Company news in brief
BHP buys into Ecuador copper project
Global miner BHP has agreed a US$35.2 million deal for a 6.1% stake in SolGoldPLC, giving it a share in the promising Cascabel copper-gold project in Ecuador after missing out in an earlier attempt.
BHP Chief Executive Andrew Mackenzie said the investment would give the miner exposure to a high quality copper exploration project in Ecuador, a "highly prospective" location for the company.
BHP has spent the last several years paying down debt and like many other miners is on the hunt to grow its asset base by finding and developing copper projects. Copper is seen as a growth market due to its use in renewable energy, but major projects are notoriously thin on the ground.
The deal sets the stage for a potential showdown with Australian gold miner Newcrest Mining Ltd, the top shareholder in SolGold, Cascabel's majority owner and operator, with a 14.54% stake.
SolGold rejected an offer by BHP to take a 10% stake in the firm in October 2016, with current chief executive Nick Mather terming the proposed deal by BHP at the time as "very inadequate". – Nampa/Reuters
Amazon tops US$1 tn in stock market value
Amazon became the second big US company to hit US$1 trillion in stock market value on Tuesday in the latest demonstration of the rising clout of American technology heavyweights.
The online retail giant breached the US$1 trillion valuation near 1540 GMT when its share price hit US$2 050.50. The Amazon landmark comes about a month after Apple hit the US$1 trillion level.
Founded in 1994 by Jeff Bezos, who is now the world's richest man, Amazon has grown exponentially from its roots as an online bookseller into a sector-crossing mastodon.
The company's employee count has soared to 575 000 as it has spread out into ever-more sectors of the economy.
Company profits, which long played second fiddle to revenue growth, have shown impressive gains. In the most recent quarter, Amazon reported US$2.5 billion in profits, a 12-fold increase over the year-earlier period. – Nampa/AFP
Nigeria raises heat on MTN with tax bill
Nigeria landed MTN Group with a US$2 billion tax bill on Tuesday, marking the South African mobile phone company's latest skirmish with authorities in its most lucrative market.
Last week Nigeria's central bank ordered MTN's Lagos-based unit to hand over US$8.1 billion that it said was illegally sent abroad, raising questions about doing business in the west African country.
Nigerian politics are seen by some analysts as a factor in the pressure on MTN. President Muhammadu Buhari, who swept to power in 2015 on promises to fight corruption and push through tougher regulation, is seeking re-election in next year's polls.
The latest clashes with MTN come about two years after it agreed to pay more than US$1 billion to settle a dispute over SIM cards in Nigeria, whose finances have been hit by a weak economy and volatile prices of crude oil.
But analysts the size of the demands against MTN risk further undermining Nigeria's efforts to shake off an image as a risky frontier market for investors.
Qatar Airways rethinks Indian plans
Qatar Airways is reviewing plans for its own domestic Indian airline due to "confusing" foreign ownership rules and could work with a partner in India or take a stake in IndiGo instead, its chief executive said on Tuesday.
The state-owned Gulf carrier has long coveted the Indian aviation market, which is the fastest growing in the world, and in 2017 said it would set up a domestic airline, a year after India eased foreign investment rules for the sector.
India now allows 100% ownership of India-based airlines, up from 49%, but only with government approval. Meanwhile, foreign airlines continue to be limited to 49% ownership.
Qatar Airways has been interested in investing in IndiGo for several years, though never bought into the airline.
Bayer profits plunge as Monsanto buyout bites
German chemicals and pharmaceuticals giant Bayer reported higher revenues but lower profits for the second quarter yesterday, in its first financial statement since its mammoth takeover of US-based Monsanto.
Between April and June - including the weeks between finalising the Monsanto purchase on 7 June and the end of that month - the group booked net profits of 799 million euro (US$926 million).
That figure was 34.7% lower than a year before.
But revenues increased, from 8.7 billion to 9.5 billion.
