Company news in brief

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Eskom delays completion of new strategy

South African power firm Eskom said on Tuesday it had delayed the date on which its new long-term strategy would be completed, potentially unsettling investors anxious for clues as to how the struggling state firm plans to bolster its finances.

Cash-strapped Eskom has said the new strategy will assess whether its current business model is sustainable, or whether the firm should be broken up into separate entities overseeing power generation, distribution and transmission.

It will also consider ways of addressing Eskom's declining electricity sales, shrinking cash flow and ballooning debt.

Eskom now plans for the strategy to be submitted to its board on Nov. 15, as opposed to the end of this month, it said in a statement.

Eskom is South Africa's most indebted state firm and supplies more than 90 percent of the country's power, making it critical to the health of Africa's most industrialised economy. – Nampa/Reuters

Car sales surge before stiffer EU emissions tests

Renault, Volkswagen and Fiat Chrysler led a 29.8% European car sales surge last month, the main regional industry body said, as automakers used discounts to clear inventory ahead of tougher emissions tests.

Registrations across Europe rose to 1.17 million cars, well above usual levels for the slow month of August and the 902 870 achieved in the same month last year, Brussels-based ACEA said yesterday.

The tougher new Worldwide Harmonised Light Vehicle Test (WLTP) became mandatory on Sept. 1, forcing carmakers including Renault and Volkswagen to halt deliveries of some model versions that had yet to be re-certified for emissions.

Ahead of the deadline, many boosted financial incentives and registrations of their own new vehicles to be sold on the used car market, analysts have said.

Forecasters expect the market surge to be offset by a sales slowdown in the remaining months of the year, in which the August discounters are likely to come off worse. – Nampa/Reuters

Bayer on US-China trade war

Bayer said on Tuesday it would be difficult to predict 2019 earnings at its agriculture business, which now includes Monsanto, because a US-Chinese trade dispute could reroute global trade flows in farming commodities.

The head of Bayer's crop science division said his company could even benefit if US farmers switched to grow more corn to avoid barriers to the soy trade imposed by China in response to US tariffs on Chinese products.

The combination of Bayer-Monsanto has a much bigger market share in corn seeds and related crop protection products than in the soy market, so it could capture more of that growth.

"The big unknown next year will be how US farmers react to the Chinese-US trade war," Liam Condon said.

The Monsanto takeover made Bayer the world's largest maker of seeds and pesticides, ahead of DowDuPont's Corteva Agriscience, Syngenta and BASF.

China said on Tuesday it had no choice but to retaliate against new US trade tariffs, raising the risk that US President Donald Trump could soon impose duties on virtually all of the Chinese goods that America buys. – Nampa/Reuters

Coca-Cola buys Australia's kombucha maker

Coca-Cola Co said on Tuesday it bought Australia-based Organic & Raw Trading Co, known for its Mojo brand of kombucha tea, extending its push into healthier drinks.

The world's largest drinks company has been increasingly diversifying its portfolio to include healthier options such as sparkling waters as consumers move away from sugary sodas.

Organic & Raw's Mojo kombucha is a naturally fermented tea.

Coke has been on a deal spree, ranging from a US$5.1 billion acquisition of coffee chain Costa to a minority stake in a Kobe Bryant-backed sports drink brand BodyArmor last month.

The latest deal, the terms for which were not disclosed, will allow Coca-Cola to add Mojo brands to its portfolio of 165 products and 25 brands across Australia. – Nampa/Reuters

Bids for GSK India Horlicks business

Nestle, Unilever and Coca-Cola are among bidders for

GlaxoSmithKline's Indian Horlicks nutrition business, expected to fetch more than US$4 billion, four people familiar with the matter said.

Initial bids were due on Monday and the three consumer goods giants are seen as frontrunners for a business that offers a significant footprint in a fast-growing emerging market.

Even though Indian shoppers have lately been pressured by a currency devaluation and goods and service tax, the country's growing population and rising wealth make it attractive for companies trying to offset weak growth in Western markets.

GSK Chief Executive Emma Walmsley, who took over last year, is looking to sharpen the focus of what is one of the world's more diversified pharmaceuticals companies.

The main asset on the block is GSK's 72.5% stake in its Indian subsidiary GlaxoSmithKline Consumer Healthcare, which is famous for Horlicks but also makes products including the chocolate-flavoured malt-based drink Boost. – Nampa/Reuters

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Namibian Sun 2024-11-23

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