Daily Brief - 10 Apr 2024

Blackstone inches closer to taking L’Occitane private

L’Occitane International SA is on the brink of leaving the Hong Kong stock exchange after 14 years, with a looming buyout led by billionaire owner Reinold Geiger and backed by Blackstone Inc.

The deal, potentially announced soon, involves Blackstone providing debt financing to facilitate the buyout, suggesting a significant shift for the global cosmetics brand. The proposed offer might include a 20% premium over the stock’s previous value, marking a decisive step in L’Occitane’s corporate journey and Geiger’s succession planning.

Amid ongoing discussions, the company’s focus on market expansion and facing challenges in competitive markets like China highlights the strategic importance of this acquisition.

Stada engages in preliminary sale talks

Stada Arzneimittel AG, is in the initial stages of discussing a potential sale with various interested parties, aiming for a valuation of around €8 billion.

The discussions involve notable financial investors such as Clayton Dubilier & Rice, CVC Capital, KKR & Co., among others. As alternatives to a full sale, Stada's current owners, Bain Capital and Cinven, are also contemplating an initial public offering or selling a minority stake.

The decision to spin off its Russian operations last year is seen as a strategic move to facilitate this sale amid geopolitical tensions. With a significant presence in Europe and beyond, Stada's financial performance has shown robust growth, making it an attractive prospect for investors.

Arabica coffee steady near 18-month high

Arabica coffee futures remain steady, close to their highest point since October 2022, as investors transition their focus from the cocoa to the coffee market, leading to a significant increase in bullish bets.

The shift comes after a remarkable rally in cocoa prices, prompting hedge funds to explore opportunities in coffee, with the Commodity Futures Trading Commission reporting a record-high speculative interest in coffee futures.

Meanwhile, robusta beans have seen a nearly 30% increase in price this year, driven by reduced output from Vietnam and tightening global stocks, suggesting a potential rise in demand for the premium arabica beans among roasters seeking alternatives.