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Pandemic hastening conglomerate break-up: Bain & Co

This is starting in Singapore, as conglomerates consolidate positions to become more focused

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"The Covid-19 crisis is going to be another strong catalyst for either the disappearance or the strong transformation of conglomerates in the years to come," says Mr Felenbok.

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"Sometimes conglomerates may even underinvest in their best positions just by spending too much time, capital and management attention on their weak positions," says Mr Vestring.

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...

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