Company News in Brief
Mantengu acquires SublimeJunior miner Mantengu announced the approximately R1.7 million acquisition of Sublime, SA's only producer of silicon carbide. Located in Mpumalanga, the company is being acquired from Texas-based Sintex, with Mantengu also set to acquire liabilities of R35 million and assets of R240 million, it said in a statement. Silicon carbide is a hard chemical compound containing silicon and carbon, which is produced in both powder and crystal forms. Sublime is the only producer in Africa and currently accounts for approximately 2% of the global market share. The primary application is as an abrasive due to its exceptional hardness, second only to diamond, Mantengu said. It is also a ceramic material with excellent thermomechanical properties, including high thermal conductivity.
-FIN24
Competition Commission blocks Peermont buyout
The Competition Commission says it blocked Sun International's intended buyout of rival Peermont, which owns Emperor's Palace, on the grounds that the deal would substantially reduce competition in the casino market in central Gauteng and South Africa. Sun International, which owns Sun City, said on Friday the commission would recommend to the Competition Tribunal that its planned R7.3 billion acquisition of Peermont be prohibited. On Sunday the commission confirmed as much, saying it had advised the tribunal to halt the proposed merger as it would significantly change the structure of the national gambling market by reducing the number of national casino operators from three to two. The commission acts as the investigative and advisory body, while the tribunal has final say on matters relating to market competition. "Post-merger, 92% of the casinos operating in South Africa would be owned by only two firms, further increasing concentration in an already highly concentrated market," the Competition Commission said in a statement.
-FIN24
Standard Bank appointed as Chill Beverages and Inhle Beverages sales advisor
Standard Bank announced that it has acted as sole financial advisor to Chill Beverages and Inhle Beverages on the sale of the business to Alterra Capital Partners, Mineworkers Investment Company (MIC) and Admaius Capital Partners. Chill Beverages and Inhle Beverages are owned by Old Mutual Private Equity and the management team. Chill Beverages owns energy drink Score, mixer brand Fitch & Leedes, and Chateau Del Rei, a canned perlé sparkling wine product. Inhle Beverages is the co-packer of choice for numerous tier-1 local and multinational companies in South Africa. "Standard Bank is the right bank to advise on efficient, value-enhancing sell-side processes for our clients," said Sean Wegerhoff, executive for corporate finance at Standard Bank Corporate & Investment Banking. "Our strong relationships with potential bidders and deep sector understanding means we are able to secure the best deal for our clients."
-FIN24
Boeing to launch stock offering
Boeing on Monday launched a stock offering that could raise up to $19 billion (R335 billion) as the planemaker looks to strengthen its finances squeezed by a more than a month-long worker strike and a year-long safety crisis. The company is offering $90 million in common stock and $5 billion in depositary shares, that represent an interest in convertible preferred stock. The company's shares fell 1% in pre-market trading. The move will boost Boeing's battered finances, which have worsened since roughly 33 000 of its workers represented by the machinists' union walked off their jobs in September, halting production of models including its cash-cow 737 MAX aircraft. The planemaker was already reeling under a regulator-imposed cap on production of its MAX jets after a January mid-air panel blowout.
-Reuters.
VW to cut three German factories
Ailing auto giant Volkswagen plans to close at least three factories in Germany and cut "tens of thousands of jobs" at its namesake brand as part of a drastic cost-savings plan, workers' representatives said Monday. The plan laid out by management also includes downsizing remaining plants in the country and a proposed 10 percent pay cut for all VW brand employees, the company's powerful works council said in an update to staff, vowing to put up resistance.
-AFP
Malaysia disallows iPhone 16 sales
Tech giant Apple Inc will not be allowed to sell its iPhone 16 smartphones in Indonesia because they have not met the country's rules on the use of locally made components, the industry ministry said. Indonesia requires certain smartphones sold domestically to contain at least 40% of parts manufactured locally and the iPhone 16 has not met the requirement, ministry spokesperson Febri Hendri Antoni Arief said in a statement issued on Friday. "Imported iPhone 16 hardwares cannot be marketed in the country, because Apple Indonesia has not fulfilled its investment commitment to earn a local content certification," he said, adding that the phones can still be brought from abroad for personal use as long as users pay the necessary taxes. Apple did not immediately respond to a request for comment.
-REUTERS
Phillips revises year sales target
Dutch medical device maker Philips on Monday lowered its full year sales target, blaming drop in demand from Chinese hospitals as it released third-quarter results. Markets reacted negatively to the announcement, with Philips' share price dropping by more than 11% in morning trading on the Amsterdam stock exchange's blue-chip AEX index. A "significant deterioration" in Chinese demand forced Philips to adjust its expected growth in sales to 0.5% to 1% for 2024, the Amsterdam-based company said. Philips had previously anticipated 3-5% sales growth. "In the quarter, demand from hospitals and consumers in China further deteriorated, while we continue to see solid growth in other regions," chief executive Roy Jakobs said. "We have adjusted our full-year sales outlook to reflect the continued impact from China," Jakobs said.
-AFP