International News 17/09
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DSV to Buy German Logistics Company Schenker for US$ 15.85 Billion
The Danish logistics company DSV has entered into an agreement to acquire Schenker, the logistics division of the German state railway operator Deutsche Bahn, for a transaction value of 14.3 billion euros. This transaction will result in DSV becoming the largest logistics company in the world. The acquisition, to be funded through a combination of equity and debt financing, will propel DSV ahead of Swiss group Kuehne + Nagel in terms of volume and revenue. DSV believes there is a strong strategic fit between the two groups and expects Schenker to contribute to business growth, job creation and financial returns. As part of the agreement, DSV has pledged to invest 1 billion euros in Germany over the next three to five years and to retain key personnel in the country. The transaction is still subject to regulatory approval.Midea to raise US$4bn on Hong Kong Exchange, biggest IPO in 3 years
Chinese home appliance giant Midea Group is poised to raise $4 billion through its initial public offering (IPO) on the Hong Kong Stock Exchange, marking the largest share sale in three years. The listing will result in a valuation discount of approximately 20% for its shares in Shenzhen. Midea plans to sell 566 million shares at a price of HK$54.80 per share, with the listing scheduled for Tuesday. The sale is still subject to ongoing discussions and a final decision has yet to be made. Midea's listing is expected to be Hong Kong's biggest debut since Kuaishou Technology's $6.2 billion listing earlier this year. However, Midea representatives declined to comment on the matter.
US Crude Oil, Gasoline and Distillate Stocks Rise in First Week of September
In the week ending 6th September the Energy Information Agency (EIA) reported an increase in US crude oil, gasoline and distillate inventories. Crude oil inventories rose by 833,000 barrels to 419.1 million barrels, although this was less than analysts had expected. Crude oil inventories at the Cushing, Oklahoma delivery hub fell by 1.7 million barrels during the week. Refinery crude oil production also fell by 141,000 barrels per day and refinery runs fell by 0.5%. Gasoline stocks rose by 2.3m barrels to 221.6m barrels, exceeding analysts' forecasts. Distillate stocks, which include diesel and heating oil, also rose by 2.3m barrels to 125m barrels. In addition, US crude oil imports rose by 1.53 million barrels per day.