Sat, Mar 03, 2018 - Page 10 News List

World Business Quick Take

Agencies

SEMICONDUCTORS

Microchip to buy Microsemi

Microchip Technology Inc on Thursday said it is buying semiconductor rival Microsemi Corp for US$8.3 billion. The boards of both firms approved the deal, worth more than US$10 billion, including Microsemi’s cash and assets. The transaction is subject to California-based Microsemi’s shareholder’s approval and is expected to close in the first half of this year. The combined firm could have more than US$5 billion in annual revenues, and a strong presence in chips and controllers for medical devices, “smart” home appliances, and military-grade and aerospace hardware.

CONGLOMERATES

HNA looking to sell resorts

HNA Group Co (海航集團) has put its US$1.4 billion stake in Park Hotels & Resorts Inc up for sale. The sale could involve some or all of HNA’s 53.7 million shares, with any disposal being subject to market conditions, a regulatory filing in the US said. HNA last year bought a quarter of Hilton Worldwide Holdings Inc and two spinoffs — Park Hotels and Hilton Grand Vacations Inc — from Blackstone Group LP for about US$6.5 billion. Those stakes are valued at more than US$9 billion today.

AUTOMAKERS

US sales fall 2% annually

US sales of new cars and trucks tailed off last month as automakers eased up on discounts. Sales fell 2 percent from last February to 1.3 million, Autodata Corp said. Among major automakers, only Toyota Motor Corp, Subaru and Volkswagen AG reported sales gains over last month. The three US auto giants reported sales declines: 6.9 percent year-on-year for General Motors Co and Ford Motor Co, and 1 percent for Fiat Chrysler Automobiles NV’s US subsidiary.

RETAIL

Kohl’s teams up with Aldi

US department store chain Kohl’s shoppers are to be able to pick up some groceries while shopping for clothing at select stores. The company on Thursday said it is teaming up with German no-frills grocery chain Aldi to lease space in five to 10 of its stores. The move comes as Kohl’s looks to scale back its footprint, while making its stores more productive. Kohl’s also reported a 6 percent increase in sales at established stores for the critical fourth quarter, the largest gain since 2001.

BRAZIL

Economy returns to growth

The government said the country’s economy last year grew for the first time in three years, aided by strong performance in the agricultural sector. The Brazilian Institute of Geography and Statistics on Thursday said that GDP increased 1 percent last year, after two consecutive contractions of 3.5 percent in 2015 and 2016. The agency said that the 13 percent growth in the agricultural sector was a major driving force of the GDP increase. The corn crop increased 55.2 percent, while the soybean crop expanded 19.4 percent, it said.

MANUFACTURING

GKN could sell car parts unit

British engineering company GKN said it was in talks with US-based Dana Inc regarding the sale of its autoparts Driveline unit as part of a deal that would be effected mainly in equity. GKN already has a plan to demerge its main aerospace and automotive businesses in the middle of next year. The company yesterday said that the potential deal with Dana could provide greater value to shareholders than the demerger plan and it would therefore continue to explore it as an option.

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