Louise Pritchard: Breakups are back! But are they value-add or value destructive? I'm Louise Pritchard. 

Lucy Robson: I'm Lucy Robson… and this is Mergerspresso, AG's soundbite on all things corporate finance, in the time it takes to make your coffee. Hot off the press, we're looking at the resurgent divestments by largecap PLCs.  

Louise Pritchard: 2025 is seeing the return of breakup M&A. From WH Smith, to Anglo American, to DCC, corporates are selling off major divisions to maximise their value and unleash each division's real growth potential. 

Lucy Robson: And it's a big activist tactic – agitating not just to realise a pot of cash but to streamline and re-rate the retained business, as BP and Smiths Group are only too aware. And with private equity eager to go shopping for businesses with scale, a division may be worth more than the market price currently shows.

Louise Pritchard: But timing is key. Get it right, and it's a major success – cash for a more competitive and valuable pure-play business. Get it wrong, and you've sold a crown jewel at undervalue. 

Lucy Robson: And there's the downside: pure-play may look good now, but if conditions change, will you be over-concentrated?    

Louise Pritchard: The question is whether this trend will continue and whether we will see more breakup proposals in 2025? 

Lucy Robson: Get in touch if you'd like to chat more. And catch you next time for all you need to know on pensions reform.