International News 19/08
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US crude oil reserves rise, while fuel oil stocks fall
The Energy Information Administration (EIA) has announced that US crude oil reserves increased by 1.36 million barrels to a total of 430.7 million barrels last week. This figure is below the 2.2 million barrel build that analysts had predicted. However, crude stocks at the Cushing delivery centre in Oklahoma saw a decrease of 1.7 million barrels over the same period. The EIA also revealed that refinery crude oil output increased by 65,000 barrels per day, while the refinery utilisation rate rose by 1 percentage point to reach 91.5%. Conversely, gasoline stocks in the US experienced a decline of 2.9 million barrels, reaching 222.2 million barrels. Additionally, refined oil stocks, including diesel and heating oil, saw a reduction of 1.7 million barrels, resulting in a total of 126.1 million barrels. These figures diverge from the projections of analysts surveyed by Reuters.
Snack manufacturer Mars to acquire Kellanova for US$ 36 billion
Mars, the company behind popular food brands such as M&M and Snickers, has agreed to purchase Kellanova, the maker of Cheez-It and Pringles, in a deal valued at approximately $36 billion. Mars will pay $83.50 per share in cash for Kellanova shares, representing a premium of approximately 33% over the closing price of Kellanova shares on 2 August.
This acquisition by Mars coincides with a period of slowing sales growth for US packaged food companies such as Kraft Heinz, Mondelez, and Hershey. Consumers are increasingly turning to more affordable options in lieu of premium branded products, leading to a period of consolidation within the packaged food sector.
The agreement between Mars and Kellogg's brings together well-known consumer brands, including Mars' Twix, Bounty, and Milky Way chocolates, along with Kellogg's snack portfolio of Pop-Tarts, Rice Krispies Treats, and Eggo frozen waffles. It is anticipated that the acquisition will encounter few antitrust regulatory obstacles, given the minimal overlap between the two companies' product offerings.
MUFG Group Posts Net Profit of 555.89 Billion Yen in Q2-2024
Mitsubishi UFJ Financial Group (MUFG) reported a net profit of 555.89 billion yen for the second quarter of 2024, compared with 558.38 billion yen for the same period last year. This represents a slight decrease of 0.44% year on year. The profit was supported by an increase in interest income and commission income. MUFG's interest income increased by 40.81% to 2.35 trillion yen, while commission income increased by 21.88% to 557 billion yen. However, MUFG also experienced an increase in expenses, with total expenses rising 36.27% to 2.79 trillion yen. The largest contributor to this increase in expenses was interest expenses, which totalled 1.52 trillion yen. In addition, MUFG's total assets grew from 403.7 trillion yen in March 2024 to 407.3 trillion yen at the end of June 2024. Overall, MUFG reported a slight decline in net income, but saw growth in revenues and assets.