Steinhoff offshoot to sell $1.6 billion of its Pepkor stake
The company will offer one billion shares, worth about 28 billion rand ($1.6 billion), according to the terms of the deal published Monday. Demand for the shares exceeded the stock being offered within minutes of the transaction launching, the terms show.
Pepkor, which has almost 6,000 stores selling low-cost clothing, is tapping a pan-African boom in the use of phones for payment and banking services as well as for communication.
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France 24
a day ago
- France 24
S.Africa eyes new markets after US tariffs: president
Government ministers expressed frustration with the United States over the tariff -- among those due to take effect against several countries later this week -- saying South African exports do not compete with US industry and were only a fraction of that country's total imports. The 30-percent tariff is the highest in sub-Saharan Africa and comes as diplomatic relations between South Africa and the United States are in tatters over a range of domestic and international policies. "Our foremost priority is protecting our export industries," President Cyril Ramaphosa said in his weekly newsletter. "We will continue to engage the US in an attempt to preserve market access for our products. We must also accelerate the diversification of our export markets, particularly by deepening intra-African trade," he said. The United States is South Africa's second-largest trading partner by country after China. The tariffs will in particular hit South Africa's agriculture, automotive and textiles sectors, officials said, although 35 percent of exports are exempted, including copper, pharmaceuticals, semiconductors, lumber articles and certain critical minerals. The impact on growth depends on various factors, including the sourcing of alternative markets, Foreign Minister Ronald Lamola said in a statement. He cited forecasts that the impact may shave 0.2 percent off growth, which was only around 0.1 percent in the first quarter of this year. The South African Reserve Bank last week warned that the US levy could cost 100,000 jobs, with unemployment already at more than 30 percent. But trade department director general Simphiwe Hamilton told reporters Monday their estimate was that approximately 30,000 jobs could be affected. 'no threat' In a bid to avert the high tariff, South Africa has offered to import US liquefied natural gas and some US agricultural products, as well as invest in its mining and metals-recycling industries. Pretoria is focused on negotiations for a new deal despite the "very extreme provocation" on the part of the United States, Lamola told reporters. The 30-percent tariff was "inscrutable" considering that imports from South Africa only represented 0.25 percent of total US imports, the minister said. "Moreover, South Africa poses no trade threat to the US economy nor its national security," he said, arguing the imports supported US industry and did not compete with it. An example was that South African agriculture exports were "counter-seasonal" and so filled gaps in the US market without replacing domestic produce, he said. Pretoria's plummeting ties with Washington and failure to reach a new trade deal has been heavily criticised at home, including by some of the parties in the coalition government who have accused Ramaphosa and his team of diplomatic missteps. On top of disagreements over a range of issues, including South Africa's case accusing Israel of genocide in Gaza at the International Court of Justice, Washington in March expelled Pretoria's ambassador after he criticised Trump's Make America Great Again (MAGA) movement. In his newsletter, Ramaphosa said the government has established a support desk that will help exporters and producers explore alternative markets in the rest of Africa, Asia and the Middle East. It will also push forward with plans for a free-trade area for the African continent, he said. The United States announced last week 15-percent tariffs on exports from several sub-Saharan countries, including the export-reliant small mountain kingdom of Lesotho, which had initially been threatened with 50-percent tariffs.
Euronews
4 days ago
- Euronews
Euronext bids for the Greek stock exchange: Here's what it means
Greek Minister of National Economy and Finance, Kyriakos Pierrakakis, described the acquisition of the Athens Stock Exchange by the European stock market group Euronext as 'one of the largest foreign investments in recent years". "For the Greek economy as a whole, this is a decisive step forward," Pierrakakis said from the floor of the Parliament. The announcement of the all-share deal came on Thursday, with the offer worth €412.8 million. "This is one of the largest foreign investments in recent years," continued Pierrakakis. "It strengthens our credibility and upgrades the country's position on the European and international economic map. We will examine the details of the agreement and follow the progress of its implementation. Overall, this is a highly positive development, and undoubtedly a major opportunity for the country as a whole." What it means for Greek businesses The integration of the Greek stock exchange into Euronext's European family opens a new gateway to financing for Greek companies, at a critical time when international competition is increasing and global trade is being redefined. Euronext is the largest liquidity pool in Europe, managing around 25% of total cash equity trading activity. It operates capital markets in major financial centres such as Amsterdam, Brussels, Dublin, Lisbon, Milan, Oslo and Paris. It brings the following to Greece: Access to a wider investment base Membership of a pan-European group offers Greek businesses direct exposure to a much larger network of international investors, both institutional and private. This translates into increased liquidity for their shares and greater chances of success in future capital raises or bond issuances. Know-how and digital tools Euronext has well-developed digital platforms, trading tools and compliance infrastructure that will support the technological modernisation of the Greek stock exchange. This will help more firms and investors to participate in the ecosystem. Enhancing credibility and prestige Participation in a network with a strong European presence could act as a "seal of credibility" for listed Greek companies, making them more attractive to foreign investors. Easier access for SMEs Euronext's focus on small and medium-sized enterprises (SMEs), through initiatives such as the 'Euronext Growth' programme, could lead to the development of simpler and less expensive listing procedures for Greek SMEs. Interconnection with other capital ecosystems Through Euronext, Greek companies will gain access to alternative financing tools such as green bonds, ESG ratings, dividend reinvestment programmes. What it means for the Greek economy The acquisition of the Greek stock exchange comes at an important juncture for the Greek economy, which continues to record significant GDP growth (2.3% in 2024), yet faces serious challenges. The main challenges include the completion of the Resilience and Recovery Fund, the looming recession threatening the European economy, and the need to change the country's production model, with less reliance on services such as tourism. Greek businesses need sources of funding in order to develop beyond the Greek market, which is small and showing signs of fatigue in terms of domestic consumption. Furthermore, despite the impressive increase in foreign direct investment over the last five years, the country still suffers from a large investment gap, hindering the modernisation of the Greek economy.
