2025-08-25 06:49
Aug 25 (Reuters) - Keurig Dr Pepper (KDP.O) , opens new tab will buy Dutch coffee company JDE Peet's (JDEP.AS) , opens new tab for 15.7 billion euros ($18.4 billion) in cash, a 20% premium to its stock market valuation at the end of last week, the U.S. company said on Monday. Shares of JDE Peet's jumped 18% in early trade, on track for their best day on record. Sign up here. The merged company, aiming to expand its coffee offering to more than 100 countries, plans to separate its beverage and coffee units "as soon as practicable", Keurig said. The two resulting companies, "Beverage Co." and "Global Coffee Co.", will be listed in the United States, and led by Keurig CEO Tim Cofer and CFO Sudhanshu Priyadarshi, respectively. Keurig said that Global Coffee Co., with around $16 billion in combined annual net sales, will be well positioned to profit from the world's $400 billion coffee market, while Beverage Co., with more than $11 billion in yearly net sales, will focus on North America's $300 billion refreshment beverage market. Keurig Dr Pepper, created in 2018 through the merger of Keurig Green Mountain and Dr Pepper Snapple, owns brands including Dr Pepper, Snapple, 7UP, and Green Mountain Coffee. The company has a market valuation of about $48 billion, while Amsterdam-listed JDE Peet's, with brands including Jacobs, L’Or, Tassimo and Douwe Egberts, was valued at 12.76 billion euros at Friday's market close, according to LSEG data. Keurig's shares have risen nearly 10% this year on strong beverage sales. Both it and JDE Peet's have flagged the impact of high coffee bean prices, which are seen rising again after U.S. President Donald Trump slapped a 50% levy on beans imported from Brazil from August 6. Prices of Arabica and Robusta beans touched record highs this year as unpredictable weather patterns pressured supply, and have been volatile recently. JDE Peet's is majority-owned by Germany’s JAB, which also holds a significant minority stake in Keurig Dr Pepper, according to LSEG data. ($1 = 0.8544 euros) https://www.reuters.com/business/keurig-dr-pepper-buy-dutch-coffee-company-jde-peets-over-18-billion-2025-08-24/
2025-08-25 06:42
Orsted's project was 80% complete before US halt US government's order jeopardises $9.4 billion share issue US President Trump has repeatedly criticised wind energy COPENHAGEN, Aug 25 (Reuters) - Orsted (ORSTED.CO) , opens new tab said on Monday it would continue with a plan to raise capital after the Trump administration ordered the offshore wind farm developer to stop construction on a near-completed project off Rhode Island, sending its shares down 17%. The company, 50.1% owned by the Danish state, said earlier this month it would seek to shore up its finances through a $9.4 billion emergency . Sign up here. "The planned rights issue had been sized to provide the required strengthening of Orsted's capital structure to execute its business plan, even when taking into account the impact of this uncertainty on Orsted's U.S. offshore wind portfolio," it said in a statement. The Trump administration's Bureau of Ocean Energy Management (BOEM) published its stop-work order late on Friday, forcing suspension of a project that was 80% complete with 45 out of 65 wind turbines installed. The timing of the halt to Revolution Wind off Rhode Island was particularly damaging to Orsted, which announced earlier this month a plan to raise 60 billion Danish crowns ($9.42 billion) through a rights issue. Orsted's shares, already down 30% since announcing its plan on August 11, fell as much as 17% in early trading on Monday. "This is a huge hurdle with regards to raising capital," Sydbank analyst Jacob Pedersen told Reuters, adding he was "stunned." AlphaValue analyst Pierre-Alexandre Ramondenc said the U.S. move could jeopardise the success of the rights issue. "The news came as a major shock and amounts to nothing less than political hostage-taking by the U.S. administration, given the project's advanced stage," Ramondenc said. On his first day in office in January, President Donald Trump suspended new offshore wind leasing pending environmental and economic review of projects. He has repeatedly criticised wind energy as ugly, unreliable and expensive. ($1 = 6.3685 Danish crowns) https://www.reuters.com/sustainability/climate-energy/orsted-cash-plan-risk-trump-government-blocks-us-wind-project-2025-08-25/
2025-08-25 06:42
