UNITED KINGDOM
Revised M&A rules in effect
The government revised merger and acquisition (M&A) rules to make it easier to block takeovers of companies when officials are concerned about risks to national security. The measures, which took effect yesterday, apply to businesses that make technology with military or dual-use applications, including computer hardware. The changes are to help keep the UK safe and sustain its reputation as an “open, trading nation,” the Department for Business, Energy and Industrial Strategy said in a statement. The changes were proposed last year. The change lets ministers intervene on certain grounds if the target UK business’ annual revenue exceeds ￡1 million (US$1.34 million), down from ￡70 million. The new rules also scrap a requirement that a merger needed to increase the combined firms’ market share to 25 percent before a review is started.
ELECTRIC VEHICLES
Amperex stock jumps
Shares of the world’s biggest maker of electric-vehicle batteries jumped on their trading debut (IPO) as investors bet on rising demand for new-energy cars worldwide. Contemporary Amperex Technology Ltd (CATL, 新能源科技) rose by the maximum 44 percent to 36.20 yuan (US$5.65) at 10:17am in Shenzhen, China, valuing the company at about US$12.3 billion. The manufacturer sold a 10 percent stake at 25.14 yuan per share in its initial public offering on May 30. Investors are confident that CATL can fend off rivals including Panasonic Corp and continue to win orders as automakers move toward electric vehicles. CATL, whose customers include Volkswagen AG, had reduced the size of its IPO by more than half compared with its original ambitions because of declining margins and a cap imposed by Chinese authorities on price-earnings ratios in IPOs.
NIGERIA
Sovereign fund shifts focus
The Nigeria Sovereign Investment Authority (NSIA) is restructuring its portfolio to focus more on domestic investments after a drop in the currency wiped out foreign exchange gains last year. “The asset allocation strategy of NSIA has been restructured to reflect an increased focus on domestic infrastructure investments with 50 percent of future contributions to be dedicated to infrastructure,” the fund said in a statement yesterday. The fund, which last year had 80 percent of assets under management denominated in dollars, saw valuations decline after the central bank introduced policies that weakened the naira by at least 15 percent against the greenback.
INVESTMENT
Abraaj funds commingled
Middle Eastern investment firm Abraaj Group, which has been roiled by allegations of misused funds, commingled about US$95 million after it faced cash shortages, Deloitte said in the findings of a review. The accounting firm, which was hired by Abraaj to examine its finances, found that there was commingling of Abraaj’s own money in the healthcare fund and its fourth fund, according to a summary of the Deloitte report that was presented to creditors on Monday last week and seen by Bloomberg News. Money from Abraaj’s US$1 billion healthcare fund was used to pay management fees and other expenses, Deloitte said. Abraaj still owes US$94.6 million to its so-called Private Equity Fund IV, but all money has been accounted for and there is no evidence of embezzlement or misappropriation. Abraaj and Deloitte declined to comment.
FALLING BEHIND: Samsung shares have declined more than 20 percent this year, as the world’s largest chipmaker struggles in key markets and plays catch-up to rival SK Hynix Samsung Electronics Co is laying off workers in Southeast Asia, Australia and New Zealand as part of a plan to reduce its global headcount by thousands of jobs, sources familiar with the situation said. The layoffs could affect about 10 percent of its workforces in those markets, although the numbers for each subsidiary might vary, said one of the sources, who asked not to be named because the matter is private. Job cuts are planned for other overseas subsidiaries and could reach 10 percent in certain markets, the source said. The South Korean company has about 147,000 in staff overseas, more than half
TECH PARTNERSHIP: The deal with Arizona-based Amkor would provide TSMC with advanced packing and test capacities, a requirement to serve US customers Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is collaborating with Amkor Technology Inc to provide local advanced packaging and test capacities in Arizona to address customer requirements for geographical flexibility in chip manufacturing. As part of the agreement, TSMC, the world’s biggest contract chipmaker, would contract turnkey advanced packaging and test services from Amkor at their planned facility in Peoria, Arizona, a joint statement released yesterday said. TSMC would leverage these services to support its customers, particularly those using TSMC’s advanced wafer fabrication facilities in Phoenix, Arizona, it said. The companies would jointly define the specific packaging technologies, such as TSMC’s Integrated
An Indian factory producing iPhone components resumed work yesterday after a fire that halted production — the third blaze to disrupt Apple Inc’s local supply chain since the start of last year. Local industrial behemoth Tata Group’s plant in Tamil Nadu, which was shut down by the unexplained fire on Saturday, is a key linchpin of Apple’s nascent supply chain in the country. A spokesperson for subsidiary Tata Electronics Pvt yesterday said that the company would restart work in “many areas of the facility today.” “We’ve been working diligently since Saturday to support our team and to identify the cause of the fire,”
Sales RecORD: Hon Hai’s consolidated sales rose by about 20 percent last quarter, while Largan, another Apple supplier, saw quarterly sales increase by 17 percent IPhone assembler Hon Hai Precision Industry Co (鴻海精密) on Saturday reported its highest-ever quarterly sales for the third quarter on the back of solid global demand for artificial intelligence (AI) servers. Hon Hai, also known as Foxconn Technology Group (富士康科技集團) globally, said it posted NT$1.85 trillion (US$57.93 billion) in consolidated sales in the July-to-September quarter, up 19.46 percent from the previous quarter and up 20.15 percent from a year earlier. The figure beat the previous third-quarter high of NT$1.74 trillion recorded in 2022, company data showed. Due to rising demand for AI, Hon Hai said its cloud and networking division enjoyed strong sales
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