Thu, Jun 14, 2018 - Page 10 News List

World Business Quick Take

Agencies

TELECOMS

ZTE shares dive 39%

Shares in Chinese telecom equipment maker ZTE (中興) collapsed 39 percent yesterday as trading in the company resumed in Hong Kong after it reached a settlement with the US over its handling of a sanctions violation. ZTE shares dived 39.22 percent to HK$15.56 in the first few minutes of trade. It also plunged by its 10 percent daily limit to 28.18 yuan in Shenzhen. Trading in the firm had been suspended since Washington said in April that it had banned US companies from selling crucial hardware and software components to it for seven years. That wiped about US$2.7 billion off ZTE’s market value yesterday. “While the nightmare is now over, ZTE will likely have to deal with many changes,” Jefferies Group LLC analysts Edison Lee and Timothy Chau wrote in a note. “We expect significant near-term selling pressure and a volatile stock price.”

AUTOMAKERS

Toyota to buy Grab stake

Toyota Motor Corp is to buy a US$1 billion stake in Singapore-based GrabTaxi Holdings Pte in one of the largest investments by an automaker in a ride-hailing provider, underscoring the push by the auto industry to move from manufacturing to services. The deal extends Toyota’s cooperation with Grab, the largest ride-hailing service in Southeast Asia, the automaker said in a statement yesterday, without disclosing what percentage of Grab it would own. A Toyota executive is to be appointed to Grab’s board, and another Toyota employee is to be seconded to Grab to as an executive officer.

TELECOMS

US mega-merger approved

A US federal judge on Tuesday approved the US$85 billion mega-merger of AT&T Inc and Time Warner Inc, potentially ushering in a wave of media consolidation, while shaping how much consumers pay for streaming TV and movies. US District Judge Richard Leon green-lit the merger without imposing major conditions as some experts had expected. The US Department of Justice had sued to block the US$85 billion merger, arguing that it would hurt competition in cable and satellite TV, and jack up costs to consumers for streaming TV and movies. The department could still appeal the ruling.

FOODMAKERS

CVC buys Munchy Food

London-based CVC Capital Partners acquired Malaysian snack producer Munchy Food Industries Sdn as the private-equity firm deepens its exposure to the fast-growing consumer industry in Southeast Asia. The investment firm’s Asia Fund IV on Friday last week completed the purchase of a 100 percent stake in Munchy Food, it said in an e-mailed statement yesterday. CVC paid about US$250 million for the business, a person with knowledge of the matter said earlier this week. It decided to buy Munchy in part because it saw potential in the Malaysian firm’s strong export business, the person said. The company makes crackers, as well as biscuits and wafers sold in more than 50 countries, its Web site shows.

APPAREL

Inditex benefits from tech

Inditex SA is benefiting from investments in technology that are boosting efficiency online and in stores, helping the Zara owner contend with Amazon.com Inc’s foray into the fashion aisle. Earnings before interest and taxes rose 2 percent to 851 million euros (US$1 billion) in the three months through April, the Arteixo, Spain-based company said in a statement yesterday, beating analysts’ estimates.

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