Exclusivity period extended to September 19 HY profit falls 22.3% but beats analysts' estimates Interim dividend 13.4 cents per share Shares rise as much as 1% but remain well below proposed offer Aug 25 (Reuters) - Australian gas producer Santos (STO.AX) , opens new tab on Monday agreed to further extend the exclusivity period for an $18.7 billion takeover bid from a group led by Abu Dhabi National Oil Co (ADNOC), and reported a better-than-feared 22% drop in first-half profit. Its shares rose 1% after the company extended the due diligence period to September 19 to give the consortium led by ADNOC's investment arm XRG more time to finalise a binding offer. Sign up here. The consortium last week flagged it would need extra time on top of its due diligence period to seek internal approvals for a bid. Santos said "customary protections" would be included in any negotiations to protect the company's investors if the deal is further dragged out once an agreement is signed. It declined to give any details on those inclusions. Large corporate buyouts typically involve break fees or "ticking fees" where the buyer may have to stump up more if there are delays. "We're pleased with the progress we've made. We've worked well with the folks from XRG over the last few weeks," Santos Chief Executive Kevin Gallagher told analysts on a conference call. "Given that the consortium has again confirmed that it's found nothing in due diligence that would make it consider withdrawing its offer, we've agreed to extend the process deed." Analysts said the shares would likely be supported on Monday by confirmation the deal was still progressing despite the delays. The deadline for the exclusive talks between Santos and the consortium expired last Friday. Santos can engage with a bidder if a higher offer is made, but is prevented from talks with any parties who match the XRG offer. The proposed offer requires approval from regulators in Australia, Papua New Guinea, and the U.S. given Santos holds assets in each of those jurisdictions. Gallagher said Santos could not predict when regulatory approval would be finalised or when the company's shareholders could be asked to vote on the deal. Santos reported its first-half underlying earnings fell to $508 million from $654 million a year earlier, hurt by weaker realised prices for its liquefied natural gas (LNG) and oil. The result was 3% above Visible Alpha forecast consensus. While its shares rose to A$7.81 per share on Monday, they remain more than a dollar below the consortium's proposed offer of A$8.89 apiece. The gain outpaced a 0.1% rise in the broader S&P/ASX200 (.AXJO) , opens new tab index. Santos said oil production from its Pikka project in Alaska is now expected to begin in the first quarter of 2026, brought forward from the first half of that year. https://www.reuters.com/business/energy/santos-extends-exclusivity-187-billion-adnoc-led-offer-profit-drops-2025-08-24/
2025-08-25 06:11
Aug 25 (Reuters) - South African petrochemical firm Sasol (SOLJ.J) , opens new tab said on Monday it swung to an annual profit on the back of higher chemicals prices, tighter cost controls and lower asset writedowns. The company, which produces fuel and chemicals from coal and gas, posted basic earnings per share of 10.60 rand ($0.6070) for the year ended June 30, compared to a 69.94 rand loss per share last year. Sign up here. Sasol also benefited from a 4.3 billion rand payout from Transnet, after it claimed in a legal suit the state-owned logistics firm had overcharged for oil transportation over several years. The company said its turnover fell 9%, mainly due to lower sales volumes and reductions in rand oil prices and refining margins. However, it managed to keep cash fixed cost increases below inflation, while capital expenditure of 25.4 billion rand was 16% lower than the previous year. Sasol also recorded significantly lower impairments of 20.7 billion rand, compared with 74.9 billion rand in the previous year. Asset writedowns in the 2025 financial year were related to its Secunda and Sasolburg liquid fuels refinery operations, Mozambique gas production sharing agreement and exploration project, and Italian chemicals business. The bulk of Sasol's impairments the previous year was related to its U.S chemicals operations, hit by low prices and weak demand. Sasol once again skipped dividend payments as its $3.7 billion net debt remained above the $3 billion debt cap in terms of its dividend policy. ($1 = 17.4620 rand) https://www.reuters.com/business/energy/sasol-swings-profit-higher-chemical-prices-lower-writedowns-2025-08-25/
2025-08-25 05:57
Asian stock markets : Nikkei gains, China blue chip hit three-year top Wall St futures dip ahead of Nvidia Market implies 84% chance of Fed rate cut in Sept Dollar and yields steady after Friday's fall SYDNEY, Aug 25 (Reuters) - Chinese shares led Asia higher on Monday as investors gave a cautious welcome to the likely resumption of U.S. interest rate cuts, while hoping AI-superstar Nvidia's results this week will help justify the sector's stratospheric valuations. Federal Reserve Chair Jerome Powell's dovish change of course has seen futures price in an 84% chance of a quarter-point rate cut in September, and at least 100 basis points of easing to 3.25-3.5% by the middle of next year. Sign up here. The shift shoved Treasury yields and the dollar lower, flattering the outlook for corporate earnings, though it also implies policymakers now see more danger of a downturn in employment and the economy. "The news reinforces our view that the Fed will ease in response to softening labor demand and that risk to our forecast for a material downshift in global growth this quarter is skewed to the upside," said Bruce Kasman, global head of economic research at JPMorgan. The market's euphoria will also be tested by a reading on U.S. personal consumption