The Information : Why OpenAI’s Cerebras Chip Deal Matters; What Anthropic Wants

Why OpenAI’s Cerebras Chip Deal Matters; What Anthropic Wants to Know About Chinese Rivals

OpenAI executives have repeatedly signaled, both publicly and privately, that the only factor limiting the company’s revenue growth is access to computational resources. Chief Financial Officer Sarah Friar wrote an entire blog post on this topic earlier this year, and OpenAI executives highlighted the message again in a presentation to investors last week.

In the meeting, execs emphasized how the company has struck a variety of deals in recent months with cloud and chip providers including Microsoft, Nvidia, Amazon Web Services, Advanced Micro Devices and Broadcom to ensure it’ll have access to enough powerful servers to continue growing, according to a person with knowledge of the presentation. But in one way the most important deal may be OpenAI’s agreement to buy $10 billion worth of chips from a lesser known chip firm—Cerebras Systems—which OpenAI executives spent extra time highlighting last week, the person said.

It turns out the reason OpenAI struck the deal is highly technical but symbolizes OpenAI’s strategy for turning profitable: using different kinds of hardware in a way that reduces its costs.

Cerebras’ chips, for instance, aim to be faster and more efficient in running models, a process known as inference, than traditional AI chips such as Nvidia’s graphics processing units. Cerebras chips keep data on the processor itself through a type of computer memory known as Static Random-Access Memory, minimizing the need to shuttle data back and forth to separate high-bandwidth memory chips. As a result, the chips (in theory) process data faster for specific tasks involving AI apps.

Nvidia GPUs, in comparison, are much larger and take longer to process data, although they also have more flexibility to handle different types of operations well.

If Cerebras’s approach sounds familiar, that’s because another chip designer, Groq, uses a similar SRAM technology. But Nvidia signed a $20 billion deal in December to license tech from Groq and hire away its top talent, making it harder for other firms to work with the chip designer.

This all matters because OpenAI, as it revealed to investors last week, has sharply increased the amount of money it expects to burn between now and 2029 to $218 billion, including $140 billion on inference costs in that span. It needs to reassure investors it has some path to making money. The company is also working on developing its own inference-focused chip with Broadcom, which could also help bring down inference costs compared to using GPUs.

Of course, this is a lot to ask investors to believe in, especially for a company in a field as fast-changing as AI. And OpenAI already missed its margin projections last year, which doesn’t look great for future profitability goals.

But the company is going to need to convince investors that this is a viable strategy, especially since it’s going to have to keep fundraising to afford the unprecedented cash burn it has projected.

>>> La Lettre — February 26, 2026 — Summary

La Lettre — February 26, 2026 — Summary

1. Tikehau Capital Slow to Deploy Its Second Aero & Defense Fund
EN: Nearly two years after launch, Tikehau Capital’s Ace Aéro Partenaires 2 (AAP2) fund — with a €582M envelope — has deployed only 6% (€35M) as of end-September 2025. This is despite urgent financing needs in the European defense sector following government calls to mobilize €5B for armaments. The fund benefited from a €425M force de frappe after a first closing, including €110M from Tikehau itself. The firm has also suffered significant expert departures: Marwan Lahoud (ex-Airbus #2) left for Messier & Associés, Franck Crépin (ex-Airbus/Bombardier) was ousted, and Adrien Dassault (strategic relationships) departed in November 2025.
FR: Près de deux ans après son lancement, le fonds AAP2 de Tikehau Capital (€582M) n’a déployé que 6% de son enveloppe (€35M) à fin septembre 2025, malgré les besoins urgents de financement de la défense européenne. Le fonds a aussi perdu plusieurs experts clés du secteur aéro-défense, réduisant sa capacité opérationnelle.
🔎 HF Comment: Tikehau’s deployment lag vs. the massive European defense spending ramp is a notable signal. The talent exodus raises execution risk questions on AAP2. Worth monitoring whether Tikehau can capitalize on the defense capex wave or if competitors (Weinberg Capital, Bpifrance) capture the deal flow. The disconnect between political momentum for defense spending and Tikehau’s slow capital deployment could create opportunities for more agile players.

