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The Morning Ledger: Germany Tightens Foreign Takeover Rules |
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In July, Germany’s KfW bank acquired a 20% stake in German transmission system operator 50Hertz Transmission’s holding company to fend off a Chinese bid. PHOTO: AGENCE FRANCE-PRESSE
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Good day. Executives at non-European companies could find it harder to buy stakes in German firms without government approval, as the country is tightening its takeover rules amid growing concern about China's push to acquire key technology abroad, The Wall Street Journal reports.
Stricter rules: Germany’s cabinet on Wednesday is set to approve rules that would require any non-European foreign company planning to buy more than 10% of a German company involved in defense, technology or media to submit to a probe of the deal by German authorities. Since 2017, the threshold has been 25%, which has applied to strategically important companies if the investment puts public order or safety at risk.
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With precedent: The German government recently blocked two deals by China, following a move by the French government to halt the sale of Toulouse airport to a Chinese consortium. Chinese officials have called on the European Union not to discriminate against foreign investments. But EU officials say China fails to open its own market for foreigners.
China's pledge: As part of its efforts to ease tensions with the U.S., China is preparing a new program that would give foreign companies more access to the Chinese market. Its extent and effectiveness, however, is still unclear.
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ABM Industries Inc., Heico Corp., Oracle Corp. and Red Hat Inc. are among the companies slated to report earnings today.
Last Monday's CFO Morning Ledger incorrectly stated ABM Industries would report on Dec. 10, 2018.
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The U.S. Commerce Department on Wednesday publishes third-quarter trade data. Economists surveyed by The Wall Street Journal expect the trade gap widened in the third quarter.
On the same day, the U.S. National Association of Realtors releases its gauge on November sales of previously owned homes. Economists surveyed by the WSJ expect sales declined in November from the prior month.
Also on Wednesday, the U.S. Federal Reserve delivers its monetary policy decision, with rates expected to go up by 25 basis points. The central bank will also update its economic projections. Analysts forecast the pace of rate increases could slow next year.
On Thursday, the Bank of Japan holds a monetary policy meeting.
On Friday, the U.S. Commerce Department releases its November figures on orders for long-lasting factory goods. Economists surveyed by the WSJ think orders picked up in November, however.
The department also publishes November personal income, spending and inflation data on Friday. Economists surveyed by the Journal expect price growth picked up.
Also on Friday, Canada releases GDP data for October.
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Incoming Thyssenkrupp CFO Will Prep Conglomerate for Split |
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Johannes Dietsch was chief financial officer of Bayer until May, and oversaw the financing of Bayer’s $63 billion takeover of Monsanto. PHOTO: KRISZTIAN BOCSI/BLOOMBERG NEWS
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As Thyssenkrupp AG gets closer to naming a new finance chief, the new appointee faces the tough task of preparing the German industrial conglomerate for a split amid a potentially worsening global economy.
Thyssenkrupp’s personnel committee said Friday it will propose to the supervisory board the appointment of Johannes Dietsch as chief financial officer. He would be responsible for financial functions such as controlling, accounting, taxes, information technologies, purchasing and global shared services.
He will take over the role from Guido Kerkhoff, who was promoted in July as chief executive of the maker of elevators and industrial components.
Thyssenkrupp in September announced it would split into two listed companies following pressure from activist shareholders Cevian Capital AB and Elliott Management Corp.
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Carlos Ghosn was formally charged last week with understating his compensation in Nissan’s financial reports. PHOTO: NG HAN GUAN/ASSOCIATED PRESS
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Renault SA is pressing Nissan Motor Co. to open a discussion into the balance of power atop the Japanese auto maker after prosecutors charged its former chairman, Carlos Ghosn, and the Japanese firm with financial misconduct.
Amazon.com Inc. has trained people to buy everything from major appliances to daily staples online. Now, the company is reconsidering its approach, as some of these sales don't make money.
Boeing Co. opened a new Chinese production facility, as the American aviation company tries to cater to its top export market while steering clear of the tensions battering U.S.-China relations.
General Motors Co. is attempting to minimize job losses by transferring some workers to other plants in the U.S.
General Electric Co. is moving ahead with a plan to solicit bids for an independent auditor after the industrial conglomerate revealed a series of accounting issues earlier this year.
Tesla Inc. sold $837 million of bonds backed by auto leases Friday, taking advantage of a rebound in investors’ sentiment toward the company to provide further support to its fast-growing leasing operation.
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Malaysia filed criminal charges for offenses under a securities law against a unit of Goldman Sachs on Monday. PHOTO: RICHARD DREW/ASSOCIATED PRESS
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Malaysian authorities on Monday filed criminal charges against Goldman Sachs Group Inc. units and a former partner of the bank in connection with the 1MDB financial scandal, the country’s attorney general said in a statement.
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A Glencore PLC-controlled mining company and some of its executives have agreed to pay more than $22 million to settle Canadian allegations that they hid the risks of doing business with an Israeli businessman closely linked to Congolese President Joseph Kabila.
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A U.S. Justice Department official asked a federal judge to withhold payments to McKinsey & Co. for its work advising a bankrupt Colorado coal miner, adding another to criticism of how the firm discloses potential conflicts of interest.
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The gain in compensation was led by a 3% bump in wages and salaries. It was the first time since mid-2016 that pay rose faster than benefits. PHOTO: PATRICK T. FALLON/BLOOMBERG NEWS
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A tighter U.S. labor market appears to be forcing employers to raise base pay, rather than just offer better perks.
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Americans stepped up their spending at the start of the holiday season, suggesting the economy’s key engine is humming.
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The year 2018 will go down as one of the best in a nine-year U.S. economic expansion but trouble could lie ahead, as real-estate and financial markets flash warning signs and U.S.-China trade tensions simmer.
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Mexico’s new President Andrés Manuel López Obrador unveiled Saturday a budget proposal for 2019 that calls for a moderate increase in spending without raising taxes or the country’s debt.
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Aegion Corp., a Chesterfield, Mo. infrastructure solutions and energy services company, appointed Kenneth L. Young as corporate controller and chief accounting officer, effective Dec. 12.
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Mr. Young will remain senior vice president and treasurer of the company. He has served as interim corporate controller and interim chief accounting officer since May 4 and as senior vice president and treasurer since 2009. Prior to joining Aegion, Mr. Young served as CFO, secretary and treasurer for Huttig Building Products Inc. Compensation details were not available.
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