt in half and relieve operational headaches. Yet an exit need not be the end of Tesco’s international ambitions.