Discovery Communications to acquire Scripps Networks Interactive for US$ 14.6 billion
Transportation & Logistics I Real Estate I Energy I Communication
WeWork receives US$ 4.4 billion Investment from SoftBank
Total S.A. to acquire Mærsk Olie og Gas A/S
for US$ 7.45 billion
FOREIGN DIRECT INVESTMENTS AND M&A REVIEW
WeWork Companies, announced an agreement for a $4.4 billion investment from the SoftBank Group (“SoftBank”) and the SoftBank Vision Fund (“Vision Fund”).
This investment will accelerate WeWork’s ability to connect more people to WeWork's global community, which currently stands at approximately 150,000 members, as well as further expand WeWork’s physical presence across the globe.
“Masayoshi Son is a visionary business leader and we are humbled by this strong endorsement of our mission and purpose,” said Adam Neumann, Co-Founder and CEO of WeWork. “This support from SoftBank and the Vision Fund will provide even more opportunities for creators as we set out to humanize the way people work and live.”
“WeWork is leveraging the latest technologies and its own proprietary data systems to radically transform the way people work,” said Masayoshi Son, Chairman & CEO of SoftBank Group Corp. “Adam’s unique vision and talented team have created a sharing platform that offers maximum flexibility and opportunity to creators of all types, from young entrepreneurs to large multinational companies. We are thrilled to support WeWork as they expand across markets and geographies and unleash a new wave of productivity around the world.” Read more...
WeWork Receives $4.4 Billion Investment from SoftBank
Allianz Capital Partners and Canada Pension Plan Investment Board (“CPPIB”), through its wholly owned subsidiary, CPP Investment Board Europe S.à r.l., signed an agreement with Gas Natural Fenosa (“GNF”) to acquire a 20% minority equity interest in its gas distribution business in Spain (“GNDB”).
Allianz Capital Partners, on behalf of the Allianz Group, and CPPIB will invest EUR 1,500 million for the 20% equity interest. The equity investments for Allianz Capital Partners and CPPIB are EUR 600 million and EUR 900 million, respectively. Allianz Capital Partners and CPPIB are long-term infrastructure investors with significant experience investing in regulated utilities, including the gas sector, and with a strong track-record of partnering with strategic investors in infrastructure businesses.
“GNDB is a core infrastructure asset that fits well with CPPIB’s infrastructure portfolio, providing long-term stable cash flows for the CPP Fund. We look forward to establishing an enduring partnership with GNF and Allianz in this world-class business, and in adding to our investments in Spain,” said Cressida Hogg, Managing Director, Global Head of Infrastructure, CPPIB. Read more...
Allianz and CPPIB to invest $1.7 bn in GNF's gas distribution business in Spain
Discovery Communications, Inc. and Scripps Networks Interactive, Inc. (Nasdaq: SNI) ("Scripps") announced that they have signed a definitive agreement for Discovery to acquire Scripps in a cash-and-stock transaction valued at $14.6 billion. The transaction is expected to close by early 2018.
"This is an exciting new chapter for Discovery. Scripps is one of the best run media companies in the world with terrific assets, strong brands and popular talent and formats. Our business is about great storytelling, authentic characters and passionate super fans. We believe that by coming together with Scripps, we will create a stronger, more flexible and more dynamic media company with a global content engine that can be fully optimized and monetized across our combined networks, products and services in every country around the world," said David Zaslav, President and CEO, Discovery Communications.
New Innovator Across a Broad Portfolio of Entertainment Assets
Together, Discovery and Scripps will offer a complementary and dynamic suite of brands. The combined company will produce approximately 8,000 hours of original programming annually, be home to approximately 300,000 hours of library content, and will generate a combined 7 billion short-form video streams monthly, demonstrating its commitment to delivering content as a top short-form provider. Read more...
Discovery Communications To Acquire Scripps Networks Interactive For $14.6 Bn
World Bank Provides $150 Mn to Kenya for Solar Energy
The World Bank approved an International Development Association credit of $150 million to enable marginalized communities in Kenya to access modern energy services through off-grid solar.
