Valentino deal gives Qatari royals foot in Kering's door | Reuters
Kering's (PRTP.PA) deal to acquire a 30% stake in Valentino gives the Qatari royal family a foot in the door of a much bigger luxury giant, as they consider further joint investments with the French group to expand their alliance.
Kering said on Thursday it was buying the stake for 1.7 billion euros ($1.87 billion) in cash from Mayhoola, the investment vehicle backed by the Qatari royals, with an option to purchase the remaining shares no later than 2028.
The deal, hot on the heels of Kering's acquisition of high-end perfumer Creed, highlights the return of big-ticket M&A activity in the sector as luxury groups look to diversify sources of revenue against an uncertain economic background and slowing demand.
It also paves the way for the Qatari royals to play a higher-profile role in the 400-billion euro luxury goods market, traditionally dominated by family-owned European companies.
The Valentino investment is part of a broader strategic partnership between Kering and Mayhoola, which could lead to Mayhoola becoming a shareholder in the French group, Kering said late on Thursday.
Mayhoola aims to build a stake in the luxury giant by initially acquiring shares in the market, a source with knowledge of the deal said on Friday.
In five years Mayhoola could further increase its stake by selling the remaining 70% of Valentino to Kering for a mix of cash and Kering shares, the source said. Mayhoola bought the Rome haute couture house in 2012 from private equity fund Permira for around 700 million euros.
UAE market closes higher on rate pause optimism | Reuters
Stock markets in the United Arab Emirates (UAE) rose on Friday, as investor confidence improved on expectations that central banks such as the U.S. Federal Reserve and European Central Bank are nearing the end of policy tightening campaign.
Central banks delivered quarter-percentage-point rate increases this week despite cooling inflation, but have now switched to a more cautious posture about further moves in a sign that a year-long round of global monetary tightening could be at an end.
In Dubai, the main share index (.DFMGI) settled 0.2% higher, supported by a 1.1% gain in Emirates Central Cooling Systems Corp (EMPOWER.DU) and 1.2% increase in business park operator Tecom Group (TECOM.DU).
Among the gainers, Dubai exchange operator Dubai Financial market (DFM.DU) gained 1.2% after the company reported more than 100% growth in its Q2 net profit to AED 76.6 million dirhams ($20.86 million).
Alpha Dhabi Holding (ALPHADHABI.AD)'s 1.1% hike and Rak properties (RAKPROP.AD)'s 5.3% jump helped Abu Dhabi's benchmark index (.FTFADGI) to stay in green territory with index edging up 0.01%.
However, IHC-owned building material provider Apex Investment (APEX.AD) slumped 5.4% after the firm posted 8.6 mln dirhams ($2.34 mln) losses in the second quarter
Both the benchmark indexes in Dubai and Abu Dhabi posted weekly gain of 1.3% and 1.4% respectively, according to refinitiv data.
Middle Eastern Oil Market Dynamics Upended by OPEC+ Supply Cuts - Bloomberg
The supply cuts imposed by OPEC+ are reverberating in Middle Eastern crude markets, with Asian buyers turning to US barrels and putting a lid on a key light variety, while aiding more sulfurous, sludgy cargoes.
The premium of Abu Dhabi’s flagship Murban, which is less dense than other Middle Eastern grades such as Dubai and Oman, has been hurt as importers undertake a buying spree of comparable light US oil. In this monthly cycle, they’ve picked up about 50 million US barrels, more than usual, traders said.
At the same time, heavier barrels remain in favor given the cuts delivered by Saudi Arabia have tightened supplies of these grades. In the middle of the month, more sulfurous Oman was valued above Murban, a rare reversal.
Led by Riyadh and Moscow, the Organization of Petroleum Exporting Countries and its allies have been cutting production to stem a slide in prices that dominated the first half. Their tactic appears to be yielding dividends, with Brent rebounding by about 12% in July. It’s also altering underlying market dynamics as users adjust to lower availability of certain grades.
From here, medium and heavy-sour grades — such as Oman, Upper Zakum and Al-Shaheen — will keep outperforming lighter varieties given the curbs, according to Energy Aspects Ltd. In these circumstances, Murban will be setting key measures like Dubai timespreads, the industry consultant said in a note.
Saudi Arabia is seen extending its voluntary 1 million-barrel cut into September, according to 15 of 22 traders, analysts and refiners surveyed by Bloomberg.
Abu Dhabi's Borouge sees Q2 profit drop 53% on lower revenue
Abu Dhabi-based specialty chemicals company Borouge Plc said net profit for the second quarter of 2023 declined 53% to $231 million from $490 million a year ago due to a fall in average sales prices.
Total revenue fell 25% to $1.41 billion in the April to June period from $1.87 billion a year earlier, it said on Friday in a regulatory filing on the Abu Dhabi Securities Exchange where its shares trade.
Average selling prices of polyethylene dropped to 23.2% year-on-year (YoY) $1,166 per tonne, while polypropylene prices fell 27% YoY to $1,041 per tonne in Q2 2023.
Borouge’s board endorsed a $650 million interim dividend for the first half and affirmed a total dividend payout of $1.3 billion for 2023.
Brazil's Vale to sell 13% stake in base metals unit for $3.4 bln | Reuters
Brazilian miner Vale (VALE3.SA) said on Thursday it reached two separate agreements to sell a 13% stake in its base metals business for $3.4 billion, aiming to boost its copper and nickel output.
The sale is part of Vale's strategy to unlock more value from its nickel and copper assets, given expectations for soaring demand for the metals from the electric vehicle market.
A joint venture formed by Saudi Arabian Mining Co (Ma'aden) (1211.SE) and the country's Public Investment Fund (PIF) will acquire 10% of Vale's base metal unit, while U.S. investment firm Engine No. 1 will acquire 3%.
The cash deal expected to close by the first quarter of 2024 values the company's base metals unit at an enterprise value of $26 billion, it said. Vale's market capitalization in the Brazilian stock exchange was $67.4 billion, based on Thursday's closing price.
