Goldman Sees Rise in EU Consumer Staples M&A, Lists 10 Targets
2014-06-03 05:49:46.310 GMT
By Gaurav Panchal
June 3 (Bloomberg) -- Goldman expects healthy balance
sheets, cheap debt, subdued earnings growth to drive significant
step up in M&A over next three years.
* Identifies companies may benefit from cash deployment, those
most likely to be viewed as potential targets
* Forecasts aggregate acquisition spend of $250b to 2016
* Expects L’Oreal to benefit from acquisitions or buybacks;
SABMiller could be acquirer and potential target, Christian
Hansen may pay special dividends
* Applies a 30% M&A weighting in valuations of companies that
may be viewed as potential targets: C&C, Diageo, Remy
Cointreau, SABMiller, Lindt, Imperial Tobacco, Swedish
Match, Tate & Lyle, PZ Cussons, Reckitt Benckiser
* Goldman’s top picks remain: L’Oreal, Christian Hansen and
SABMiller (all conviction list buy)
* Removes Pernod (buy) from conviction list, downgrades
Danone, Heineken, Campari and Aryzta to sell vs neutral
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To contact the editor responsible for this story:
Gaurav Panchal at +44-20-7392-0511 or
gpanchal2@bloomberg.net
2014-06-03 05:49:46.310 GMT
By Gaurav Panchal
June 3 (Bloomberg) -- Goldman expects healthy balance
sheets, cheap debt, subdued earnings growth to drive significant
step up in M&A over next three years.
* Identifies companies may benefit from cash deployment, those
most likely to be viewed as potential targets
* Forecasts aggregate acquisition spend of $250b to 2016
* Expects L’Oreal to benefit from acquisitions or buybacks;
SABMiller could be acquirer and potential target, Christian
Hansen may pay special dividends
* Applies a 30% M&A weighting in valuations of companies that
may be viewed as potential targets: C&C, Diageo, Remy
Cointreau, SABMiller, Lindt, Imperial Tobacco, Swedish
Match, Tate & Lyle, PZ Cussons, Reckitt Benckiser
* Goldman’s top picks remain: L’Oreal, Christian Hansen and
SABMiller (all conviction list buy)
* Removes Pernod (buy) from conviction list, downgrades
Danone, Heineken, Campari and Aryzta to sell vs neutral
Link to Company News:{GCC ID <Equity> CN <GO>}
Link to Company News:{DGE LN <Equity> CN <GO>}
Link to Company News:{RCO FP <Equity> CN <GO>}
Link to Company News:{SAB LN <Equity> CN <GO>}
Link to Company News:{LISN SW <Equity> CN <GO>}
Link to Company News:{IMT LN <Equity> CN <GO>}
Link to Company News:{SWMA SS <Equity> CN <GO>}
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Link to Company News:{ARYN SW <Equity> CN <GO>}
Link to Company News:{CHR DC <Equity> CN <GO>}
Link to Company News:{NZYMB DC <Equity> CN <GO>}
Link to Company News:{NUO NA <Equity> CN <GO>}
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Link to Company News:{BATS LN <Equity> CN <GO>}
Link to Company News:{ABF LN <Equity> CN <GO>}
Link to Company News:{DCG LN <Equity> CN <GO>}
Link to Company News:{AGR AV <Equity> CN <GO>}
Link to Company News:{SZU GR <Equity> CN <GO>}
Link to Company News:{UNA NA <Equity> CN <GO>}
Link to Company News:{HEN3 GR <Equity> CN <GO>}
Link to Company News:{OR FP <Equity> CN <GO>}
Link to Company News:{ORI SS <Equity> CN <GO>}
Link to Company News:{SCAB SS <Equity> CN <GO>}
For Related News and Information:
First Word scrolling panel: {FIRST<GO>}
First Word newswire: {NH BFW<GO>}
To contact the editor responsible for this story:
Gaurav Panchal at +44-20-7392-0511 or
gpanchal2@bloomberg.net