This week’s additions and highlights
1. SPIN-OFFS
- Emera (EMA CN). Emera is buying Canadian Utilities from ATCO (ACO/X CN) in a C$14bn all-stock deal, creating a huge, coast-to-coast utility. This will be the largest merger between two Canadian companies ever. Interestingly, ATCO will spin off its remaining businesses into a new industrial-services company, including housing and defense exposure, which is quite different from the rest of the business, and it will be valued more appropriately once stand-alone. The deal is planned to be completed in H2 27, so there is plenty of time to check it out.
- Thyssenkrupp (TKA GR). Thyssenkrupp shareholders have approved the spin of TK Accelis, the company’s Materials Services division. The structure remains as previously flagged: Thyssenkrupp will keep a 51% strategic stake, while 49% of TK Accelis shares will be distributed, listing expected in late 2026. TK Accelis generates roughly €11.4bn revenues (~35% of TKA Group) and EBIT of €132m (~20% of the group).UPDATE (October 13, 2026) A reminder of the upcoming spin of TK Accelis, Thyssenkrupps’ materials distribution business. This is another spin that could be interesting as quite different from the rest of the business. TK Accelis has strong positions in Europe and is growing in North America. Europe has been tougher because of slower steel demand, but new import rules and major German infrastructure spending should help. Margins are expected to improve as the mix shifts toward higher‑value services. We estimate €2.5-2.9b equity value here. Let’s see where this thing gets priced at. Timing should be end of October, early November.
2. STRATEGIC ALTERNATIVES & REVIEWS
(Potential take-outs, asset sales, M&A, etc.)
- DSM-Firmenich (DSFIR NA). DSM-Firmenich is up ~50% since our first flag, but there should be plenty left in the tank of this secular compounder. DSFIR has been pivoting its portfolio massively towards higher quality. It went through a turbulent period, digesting the very large Firmenich acquisition, selling its ANH unit (because who thought that selling both animal feed and high-end perfumes is weird), and divesting another bunch of non-core assets, all in the midst of cyclical headwinds. This all took a while, and the market clearly preferred to stay on the sidelines. But now the financials still look a bit weird, with the sell-side adjusting the P&L for divestments but not incoming cash + buybacks. The result is a company that is probably trading in the ldd EV/EBITDA despite a soon much stronger b/s (cash incoming), a higher growth profile at higher margins on a stronger market share. Careful using PE multiples here given the messy acquisition accounting…