Off-grid Solar Access Project for Underserved Counties will serve an estimated 1.3 million people in 277,000 households across 14 counties. It will reach homes, schools, health centers, with maximum private sector involvement and investment to ensure sustainability. Ten of the counties are located in the north and northeastern parts of Kenya as part of the North Eastern Development Initiative (NEDI). These include Garissa, Lamu, Mandera, Marsabit, Narok, Samburu, Tana River, Turkana, Wajir, and West Pokot. The other four that are not part of NEDI are Kwale,Kilifi, Narok, and Taita Taveta.
“The Ministry appreciates this project which will go a long way in contributing to the achievement of one of the Government’s objective of attaining universal access to electrification by 2020,” said Hon. Charles Keter, E.G.H., Cabinet Secretary for Energy and Petroleum. “The uniqueness of this project, which entails collaboration of public and private sector, embedded operation and maintenance, as well as the innovative financing of the solar home system component, will be the hall mark of success in accelerating off-grid electrification, which has been hard to achieve. We appreciate the partnership and support of the World Bank in conceptualization and implementation of this project.”
The project will use a combination of investments to provide modern energy services, to households, businesses and community facilities using practical business models that attract private sector investment, knowledge, sustainable services and other key efficiencies. The project will include a substantial technical assistance component that will enable a consumer education campaign to inform and engage with citizens around the project. The technical assistance will also enable an inclusive county capacity building program to be identified through an assessment. Read more...
Abu Dhabi Investment Group will invest $5 bn in Subsea Cable Projects
Abu Dhabi Investment Group, a private investment group from Abu Dhabi, announced an investment to acquire 62.5% of Fiber Prime Telecommunication's (FPT) shares.
ABDIG is planning to invest up to $5 billion in subsea cable projects and will restructure FPT to become a top tier worldwide subsea cable company. FPT is proven leaders in providing fast, affordable, and reliable data services. "We look forward to partnering with the Abu Dhabi Investment Group management team to invest in critical global communications infrastructure," said Mr. Luiz Fuschini, who will serve as the President & Chairman of FPT.
After careful consideration and deliberation, FPT's board concluded that the sale of FPT to ABDIG was in the best interest of FPT. "This transaction provides the opportunity for immediate and substantial value to FPT, while also allowing FPT greater flexibility to execute on its long-term strategic vision," said Mr. Fuschini.
The combination between ABDIG and FPT would create a market leader managing more than $10B of subsea, IT and telecom assets worldwide. The new company would operate under the FPT brand with Samir Auedd as CEO. "We are excited about the opportunity to partner with FPT and see tremendous benefit in ABDIG's acquisition and comprehensive offering heritage of technological innovation," said Mr. Auedd. "The breadth and depth of our combined product and service capabilities, delivered on a global scale, should enable us to provide a compelling value proposition to our customers," added Mr. Auedd. Read more...
ACCIONA has been commissioned by Mexican energy company Zuma Energía to build a 424 MW wind farm in Reynosa, in the state of Tamaulipas, in north-eastern Mexico; it will be Mexico's largest wind farm when it becomes operational.
The Reynosa wind farm will provide enough clean sustainable energy to meet the needs of close to one million people and will avoid the emission of 739,000 tons of CO2 to the atmosphere each year.
The project, worth approximately 600 million dollars (about 510 million euros), comprises engineering, procurement, construction, installation and testing of the civil engineering work, the medium-tension network, the power off-take system and the interconnection with the electricity grid.
ACCIONA will build the foundations for 123 wind generators, each with a capacity of 3.45-3.6 MW, on 120-metre towers, as well as roads and accesses. It will also install the medium voltage (34.5 kV) network for the entire wind farm, the 400 kV high voltage network with three substations (two step-up transformers and one for interconnection) and 40 kilometres of double-circuit lines. Read more...
ACCIONA to build Mexico's largest wind farm in Tamaulipas
World Bank has sanctioned a loan of $1 Billion for cleaning of Ganga River
World Bank has sanctioned a loan of US $1 billion for funding Institutional Development and for construction of priority infrastructure projects for municipal waste water treatment and solid waste treatment on the main stem of Ganga in the five Ganga basin states of Uttarakhand, Uttar Pradesh, Jharkhand, Bihar and West Bengal.
Government of India has withdrawn a cumulative amount of US $ 91.26 million (Rs. 550.48 crore) under this loan till date.
