Tue, Aug 23, 2016 page10

• World Business Quick Take

  • Agencies
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  SOUTH AMERICA

  Tax could close Coke plants

  Coca-Cola Beverages Africa, the bottling joint venture between the US beverage maker and brewer SABMiller PLC, might close plants and see profit in the country dip by more than half if the government pushes ahead with a proposed sugar tax aimed at reducing sugar consumption and lower sugar content in products. The National Treasury last month recommended a levy on sugar-sweetened beverages that would generate almost 11 billion rand (US$807 million) in government revenue. The newly created bottler’s volumes would probably drop by at least 25 percent if the tax were implemented as proposed, Coca-Cola Beverages South Africa managing director Velaphi Ratshefola said.

  BANKING

  GFH in talks with Alkhair

  Bahrain’s GFH Financial Group is in talks to buy a majority stake in Islamic lender Bank Alkhair. Bank mergers in the Gulf are expected to increase following Abu Dhabi’s decision to combine its two largest banks, National Bank of Abu Dhabi and First Gulf Bank. That could pressure other lenders in the United Arab Emirates to pursue deals, Dubai-based investment bank Arqaam Capital Ltd said in June. Khaleeji Commercial Bank abandoned plans to merge with Bank Alkhair in 2014 after failing to agree a structure for the transaction. The value of the potential deal was not disclosed.

  BANKING

  Equity Group profits rise 18%

  Equity Group Holdings Ltd, Kenya’s biggest bank by market value, said first-half profit grew 18 percent as its income from loans jumped. Profit increased to 10.1 billion Kenyan shillings (US$99.7 million) in the six months through June as the lender’s net interest income rose 37 percent to 21.2 billion shillings, chief executive officer James Mwangi told reporters yesterday in the capital, Nairobi. Operating income climbed 22 percent to 32.1 billion Kenyan shillings. The lender, which has operations in six African countries, almost tripled loan-loss provisions to 1.93 billion Kenyan shillings. Non-performing credit jumped 29 percent to 10.8 billion Kenyan shillings.

  CURRENCY

  Yuan dips on rate rise rumor

  The yuan fell to its lowest level in almost two weeks as increasing speculation that the US Federal Reserve will raise interest rates this year drove up the US dollar. The Chinese currency declined 0.09 percent to 6.6607 against the US dollar as of 3:25pm in Shanghai, according to prices from the China Foreign Exchange Trade System. A gauge of US dollar strength was headed for the biggest two-day advance since June, with comments from two Fed officials fueling speculation that an increase in borrowing costs this year is still on the table.

  AUTOMAKERS

  FAW to sell Toyota stake

  China FAW Group (第一汽車), one of Toyota Motor Corp’s automaking partners in China, announced plans to sell a 15 percent stake in its joint venture to its parent, to raise money for updating products and restructuring. Tianjin FAW Xiali Automobile Co (天津第一夏利) would book a 2.5 billion yuan (US$376 million) gain on the transaction, the company said in a statement on Saturday. The transaction would cut FAW’s stake in the venture with the Japanese automaker to 15 percent. Sales have been shrinking because the company, which reported a net loss in the quarter ended March, failed to keep pace with restructuring and new products at rivals, FAW said.
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