Tag Archives: Divestment / Spin-Off

Dow Inc seeking buyers for German chemical park infrastructure: sources | Instant News

FRANKFURT (Reuters) – US chemicals maker Dow Inc has put German infrastructure assets up for sale in a potential 800 million euros ($ 966 million) deal as it seeks cash to invest elsewhere, sources close to the matter told Reuters.

FILE PHOTOS: Dow’s mark seen at the third China International Import Expo (CIIE) in Shanghai, China November 5, 2020. REUTERS / Aly Song

Chief Executive James Fitterling said last month that Dow would continue to take infrastructure companies off its balance sheet and use the funds for capital expenditures, smaller acquisitions or share buybacks.

While Dow will sell the infrastructure at its petrochemical site in Stade, Schkopau und Boehlen, Dow will continue to produce plastics and intermediates there, paying usage fees to the new owners. Dow is a major user but not the only one operating in the three chemical parks.

Chemical parks typically provide the infrastructure for electricity, steam, natural gas and other services for the producers who live there.

“Dow has notified employees in Germany that they are exploring opportunities regarding specific site infrastructure assets and services at the Stade, Schkopau and Boehlen locations, but no final decisions have yet been made,” said a company spokesman.

In a similar 2019 deal, Bayer and Lanxess sold integrated chemical site operator Currenta to Macquarie in a 3.5 billion euro deal.

Dow has delivered packages of information to potential bidders including KKR, Blackstone, BlackRock, Brookfield Asset Management, Macquarie, First Sentier and DIF Capital Partners, the sources said.

The business is marketed with annual sales figures of 300 million euros with a core profit of around 65 million euros.

Bidders can value infrastructure assets at around 12-13 times core revenue, the source added.

Dow is working with Morgan Stanley on the divestment, the sources said.

Morgan Stanley declined to comment.

($ 1 = 0.8284 euros)

Additional reporting by Arathy Nair; Edited by David Goodman


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Daimler Trucks’ head of workforce wants clean technology investment in Germany | Instant News

FILE PHOTOS: Daimler logo seen before the carmakers annual shareholders meeting in Berlin, Germany, April 5, 2018. REUTERS / Hannibal Hanschke / File Photo

FRANKFURT (Reuters) – Daimler Trucks, which was separated by its parent group later this year, will invest 1.5 billion euros ($ 1.8 billion) in cleaner technology in Germany, said workers council chairman Michael Brecht on Saturday. .

Daimler announced the fund on February 3 along with plans to release the world’s largest truck and bus maker, as it seeks to increase its appeal to investors as a focused luxury and electric car business.

Daimler Trucks operates worldwide and last April announced a fuel partnership with Sweden’s Volvo Trucks.

In an interview with the Stuttgarter Zeitung newspaper, Brecht was asked how the German staff he represents would benefit from the funds.

“We will develop proposals for new projects for each of the sites, with which we can support additional work and changes to new propulsion technologies,” he replied.

Asked if the money could be used for investments such as US autonomous propulsion software start-ups, Brecht said: “The money is not for old acquisitions.”

Regarding the potential spending in Sweden for a Volvo venture, he said: “The fuel cell propulsion system has to be manufactured at one of our locations (Germany). There is no doubt about that. “

Daimler Trucks chief executive Martin Daum told Reuters on Tuesday that a full line of zero-emission commercial vehicles could be ready by 2027, but implementing them would require new investment. He also highlighted growth opportunities in China, India and other markets such as Indonesia.

($ 1 = 0.8252 euros)

Reporting by Vera Eckert. Edited by Mark Potter


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UPDATE 1-Treasury Wine Australia rejected reports of a three-way demerger plan | Instant News

(Adding background on Chinese tariffs, Penfolds demerger plan)

February 8 (Reuters) – Treasury Wine Estates, responding to media reports, said on Monday it was not currently considering demergers from any of its businesses.

The world’s largest registered winemakers responded to a report here by The Australian which said it was considering dividing its global operations into three separate businesses.

In November, the company postponed plans for a spin-off from its prized Penfolds label as China would impose hefty 212% tariffs that have hit wine producers in its biggest market.

Australia’s exports to mainland China fell in November and December, largely due to tariffs, which led to a 14% drop in exports in 2020 to A $ 1.01 billion ($ 774.06 million) and a 29% decrease in volume.

Treasury Wine confirmed that Demerger Penfolds remains on hiatus, adding that it continues to “assess its internal operating model to deliver long-term value through a separate focus across its portfolio of brands”.

$ 1 = 1.3048 Australian dollars Reporting by Nikhil Kurian Nainan in Bengaluru; Edited by Daniel Wallis and Diane Craft


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Paper Excellence wins arbitration to complete the acquisition of Eldorado Brasil: sources | Instant News

SAO PAULO (Reuters) – Netherlands-based Paper Excellence BV has won an arbitration case against Brazilian group J&F Investimentos SA to finalize the acquisition of the Eldorado Brasil paper mill Celulose SA, two sources with knowledge of the matter said on Wednesday.

The arbitration decision demanded Paper Excellence release collateral held by J&F before closing the deal, the people said.

The dispute over Eldorado started in September 2018, when billionaire brothers Joesley and Wesley Batista, owners of Eldorado and meat packer giant JBS SA, canceled sales to Paper Excellence.

J&F Investimentos SA, a holding company owned by the Batista brothers, has agreed to sell Eldorado’s flagship assets to unlisted Paper Excellence in September 2017 for 15 billion reais ($ 2.8 billion), and agreed to receive the full price within a year .

J&F argued that Paper Excellence did not comply with the terms of closing the deal. Paper Excellence goes to court, and the court sends a decision to arbitration.

Paper Excellence, which is controlled by Indonesia’s Jackson Wijaya, has accused J&F of creating obstacles to avoid completing the deal as pulp prices rose after the deal was signed.

($ 1 = 5,4410 reais)

Reporting by Tatiana Bautzer, written by Sabrina Valle; Edited by Sonya Hepinstall


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Eneva from Brazil is speaking live for the Urucu Petrobras cluster | Instant News

FILE PHOTO: Aerial view of the Urucu oil and natural gas plant belonging to state oil company Petrobras in the Brazilian Amazon jungle, December 6, 2004. REUTERS / Jamil Bittar

RIO DE JANEIRO (Reuters) – Brazilian energy company Eneva SA has held direct talks with state-owned oil company Petrobras to buy an oil and gas field complex in the Amazon rainforest known as the Urucu cluster, the company said in a separate securities filing. on Monday.

The statement, which follows a report earlier in the day in the online newspaper Brazil Journal, did not provide details on timing or pricing.

The Brazil Journal article said competitor Eneva 3R Petroleum Oleo e Gas SA had made a higher bid during the 2020 bidding round, but that round was canceled after Petrobras determined the terms attached to the 3R bid were unacceptable.

Eneva won in a new bidding round, the Brazil Journal reported, citing people with knowledge of the matter. While not specifying a specific price, Eneva’s new bid is 30% to 40% higher than its previous bid for the asset, which was $ 600 million, the newspaper reported.

The two companies will now negotiate terms of a potential sales contract, which could take months, the article added.

A representative from Petroleo Brasileiro SA, the official title of Brazil’s state-owned oil company, declined to elaborate on the securities filing. Eneva did not respond to a request for comment.

Common stock in Eneva closed up 13.51% on Monday while shares in Petrobras were up 3.15%. Brazil’s benchmark Bovespa equity index closed up 2.13%.

Reporting by Gram Slattery; Edited by Lisa Shumaker; Edited by Bill Berkrot


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