Cleaning of river is a continuous process. Namami Gange Programme has been launched as a holistic approach covering all existing ongoing projects and new initiative. Under Namami Gange project total number of 173 projects for various activities such as sewage infrastructure, river front development, ghat and crematoria, ghat cleaning, river surface cleaning, afforestation and biodiversity conservation and rural sanitation etc. have been sanctioned. Out of 173 projects 41 numbers of projects have been completed so far. Read more..
ADB Loans $200 million to Boost Infrastructure in Bangladesh
The Asian Development Bank's (ADB) Board of Directors has approved a loan package totaling $200 million to strengthen urban infrastructure, service delivery, and governance in Bangladesh’s pourashavas .
“The country’s pourashavas still need significant investment to not only improve service delivery and the urban environment but also strengthen resilience to climate change,” said ADB Urban Development Specialist Alexandra Vogl. “This additional ADB financing for the well performing Third Urban Governance and Infrastructure (Sector) Project builds on the work of two previous ADB projects, expanding work in the pourashavas where we are already working and into five new ones.”
Bangladesh’s economy has been growing at a healthy pace, averaging 6.6% gross domestic product growth in 2014-2016, but the government faces the challenge of achieving sustainable and inclusive growth in the face of rapid urbanization. For example, in 2015, only 32% of the urban population had a piped water supply and 58% access to improved sanitation. Other challenges included fecal sludge management and underdeveloped or badly maintained drainage. These issues are more acute in pourashavas because of inadequate governance, lack of community participation, and capacity constraints.
Another critical issue facing Bangladesh is climate change, as the country faces rising temperatures; more frequent and intense rainfalls, storms, and flooding; and danger to coasts from rising sea levels. In the face of these, pourashavas need to enhance their institutional know-how to maintain infrastructure and services. Read more...
The IndianOil Board, gave Stage-I approval for expansion of the Corporation’s Gujarat Refinery from the existing 13.7 to 18 Million Metric Tonnes Per Annum (MMTPA) of crude oil processing capacity at an estimated cost of Rs. 15,034 crore. The project to augment the Refinery's capacity by 4.3 MMTPA will help meet the growing demand for products in the region.
The highlight of the project will be the proposed upfront execution of a new 15-MMTPA Atmospheric Vacuum Unit (AVU) with associated utilities to replace the 4 Atmospheric Units and 2 Vacuum Units installed at various stages of the refinery's phase-wise capacity expansion starting from 1965. After many years in service and being old in design and small in capacity, these units are no longer energy-efficient.
Execution of the 15-MMTPA AVU in 50 months after Stage-1 approval, ahead of other units by about 11 months, will provide impetus to the total project execution and will accrue significant savings and improved energy efficiency by way of operation of a new, large-size AVU in place of existing small units. The commissioning of the new AVU almost a year ahead of other units, will also help in smooth commissioning and stabilisation of other downstream secondary processing units.
According to Mr. Sanjiv Singh, Chairman, IndianOil, the new refinery configuration proposed will take into account the likely disruptions in the fuel supply/demand scenario in the future and will have built-in flexibility in its operations for strong integration with downstream petrochemical units. “Gujarat Refinery, which went on stream in October 1965 as a 1 MMTPA unit, heralded India’s capabilities to build refineries on its own. In the same vein, we are now proposing to incorporate IndianOil's own R&D technologies for both IndMax and kerosene hydrodesulphurisation units. The IndMax unit is being designed for high yields of propylene, for which a polypropylene (PP) unit of 420 TMTPA capacity is being set up as a downstream petrochemical unit as part of the refinery configuration,” he said. PP is used in a variety of applications, including packaging for consumer products, plastic parts for automotive and other industries, and textiles. Read more...
IndianOil expand its Gujarat Refinery with
USD2.2 billion Investment
Suburban office markets that provide an urban-like live-work-play environment are well positioned to capture strong demand from office users, according to a new report from CBRE.
Among the most common attributes of so-called “urban-suburban” submarkets are the presence of abundant retail, office and housing options, as well as employment opportunities, based on a survey of CBRE Research professionals in the 25 largest suburban markets.