Bayer's US$63-billion buyout of Monsanto - the biggest ever foreign takeover by a German company - aimed at creating an agrichemical giant offering specialised seeds, including for genetically modified crops, compatible pesticides and data services for farmers. – Nampa/AFP
Global miner BHP has agreed a US$35.2 million deal for a 6.1% stake in SolGoldPLC, giving it a share in the promising Cascabel copper-gold project in Ecuador after missing out in an earlier attempt.
BHP Chief Executive Andrew Mackenzie said the investment would give the miner exposure to a high quality copper exploration project in Ecuador, a "highly prospective" location for the company.
BHP has spent the last several years paying down debt and like many other miners is on the hunt to grow its asset base by finding and developing copper projects. Copper is seen as a growth market due to its use in renewable energy, but major projects are notoriously thin on the ground.
The deal sets the stage for a potential showdown with Australian gold miner Newcrest Mining Ltd, the top shareholder in SolGold, Cascabel's majority owner and operator, with a 14.54% stake.
SolGold rejected an offer by BHP to take a 10% stake in the firm in October 2016, with current chief executive Nick Mather terming the proposed deal by BHP at the time as "very inadequate". – Nampa/Reuters
Amazon tops US$1 tn in stock market value
Amazon became the second big US company to hit US$1 trillion in stock market value on Tuesday in the latest demonstration of the rising clout of American technology heavyweights.
The online retail giant breached the US$1 trillion valuation near 1540 GMT when its share price hit US$2 050.50. The Amazon landmark comes about a month after Apple hit the US$1 trillion level.
Founded in 1994 by Jeff Bezos, who is now the world's richest man, Amazon has grown exponentially from its roots as an online bookseller into a sector-crossing mastodon.
The company's employee count has soared to 575 000 as it has spread out into ever-more sectors of the economy.
Company profits, which long played second fiddle to revenue growth, have shown impressive gains. In the most recent quarter, Amazon reported US$2.5 billion in profits, a 12-fold increase over the year-earlier period. – Nampa/AFP
Nigeria raises heat on MTN with tax bill
Nigeria landed MTN Group with a US$2 billion tax bill on Tuesday, marking the South African mobile phone company's latest skirmish with authorities in its most lucrative market.
Last week Nigeria's central bank ordered MTN's Lagos-based unit to hand over US$8.1 billion that it said was illegally sent abroad, raising questions about doing business in the west African country.
Nigerian politics are seen by some analysts as a factor in the pressure on MTN. President Muhammadu Buhari, who swept to power in 2015 on promises to fight corruption and push through tougher regulation, is seeking re-election in next year's polls.
The latest clashes with MTN come about two years after it agreed to pay more than US$1 billion to settle a dispute over SIM cards in Nigeria, whose finances have been hit by a weak economy and volatile prices of crude oil.
But analysts the size of the demands against MTN risk further undermining Nigeria's efforts to shake off an image as a risky frontier market for investors.
Qatar Airways rethinks Indian plans
Qatar Airways is reviewing plans for its own domestic Indian airline due to "confusing" foreign ownership rules and could work with a partner in India or take a stake in IndiGo instead, its chief executive said on Tuesday.
The state-owned Gulf carrier has long coveted the Indian aviation market, which is the fastest growing in the world, and in 2017 said it would set up a domestic airline, a year after India eased foreign investment rules for the sector.
India now allows 100% ownership of India-based airlines, up from 49%, but only with government approval. Meanwhile, foreign airlines continue to be limited to 49% ownership.
Qatar Airways has been interested in investing in IndiGo for several years, though never bought into the airline.
Bayer profits plunge as Monsanto buyout bites
German chemicals and pharmaceuticals giant Bayer reported higher revenues but lower profits for the second quarter yesterday, in its first financial statement since its mammoth takeover of US-based Monsanto.
Between April and June - including the weeks between finalising the Monsanto purchase on 7 June and the end of that month - the group booked net profits of 799 million euro (US$926 million).
That figure was 34.7% lower than a year before.
But revenues increased, from 8.7 billion to 9.5 billion.
Bayer's US$63-billion buyout of Monsanto - the biggest ever foreign takeover by a German company - aimed at creating an agrichemical giant offering specialised seeds, including for genetically modified crops, compatible pesticides and data services for farmers. – Nampa/AFP
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