Danone: "Increasingly valuable" Water portfolio - CS

Suntory Beverage & Food

21/09/2018 08:34

** Credit Suisse upgrades Danone  DANO.PA  to "outperform"
from "neutral", believing that co's Water portfolio is an
increasingly valuable strategic asset
    ** Points to consolidation in the non-alcoholic beverages
sector JAB buying Dr Pepper and Coca-Cola  KO.N  buying Costa
Coffee
    ** Disposing Water biz would give co flexibility to return
cash to shareholders and pursue bolt-on acquisitions, per CS
    ** Broker judges it is likely that Nestle  NESN.S ,
Coca-Cola and Suntory  2587.T  would be very interested in
specific components
    ** However, given anti-trust issues and geographical
footprint, CS does not think there is an obvious buyer for the
entirety of Danone's Water biz
    ** Says the portfolio could be easily separated into parcels
for which it believes there would be significant interest
       




 ((kateryna.urbanek@tr.com))