Established urban-suburban submarkets have the added advantage of amenities like entertainment and recreational offerings, restaurants and grocery stores and public transportation access. Established submarkets include the New Jersey Waterfront, Santa Monica and Palo Alto.
Emerging submarkets, such as the Los Angeles submarket Glendale or the Central Perimeter in Atlanta, are more likely to be in transition, with development, construction or renovation – including ongoing or planned public transit projects – shaping dynamics. Notably, emerging submarkets are more likely than established submarkets to have mixed-use projects in the works. Mixed-use projects often serve as a catalyst for additional development in a particular area, spurring interest in the surrounding neighborhood. Emerging submarkets are also more likely to utilize government incentives, zoning changes or other public commitments to assist development than established submarkets.
“Steep rental rates and an increasingly limited supply of quality office space, especially in large blocks, in downtown submarkets will continue to lead more tenants to look for space in suburban markets,” said Scott Marshall, executive managing director, Advisory & Transaction Services|Investor Leasing, CBRE. “Moreover, as more millennials age and begin families, many will eventually move to the suburbs. Office locations that can provide the urban characteristics this pool of workers has grown accustomed to will be in the highest demand.”
The vacancy rate for emerging urban-suburban submarkets was 15.3 percent as of Q1 2017, compared with 13.8 percent for the established urban-suburban submarkets. Similarly, rents in emerging urban-suburban submarkets have yet to surpass the overall suburban average ($27.79 per sq. ft.) but were essentially equal at $27.46 per sq. ft. and significantly below rents in established urban-suburban submarkets ($31.90). Read more...
Urban-Suburban” Submarkets Offer Unique Opportunities for Investors: CBRE Report
United Rentals, Inc., and Neff Corporation, operating as Neff Rental (“Neff”), today announced that they have entered into a definitive agreement under which United Rentals will acquire Neff for $25 per share in cash, representing a total purchase price of approximately $1.3 billion. The transaction is expected to be immediately accretive to cash EPS and free cash flow.
Neff is one of the 10 largest U.S. equipment rental companies, with a presence in 14 states and a concentration in southern geographies. Based in Miami, Fla., Neff offers earthmoving, material handling, aerial and other equipment rental solutions to its more than 15,500 construction and industrial customers. Approximately 1,200 Neff employees and 69 branches serve end markets in the infrastructure, non-residential, energy, municipal and residential construction sectors.
For the full year 2017, Neff is expected to generate $207 million of adjusted EBITDA at a 49.5% margin on $419 million of total revenue. As of June 30, 2017, Neff had approximately $867 million of fleet based on original equipment cost
The boards of directors of United Rentals and Neff unanimously approved the agreement. Private investment funds managed by Wayzata Investment Partners LLC, which hold approximately 62.7% of the outstanding common shares of Neff, have executed a written consent to approve the transaction, thereby providing the required stockholder approval. The transaction is expected to close in the fourth quarter of 2017, subject to Hart-Scott-Rodino clearance and customary conditions.
Immediately prior to entering into the definitive merger agreement with United Rentals, Neff terminated its previously announced merger agreement with H&E Equipment Services, Inc. In connection with this termination, United Rentals has paid H&E a termination fee of approximately $13.2 million on behalf of Neff. Read more...
United Rentals to Acquire Neff Corporation
for $1.3 billion
Transocean Ltd., has reached an agreement with Songa Offshore SE, whereby it will, subject to certain conditions, make a Voluntary Exchange Offer (the “Offer”) to acquire 100 percent of the issued and outstanding shares of Songa Offshore, including shares issued before expiry of the offer period as a result of the exercise of warrants, convertible loans and other subscription rights.
The consideration implies an equity value of Songa Offshore on a fully diluted basis of approximately NOK 9.1 billion (USD $1.2 billion), and an enterprise value of approximately NOK 26.4 billion (USD $3.4 billion).
The transaction strengthens Transocean’s industry-leading position with the addition of Songa Offshore’s four “Cat-D” harsh environment, semisubmersible drilling rigs on long-term contracts with Statoil in Norway. Songa Offshore’s fleet also includes three additional semisubmersible drilling rigs. The transaction is expected to be accretive on an EBITDA, Operating Cash Flow, and Net Debt / EBITDA basis, and the Company anticipates annual expense synergies of approximately USD $40 million.
