Siemens Energy launches $4.3 billion bid for remaining Siemens Gamesa stake

Siemens Energy launches $4.3 billion bid for remaining Siemens Gamesa stake

A model of a wind turbine with the Siemens Gamesa logo is displayed outside the annual general shareholders meeting in Zamudio, Spain, June 20, 2017. REUTERS/Vincent WestRegister now for FREE unlimited access to Reuters.comRegister

  • Siemens Energy bids 18.05 euros/share for 33% stake
  • Bid comes after operational problems at Siemens Gamesa
  • Deal could yield cost synergies of up to 300 mln eur

FRANKFURT, May 21 (Reuters) – Siemens Energy (ENR1n.DE) on Saturday launched a 4.05 billion euro ($4.28 billion) bid for the remaining shares in struggling wind turbine unit Siemens Gamesa (SGREN.MC), hoping to remove a complex ownership structure that has weighed on its shares.Siemens Energy said the 18.05 euros per share bid constitutes a premium of 27.7% over the last unaffected closing share price of Spanish-listed Siemens Gamesa of 14.13 euros on May 17. It is a 7.8% premium to Friday’s closing price.Siemens Energy has faced mounting shareholder pressure to seek control of Siemens Gamesa (SGRE), in which it owns 67%, a stake it inherited as part of a spin-off from former parent Siemens (SIEGn.DE).Register now for FREE unlimited access to Reuters.comRegisterThat stake has given Siemens Energy little influence to deal with product delays and operational problems at Siemens Gamesa. The group has issued three profit warnings in less than a year.”It is critical that the deteriorating situation at SGRE is being stopped as soon as possible, and the value-creating repositioning starts quickly,” said Joe Kaeser, Siemens Energy’s supervisory board chairman.This year, sources told Reuters that Siemens Energy was exploring options to acquire the remaining stake in Siemens Gamesa and a deal could materialise by summer. read more Siemens Energy said it plans to finance up to 2.5 billion euros of the transaction with equity or equity-like instruments, adding a first step could be a capital increase without subscription rights.The remainder would be financed with debt as well as cash on hand, Siemens Energy said, adding it aimed to delist Siemens Gamesa. Spanish stock market regulations allow that once ownership of 75% is reached.Full integration of Siemens Gamesa will simplify Siemens Energy’s structure and provide a more coherent business model that caters to legacy energy assets like coal, transition technologies such as gas, and renewable power sources.”This transaction comes at a time of major changes affecting global energy,” Siemens Energy Chief Executive Christian Bruch said. “Our conviction is that the current geopolitical developments will not lead to a setback to the energy transition.”Siemens Energy said the deal would lead to cost synergies of up to 300 million euros annually within three years of the full integration, mainly due to more favourable supply chain management, combined administration and joint R&D.The deal should close in the second half and is expected to achieve revenue synergies of a mid triple-digit million amount by 2030, the group said.($1 = 0.9470 euros)Register now for FREE unlimited access to Reuters.comRegisterReporting by Christoph Steitz and Ludwig Burger; Editing by Nick Zieminski, Daniel Wallis and David GregorioOur Standards: The Thomson Reuters Trust Principles. .

