Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 1: Let's take a look at some stocks on the move
Speaker 1: today in Europe. I'm Stephen Caroll and I'm joined by
Speaker 1: Bloomberg reporter Chloe Melee. Chloe, good morning to you. Let's
Speaker 1: start with the French luxury group carrying an announcement from
Speaker 1: them selling off one of their divisions.
Speaker 3: Yeah, so Karen sold their beauty division to Laurel in
Speaker 3: a four billion euro deal and that is part of
Speaker 3: a broader strategic partnerships between the the two company in
Speaker 3: beauty and wellness in particular. So the move is a
Speaker 3: reversal of the previous strategy from Caring, which had tried
Speaker 3: to push into that beauty and cosmetics segment under previous
Speaker 3: management because some luxury rivals like LVMH had found quite
Speaker 3: a bit of success there. It's also seen as the
Speaker 3: first really big move by Kring's new CEO, Luca de Meyer,
Speaker 3: who started last month and has been trying to turn
Speaker 3: around carrying the same way that he managed to turn
Speaker 3: around Renault and one of his priorities has been to
Speaker 3: slash costs in address carrying is really high debt burden,
Speaker 3: and some analysts have said that the divestment of that
Speaker 3: beauty business is good for the balance sheet and therefore
Speaker 3: it has been rewarded by the market this morning with
Speaker 3: shares higher. Demo is expected to unveil the strategic vision
Speaker 3: next spring, but in the meantime he has been making
Speaker 3: some moves already and that is being quite quite well
Speaker 3: received so far.
Speaker 1: Yeah, certainly those carrying shares up four point two percent
Speaker 1: at the moment in Paris next to a spinoff from
Speaker 1: Tissum Kroup. So the submarine maker and shipbuilder TKMS makes
Speaker 1: its trading debut today.
Speaker 3: Yeah, it made his trading debut in Frankfurt today. It's
Speaker 3: very positive trading debut. So the spinoff decision by thisism
Speaker 3: crop was made to kind of capitalize on the defense
Speaker 3: spending boom in Europe and therefore the submarine in Warship
Speaker 3: Manufacturing Division take Teams was a spin off TKMS. TRUW
Speaker 3: is quite a good debut given it's been a very
Speaker 3: positive day for the European defense sector today. We've seen
Speaker 3: the shares in RAIMETTAW Han Salt Leonardo or rising today
Speaker 3: as the ceasefire and Gaza looks a bit more fragile,
Speaker 3: and there's no more progress that's been made on Ukraine,
Speaker 3: so those tensions have been driving those shares in that
Speaker 3: sector higher. Going forward, TKMS is likely to benefit from
Speaker 3: that broader European defense spending a boost, but specifically German
Speaker 3: defense spending. However, it is worth noting that Europe's reomnment
Speaker 3: has been centering on land and air power, not so
Speaker 3: much on submarines and warships, and the current naval procurement
Speaker 3: from Germany foresees no major expansion of the submarine fleet.
Speaker 3: So the opportunity is there and it seems to be
Speaker 3: reflected in the shares, but perhaps not as massive as
Speaker 3: was hoped.
Speaker 1: Okay, so let's turn to Hulsom next, the Swiss construction
Speaker 1: company announcing a new acquisition.
Speaker 3: Yeah, so, provider of building materials at Wholesome is set
Speaker 3: to acquire Exzella, which is a company that builds walls,
Speaker 3: which I mean we all need those. It's a two
Speaker 3: point two billion dollar deal, which is the largest in
Speaker 3: four years for Wholesome and a deal that the market
Speaker 3: is quite happy about. So it'll expand its offering beyond
Speaker 3: the core cement cement business and then also part of
Speaker 3: a strategy to have kind of more expensive and more
Speaker 3: sustainable products, so it can have that value over volume
Speaker 3: approach that's quite good for margins. Of course. It will
Speaker 3: also boost the exposure to the German residential market, which
Speaker 3: is expected to see an aptic inactivity, and it will
Speaker 3: gain access to new markets like Norway, Sweden and Denmark.
Speaker 3: Wholesome has changed quite a bit recently. Earlier this year,
Speaker 3: the company spart off its North American operations in a
Speaker 3: new dual listing between Switzerland and the US, and so
Speaker 3: far the market has been quite happy about it. You know,
Speaker 3: the shares are up more than fifty percent over the
Speaker 3: last year, and this latest deal for Exella has been
Speaker 3: also very well received.
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