Mon, Jun 20, 2016 - Page 15 News List

World Business Quick Take

Agencies

AUSTRALIA

Coalition to bail out Arrium

The coalition government is to provide A$49.2 million (US$36 million) to support struggling steelmaker Arrium Ltd, Prime Minister Malcolm Turnbull said yesterday. The funds are to be spent on new machinery at two mines in South Australia state to help Arrium remove waste materials from its iron ore, Turnbull said. The equipment is to enable Arrium to convert low-grade ore stockpiles into export quality and increase the supply of lump ore feed to the Whyalla steelworks, he said. Arrium was placed in administration in April after lenders rejected a A$927 million recapitalization plan. The investment is designed to improve cash flow and profitability, and is to support about 2,700 workers at the steelworks, Turnbull said.

OMAN

Bond sale raises US$2.5bn

Oman has raised US$2.5 billion in a bond sale arranged by five international banks to help meet its budget deficit resulting from low oil prices, the Ministry of Finance said on Saturday. The ministry, quoted by the Oman News Agency, said the sultanate’s first international bond issue in two decades was oversubscribed by almost three times. The Gulf state sold US$1 billion in bonds to mature in five years at an interest rate of 3.625 percent and a 10-year issue worth US$1.5 billion at 4.75 percent, it said in a statement. Oman is projecting a budget deficit of US$8.6 billion this year.

MERGERS

Kuwait Food Co shares sold

A United Arab Emirates-based investor group, led by Emaar Properties PJSC chairman Mohamed Alabbar, said it agreed to buy Kuwait Food Co shares from its majority stockholder for US$2.36 billion. Adeptio AD Investments SPC Ltd, the group led by Alabbar, is to pay 2.65 Kuwaiti dinars (US$8.78) per share to buy a stake in the company known as Americana from al-Khair National for Stocks and Real Estate Co, the companies said in a statement. Adeptio is to launch a mandatory takeover offer for the remaining shares of Americana at the same price, according to the statement.

INVESTMENT

US-China talks continue

Bilateral investment talks between the US and China “continue to be productive,” the US Trade Representative’s office said on Friday. A US Trade Representative spokeswoman said US and Chinese negotiators exchanged revised “negative lists” of sectors that would stay off-limits from foreign investment as they try to reach a deal for a bilateral investment treaty. US Secretary of the Treasury Jack Lew on Thursday said that Beijing’s negotiating stance in the bilateral investment treaty talks were “one important barometer” in China’s commitment to reform its economy and open it to foreign competition.

ELECTRICITY

Etracom fined over scheme

Energy regulators fined trading firm Etracom LLC US$2.4 million for engaging in a scheme to rig the California power market. Etracom, a trading company formed in 2008, violated anti-manipulation rules in May 2011 when traders artificially drove down power prices at a point on the grid in eastern central California to reap profits, the Federal Energy Regulatory Commission said on Friday. The agency also directed Etracom to surrender US$315,072 in unjust profits. In April, the agency proposed civil penalties of US$213.6 million against a unit of Total SA amid allegations that two of its traders rigged natural gas markets.

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