2. The Archbishop of Paris Courts Mayoral Candidates
EN: The Paris Archbishop received the main municipal election candidates on February 20 to discuss religious heritage preservation, Catholic education, and solidarity issues. All major candidates except Sophia Chikirou (LFI) attended. Key topics included the renovation of pre-1905 churches and controversies around subsidies to Lycée Stanislas.
FR: L’archevêché de Paris a reçu les principaux candidats aux municipales pour évoquer le patrimoine religieux, l’enseignement catholique et les solidarités. Tous sauf la candidate LFI étaient présents.
🔎 HF Comment: Limited direct market relevance, but signals the political dynamics around Paris municipal elections and the role of institutional influence networks.

3. DSA: France’s Counter-Attack After Washington’s Offensive
EN: French MEP Stéphanie Yon-Courtin is pressing the European Commission to protect EU officials from potential US sanctions linked to their work on the Digital Services Act (DSA). A US Congressional report, driven by Republican Jim Jordan, accuses the DSA of suppressing online free speech. Washington demanded tech giants hand over all correspondence with the Commission. Macron personally wrote to Trump in early February asking him to lift sanctions against Thierry Breton, the former EU commissioner who initiated the DSA. Judge Nicolas Guillou (ICC) is also facing US financial sanctions.
FR: La France pousse Bruxelles à protéger les fonctionnaires européens visés par d’éventuelles sanctions américaines liées au DSA. Macron a écrit à Trump pour défendre Thierry Breton. L’eurodéputée Yon-Courtin interpelle Von der Leyen sur la divulgation de données personnelles de fonctionnaires par Washington.
🔎 HF Comment: This is a critical escalation in US-EU tech regulation tensions. The DSA enforcement targeting Meta, X, TikTok has direct implications for Big Tech operating margins in Europe. If the EU backs down under US pressure, regulatory risk premiums on EU-exposed tech names could reprice. Conversely, retaliatory measures could create further compliance costs. Key watch for anyone long/short European-listed tech or US platforms with EU exposure.

4. Martin Garagnon’s Purge: Renaissance’s De-Macronization
EN: Gabriel Attal expelled Martin Garagnon from Renaissance on February 4. Garagnon, a party spokesperson designated by Macron during the 2024 legislative campaign, had become a prolific media presence. Former MP Florian Bachelier is contesting the exclusion legally. The affair highlights the internal power struggle within Renaissance as Attal seeks to control party messaging ahead of future elections.
FR: Gabriel Attal a exclu Martin Garagnon de Renaissance, accentuant la « démacronisation » du parti. L’affaire pourrait connaître une suite judiciaire, un ancien député contestant la procédure d’exclusion.
🔎 HF Comment: French political fragmentation continues. Renaissance’s internal tensions reduce governing coalition cohesion — relevant for anyone positioning on French sovereign spreads or assessing political risk for the 2027 presidential cycle.

5. Veolia Wins Annulment of Suez Victory in Western Île-de-France
EN: The Versailles administrative tribunal annulled on February 24 the procurement process by Aquavesc (a mixed syndicate managing water for 32 communes including Versailles) that had awarded a contract to Suez. The court found Aquavesc violated competition and publicity rules, potentially disadvantaging Veolia. Key issue: Aquavesc had signed conventions with Suez in October 2024 for decarbonated and emergency water supply at €0.86/m³ for 20 years, which the court deemed prejudicial to equal treatment of candidates.
FR: Le tribunal administratif de Versailles a annulé l’attribution du contrat d’eau potable de 32 communes à Suez via Aquavesc, estimant que les conditions favorisaient Suez au détriment de Veolia. Victoire significative pour Veolia dans la guerre de l’eau en Île-de-France.
🔎 HF Comment: Directly relevant for Veolia (VIE) and Suez positioning. This ruling strengthens Veolia’s competitive position in the Paris basin water market. Suez has been losing ground — also losing contracts in Béziers and on sanitation. The French water concession market is repricing in favor of Veolia. Watch for further contract challenges and potential impact on Suez’s French municipal revenue base.

