Railway giants to merge
Canadian Pacific Railway Ltd on Wednesday said that it had reached an agreement to buy US freight company Kansas City Southern Railway Co. Canadian Pacific said in a statement that it plans to buy the firm for approximately US$27 billion and take on its US$3.8 billion debt. The boards of directors of both companies have agreed to the deal. The tie-up — to be called “Canadian Pacific Kansas City” — would be the sixth-largest rail company by revenue in the US, employing nearly 20,000 people and generating an average of US$8.7 billion in revenue per year. The companies expect to complete the deal in the second half of next year.
Ryanair lifts growth target
Ryanair Holdings PLC yesterday lifted its growth target to 50 percent over the next five years, as the Irish low-cost carrier expands at European airports where the COVID-19 pandemic has forced other carriers to pull back. The push to more than 225 million passengers by 2026 would be powered by a fleet of new Boeing Co 737 MAX jets, Ryanair said in a statement. Europe’s biggest discount airline had previously targeted a 33 percent increase from pre-COVID-19 levels of 149 million per year. Ryanair might increase its share of the European short-haul market to about 20 percent by 2025 from 13 percent in 2019, Citigroup Inc analysts said in a note. The company said in July that it would keep ticket prices low during the winter months to drive demand.
Oppo to lay off staff
Smartphone maker Oppo Mobile Telecommunications Corp (歐珀) is cutting about 20 percent of staff in key software and device teams after it merged operations with affiliate OnePlus (一加). Oppo, which in 2016 became China’s top-selling brand, is retrenching after expanding too rapidly on the hiring front in the past few years. The cuts affect important units, including a team that customizes Android into its in-house ColorOS, and an Internet of Things division that develops a spectrum of wearables, such as smartwatches and earbuds, said people with knowledge of the matter who asked not to be identified.
ING speeds up fuel pullout
ING Groep NV is to cut lending to fossil-fuel companies at a faster pace than previously planned, as the finance industry races to slash its carbon footprint in time to meet goals laid out in the Paris Agreement. The Dutch bank intends to reduce financing for upstream oil and gas projects by 12 percent from the 4 billion euros (US$4.7 billion) it loaned the industry in 2019, ING said in a revised sustainability report. The lender wants to reach the new target in four years, compared with a previous goal of a 19 percent cut in such funding by 2040.
Vivendi bids for Lagardere
Vivendi is planning to make a bid for Lagardere SA if regulators approve its plan to buy out Amber Capital’s stake, a deal that would create one of Europe’s biggest media companies. Vivendi agreed to buy 25.3 million shares of Lagardere, owner of assets including Paris Match magazine and Europe 1 radio, held by the activist investor for 24.10 euros apiece, Vivendi said in a statement on Wednesday. The deal would push Vivendi’s holding above 30 percent of Lagardere, triggering a requirement to bid for the rest of the business under French law.
SELF-SUFFICIENCY: Alibaba is one of a number of Chinese firms that has answered Beijing’s call to invest in the development of cutting-edge technologies Alibaba Group Holding Ltd (阿里巴巴) yesterday unveiled a new server chip that is based on advanced 5-nanometer technology, marking a milestone in China’s pursuit of semiconductor self-sufficiency. The Chinese tech giant’s newest chip is based on micro-architecture provided by the SoftBank Group Corp-owned Arm Ltd, it said. Alibaba, which is holding its annual cloud summit in Hangzhou, China, said that the chip is to be used in its own data centers in the “near future” and would not, for the time being, be sold commercially. “Customizing our own server chips is consistent with our ongoing efforts toward boosting our computing capabilities with better
Production at Taiwan Semiconductor Manufacturing Corp’s (TSMC, 台積電) fabs was not affected by a fire at a construction site for a water recycling facility in the Southern Taiwan Science Park in Tainan. The world’s biggest contract chipmaker said that the construction site is not adjacent to its fabs, which were unaffected. CTCI Corp (中鼎工程) is responsible for the construction of the facility, which it is to operate itself once it is completed, the chipmaker said. The facility caught fire at about 11am, and the blaze was brought under control about 30 minutes after the incident was reported, the Southern Taiwan Science Park Administration
‘SHORT-TERM ECONOMIC PAIN’: A military takeover would only temporarily weigh on wafer production on both sides of the Taiwan Strait, IC Insights said Taiwan has more chip manufacturing capacity than any other economy in the world, US-based market information advisory firm IC Insights said in a research paper last week, cautioning that the nation’s strength could prompt China to attempt to take over Taiwan. Taiwan commanded 21.4 percent of global installed IC capacity, ahead of South Korea’s 20.4 percent, Japan’s 15.8 percent and China’s 15.3 percent, North America’s 12.6 percent and Europe’s 5.7 percent, IC Insights said. Taiwan is one of two countries that uses 10-nanometer technology or better to produce wafers, holding 62.8 percent of global capacity, with South Korea holding the remaining 37.2
AGGRESSIVE STEP: With the new processors, Apple is aiming at the high-end chips Intel has provided for the MacBook Pro and other top-end Macs for about 15 years Apple Inc on Monday took the most aggressive step yet to strip Intel Corp chips from its computers, announcing more powerful homegrown Mac processors alongside a total revamp of its MacBook Pro laptop computers. The company showcased the chips at an event called “Unleashed,” which also included its latest audio products. The new components, called the M1 Pro and M1 Max chips, are 70 percent faster than its M1 predecessors, Apple said. It also unveiled a redesigned MacBook Pro, adding larger screens, MagSafe charging and better resolution. With the new processors and devices, Apple is aiming squarely at the high-end chips that Intel has