prices on Friday that is expected to show core inflation creeping up to its highest since late 2023 at 2.9%. "The report should reinforce the message that a rebound in service price inflation is combining with tariff-related pressures to push core inflation towards a 4% annualised rate," warned Kasman. Any upside surprise to inflation would also challenge the rally in longer-dated Treasuries, especially given a whopping $183 billion in new debt is being sold this week. Yields on 10-year notes held steady at 4.268%, having dived 7 basis points on Friday. The influential head of the New York Fed John Williams is due to speak later on Monday and markets will be keen to hear if he shares Powell's outlook on policy. For now, investors were content to follow Wall Street's lead and Japan's Nikkei (.N225) , opens new tab rose 0.4%. South Korean stocks (.KS11) , opens new tab gained 1.1% and Australia's index (.AXJO) , opens new tab 0.2%. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) , opens new tab added 1.5%. Chinese blue chips extended their recent rousing run with a gain of 1.4% (.CSI300) , opens new tab, taking the index to its highest since mid-2022. The Chinese index has climbed almost 10% so far this month on a liquidity-fuelled rally even as domestic demand has remained subdued and company pricing power almost non-existent. EYEING NVIDIA Other markets were more muted, with EUROSTOXX 50 futures and DAX futures down 0.3%. S&P 500 futures and Nasdaq futures were both off 0.1% after climbing on Friday. All eyes are on Nvidia's (NVDA.O) , opens new tab results on Wednesday when it is forecast to boast a 48% rise in earnings per share on revenue of $45.9 billion for its second fiscal quarter. Options imply the shares could swing almost 6% in either direction depending on the outcome, causing waves in the broader market given the company's $4 trillion valuation. Analysts will be keen to hear more on the outlook for shipments to China and details of the deal with President Donald Trump to pay the U.S. government 15% of the revenue from sales of some advanced chips in the Asian giant. Trump on Friday announced the U.S. will also purchase a 9.9% stake in Intel (INTC.O) , opens new tab for $8.9 billion, or $20.47 per share, which represents a discount of about $4 from Intel's closing share price of $24.80. In currency markets, the dollar had steadied for the moment at 147.36 yen after dropping 1% on Friday from a top of 148.77. The euro stood at $1.1703 , having bounced from a trough of $1.1583 on Friday. The European Central Bank is still expected to hold interest rates unchanged at its policy meeting in September, though sources told Reuters that discussions about further cuts may well resume in the autumn if the economy weakens. Commodity markets were encouraged by the drop in the dollar, with gold at $3,365 an ounce after jumping 1% late last week. Oil prices were further supported by the lack of progress on talks between Russia and Ukraine, which keeps sanctions on Russian supplies. Brent was a fraction firmer at $67.77 a barrel, while U.S. crude added 0.1% to $63.78 per barrel. https://www.reuters.com/world/china/global-markets-wrapup-3-2025-08-25/
2025-08-25 05:55
MUMBAI, Aug 25 (Reuters) - The Indian rupee edged higher on Monday and forward premiums climbed after Federal Reserve Chair Jerome Powell set the stage for a September rate cut, pushing U.S. yields and the dollar lower. The rupee was quoting at 87.4350 to the U.S. dollar at 11.10 a.m. IST, up from the close of 87.53 on Friday. Sign up here. The local currency hit a intraday high of 87.3450 before running into dollar-buy orders from importers. The rupee drew support from Powell’s remarks at Jackson Hole, which fortified expectations of a September rate cut and sent the dollar index and U.S. Treasury yields lower. The dollar index dropped nearly 1% on Friday while U.S. Treasury yields dropped. The 2-year Treasury yield declined more than 10 basis points amid Powell comments that the "the baseline outlook and shifting balance of risks may warrant adjusting our policy stance". The dollar/rupee forward premiums surged, tracking the fall in U.S. yields, with the 1-year implied rising 6 basis points to 2.19%, its highest in three months. Traders are now pricing in 80% odds of a quarter-point rate cut at the September 17 policy meeting, and a cumulative 48 basis points of reductions in 2025, according to LSEG data. US TARIFFS RISK Despite Powell's dovish tilt, traders said the rupee's upside is likely capped by the overhang of U.S. tariffs. Indian goods face additional U.S. tariffs of up to 50% with effect from Wednesday. Washington had already levied 25% tariffs on Indian goods — steeper than those faced by many other large trade partners — and the latest slated increase comes in response to New Delhi’s continued purchases of Russian crude. Signs that progress toward a Ukraine-Russia peace deal has stalled have reinforced expectations that the additional U.S. tariffs on Indian goods will be implemented. https://www.reuters.com/world/india/rupee-inches-up-forward-premiums-jump-after-powell-tees-up-september-cut-2025-08-25/
