Pandemic hastening conglomerate break-up: Bain & Co
This is starting in Singapore, as conglomerates consolidate positions to become more focused
Add BT as a preferred source
DeeperDive is a beta AI feature. Refer to full articles for the facts.
Singapore
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.
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Copyright SPH Media. All rights reserved.
TRENDING NOW
Japan stocks look set for new highs in 2025 on earnings, reform
Beijing’s calculated silence on the Iran war
China pips the US if Asean is forced to choose, but analysts warn against reading it like a sports result
Richard Eu on how core values, customers keep Singapore’s TCM chain Eu Yan Sang relevant