6. Brave Search Engine Targeted by French Press Publishers
EN: The Alliance de la presse d’information générale (Apig), led by Le Figaro’s Marc Feuillée, is preparing a “counterfeiting” lawsuit against Brave browser/search engine before the Paris court. Brave (100M users, founded 2016 by Mozilla’s Brendan Eich) refuses to negotiate with French press for content usage. Publishers are also alarmed by Google’s AI Overviews and AI Mode, which are reducing traffic to news sites. Meanwhile, Microsoft was ordered on Feb 19 to pay €35,000 to publishers for abusive litigation practices, with LinkedIn also targeted.
FR: L’Apig prépare une action en contrefaçon contre le moteur de recherche Brave devant le tribunal de Paris. Les éditeurs combattent aussi les AI Overviews de Google qui réduisent le trafic vers les sites de presse. Microsoft a été condamné à verser €35 000 aux éditeurs.
🔎 HF Comment: The French press vs. tech platform copyright war is intensifying across Brave, Google, and Microsoft. This is part of the broader EU content licensing/AI training data monetization theme. Implications for Alphabet (AI Overviews traffic impact), Microsoft/LinkedIn (ongoing litigation costs), and the emerging legal framework around AI-generated summaries using copyrighted content. The French courts are establishing precedents that could be replicated across the EU — a structural headwind for AI search business models.​​​​​​​​​​​​​​​​

>>> Europe : Brokers Upgrades & Downgrades - 25th of February 2026 V2(+)

>>> Up
* Alzchem Group Rated New Buy at Jefferies; PT 190 euros
* AMD PT Raised to $330 from $300 at KeyBanc
* AMD PT Raised to $358 from $328 at Evercore ISI
* Anglo American Raised to Buy at DZ Bank; PT 4,300 pence
* Commerzbank Raised to Market Perform at KBW; PT 38 euros
* Endesa Raised to Neutral at BNP Paribas; PT 34 euros
* Exosens SAS PT Raised to 69 euros from 57 euros at Berenberg
* Home Depot PT Raised to $454 from $424 at Jefferies
* SFC Energy Raised to Buy at Berenberg; PT 17 euros

>>> Down
* Airtel Africa Cut to Underweight at ABSA Securities
* Beiersdorf Cut to Hold at Deutsche Bank; PT 105 euros
* First Solar Cut to Neutral at Baird
* GBL Cut to Accumulate at KBC Securities; PT 93 euros
* Hims & Hers Health PT Cut to $25 from $48 at Barclays
* Paratus Energy Services Cut to Hold at Pareto Securities
* Severn Trent Cut to Hold at Kepler Cheuvreuxv (+)
* Standard Chartered Cut to Sell at Shore Capital; PT 1,490 pence (+)
* United Utilities Cut to Hold at Kepler Cheuvreux (+)

>>> Initiation
* AbbVie Rated New Outperform at RBC
* Alzchem Rated New Buy at Jefferies on Specialty-Driven Growth
* Bristol Myers Rated New Sector Perform at RBC
* Comer Industries Rated New Hold at Kepler Cheuvreux; PT 50 euros (+)
* Creo Medical Rated New Corporate at Shore Capital; PT 40 pence
* Eagle Eye Solutions Rated New Buy at Canaccord; PT 660 pence (+)
* Eli Lilly Rated New Outperform at RBC
* Merck & Co Rated New Outperform at RBC
* Pfizer Rated New Underperform at RBC

>>> Call
* Exosens PT Set to Street High at Berenberg on Defense Growth (+)
* UBS Now Sees Private Credit Defaults Reaching 15% in Worst Case
* OPmobility Beats on Margin as Citi Says ‘Best in Class’ (+)
* SFC Energy Raised to Buy at Berenberg on Underlying Profit
* Telecom Italia Revenue Beats, Outlook In-Line, JPMorgan Says
* Verallia’s Outlook Implies Consensus Downgrades, Citi Says

