Fri, May 12, 2017 - Page 10 News List

World Business Quick Take

Agencies

RETAIL

A&F in talks with buyers

Teen clothing chain Abercrombie & Fitch Co (A&F), responding to reports that it was in talks with interested buyers, says it is in preliminary discussions with several parties about a “potential transaction.” The company’s statement on Wednesday that it had received “expressions of interest” came after news reports this week that the New Albany, Ohio-based chain was in talks with at least two possible buyers. Abercrombie & Fitch said it does not plan to comment again until the discussions are concluded. Like other teen fashion retailers, A&F has been hurt by changing teen tastes as they shop online more or prefer fast-fashion purveyors such as H&M or Forever 21. A&F is expected to report its fifth straight quarter of declines at established stores, a key metric, when it releases first-quarter results on May 25. A&F said in its statement that there was “no assurance” the discussions would lead to a definitive agreement or that a transaction would occur.

SPORTING GOODS

Adidas sells golf unit

TaylorMade Golf Co, which has signed Tiger Woods and Rory McIlroy to equipment deals this year, has been sold to a private equity firm after being shopped for a year by parent company Adidas AG. The agreement announced on Wednesday means KPS Capital Partners LP will acquire TaylorMade for US$425 million, about half of that paid in cash. Carlsbad, California-based TaylorMade was founded in 1979 by Gary Adams, who specialized in metal woods. Adidas bought the company in 1998. The company has equipment deals with Dustin Johnson, Jason Day and McIlroy, three of the last four players who have been No. 1 in the world ranking. It signed Woods in January, shortly before he stopped playing because of more back problems that led to a fourth surgery.

BANKING

OCBC buys NAB unit

Oversea-Chinese Banking Corp (OCBC), Southeast Asia’s second-largest lender, agreed to buy National Australia Bank Ltd’s (NAB) wealth management business in Singapore and Hong Kong. Singapore-based OCBC said the business is made up of a mortgage portfolio of about US$1.7 billion and deposits of about US$3.05 billion, it said in a stock exchange filing yesterday. The purchase price is to be determined based on the book value of the NAB unit at the time the transaction is completed, the filing said. The addition of NAB’s loans will increase OCBC’s mortgage portfolio by about 4 percent and the lender will also gain access to about 11,000 new customers, the Singaporean bank’s statement said. The purchase price of the NAB assets will not involve any premium to book value, OCBC said.

AUTOMAKERS

Nissan profit jumps 27%

Japanese automaker Nissan Motor Co’s yesterday said that its annual profit for the year that ended in March improved 27 percent to ¥663.5 billion (US$5.8 billion) as strong sales in the US, China and Europe offset damage from the strong yen. However, it expects a 19 percent drop in profit for the current fiscal year that ends in March next year at ¥535 billion, as research investment and raw material expenses bite into bigger sales and cost-cutting efforts. Sales for last fiscal year dipped nearly 4 percent to ¥11.7 trillion. Nissan, which did not break down quarterly numbers, said it sold 5.63 million vehicles globally last fiscal year. It expects sales to grow to 5.83 million vehicles for this fiscal year.

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