CHEMICALS
BASF to buy into polyamides
BASF SE has agreed to buy a polyamides business from Solvay SA for 1.6 billion euros (US$1.9 billion), adding a nylon plastics operation serving a wide range of industries, including carmaking and construction. The German chemical maker is paying about eight-times last year’s earnings before interest, taxes, depreciation and amortization, Brussels-based Solvay said in a statement yesterday. Net sales at the asset totaled 1.32 billion euros last year, with profit of about 200 million euros, a BASF statement said.
AUTOMAKER
Toyota to sharpen image
Toyota Motor Corp is introducing a high-performance series consisting of souped-up staples as it accelerates efforts to jazz up its image. The “GR” series made its debut in Japan with seven variants including the Prius plug-in hybrid and Vitz subcompact at an event in Tokyo yesterday. Toyota is to expand the lineup later this year and plans to increase the number of countries where the vehicles are offered. Company president Akio Toyoda has been working to reinvigorate the Toyota and Lexus brands after lamenting that consumers perceived the cars to be well-made, but boring to drive.
BANKING
Varengold backs loans
Varengold Bank AG, a German private banking firm, will provide £45 million (US$61 million) in annual funding for loans to small businesses arranged by MarketInvoice Ltd, a British peer-to-peer lender. Similar ventures show professional investors are increasingly willing to put their money to work in the fledgling asset class as interest rates hover near zero. With a net return of 9 percent this year and historic default rates at about 4.7 percent, MarketInvoice is now generating 60 percent of its funding from institutions. MarketInvoice blends “factoring” and algorithmic credit analysis by securing short-term working capital loans for small companies with their accounts receivable.
NORWAY
Wealth fund at US$1tn
The value of the nation’s sovereign wealth fund officially hit US$1 trillion yesterday after outperforming all initial expectations, its manager said in a statement. “I don’t think anyone expected the fund to ever reach [US]$1 trillion when the first transfer of oil revenue was made in May 1996,” Norges Bank Investment Management chief executive officer Yngve Slyngstad said. The fund also supports the planned merger of German industrial gases company The Linde Group and US peer Praxair, Inc, it said. “Norges Bank Investment Management has tendered all shares held in Linde AG in connection with the business combination between Linde AG and Praxair, Inc,” the fund said.
UKRAINE
Bond issue raises US$3bn
The nation has raised US$3 billion in its first sovereign bond issue since the 2014 revolution, a source close to the deal said on Monday. The proceeds from the 15-year eurobond sale overshot the treasury’s initial target of US$2.5 billion, with the funds earmarked for debt servicing, the source said. The nation had been unable to tap the international bond market since upheaval and military conflict three years ago, leading to a major restructuring of its outstanding debt in 2015. Monday’s issue sees a US$1.7 billion tranche attracting a 7.375 percent interest rate over 15 years — more competitive than that attached to the 2015 restructuring deal which helped to slice one-fifth off the nation’s private debt.
purpose: Tesla’s CEO sought to meet senior Chinese officials to discuss the rollout of its ‘full self-driving’ software in China and approval to transfer data they had collected Tesla Inc CEO Elon Musk arrived in Beijing yesterday on an unannounced visit, where he is expected to meet senior officials to discuss the rollout of "full self-driving" (FSD) software and permission to transfer data overseas, according to a person with knowledge of the matter. Chinese state media reported that he met Premier Li Qiang (李強) in Beijing, during which Li told Musk that Tesla's development in China could be regarded as a successful example of US-China economic and trade cooperation. Musk confirmed his meeting with the premier yesterday with a post on social media platform X. "Honored to meet with Premier Li
Dutch brewing company Heineken NV on Friday announced an investment of NT$13.5 billion (US$414.62 million) over the next five years in Taiwan. The first multinational brewing company to operate in Taiwan, Heineken made the statement at a ceremony held at its brewery in Pingtung County. It also outlined its efforts to make the brewery “net zero” by 2030. Heineken has been in the Taiwanese market for 20 years, Heineken Taiwan managing director Jeff Wu (吳建甫) said. With strong support from local consumers, the Dutch brewery decided to transition from sales to manufacturing in the country, Wu said. Heineken assumed majority ownership and management rights
ARTIFICIAL INTELLIGENCE: The chipmaker last month raised its capital spending by 28 percent for this year to NT$32 billion from a previous estimate of NT$25 billion Contract chipmaker Powerchip Semiconductor Manufacturing Corp (力積電子) yesterday launched a new 12-inch fab, tapping into advanced chip-on-wafer-on-substrate (CoWoS) packaging technology to support rising demand for artificial intelligence (AI) devices. Powerchip is to offer interposers, one of three parts in CoWoS packaging technology, with shipments scheduled for the second half of this year, Powerchip chairman Frank Huang (黃崇仁) told reporters on the sidelines of a fab inauguration ceremony in the Tongluo Science Park (銅鑼科學園區) in Miaoli County yesterday. “We are working with customers to supply CoWoS-related business, utilizing part of this new fab’s capacity,” Huang said, adding that Powerchip intended to bridge
Microsoft Corp yesterday said that it would create Thailand’s first data center region to boost cloud and artificial intelligence (AI) infrastructure, promising AI training to more than 100,000 people to develop tech. Bangkok is a key economic player in Southeast Asia, but it has lagged behind Indonesia and Singapore when it comes to the tech industry. Thailand has an “incredible opportunity to build a digital-first, AI-powered future,” Microsoft chairman and chief executive officer Satya Nadella said at an event in Bangkok. Data center regions are physical locations that store computing infrastructure, allowing secure and reliable access to cloud platforms. The global embrace of AI