Boeing gives up planned billions takeover in Brazil

Embraer

The Brazilian company wanted to sell its jet division.


(Photo: Reuters)

After years of preparations, the US aircraft manufacturer has canceled a major takeover in Brazil. Boeing had 80 percent of the Jet division of in a $ 4.2 billion transaction Embraer want to take over the German-French competitor airbus Attack up to 150 seats even on medium-sized aircraft.

However, Boeing announced on Saturday that Embraer had failed to meet certain contractual terms within the agreed deadline. Therefore, end the transaction. The Brazilian aviation group Embraer, who had previously described the deal as vital, initially did not want to comment.

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Telefonica plans to sell radio masts for 1.5 billion euros

Telefonica

Telefonica Germany already sold a good 2,000 transmission towers to Telxius in 2016.


(Photo: dpa)

Berlin The Spanish telecom giant Telefonica is conducting negotiations with telecommunications infrastructure company Telxius on the sale of radio masts from its German subsidiary Telefonica Deutschland, according to a media report. The Spanish newspaper “Expansion” reported on Friday that a sales sum of 1.5 billion euros was under discussion.

It is about up to 10,000 masts. Telxius is more than 50 percent owned by Telefonica, further shareholders are the financial investor KKR and the investment fund Pontegadea, which belongs to the textile billionaire Amancio Ortega. Telefonica and Telefonica Deutschland did not want to comment.

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Facebook’s India bet is risky but forward-looking

Mukesh Ambani

Behind the conglomerate Reliance Jio is one of the richest men in Asia.

(Photo: AP)

Mark Zuckerberg is not afraid of big bets. In 2014, he bought the Instagram platform for a billion dollars. The takeover of the virtual reality company followed two years later Oculus for $ 2 billion and the purchase of WhatsApp for $ 19 billion.

If the FacebookBoss strikes, he usually ensures control. Not so with the latest deal. Facebook bought ten percent of the shares in the conglomerate Reliance Jio for $ 5.7 billion. The step represents an important experiment by the company.

Jio is an attacker in the Indian market. The mobile phone brand has managed to change the Indian telecommunications market with competitive prices. Today the brand is the market leader, setting rivals like Vodafone vacuum. Behind the company is one of the richest men in Asia: Mukesh Ambani. With the rise of Jio, the company has amassed a lot of debt. Since the money from Facebook is just right.

But Zuckerberg would not invest such sums unless he had a long-term business model in mind. With 1.3 billion people, India is one of the most important future markets in the world. Only China has a larger population, but Beijing blocks Facebook from the market. In India, the group has 400 million users on WhatsApp. However, expansion plans repeatedly failed due to regulatory concerns.

With the new alliance of Facebook and Jio, things could be different. Facebook’s stated goal is to establish WhatsApp as an important channel for business people. The connection with Jio’s online marketplace JioMart fits this. The alliance could also help roll out a payment system based on WhatsApp in India. This is not only interesting for India. So far, Facebook’s attempts to generate significant income with WhatsApp have largely failed.

The question is whether Facebook could not have had such a partnership cheaper. Strategic participation is not absolutely necessary for an alliance. The reason for the move could be in China. Facebook rival Tencent is trying to roll out its communication and payment platform WeChat more globally. Other Chinese technology companies such as Xiaomi or Huawei are already strongly represented in India. Facebook probably wanted to preempt its competitors from China.

The future Facebook and Jio initiatives should not only be interesting for India. If Facebook succeeds in expanding WhatsApp as a payment and business platform, the group should be able to copy the concept to other countries. Tech companies in Europe should therefore follow developments in India very closely.

More on the subject: The corona crisis will Google, Apple, Facebook and Amazon make it even more powerful.

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Immofinanz appoints investor Pecik as the new head of the group

Logo of Immofinanz in Vienna

Due to the corona crisis, Immofinanz is currently not in discussions with its potential merger partner S Immo.


(Photo: Reuters)

Vienna The Austrian real estate company Immofinance gets a new CEO with the investor Ronny Pecik. Pecik will take over the chair for three years from May 4, Immofinanz announced on Thursday after the decision of the supervisory board. The executive chair was released after CEO Oliver Schumy prematurely vacated his chair in mid-March. A possible merger between Immofinanz and the rival S Immo could come closer because Pecik holds shares in both companies.

“Ronny Pecik is a leading entrepreneur and, due to his many years of experience in board and supervisory board positions, represents a particular strengthening of the board in challenging times like these,” said supervisory board chief Michael Knap. “In addition, due to his participation in Immofinanz, there is also a strong corporate responsibility,” added Knap.

Together with another investor, Pecik holds around 10.7 percent in Immofinanz. He also owns around 14.2 percent of the shares in S Immo. Between Immofinanz and S Immo there is a new attempt for a merger in the room. Due to the corona crisis, there are currently no talks, Immofinanz said recently.

