Pandemic hastening conglomerate break-up: Bain & Co
This is starting in Singapore, as conglomerates consolidate positions to become more focused
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COVID-19 is hastening the break-up of conglomerates in South-east Asia, as these hefty multi-industry corporations look to "slim down" their organisational structures to overcome conglomerate discounts and underperformance relative to pure-play companies.
South-east Asian conglomerates averaged 24 per cent in annualised total shareholder return (TSR) from 2010 to 2013, according to a study by Bain & Company, beating pure-plays by six percentage points.
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