LVMH to buy Tiffany – shares up

The French luxury group LVMH Moët Hennessy Louis Vuitton SE (MC) and the US jeweler Tiffany & Co. (NYSE: TIF), have today announced that the companies have entered into a definitive agreement.

This means that LVMH (MC) will acquire Tiffany for $135 per share in cash, in a transaction with an equity value of approximately €14.7 billion or $16.2 billion.

Tiffany´s share is trading at 133,02 dollars, up 5,98 % and LVMH´s at 402,20 euros, up 1,50 %.

According to the Tiffany´s and LVMH´s joint press release, the acquisition of Tiffany will strengthen LVMH’s position in jewelry and further increase its presence in the United States. The addition of Tiffany will transform LVMH’s Watches & Jewelry division and complement LVMH’s 75 distinguished Houses.

-We are delighted to have the opportunity to welcome Tiffany, a company with an unparalleled heritage and unique position in the global jewelry world, to the LVMH family. We have an immense respect and admiration for Tiffany and intend to develop this jewel with the same dedication and commitment that we have applied to each and every one of our Maisons. We will be proud to have Tiffany sit alongside our iconic brands and look forward to ensuring that Tiffany continues to thrive for centuries to come, Bernard Arnault, the chairman and CEO of LVMH said in the release.

– Following a strategic review that included a thoughtful internal process and expert external advice, the Board has concluded that this transaction with LVMH provides an exciting path forward with a group that appreciates and will invest in Tiffany’s unique assets and strong human capital, while delivering a compelling price with value certainty to our shareholders, Roger Farah, chairman of the Board of Directors of Tiffany, said.

According to the release, the transaction is expected to close in the middle of 2020 and is subject to customary closing conditions, including approval from Tiffany’s shareholders and the receipt of regulatory approvals.

 

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Tesla to introduce all-electric Cybertruck

The US electric car manufacturer Tesla (TSLA) has introduced all-electric “Cybertruck” in the US on Thursday.  According to the company, Cybertruck is designed to have the utility of a truck and the performance of a sports car.

-The vehicle is built to be durable, versatile and capable, with exceptional performance both on-road and off-road. Cybertruck will come in three variants: Single Motor Rear-Wheel Drive, Dual Motor All-Wheel Drive, and Tri Motor All-Wheel Drive, Tesla writes.

The all-electric truck will have a range of 500+ miles and the car is made of cold-rolled stainless steel. “If there was something better, we´d use it”, the company says. The car has seating capacity for six adults and the touchscreen size is 17´ and the starting price is 39.900 dollars.

CEO Elon Musk did not comment the deliveries during the launch event. The event itself and the comments about the design, which looks like a moon/space car, were somewhat doubtful and mixed and the share price closed down 6,14 % to 333,04 dollars in New York on Friday.

  • Cybertruck 1
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Facebook to move to Hudson Yards, New York

The US tech company Facebook (FB) is increasing its presence in New York. The company has agreed to rent three towers totalling 139.000 m2 in the three developing buildings in the west side area of Manhattan, Hudson Yards. According to the information, the employees are moving already next year to the new offices.

The Hudson Yards has got several real-estate certifications for its sustainable buildings, materials and public transport. The area has already Leed Platinum for Hudson Years 10 and the Eastern Yards has got Leed- Neighborhood Development Gold (Leed ND).

The area is expected to gain more than 20 million visitors annually.  The area is having over 14 acres of public plazas, gardens and over 100 different shops and high-end retailers. The shops include for example luxury brands like Dior, Tiffany and Watches of Switzerland.

Facebook shares closed down 0,02 % to 193,15 dollars in New York on Thursday.

 

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Tesla to build the new factory in Berlin, Germany

The US auto tech company  Tesla (TSLA) CEO Elon Musk said today that the next new vehicle factory, Gigafactory 4, will be build in Germany, near the “Berlin area”. According to him, the new plant will include also engineering and design centres for Tesla.

The new factory plant has been in the headlines for some time now and on Tuesday Mr. Musk revealed it in an auto event in Germany. The new site would focus on building the Model 3 and Y vehicles and the target opening of the factory is by the end of 2021.

In Europe Tesla has at the moment the Tilbury factory in the Netherlands, where the company  is having local assembly, quality testing and distribution for the Model S and X vehicles sold in the EU.

In the US, Tesla is having the Fremont factory in California, the Gigafactory 1 in Nevada and Gigafactory 2 in New York. The latest factory is located in Shanghai, China for the Asia markets.

Tesla shares closed up 1,40 % to 349,93 dollars in New York on Tuesday.

 

 

 

 

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European banking sector in structural change

The European banking and financial sector is under structural change. During the last few months there has been wider discussion of the risk management and compliance related to banking sector.

The finance ministers of Germany, Holland and France have raised the topic in order to boost the banking union, but also to prevent the lately seen money-laundering scandals. For example the Dutch finance minister Woke Hoekstra told Bloomberg, that he thinks the Banking Union is the missing link in the European banking world in order to operate properly.

– The different sovereign debts are not the same, the risks are not the same, while there is no risk free sovereign debt, he said in the interview. He made his comments about the possible EU-wide “joint deposit insurance” for the banking sector for risk sharing and management.

The France finance minister Bruno Le Maire told Financial Times in October that the EU should consider an European wide, new, independent anti-money laundering institution to gain the confident in the banking sector back and to prevent new banking scandals. This kind of new independent institution would guide the sector related for example to customer due diligence, compliance and other safeguards.

During this year the Stoxx Europe 600 Banks index has decreased by 5,13 % compared to German Dax-index with a gain of 14,7 % gain this year or the French CAC 40-index 15,3 % increase.

 

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Apple to launch euro-denominated Green Bonds

The US tech company Apple (AAPL) launched last week two euro-denominated Green Bonds with maturities of 6 and 12 years. According to the company the aim of the new Green Bonds is to foster energy efficiency in the company supply chain and products and cut carbon emissions. Total amount is 2 billion euros.

The company has three environmental priorities in its framework which the bonds are targeted also:

  1. Climate change: Mitigate the company impact on climate change by reducing the comprehensive carbon footprint.
  2. Smarter Chemistry: Pioneer the use of greener materials in the company products and processes.
  3. Resources: Conserve Earth’s resources by transitioning to recycled and renewable materials in the products, and by minimizing water and waste in the company operations and throughout the product lifecycle.

Apple said also that it intends to list the bonds in the Nasdaq Bond Exchange.

The Green Bonds markets have been growing steadily this year and it is expected that the overall issuance will reach over 200 billion dollars this year.

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Google to buy wearable Fitbit in the US

The US tech company Alphabet Inc´s Google has made 2,1 billion dollars offer to buy the wearable fitness company Fitbit (FIT) in the US.  According to the companies, Google is investing more in its Wear Os to balance the wearables markets with Apple Watch, Samsung, Huawei and Xiaomi alike.

The deal is expected to face anti-competitive process by the US authorities related to consumer data and privacy. According to Google (GOOGL), the consumer data is kept well and no Google adds will be included. The deal is expected to be finalised during the next year.

The offer, which gives an 19 % premium to Fitbit´s share price compared to Thursday, means an offer of 7,35 dollars a share. Reuters reported on Monday that such a deal is proceeding and after that the share price has increased about 40 % in New York.

 

 

 

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