>>> What to look at today - 25th of February 2026

A rally in technology shares that lifted Wall Street benchmarks extended into Asia, as concern over the disruptive effects of artificial intelligence eased after weeks of turmoil. MSCI’s gauge for Asian equities climbed 1.4% to a record, with gauges in South Korea and Taiwan — bellwethers for AI investments — also hitting all-time highs. A rebound in the battered software stocks drove US benchmarks higher, ahead of key earnings from Nvidia Corp. later Wednesday. The dollar fell as much as 0.2% and US equity-index futures trimmed most of their earlier gains after President Donald Trump delivered his State of the Union address. Treasuries edged lower, with the yield on the benchmark 10-year rising two basis points to 4.05%. The yuan climbed and Asian currencies strengthened to a 16-month high, supported by a weaker greenback. The rebound in global stocks was helped by comments from Anthropic PBC, which said it plans to build partnerships — suggesting that its Claude chatbot will integrate with, rather than displace, existing businesses. The disruptive potential of the technology has roiled stocks across sectors for weeks in what’s become known as the “AI scare trade.”  Earlier this week, concerns over tariffs and geopolitics coupled with a report by Citrini Research and worries about the potential disruption caused by another tool from Anthropic were enough to send the stock market careening. Investors had been on edge as AI-driven selloffs swept across industries including software, insurance brokerage, wealth management and cybersecurity. Sentiment steadied somewhat on Tuesday. Meanwhile, the Bloomberg Dollar Spot Index edged lower as Trump assailed the Supreme Court for striking down his global tariffs and gave no indication he would change course. Trump said he would move ahead with restoring his broad import taxes through other authorities. He expressed confidence foreign countries would honor their trade agreements and even predicted that the US would take in so much revenue that it would “substantially replace the modern day system of income tax.” 
Elsewhere, the yen fluctuated as Japan’s Prime Minister Sanae Takaichi’s government nominated two reflationist academics to join the Bank of Japan policy board on Wednesday. The nomination is likely to fuel speculation that Takaichi will be cautious about the central bank raising interest rates quickly. In other corners of the market, gold and silver — assets that have risen this year along with stocks — gained, and Bitcoin jumped about 2% to trade around $65,400. Still, the main risk event in the tech sector on Wednesday will be Nvidia’s earnings. The company is facing a high-stakes moment with its latest quarterly results, with the world waiting for fresh evidence that the AI spending boom remains on track. This week’s earnings will either “calm or exacerbate” AI fears, said David Laut at Kerux Financial. 

Nikkei +2.31% Hang Seng +0.75% CSI +1.24% Shanghai +1.20% Shenzen +1.31%

Eur$ 1.1793 CNH 6.8687 CNY 6.8724 JPY 155.90 GBP 1.3517 CHF 0.7730 RUB 76.3234 TRY 43.8563 WTI$ 66.11 +0.72% Gold 5,180 +0.76% BTC 65,560 +2.45% ETH 1,912 +3.18%

S&P +0.03% Nasdaq +0.05% EuroStoxx +0.16% FTSE +0.47% Dax +0.05% SMI -0.13%

Macro :
- Peter Thiel’s Money Manager Courts World’s Mega-Rich for US Bets
- Dan Loeb Says ‘Lost Art of Short Selling’ Is Making a Comeback
- Bill Gates Apologizes to Foundation Staff Over Epstein Ties -- WSJ
- Trump Stages State of the Union Pep Rally as Economic Mood Sours
- UBS Now Sees Private Credit Defaults Reaching 15% in Worst Case
- Switzerland Is About to Put Cash in Its Constitution, Polls Show
- US Warned Kyiv Over Russian Oil Port Attack, Citing Economic Hit
- Boaz Weinstein Warns ‘Wheels Coming Off’ Private Credit Funds
- Austria Minister Says Ukraine Joining EU by 2027 Unrealistic: FT