WhatsApp to launch cloud-based tools, premium features for businesses

WhatsApp to launch cloud-based tools, premium features for businesses

A 3D-printed Whatsapp logo is placed on the keyboard in this illustration taken April 12, 2020. REUTERS/Dado Ruvic/Illustration/File PhotoRegister now for FREE unlimited access to Reuters.comRegisterMay 19 (Reuters) – WhatsApp is introducing free cloud-based API services in a push to get more businesses using the app, Meta Platforms (FB.O) CEO Mark Zuckerberg announced at the company’s messaging event on Thursday.The messaging service, which has increasingly courted business users, is one of several platforms where Facebook-owner Meta has launched more shopping and business-focused features.Zuckerberg, speaking at Meta’s “Conversations” event, said the offering would mean “any business or developer can easily access our service, build directly on top of WhatsApp to customize their experience and speed up their response time to customers by using our secure WhatsApp Cloud API hosted by Meta.”Register now for FREE unlimited access to Reuters.comRegisterWhatsApp already has an API, or type of software interface, for businesses to connect their systems and engage in customer service chats on the service, which generates revenue for Meta.Meta, which bought WhatsApp for $19 billion in a landmark 2014 deal, said that businesses would not be able to message people on WhatsApp unless they have requested to be contacted.WhatsApp also said on Thursday it was planning to provide optional paid features as part of a new premium service for users of its specialized business app, which is geared at small businesses.Those features, which are still being developed, will include options to manage chats across up to 10 devices and customized click-to-chat links that businesses can post on their websites and share with customers.Uber (UBER.N) CEO Dara Khosrowshahi, speaking in a session with Meta Chief Operating Officer Sheryl Sandberg at the conference, said a third of the users ordering rides via WhatsApp in India are new customers.The ride-hailing company, which launched its WhatsApp chatbot in December, is now planning to further customize the service starting for users in and around Delhi and expanding to markets like Brazil, he said. read more Register now for FREE unlimited access to Reuters.comRegisterReporting by Elizabeth Culliford in New York and Katie Paul; Editing by Lisa ShumakerOur Standards: The Thomson Reuters Trust Principles. .

Stellantis to start reshuffle of dealer network next year

Stellantis to start reshuffle of dealer network next year

Stellantis logo and stock graph are seen displayed in this illustration taken, May 3, 2022. REUTERS/Dado Ruvic/IllustrationRegister now for FREE unlimited access to Reuters.comRegisterVERONA, Italy, May 18 (Reuters) – Stellantis (STLA.MI) will start a reshuffle of its European dealers’ network next year from Austria, Belgium and the Netherlands, and its van and premium brands in all markets, its regional sales chief said on Wednesday.As part of its efforts to cut costs and finance its electrification strategy, the carmaker, formed through the merger of Fiat Chrysler and France’s PSA, has said it would end all current sales and services contracts with European dealers for its 14 brands, effective form June 2023. read more The plan is to move its distribution structure in Europe towards an “agency model”, where carmakers take more control of sales transactions and prices while dealers focus on handovers and servicing, no longer acting as the customer’s contractual partner.Register now for FREE unlimited access to Reuters.comRegister“We will start in June next year with all our van brands and with our premium brands – Alfa Romeo, DS and Lancia – in all markets, and on three pilot markets, Austria, Belgium and the Netherlands with all our brands,” Stellantis’ sales chief for ‘Enlarged Europe’ region Maria Grazia Davino said.She added the new distribution structure would be operational in all of Europe’s 10 largest markets by 2026.”We will anticipate all that we can, but this is our schedule at the moment,” she said during an “Automotive dealer day” event in Verona, northern Italy.Davino said core elements of the new contract Stellantis will propose to retailers are expected to be ready by this summer, while a final set up would be prepared by year-end.”Our direction is to envisage a 5% fee for our retailers on new cars sold, we’re working on this hypothesis,” she said. “We’re into a transition of course, then we’ll see”.She added that in the first stage of this process retailers would earn different fees for different brands, with some higher ones for premium brands. Retailers will also get a variable performance bonus based on sales targets, she said.Register now for FREE unlimited access to Reuters.comRegisterReporting by Giulio Piovaccari
Editing by Keith Weir
Our Standards: The Thomson Reuters Trust Principles. .