The combined company will operate a fleet of 51 mobile offshore drilling units with backlog of USD $14.3 billion consisting of 30 ultra-deepwater floaters, 11 harsh environment floaters, three deepwater floaters and seven midwater floaters. Additionally, Transocean has four ultra-deepwater drillships under construction, including two contracted with Shell for ten years each. Consistent with Transocean’s strategy of recycling older less capable rigs, Transocean anticipates re-ranking the combined fleet, which may result in additional rigs being recycled.
Transocean to buy Songa Offshore SE for $1.2 bn
The African Development Bank (AfDB)-managed Sustainable Energy Fund for Africa (SEFA) approved a US$ 695,500 grant to NEO I SPV Pty Ltd., a subsidiary of OnePower Lesotho Pty Ltd., to support the preparation of a bankable business case for the development of the winning project of the 2016 Lesotho 20 MW solar PV tender, foreseen to become the first utility-scale solar PV project in Lesotho.
The power will feed into the national grid in Mafeteng Province.
The Project will contribute to a strategic phase-out of costly power imports from Mozambique and to reducing reliance on imported coal-generated power from South Africa, thereby promoting independence of power supply, achieving substantial savings in the national budget and abating regional CO2 emissions.
Project will further support rural development by stabilizing the grid in Mafeteng Province.
“The Bank will support the structuring of the Project and lead it to bankability.
Our ambition is to turn it into a reference solar PV project for the SADC Region.” stated Ousseynou Nakoulima, AfDB's Director for Renewable Energy and Energy Efficiency. SEFA support is instrumental in leading the project to financial closure by funding technical and financial services, environmental and social impact assessment, lenders’ due diligence and risk allocation. In addition, the AfDB’s Africa Climate Technology Centre (ACTC) will cover the costs for legal services and project implementation support.
The Project will contribute about 13% to Lesotho’s maximum system demand of around 150 MW. By substituting 20 MW of costly imported power from Mozambique, it will decrease power retail prices in Lesotho. It will also entail greenhouse gas emission substitution effects as a result of reducing imports of thermally generated power from RSA.
SEFA to support first utility-scale Solar PV Project in Lesotho
Sojitz Joins Largest Solar Power Project in Mexico
Sojitz Corporation has acquired a 66.7% stake in solar power developer Alten RE Devleopments America (Head Office: Amsterdam, Netherlands) from parent company Alten Renewable Energy Developments, with the aim of operating a solar power plant in Mexico. Through this acquisition, Sojitz now owns a 20% stake in each of Alten America’s two operating companies in the country. These two companies are scheduled to construct Mexico’s largest solar power plants to date, with Sojitz’s participation marking the first time for a Japanese company to join a solar power business in the country.
The two operating companies will construct two solar power plants in Mexico’s State of Aguascalientes by September 2018, measuring 180MW and 168MW generating capacity. The project will then sell electricity and clean energy-certified power* to a fully-owned subsidiary of Mexico’s state-owned power company, Comisión Federal de Electricidad (“CFE”), based on a long-term power sales agreement.
＊ Clean Energy Certificate: A certification which according to the amount of clean energy produced, endorses revenue as being earned from clear energy sales, setting it apart from revenue gained through general energy sales.
Mexico’s energy sector was opened to private companies in 2016 after exhaustive energy sector reform. While the country is late in introducing solar power, at the same time, the country boasts some of the best solar radiation coverage in the world. The Mexican government hopes to leverage this energy sector reform to achieve a policy calling for 40% of the country’s energy mix to be comprised of renewable energy by 2035. As such, projections show sustainable growth for the country’s solar power sector. Read more...
Calpine Corporation, America’s largest generator of electricity from natural gas and geothermal resources, today announced that it has entered into a definitive agreement under which Energy Capital Partners (Energy Capital or ECP) along with a consortium of investors led by Access Industries and Canada Pension Plan Investment Board will acquire Calpine for $15.25 per share in cash, or $5.6 billion.
