Tesco might trigger the break-up of C&C after McMahon's resignation
- Patrick McMahon resigned as CEO of C&C Group in June 2024, marking the third leadership change in four years.
- Engine Capital has criticized C&C for being 'subscale' and has obtained a board seat amidst this turmoil.
- The involvement of Tesco may trigger a reorganization or breakup of C&C, signaling transformational changes within the company.
In recent months, the C&C Group has faced significant leadership instability, marked by the resignation of Patrick McMahon, the company's chief executive, in June 2024. This marked the third leadership change in just four years, raising concerns among investors and market analysts regarding the company's direction and stability. As C&C operates various businesses, including prominent brands like Magners cider in Ireland and Tennent's lager in Scotland, its ownership structure complicates the valuation process, leading to challenges in finding comparable peers in the industry. Adding to the upheaval, Engine Capital, an activist shareholder, increased its pressure on the company by securing a board seat. This strategic move may signal potential changes in governance or business strategy as Engine Capital identified C&C as