Swedish Match top 10 investor says Philip Morris bid a ‘healthy premium’

Swedish Match top 10 investor says Philip Morris bid a ‘healthy premium’

Moist powder tobacco “snus” cans are seen on shelves at a Swedish Match store in Stockholm, Sweden October 24, 2018. Picture taken October 24, 2018. REUTERS/Anna Ringstrom/File PhotoRegister now for FREE unlimited access to Reuters.comRegisterLONDON, May 12 (Reuters) – Philip Morris’ $16 billion offer for Stockholm-based Swedish Match (SWMA.ST) represents a “healthy premium” and the Marlboro maker could yet go higher, Swedish Match’s No. 10 shareholder GACMO Investors (GBL.N) said on Thursday.Marlboro maker Philip Morris agreed on Wednesday to buy Swedish Match, one of the world’s biggest makers of oral nicotine products. These include Snus – a sucked tobacco product the firm says is less harmful than smoking – as well as Zyn nicotine pouches, which are used the same way and tobacco-free.Kevin Dreyer, co-chief investment officer, value, at GAMCO identified Japan Tobacco Inc (2914.T) (JTI) as a possible rival bidder but said it would be hard-pressed to hijack the deal. GAMCO, formerly known as Gabelli Asset Management Company, owns just over 2% of Swedish Match, according to Refinitiv.Register now for FREE unlimited access to Reuters.comRegister“PMI has very deep pockets and will be a tough company to out-bid,” he said. “This deal is really the culmination of the last five-to-seven years of work Swedish Match has done in developing Zyn into the leading brand, and having that advantageous market share – it’s an attractive stock.”Philip Morris declined to comment. Swedish Match and JTI did not immediately respond to a request for comment.Philip Morris needs at least 90% of shareholders to approve the deal for it to succeed. Some other shareholders have questioned whether the Philip Morris offer represents good value. Swedish Match shareholder Bronte Capital said on Wednesday the price Philip Morris agreed to pay was “unacceptable”.Register now for FREE unlimited access to Reuters.comRegisterReporting by Richa Naidu; editing by David Evans and Emelia Sithole-MatariseOur Standards: The Thomson Reuters Trust Principles. .

Audi Formula One deal with McLaren becoming unlikely -source

Audi Formula One deal with McLaren becoming unlikely -source

An Audi logo is pictured during the Volkswagen Group’s annual general meeting in Berlin, Germany, May 3, 2018. REUTERS/Axel SchmidtRegister now for FREE unlimited access to Reuters.comRegisterHAMBURG, May 5 (Reuters) – An agreement for Volkswagen’s (VOWG_p.DE) premium brand Audi to join Formula One by investing in British luxury sports carmaker McLaren is becoming increasingly unlikely, a person familiar with the project told Reuters on Thursday.”The price expectations are too far apart,” the person said, adding that while the project had not yet failed, its prospects are now close to zero.Meanwhile, talks with Swiss-based Sauber, which runs the Ferrari-powered Alfa Romeo team, and Williams are continuing, the person said. Both Audi and Volkswagen declined to comment.Register now for FREE unlimited access to Reuters.comRegisterManager Magazin reported earlier on Thursday that talks with McLaren were close to failing after months of negotiations.Volkswagen has not previously been involved in Formula One but has worked with Red Bull, notably in the world rally championship.On Monday, VW Chief Executive Herbert Diess said that its Audi and Porsche brands would join Formula One, after convincing the German automaking group that the move would bring in more money than it would cost. read more A source had told Reuters in March that Audi was ready to offer around 500 million euros ($556.3 million) for McLaren as a means to enter.Williams and Aston Martin, both currently powered by Mercedes engines, have said they would be interested in future ties with Audi.”I think for any team who has not a manufacturer on his side, it’s super appealing to have this possibility,” Aston Martin team boss Mike Krack told reporters at last month’s Emilia Romagna Grand Prix.Williams team principal Jost Capito is a previous head of Volkswagen Motorsport.Register now for FREE unlimited access to Reuters.comRegisterReporting by Jan Schwartz/Alan Baldwin in London; Writing by Maria Sheahan, editing by Kirsti Knolle and Bill BerkrotOur Standards: The Thomson Reuters Trust Principles. .