Keep an eye on :
- ADEN SW : Adecco 4Q Revenue Meets Estimates
- AGS BB : Ageas FY Net Operating Profit Beats Estimates
- AIR FP : Ex-Airbus chief says Gn decision to work with France on fighter jet a ‘mistake’
- ALC SW : Alcon AG 4Q Core EPS Misses Estimates, Alcon Topline Strong, But Some ‘Puts and Takes’
- ALSYDB DC : AL Sydbank Sees 2026 Net Income DKK3.5B to DKK4B, Est. DKK3.74B
- ALSYDB DC : AL Sydbank Cuts 47 Positions After M&A, FinansWatch Says
- ATE FP : Alten FY Net Income Misses Estimates
- AAPL US : Apple’s Touch MacBook Pro to Have Dynamic Island, New Interface
- AML LN : Aston Martin FY Revenue Misses Estimates
- BA/ LN : BAE Systems Gets $500m Artillery, Ammo Carrier Pact for US Army
- BAYN GY : Bayer Accuses J&J of Misleading Ads for Its Prostate-Cancer Drug
- BBOX LN : Tritax Big Box REIT, IG Group Indicated to Join FTSE 100 Index
- BIC FP : BIC FY Adjusted Ebit Meets Estimates
- BVI FP : Bureau Veritas FY Adjusted Operating Profit Matches Estimates
- CAN LN : Favorable decision on the VAT applicableto pay TV, but no final ruling yet - L'informe
- CAVA US : Cava Jumps as 2026 Comp Sales Outlook Exceeds Expectations
- DASH US : DoorDash to Wind Down Deliveroo, Wolt Ops in Four Countries
- EZJ LN : Easyjet Indicated to Leave FTSE 100 Index
- EDP PL : EDP Renovaveis FY Net Income Misses Estimates
- LLY US : UK’s MHRA Approves Eli Lilly’s Inluriyo for Some Breast Cancers
- EOAN GY : E.On Sees 2026 Adjusted Ebitda EU9.4B to EU9.6B, Est. EU9.55B, EON Lifts Spending Plan by €5 Billion in Boost for Europe’s Grid
- EVN AV : EVN Still Sees 2025/26 FY Ebitda, Net Around Prior Year Level
- FME GY : Fresenius Extends Mandate of CEO Michael Sen by Five Years
- FRE GY : Fresenius SE Sees 2026 Organic Revenue +4% to +7%
- GBLB BB : Umicore Holder Groupe Bruxelles Lambert Offers Shares: Terms, GBL Sells Remaining Umicore Shares at €0.3b Total Proceeds
- GF SW : Georg Fischer FY Ebit Beats Estimates
- GSF NO : Grieg Seafood Sees 1Q Harvest 6,600 Metric Tons
- HEI GY : Heidelberg Materials Forecasts 2026 Results
- HAG GY : Hensoldt Extends CEO Oliver Dörre’s Contract Until 2031
- HSBA LN : HSBC FY Pretax Profit Beats Estimates
- HDLY NO : Huddly Offering of NOK75m Shares Prices at NOK20/Share
- IGG LN : Tritax Big Box REIT, IG Group Indicated to Join FTSE 100 Index
- ITP FP : Interparfums FY Operating Profit Matches Estimates
- IPS FP : Ipsos FY Adjusted Net Income Beats Estimates
- JST GY : JOST Werke Offers Up to 1.49m Shares Via Private Placement
- OR FP : L’Oreal, Dyson, Bausch + Lomb Sue for Tariff Refunds: Reuters
- LDO IM : Leonardo DRS Shares Surge as FY Revenue Guide Above Consensus
- LDO IM : Leonardo FY Ebita Beats Estimates
- LIN US : Linde Raises Dividend, Below Bloomberg Projection
- MC FP : Arnault Tightens Grip on LVMH as His Stake Crosses the 50% Mark
- MOS US : Mosaic 4Q Adjusted Ebitda Misses Estimates
- NDX1 GY : Nordex Sees 2026 Ebitda Margin 8% to 11%, Est. 8.41%
- NVDA US : Nvidia to Give Update on AI Industry With Results: Preview
- OPM FP : OPmobility FY Operating Profit Beats Estimates
- ORIOLA FH : Oriola 4Q Net Sales Beat Estimates
- PEN NO : Panoro Energy Offering of 20m Shares Prices at NOK23.35/Share
- PFE US : Pfizer’s Braftovi Combo Gets FDA OK for Colorectal Cancer
- PRS SM : Prisa Rejects Unsolicited Restructuring Proposal From Investor
- RMV LN : RightMove Indicated to Leave FTSE 100 Index
- ROVI SM : Rovi FY Ebitda Beats Estimates
- SPM IM : Saipem Order Intake Strong, Ebitda Guidance Beats
- SDZ SW : Sandoz Group FY Net Sales Meet Estimates
- SK FP : SEB FY Operating Result From Activity Beats Estimates, SEB to Cut Up to 2,100 Jobs in Plan to Renew Profitable Growth
- SSL IM : SS Lazio Says Company Is Not for Sale
- TIT IM : Telecom Italia Sees Ebitda After Lease Up 5%-6% in 2026
- TIT IM : Telecom Italia Sets €400 Million Stock Buyback, Reverse Split
- TEMN SW : Temenos Sees 2026 Non-IFRS Ebit About +9%
- UMI BB : Umicore Holder Groupe Bruxelles Lambert Offers Shares: Terms
- VRLA FP : Verallia FY Adjusted Ebitda Misses Estimates, Verallia’s Outlook Implies Consensus Downgrades, Citi Says
- VoltaGrid IPO : VoltaGrid Weighing Public Listing or Sale, Riding the AI Wave
- VPK NA : Vopak FY Revenue Misses Estimates, Vopak Plans Distributions Program of ~€1.7b Through 2030
- WBD US : Warner Bros. Says Paramount Boosts Bid to $31/Shr in Cash
- WBD US : Paramount’s Newest Bid Could Open Door to Beating Netflix Deal, Warner Says - WSJ
- WHR US : Whirlpool Offering of Common Stock Prices at $69/Share
- WLN FP : Worldline Sells Indian Payment Activities to BillDesk
- YAR NO : Mosaic Sees Phosphate Interest Amid China Export Restrictions