More: The investor Petrus Advisers supports the merger of Immofinanz and S Immo.

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Vonovia is considering a new attempt to take over Deutsche Wohnen

Vonovia headquarters in Bochum

The housing group is continuously reviewing possible acquisitions from competitors.


(Photo: dpa)

Bochum The housing company Vonovia According to informed circles, is considering a new attempt at its competitors German living to take over. If a deal succeeds, a real estate giant valued at EUR 37 billion could emerge.

As can be heard, Vonovia is now working with consultants on a feasibility study for a friendly takeover that would have the blessings of both the German Housing Management and the Berlin Senate. According to the information, there are also potential tax hurdles to be overcome.

The plans attract attention, given that the German capital is a difficult market given the five-year rent cap. A decision by the Federal Constitutional Court on whether the rental cover violates the Basic Law is still pending.

A Vonovia bid for Deutsche Wohnen can only be expected when the situation regarding the corona crisis has eased, it said. The restrictions on public life in Germany are to be gradually relaxed this month and next.

Final decisions about a takeover have not yet been made, and it may also be that no bid is made.

Vonovia said on Thursday morning in an ad hoc announcement that acquisitions were “an integral part” of the company’s strategy and were “being continuously reviewed”. A transaction with Deutsche Wohnen would “only be realistic if fundamental questions were clarified and if they were supported by the will of the Berlin politicians, who are currently working flat out to deal with the corona crisis”.

Deutsche Wohnen could not be reached for an immediate comment. The Group’s market value is currently around EUR 12.7 billion. Vonovia is valued at around 24.3 billion euros.

A consolidation is taking place in the German real estate sector. Berlin-focused Ado Properties – market value of 1.7 billion euros – completed the acquisition of Adler Real Estate AG this month. Agreed in November Aroundtown the purchase of TLG Immobilien. Germany’s largest landlord of commercial real estate is being created with the share transaction worth EUR 3.1 billion.

More: Vonovia maintains profit targets despite corona crisis.

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Facebook buys from an Indian telecommunications company

Facebook

India is the largest market for the Whatsapp news platform with around 400 million users.

(Photo: AP)

Bangalore The US technology group has invested $ 5.7 billion in the Indian company’s telecommunications unit Reliance Industries announced. The social media giant said it will focus on the collaboration of its messaging platform WhatsApp with Reliances e-commerce project “JioMart”. Facebook’s stake would be 9.99 percent, Jio said in a statement.

According to media reports, WhatsApp had received approval for the launch of its digital payment service in India shortly before the deal to match the comparable products from Google Pay and Paytm to compete. India is the largest market for the news platform with around 400 million users, around 80 percent of smartphone users use the messaging service.

More: How stolen Facebook data could become propaganda tools

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Precision Castparts paid for too much for a Krefeld company

Warren Buffett

Precision Castparts has been part of Buffett’s Berkshire Hathaway conglomerate since 2015.


(Photo: Reuters)

Denver Star investor Warren Buffett has been looking for takeover opportunities in Germany for years. Precision Castparts, a subsidiary of its conglomerate Berkshire Hathaway, struck in 2017 and took over the Krefeld millel stand Wilhelm Schulz GmbH.

Now it turns out that Precision Castparts apparently paid far too much for this. The Berkshire subsidiary is to be reimbursed 643 million euros, an arbitration panel decided last week in the United States.

Precision Castparts had accused the Krefeld company of falsifying invoices and orders in order to artificially increase sales and profits. The arbitral tribunal confirmed that.

In the months before the takeover at the beginning of 2017, Schulz GmbH’s actions should have increased, apparently also to avoid impending insolvency, according to the ruling, which still has to be confirmed by a judge in the USA.

The arbitration court emphasized that the situation was clear. Precision Castparts “extensively showed” how the company was deceived by Schulz. The actual purchase price should therefore have been around 157 million euros instead of 800 million euros. Berkshire Hathaway did not want to comment on the ongoing proceedings.

Wilhelm Schulz GmbH was the world’s leading manufacturer of pipe accessories and was already a Precision Castparts customer before the takeover. The Portland, Oregon, US company manufactures metal industrial components needed for aircraft engines and power plants, as well as tubes for the oil and gas industry.

It has been part of Buffett’s conglomerate since 2015. The star investor from Omaha, Nebraska, paid around $ 37 billion at the time, making it the largest acquisition in Berkshire’s company history.

“We are disappointed with the outcome of the arbitration and think the decision is wrong. Our lawyers are currently examining possible legal steps, ”said a spokesman for Wolfgang Schulz of the“ Rheinische Post ”. The case also concerns the authorities in Germany. The public prosecutor’s office in Düsseldorf is investigating eight suspects, but none of them are in custody.

