MIDDAY BRIEFING – Companies and Markets -2-

After the resignation of Deutsche Bahn Supervisory Board Chairman Michael Odenwald, the Federal Ministry of Transport announced that it would make a decision “as soon as possible” about his successor. “You can assume that the same standards will be applied here as (to) previous appointments and that this will be decided as soon as possible,” said ministry spokesman Tim Alexandrin at a press conference in Berlin.

Dic Asset extends CEO Wrntges’ contract by five years

The real estate investor Dic Asset binds its CEO for another five years. As the SDAX company announced, the Supervisory Board has extended CEO Sonja Wrntges’ contract until June 30, 2027. She has been running the company since 2017.

Economy Ministry considers expropriation of Nord Stream 2 – report

According to a report by Der Spiegel, the Federal Ministry of Economics is considering expropriating the controversial Nord Stream 2 natural gas pipeline. Consideration is being given to expropriating the part of the pipe system on German territory and cutting it off from the rest of the pipeline. The pipes, which lead from land to sea, could then be connected to a mobile LNG terminal.

Steinhoff increases sales and continues to make losses

The furniture retailer Steinhoff made more sales and operational earnings in its continued business in the first half of the year. The bottom line is that the company, which is still struggling with the aftermath of the accounting scandal a few years ago, continued to report a loss.

Tui boss Joussen resigns prematurely

The travel group Tui gets a new CEO. As the company announced, Friedrich Joussen has relinquished his right to resign from his position as a member of the Management Board as of September 30. CFO Sebastian Ebel is to be his successor.

Barclays buys Kensington Mortgage Co. for around £2.3bn

Barclays is to acquire UK mortgage lender Kensington Mortgage Co. and a related portfolio of UK mortgages for around £2.3 billion. As the British bank announced, the sellers are companies that are in turn controlled by funds. Some of these funds are managed by Blackstone Tactical Opportunities Advisors LLC. managed, others are with Sixth Street Partners LLC. tied together.

Strike ended at the world’s largest copper producer in Chile

The strike at Chilean copper group Codelco ended after just one day. In the case of the controversial Ventanas foundry, management and the union agreed on a compromise – the planned closure will extend over five years, 300 employees will be employed elsewhere, as both sides announced on Thursday. The mine is to be closed for environmental reasons.

Valuation of the Swedish fintech Klarna drops massively – circles

For the Swedish payment provider Klarna, the ratings are going down again after the massive increase in the past two years. The loss-making start-up is currently negotiating with investors for new financing, according to people familiar with the proceedings. However, the valuation that investors give the company has recently fallen to $30 billion and then to $15 billion, one of the people said.

Stellantis takes a stake in lithium company Vulcan Energy

Stellantis is driving the expansion of its value chain for its battery production. As the car company announced, it is investing EUR 50 million in the lithium company Vulcan Energy and is becoming the second largest shareholder. The companies have also extended their offtake agreement to 10 years.

US software company Zendesk about to be taken over by financial investors – circles

One of the biggest private equity deals of the year is looming in the USA. According to people familiar with the events, Zendesk Inc, a customer service software provider, is about to be taken over by a group of financial investors led by Hellman & Friedman and Permira, worth billions. Zendesk had previously failed in an attempt to sell itself.

Voestalpine sees its gas supply in Austria secured for the time being

Voestalpine’s Austrian production sites are currently sufficiently supplied with gas. The Austrian steel group said it was not affected by the throttling of delivery volumes through the Nord Stream 1 Baltic Sea pipeline. The plants would mainly be supplied via the Transgas pipeline running through Slovakia. In the event of a delivery stop from Russia, Voestalpine is prepared, the company has already contractually secured alternative delivery quantities.

Zurich sells legacy German life insurance to Viridium

The insurer Zurich is parting with its old portfolio of traditional life insurance policies in Germany. As the Swiss group announced, it is selling the portfolio to Viridium, a company specializing in the management of life insurance portfolios. With the deal, Zurich reduces its capital intensity and interest rate risk and thus strengthens its capital ratio.

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(END) Dow Jones Newswires

June 24, 2022 07:12 ET (11:12 GMT)

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