“We are very pleased to announce this proposed transaction and are confident it is in the best interests of our shareholders and stakeholders,” said Frank Cassidy, Chairman of Calpine’s Board of Directors. “This transaction is the result of an exhaustive review of strategic alternatives undertaken by our Board, with the assistance of outside advisors, to maximize shareholder value and unlock the company’s intrinsic value, while eliminating execution risk. We are confident that this is the best outcome of that review and look forward to shareholder approval.”
“We are excited to partner with Energy Capital, a leading private equity investment firm focused on North American energy infrastructure and power assets,” said Thad Hill, President and Chief Executive Officer of Calpine. “With ECP, Calpine will be able to operate as it always has – executing on our strategic objectives of providing safe and reliable power and serving our retail and wholesale customers with differentiated products and services. We will also continue to strengthen our wholesale power generation footprint, while benefiting from ECP’s support, industry expertise and long-term investment horizon. In short, Calpine will continue to be the nation’s premier competitive power company.” Read more...
Calpine To Be Acquired By a Consortium Led By Energy Capital Partners
for $5.6 billion
Australian Govt. Invest In Naval Shipbuilding Infrastructure
The Government has unveiled the design and turned the first sod for the new surface shipbuilding yard in Osborne, South Australia. This is the latest in a series of significant infrastructure announcements supporting the delivery of a continuous naval shipbuilding program in Australia.
The unveiling of the design for this $535 million project is an exciting insight into the future of Osborne’s shipyards that is a result of this Government’s $89 billion investment in our future shipbuilding industry.
The Government has also finalised the purchase of the initial tranche of state-owned land and facilities and has also received State planning consent for construction of the new shipbuilding infrastructure.
The infrastructure expansion and upgrades are a fundamental enabler of the construction of the Future Frigates and are key to delivering a continuous naval shipbuilding program which will support thousands of Australian jobs.
The Government has also announced the appointment of the Chair and board members of the newly formed Australian Naval Infrastructure Pty Ltd (ANI):
Mr Lucio Di Bartolomeo, appointed as Chair of ANI. Mr Di Bartolomeo brings extensive experience in infrastructure, engineering and defence with strong skills in project and contract delivery;
Mr Peter Iancov and Mr Jeremy Schultz, appointed as Directors, are former members of the ASC Pty Ltd Board. Mr Iancov has considerable experience in heavy industrial and engineering projects, while Mr Schultz is a Partner at Finlaysons, specialising in corporate law;
Ms Janice van Reyk, appointed as a Director, is a qualified Certified Practicing Accountant and is experienced in infrastructure delivery, utilities, and capital intensive and regulated industries; and
Mr Jim Whalley, appointed as a Director, is a co-founder of Nova, a firm specialising in the provision of engineering and management services and a former air force pilot. Read more...
JICA signed a grant agreement with Mozambique to improve Power Supply in Capital
The Japan International Cooperation Agency (JICA) signed a grant agreement with the Government of the Republic of Mozambique in Maputo to provide grant aid of up to 1.39 billion yen for the Project for Emergency Rehabilitation of Transmission Network.
By rehabilitating the Infulene Substation on the outskirts of Maputo, the capital city of Mozambique, the project will improve and stabilize the power supply to the electric power system in the southern part of the country, including the capital, thereby improving the lives of local residents and promoting economic activities.
Since civil war ended in 1992, Mozambique has achieved a high economic growth rate, and the electric power demand has increased, particularly in the southern part of the country. However, the existing substations have been operating for more than three decades, and successive failures caused by deteriorating transformation equipment occur regularly. This results in frequent power outages to the degree that Maputo is sometimes without power for more than half of a day at a time. It is believed that a rising population, an increase in economic activities and other factors in the Maputo metropolitan area will cause a rapid rise in the power demand, and steps need to be taken to quickly strengthen the existing power system in the south, and make the power supply efficient and stable. Read more...
IKEA, the world’s largest furniture retailer headquartered in the Netherlands, has made a strategic decision to establish its Regional Distribution and Supply Chain Centre for ASEAN in Malaysia. The Centre, which will adopt the structure and technology of IKEA’s biggest Regional Distribution Centre in Germany, will also be among the top 10 largest Regional Distribution Centres of IKEA Group globally.