With agency material

More: Warren Buffett puts a finger in the wound. A comment.

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Karstadt Kaufhof complains about opening branches in NRW

Kaufhof in Cologne

The owner Signa merged Karstadt and Kaufhof and has been running them under the common name Galeria Karstadt Kaufhof since March.

(Photo: picture alliance / dpa)

Dusseldorf The ailing department store giant Galeria Karstadt Kaufhof is taking legal action against the closure of its branches in the corona crisis. The group has filed a lawsuit against the Münster Higher Administrative Court against the fact that department stores in North Rhine-Westphalia are not allowed to open.

According to the court, the country has now been given the opportunity to comment. A decision could be made in the coming week. A group spokesman initially did not want to comment.

Galeria Karstadt Kaufhof with its 28,000 employees is particularly affected by the store closures. Except for food and drugstore departments, which are separately accessible, all houses must remain closed due to the corona crisis.

According to the company, the company therefore misses a turnover of around 80 million euros every week. If the closure lasts until the end of April, the loss of sales should have totaled half a billion euros.

The governments had announced that the shops would gradually reopen on Monday. However, in a first step, only shops with an area of ​​less than 800 square meters are allowed to open. The Karstadt and Kaufhof stores have an average sales area of ​​12,500 square meters.

However, the state of North Rhine-Westphalia has embarked on a special route: it also allows furniture stores, including those of the large Ikea chain, and baby specialty stores to be opened. Galeria is not covered by this regulation. Several retail chains and associations had already criticized that this would result in an arbitrary distortion of competition.

Another way out remains Galeria in North Rhine-Westphalia: The state government has already announced that it should not be possible in NRW to reduce the sales area to 800 square meters by barriers, so that it can at least partially open. Other federal states, such as Lower Saxony, had promised this.

Group struggles for survival

Due to its difficult situation, Galeria Karstadt Kaufhof had applied for self-administered protective shield proceedings in early April. The protective shield procedure is considered the preliminary stage of insolvency, follows the same rules and often leads to a regular insolvency procedure.

It is reserved for companies that are not yet insolvent, but are at risk of bankruptcy. Under the protective shield, they are safe from access by creditors for three months and should therefore have enough time to organize their finances.

As has now become known, the Signa holding company of the Austrian investor René Benko sells 17 properties from the ailing department store chain Galeria Karstadt Kaufhof. The buyers are funds from the financial investor Apollo EPF. According to the Bloomberg news agency, the purchase price is around 700 million euros. That is exactly the same amount that Benko claims to have invested in Galeria as an additional capital injection.

A Signa spokesman declined to comment on Friday. The transaction was already registered for review at the Federal Cartel Office at the end of March, and the competition authorities released the sale on Wednesday this week. Signa has been the sole owner of the troubled department store group Galeria Karstadt Kaufhof and numerous department store properties of the company since June 2019.

More: Return to normality: what the relaxation of the corona rules means for the trade

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Karstadt owner Benko sells 17 properties to funds

Dusseldorf The Signa-Holding des Austrian investor René Benko sells 17 properties from the ailing chain of department stores Galeria Karstadt Kaufhof. The buyers are funds from the financial investor Apollo EPF.

According to the Bloomberg news agency, the purchase price is around 700 million euros. A Signa spokesman declined to comment on Friday. The transaction was already registered with the Federal Cartel Office for review at the end of March. The competition keepers have released the sale.

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Telekom receives final approval for US merger

T-Mobile merges with Sprint

Dusseldorf The Deutsche Telekom has received final approval for the reorganization of its business in the United States. The California Public Utilities Commission (CPUC), the California public utilities regulator, pioneered the merger of the Telekom subsidiary on Thursday T-Mobile US with the Rival sprint free.

This finally seals the billion-merger of number three and number four in the US mobile communications market. The companies had already started merging their businesses two weeks ago.

The merger creates a powerful player in the American mobile market. T-Mobile, as the merged company should be called, has a market capitalization of around $ 110 billion.

At the end of 2019, the two companies had a combined total of 140 million customers and sales of almost $ 80 billion. Telekom anticipates $ 43 billion in synergies after costs are deducted.

Of the DaxCorporation controls 67 percent of the voting rights in the combined company and receives the largest share in the new company with 43 percent. The Sprint majority owner Soft bench takes over 24 percent, the rest goes to free shareholders.

Telekom boss Timotheus Höttges said at the end of the deal to Handelsblatt: “We can become number one on the market.” Telekom could become the market leader AT&T and Verizon unlock.

More: Interview with Telekom boss Höttges: Of the In an interview, Dax’s board speaks about the stability of the network, a possible corona app – and the great challenges of the pandemic.

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