>>> Europe : Brokers Upgrades & Downgrades - 25th of February 2026

>>> Up
* Alzchem Group Rated New Buy at Jefferies; PT 190 euros
* AMD PT Raised to $330 from $300 at KeyBanc
* AMD PT Raised to $358 from $328 at Evercore ISI
* Anglo American Raised to Buy at DZ Bank; PT 4,300 pence
* Commerzbank Raised to Market Perform at KBW; PT 38 euros
* Endesa Raised to Neutral at BNP Paribas; PT 34 euros
* Exosens SAS PT Raised to 69 euros from 57 euros at Berenberg
* Home Depot PT Raised to $454 from $424 at Jefferies
* SFC Energy Raised to Buy at Berenberg; PT 17 euros

>>> Down
* Airtel Africa Cut to Underweight at ABSA Securities
* Beiersdorf Cut to Hold at Deutsche Bank; PT 105 euros
* First Solar Cut to Neutral at Baird
* Hims & Hers Health PT Cut to $25 from $48 at Barclays
* Paratus Energy Services Cut to Hold at Pareto Securities

>>> Initiation
* AbbVie Rated New Outperform at RBC
* Alzchem Rated New Buy at Jefferies on Specialty-Driven Growth
* Bristol Myers Rated New Sector Perform at RBC
* Creo Medical Rated New Corporate at Shore Capital; PT 40 pence
* Eli Lilly Rated New Outperform at RBC
* Merck & Co Rated New Outperform at RBC
* Pfizer Rated New Underperform at RBC

>>> Call
* UBS Now Sees Private Credit Defaults Reaching 15% in Worst Case
* SFC Energy Raised to Buy at Berenberg on Underlying Profit
* Telecom Italia Revenue Beats, Outlook In-Line, JPMorgan Says
* Verallia’s Outlook Implies Consensus Downgrades, Citi Says

>>> Stoxx 600 Pre-Market Indications

  • Vopak (VPK5 TH) +5.6%
    • Vopak Plans Distributions Program of ~€1.7b Through 2030
  • Nordex (NDX1 TH) +3.4%
    • Nordex Sees 2026 Ebitda Margin 8% to 11%, Est. 8.41%
  • AUTO1 (AG1 TH) +1.8%
    • AUTO1 FY Revenue Beats Estimates
  • Adyen (1N8 TH) +1.5%
  • Merlin Properties (MEQA TH) +1.2%
  • Wienerberger (WIB TH) +1.2%
  • Novo (NOV TH) +1%
  • Beiersdorf (BEI TH) -1.3%
  • Heidelberg Materials (HEI TH) -2.9%
    • Heidelberg Materials Sees RCO of €3.4B to €3.75B for 2026 (1)
  • Fresenius SE (FRE TH) -3.1%
    • Fresenius Sees 2026 Profit Rise on Hospital, Generics Growth
  • Vodafone (VODI TH) -3.2%
  • Umicore (NVJP TH) -3.5%
    • Umicore Holder Groupe Bruxelles Lambert Offers Shares: Terms

>>> TradeGate Pre-Market Indications

DAX:
  • Zalando (ZAL TH) +1.2%
  • Beiersdorf (BEI TH) -1.1%
    • Beiersdorf Cut to Hold at Deutsche Bank; PT 105 euros
  • Fresenius SE (FRE TH) -2.7%
    • Fresenius Sees 2026 Profit Rise on Hospital, Generics Growth
  • Heidelberg Materials (HEI TH) -3.9%
    • Heidelberg Materials Sees RCO of €3.4B to €3.75B for 2026 (1)
MDAX:
  • AUTO1 (AG1 TH) +3%
    • AUTO1 FY Revenue Beats Estimates
  • Nordex (NDX1 TH) +3%
    • Nordex Sees 2026 Ebitda Margin 8% to 11%, Est. 8.41%
  • Thyssenkrupp (TKA TH) +1%
SDAX:
  • Verbio SE (VBK TH) +3.7%
  • SFC Energy (F3C TH) +3.4%
    • SFC Energy Raised to Buy at Berenberg; PT 17 euros
  • Kontron (KTN TH) +1.9%
  • PVA TePla (TPE TH) +1.8%
  • Tonies SE (TNIE TH) +1.6%
  • SMA Solar (S92 TH) -2.3%

