The consortium participated by Telefonica, along with its two rivals Mexico’s América Móvil and Italy’s TIM, has qualified as a stalking horse or first bidder in the race to buy Brazil’s Oi’s mobile business. The qualification as first bidder gives the consortium the right of first refusal if a higher competitive offer is made.
This operation will serve as compensation for the creditors and suppliers who will assume the removal and capitalization of Abengoa debt. The companies up for sale should be transferred within a year. Most of them are projects which have had the “for sale” sign on them for a while, and their valuation has deteriorated. In 2019, the 10 main assets had a net book value of €1.557 Bn and a negative impact compared to 2018 of €118 M. This is in line with the restructuring agreement approved on August 6.
Banco Sabadell has been left hanging after the announcement of the merger between Bankia and CaixaBank. For months there had been talk of a combination of Sabadell and Bankia as the most promising concentration operation in the sector. Now, however, this possibility has vanished and the Catalan bank would be assessing different options to protect its interests.
Naturgy signed last week with Snowy Hydro its first energy sales contract with a retailer in Australia to build a 218 MW wind farm in Victoria. Some days later, the company has increased its presence in the country with the award by the Australian Capital Territory of 107 MW wind farm and a battery energy storage system of 20 MWh. With both operations, Naturgy doubles its presence in the region, reaching a renewable capacity of near 600 MW and becoming the Top-3 independent wind energy producer.
In August 2020, commodities had their best monthly performance since April 2016 and second-best monthly performance in the past decade (based on the Bloomberg Commodity Total Return Index). Each major segment of commodities contributed positively to the strong performance, led by Energy (+11.2%). Natural gas was the best performer in that segment, with a 47.6% gain.
The order, with an undisclosed customer, is for two new onshore wind projects in Texas that will generate a combined 325 MW of power using 65 SG 5.0-145 wind turbines. Project takes Siemens Gamesa’s total installed capacity close to 6 GW in Texas, strengthening its position as one ofthe top3 OEMs in the state.
Veolia’s proposal for a timely and transformative combination with Suez could lay the foundation for accelerated growth. Analysts at BoA Global Research think stakeholder interests are aligned and that a mutually attractive deal scenario is now more likely than not. A growing ESG thematic tailwind adds to the appeal and we upgrade Veolia to Buy.
Bankia and Caixabank have communicated that they are at a preliminary talks stage for a possible merger that would be carried out through an exchange of shares. For the time being, no agreement has been reached. The merger would create a lender with total assets of €664 Bn (according to data from Q2’20). So it would be the leading Spanish bank by volume of assets. It would combine a network of offices (including those of CaixaBank’s Portuguese subsidiary) with 6,700 branches and staff of over 51,000.
The Swiss group SIX already controls over 95% of Bolsas y Mercados Españoles (BME) after its takeover bid. In a statement to the CNMV, SIX said it has now exceeded the threshold required to exercise the right of a forced sale, which will mean the exclusion of BME shares from the Spanish stock market.
Mobeen Tahir, Associate Director, Research, WisdomTree | On Tuesday, 11 August, gold fell by over 5% and silver retreated nearly 15% prompting investors to wonder if there had been a material shift in market sentiment. Are defensive hedges no longer required? How important are gold and silver as risk sentiment improves? A glance towards the wider market, and indeed economic fundaments, can help answer these questions.