The company will invest RM908 million for the new Centre that will manage an inventory of 9,500 stock keeping units (SKUs) worth RM6.6 billion annually. IKEA’s new 100,000m 2 specialised warehouse will utilise its integrated ICT systems and automation to reduce the dependency on labour and significantly increase the efficiency and accuracy of its inventory management processes.
Malaysia has always been a significant market for IKEA. IKEA’s retail stores in Malaysia are among IKEA’s most visited stores globally. With the establishment of the Regional Distribution and Supply Chain Centre, Malaysia will strengthen its role in supporting IKEA’s growth in the ASEAN region. The Centre will serve 12 retail stores in ASEAN, which will increase to 20 stores by 2026.
On congratulating IKEA, YB Dato’ Sri Mustapa Mohamed, Minister of International Trade & Industry (MITI) said, “The project, which resulted from continuous engagements and facilitation by the Malaysian Investment Development Authority (MIDA), represents a significant milestone for both IKEA and Malaysia. IKEA’s decision of selecting our country as a base to support retailers in Malaysia, Singapore, Thailand, Indonesia, Vietnam, Philippines and India underscores the strategic fit of this country in supporting IKEA’s overall growth strategy in the ASEAN region.”
“The establishment also adds momentum towards making Malaysia a Regional Distribution Hub and preferred logistics gateway to Asia as outlined in the National Logistics and Trade Facilitation Masterplan and National E-Commerce Strategic Roadmap (NESR). Deployment of technology in the logistics chain has been identified as the key factor in strengthening the capabilities of logistics service providers towards enhancing trade facilitation mechanisms. Thus, IKEA’s high-flow and automated warehouse is certainly well-aligned to this agenda,” added YB Dato’ Sri Mustapa. Read more...
IKEA to Establish Regional Distribution and Supply Chain Centre for ASEAN in Malaysia
DHL Parcel is investing in the business location of Bochum with the construction of another highly modern mega parcel center, this time in the heart of the Ruhr region. Right on schedule, the official construction phase for this major project was heralded with a groundbreaking ceremony attended by NRW Economics Minister Andreas Pinkwart, Bochum's mayor Thomas Eiskirch, Jürgen Gerdes, Board Member for the Post - eCommerce - Parcel division at Deutsche Post DHL Group, Rolf Heyer, managing director of Bochum Perspektive 2022 GmbH, and Michael Dufhues, Board Member of general contractor Bremer AG. By the fall of 2019, the new facility will be able to process up to 50,000 shipments per hour thanks to innovative sorting technology, making the Bochum site one of the largest and most efficient parcel centers in Europe.
"Our network - with an average of 4.3 million parcels per day - leads the way in Germany when it comes to capacity and quality," says Jürgen Gerdes, emphasizing the project's significance for the company's customers and for the region. "Now we are making our network even more efficient - and making the lives of our customers even easier as a result. Our Packstations, parcel boxes and other innovative delivery services also have a hand in this." Gerdes describes the location of Bochum as ideal: "The new parcel sorting center in the heart of the Ruhr region is a very important gateway to one of the largest metropolitan areas in Europe." He also points out the benefits for business customers in the region. Thanks to their proximity to the parcel center, their shipments can be picked up very late and still be delivered anywhere in Germany the following day.
"Logistics and trade are two important pillars of our economy in North Rhine-Westphalia. These are closely intertwined and changing fundamentally through digitization," Economics and Digitization Minister Andreas Pinkwart emphasizes. "With modern parcel sorting centers like this one, DHL is creating the conditions to meet the requirements of e-commerce - as a dynamic growth engine of trade - in the future as well. I am particularly pleased that DHL has found an excellent location for this project here in Bochum at Mark 51°7."
DHL to build a Mega Parcel Centre in Bochum, Germany
Amazon.in announced the launch of its second Fulfilment Centre (FC) in Uttar Pradesh. Spread over close to 50,000 square feet with over 35,000 cubic feet of storage space, this new Fulfilment Centre situated in Lucknow will empower thousands of small & medium businesses to leverage the growth of the digital economy and reach a wide customer base. Along with this FC, Amazon.in now has two FCs in Uttar Pradesh offering close to 150,000 cubic feet of storage space for faster delivery to customers in the region.
This is one of the seven recently announced fulfilment centers for this year. Amazon.in will exit 2017 with 41 operational Fulfilment Centres in 13 states across the country with a combined storage space of close to 13 million cubic feet.