FT : Jim Ratcliffe’s Ineos explores asset sales as chemical sector struggles con

Jim Ratcliffe’s Ineos explores asset sales as chemical sector struggles continue
Group searches for ways to raise cash, cut costs and reduce its leverage

Ineos is exploring asset sales and has held talks with creditors over refinancing some of its debt pile, as the chemicals empire built by UK billionaire Sir Jim Ratcliffe battles a prolonged industry downturn.

The London-headquartered group is exploring the sale of assets held within its vinyls business Inovyn, according to people familiar with the matter. The assets could be worth hundreds of millions of pounds, the people said, cautioning that talks remained in preliminary stages.

Ineos has also been in talks with credit firms to refinance bonds that will mature next year, according to several people familiar with the group’s financing situation, while shareholders in recent weeks injected €200mn of new equity into the business alongside raising another €300mn of financing linked to its inventory.

It comes as Ineos searches for ways to raise cash, cut costs and reduce its leverage, as it faces an extended downturn in the chemicals sector.

Europe’s chemicals producers are struggling with a deluge of cut-price imports from China, high energy prices and stifling regulation, on top of overcapacity and weak demand across the globe.

Ineos borrowed heavily as it became one of the world’s biggest chemicals companies through a series of acquisitions. A prolific user of European high-yield debt markets, the group’s bonds have plunged amid wider trouble in the chemicals sector and concern over the company’s leverage.

In 2024, Inovyn was the biggest business by earnings under Ineos Quattro, one of two holding groups the chemicals giant uses to issue debt that is being watched closely by high-yield credit investors.

Debt issued by Quattro had been trading at par in September last year but fell to 65 cents on the dollar last month. It had recovered to above 80 cents on the dollar by mid-February after an equity injection and new financing announced at the end of January.

Quattro’s ratio of net debt to earnings before interest, taxes, depreciation and amortisation (ebitda) stood at 7.7 at the end of 2025, up from 1.9 in 2022. Rating agency S&P regards any company with a net leverage ratio of more than six times to be “highly levered”.

Ratcliffe told the FT this month that Ineos was focused on “replacing the debt as it comes due” and would “not . . . be looking for new funding to do different things”, given conditions in the chemicals industry.


Inovyn makes chemicals including caustic soda and PVC, used widely in the construction sector, whose fortunes are linked closely to the wider economy. Demand for PVC has been muted in Europe, which accounted for 70 to 90 per cent of Inovyn’s PVC sales in 2024. The business is also highly exposed to electricity prices, which have soared in Europe since Russia’s invasion of Ukraine.

Its assets also include its Runcorn facility, which makes the chlorine that purifies 98 per cent of the UK’s drinking water. It is unclear whether this business will be included in the group’s disposal plans. Inovyn operates sites across Europe, with facilities in the UK, France, Italy, Germany, Belgium, Spain, Norway and Sweden.

Inovyn’s adjusted ebitda fell 41 per cent in 2024 — the most recent year for which figures are reported — to £348mn, against revenues of £3.1bn. Last year it announced the closure of two facilities in Germany, blaming “crippling energy and carbon costs, and a lack of tariff protection”.

S&P on Thursday downgraded Quattro’s debt deeper into junk territory, on estimates that its earnings had fallen in 2025, further raising leverage. The rating agency said that Inovyn’s “energy-intensive” PVC operations put “further pressure” on Quattro’s profit margins.

Ineos last year sold its composites assets to US private equity group KPS Capital Partners.

Ratcliffe’s stake in Ineos has made him one of the UK’s wealthiest individuals and in 2024 he became a co-owner of Manchester United. The billionaire, who lives in Monaco, apologised in February after he said the UK had been “colonised by immigrants”, drawing criticism from UK Prime Minister Sir Keir Starmer.

Ineos declined to comment.