WINE AND SPIRITS
Heineken to buy Distell
Heineken NV agreed to buy South African wine and spirits maker Distell Group Holdings NV for 2.2 billion euros (US$2.52 billion), creating a new regional group to compete with larger rival Anheuser-Busch InBev SA and spirits giant Diageo PLC. The Dutch brewer made an offer of 180 rand a share that has been recommended by Distell’s board, according to a statement yesterday. Heineken is also looking to buy a majority stake in the owner of Namibia Breweries Ltd, a regional partner, the brewer said. The move forms a Heineken majority-owned entity with a total valuation of about 4 billion euros, the company said.
FOOD
Deal boosts French delivery
Deliveroo PLC is partnering with French frozen food specialist Picard Groupe SAS to offer express deliveries countrywide, marking its third deal with a major food provider in the country. The latest alliance is part of Deliveroo’s global effort to expand its rapid grocery delivery business, and take part in the booming quick-commerce sector. Groceries now represent 7 percent of the total value of transactions made on the Deliveroo app, according to a statement from the company yesterday. Picard topped a recent OC&C annual survey of France’s most favored retail brands this year, and is well-established in the country with 1,050 shops.
PROPERTY
Sunac sells stake for cash
Sunac China Holdings Ltd (融創中國控股) raised about US$953 million through the sale of new shares as well as a stake in its property management unit, the latest Chinese developer to seek funds amid an industry-wide liquidity crunch. Sunac said in a statement on Sunday that it sold 335 million shares at HK$15.18 each, raising about US$653 million. Another US$300 million came from a sale of 158 million shares in its property management arm Sunac Services Holdings Ltd (融創服務控股), via a subsidiary. Sun Hongbin (孫宏斌), the controlling shareholder of Sunac and the chairman of the board, also provided US$450 million from his own funds in the form of a loan with no interest.
REAL ESTATE
Singapore home sales grow
Sales of private homes in Singapore rebounded after two months of consecutive declines, with demand spurred by long-term investors and those seeking upgrades, even as virus restrictions limit viewings. Purchases of new private apartments climbed about 9 percent to 909 units last month, Urban Redevelopment Authority figures showed yesterday. That is higher than the 834 units sold in September. There is still appetite for Singapore’s private homes as buyers look to upgrade from public apartments, which have seen prices surpassing a peak in 2013, said Christine Sun (孫燕清), senior vice president of research and analytics at OrangeTee & Tie (橙易產業).
TECHNOLOGY
Cyber review for HK IPOs
China might require a cybersecurity review for data-holding companies planning to go public in Hong Kong, if it is decided that the listing would potentially affect its national security. The draft rule, published by China’s cyberspace regulator on Sunday, did not specify how the regulators would define a listing that endangers security. Firms holding data of more than 1 million users must undergo cybersecurity approval when seeking listings in other nations, the Cyberspace Administration of China said in the statement.
Three experts in the high technology industry have said that US President Donald Trump’s pledge to impose higher tariffs on Taiwanese semiconductors is part of an effort to force Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to the negotiating table. In a speech to Republicans on Jan. 27, Trump said he intends to impose tariffs on Taiwan to bring chip production to the US. “The incentive is going to be they’re not going to want to pay a 25, 50 or even a 100 percent tax,” he said. Darson Chiu (邱達生), an economics professor at Taichung-based Tunghai University and director-general of
‘LEGACY CHIPS’: Chinese companies have dramatically increased mature chip production capacity, but the West’s drive for secure supply chains offers a lifeline for Taiwan When Powerchip Technology Corp (力晶科技) entered a deal with the eastern Chinese city of Hefei in 2015 to set up a new chip foundry, it hoped the move would help provide better access to the promising Chinese market. However, nine years later, that Chinese foundry, Nexchip Semiconductor Corp (合晶集成), has become one of its biggest rivals in the legacy chip space, leveraging steep discounts after Beijing’s localization call forced Powerchip to give up the once-lucrative business making integrated circuits for Chinese flat panels. Nexchip is among Chinese foundries quickly winning market share in the crucial US$56.3 billion industry of so-called legacy
Hon Hai Precision Industry Co (鴻海精密) is reportedly making another pass at Nissan Motor Co, as the Japanese automaker's tie-up with Honda Motor Co falls apart. Nissan shares rose as much as 6 percent after Taiwan’s Central News Agency reported that Hon Hai chairman Young Liu (劉揚偉) instructed former Nissan executive Jun Seki to connect with French carmaker Renault SA, which holds about 36 percent of Nissan’s stock. Hon Hai, the Taiwanese iPhone-maker also known as Foxconn Technology Group (富士康科技集團), was exploring an investment or buyout of Nissan last year, but backed off in December after the Japanese carmaker penned a deal
WASHINGTON POLICY: Tariffs of 10 percent or more and other new costs are tipped to hit shipments of small parcels, cutting export growth by 1.3 percentage points The decision by US President Donald Trump to ban Chinese companies from using a US tariff loophole would hit tens of billions of dollars of trade and reduce China’s economic growth this year, according to new estimates by economists at Nomura Holdings Inc. According to Nomura’s estimates, last year companies such as Shein (希音) and PDD Holdings Inc’s (拼多多控股) Temu shipped US$46 billion of small parcels to the US to take advantage of the rule that allows items with a declared value under US$800 to enter the US tariff-free. Tariffs of 10 percent or more and other new costs would slash such
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