“In line with our vision to transform the way India buys and sells, we have been consistently investing in enhancing our capabilities to provide a superior experience to both – buyers and sellers. With the launch of a second Fulfilment Centre in Uttar Pradesh, we strongly believe that we will be able to better serve our customers and also support our Prime promise of one-day & two-day delivery. Furthermore, for our sellers, the new FC will enable thousands of small & medium businesses to save money by replacing their upfront capital expense with low variable cost and pay only for the storage space they use and the orders that we fulfil,” said Mr. Akhil Saxena, Vice President, India Customer Fulfilment, Amazon India.
Mr. Saxena added “Our Fulfilment Centre will provide local SMEs with a platform to sell their products to millions of customers and scale their business to greater heights.
Amazon.in launches its 2nd Fulfilment Centre in Uttar Pradesh, India
Mærsk A/S [A.P. Moller - Maersk] has signed an agreement to sell Mærsk Olie og Gas A/S [Maersk Oil] to Total S.A [Total] for USD 7.45 bn in a combined share and debt transaction.
Maersk Oil will become part of a leading global oil and gas operator with a long-term investment interest in the sector. Total will take over Maersk Oil’s entire organisation, portfolio, obligations and rights with minimal pre-conditions. Planned development schedules and investments in strategic and sanctioned projects will be upheld.
With the agreement A.P. Moller - Maersk is taking a material step forward in its strategy to separate out its oil and oil related activities to create an integrated transport & logistics company, and this transaction will contribute significantly to upholding its strong capital structure.
“In determining the best future ownership structure for Maersk Oil, it has been imperative for us that the capabilities and assets created in Maersk Oil continue to be developed, and that long-term investments are upheld, especially in the Danish part of the North Sea,” says Søren Skou, CEO of A.P. Moller - Maersk and continues:
“The valuation of Maersk Oil and Total’s commitment is a testament to the quality and standing of Maersk Oil. In addition, the agreement will strengthen the financial flexibility of A.P. Moller - Maersk and free up resources to focus our future growth on container shipping, ports and logistics.”
Denmark will become the regional hub for all Total’s operations in Denmark, Norway and the Netherlands, based on Maersk Oil’s capabilities and strong position in the North Sea region. Read more...
Total S.A. to acquire Mærsk Olie og Gas A/S
for USD 7.45 Billion
Sempra Energy to acquire Energy Future for $9.45 Billion
Sempra Energy, announced an agreement to acquire Energy Future Holdings Corp. (Energy Future), the indirect owner of 80 percent of Oncor Electric Delivery Company, LLC (Oncor), operator of the largest electric transmission and distribution system in Texas.
Under the agreement, Sempra Energy will pay approximately $9.45 billion in cash to acquire Energy Future and its ownership in Oncor, while taking a major step forward in resolving Energy Future's long-running bankruptcy case. The enterprise value of the transaction is approximately $18.8 billion, including the assumption of Oncor's debt.
The transaction is expected to be accretive to Sempra Energy's earnings beginning in 2018.
"Both Sempra Energy and Oncor share more than 100 years of experience operating utilities that deliver safe, reliable energy to millions of customers," said Debra L. Reed, chairman, president and CEO of Sempra Energy. "With its strong management team and long, distinguished history as Texas' leading electric provider, Oncor is an excellent strategic fit for our portfolio of utility and energy infrastructure businesses. We believe our agreement with Energy Future will help ensure that Texas utility customers continue to receive the outstanding electric service they have come to expect from Oncor and provide stability to Oncor's nearly 4,000 employees."
"For investors, this transaction is expected to enhance our earnings beginning in 2018 and further expand our regulated earnings base, while serving as a platform for future growth in the Texas energy market and U.S. Gulf Coast region," said Reed.
Sempra Energy expects to fund the $9.45 billion transaction using a combination of its own debt and equity, third-party equity, and $3 billion of expected investment-grade debt at the reorganized holding company. Sempra Energy has received financing commitments from RBC Capital Markets and Morgan Stanley. Sempra Energy expects its equity ownership after the transaction to be approximately 60 percent of the reorganized holding company. Read more...
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