Fashion Network
28-07-2025
- Fashion Network
Europe Inc's trade deal relief tempered by tariff reality
European companies were on edge Monday following the announcement of a new trade agreement between the United States and the European Union. This outcome marks the end of prolonged tariff uncertainty but introduces new cost pressures. The trade deal, announced Sunday, imposes a 15% import tariff on most EU goods. After an initial relief rally—simply because a deal had been reached—shares of carmakers and alcohol producers fell. Leading the way lower were BMW, Volkswagen, Mercedes-Benz and Stellantis, along with Pernod Ricard and Anheuser-Busch InBev, all down between 1% and 2%. The declines reflect a perception that the deal is lopsided—more of a win for U.S. President Donald Trump—and ongoing uncertainty around the fine print of the agreement. The 15% rate is lower than the 30% once threatened by Trump and brings clarity for European producers of cars, aircraft and chemicals. However, it still falls short of early hopes for a 'zero-for-zero' tariff structure, and sits well above last year's average rate of around 2.5%. 'The price is high for both sides. European exports are losing competitiveness. U.S. customers are paying the tariffs,' said Wolfgang Große Entrup, head of the German Chemical Industry Association (VCI). 'But it could have been worse. Those who expect a hurricane are grateful for a storm.' The deal also includes $600 billion in EU investments in the U.S. and $750 billion in EU purchases of U.S. energy over Trump's second term. While some exemptions have been outlined, key details are still pending. For automakers, the 15% tariff marks a reduction from over 25% under the global levy imposed by Trump in April. A senior European Commission official involved in the talks noted that the EU is also cutting its tariff on U.S.-made cars to 2.5%. Auto parts suppliers were among the day's strongest stock market performers. France's Valeo rose around 4%, while peer Forvia—also buoyed by strong earnings earlier Monday—jumped more than 10%. 'Tariffs are lower than those imposed by the U.S. administration in recent months. If this reduces volatility and uncertainty, it's better for all economic players,' said Olivier Durand, chief financial officer at Forvia, during an earnings call. Aircraft and aircraft parts will be exempt from tariffs—good news for French planemaker Airbus—as will certain chemicals, some generic pharmaceuticals, semiconductor equipment, farm products, natural resources and critical raw materials. Shares in drugmakers Sanofi, Roche and Novo Nordisk edged higher, while generics maker Sandoz posted strong gains. 'It's definitely better than 200%. Most had 25% factored in. But I don't think anyone believes it until it's signed,' one pharmaceutical industry source told Reuters, referring to earlier threats from Trump to tax drug imports. Shares in ASML, the world's leading supplier of chipmaking equipment, also rose more than 4%, ranking among the biggest gainers on the pan-European STOXX 600 index. Still to be negotiated: spirits, wine, and cosmetics sectors await clarity Dutch brewer Heineken welcomed the agreement, with CEO Dolf van den Brink praising the certainty it brings. The world's second-largest brewer ships its namesake lager from Europe and Mexico to the U.S. and has also suffered from falling consumer confidence in key markets, such as Brazil. However, tariff levels for spirits—impacting brands such as D iageo, Pernod Ricard and L VMH— remain under negotiation. 'In the coming days, there may be talks for certain agricultural products under a zero-for-zero model, which both the European and U.S. sectors have advocated,' said José Luis Benítez, director of the Spanish Wine Federation. He warned that a 15% tariff could disadvantage European wine exporters against competitors facing only 10% tariffs. 'If there are any exemptions, we hope the European Commission recognizes that wine should be included,' he added. Lamberto Frescobaldi, president of Italian wine consortium UIV, stated Sunday that a 15% tariff on wine would result in a loss of €317 million ($372.6 million) over the next 12 months. The group is waiting for the final text of the deal. Some executives said that while the agreement—following a similar one with Japan—offers clarity, it still poses risks to European industries. 'While this agreement puts an end to uncertainty, it poses a significant threat to the competitiveness of the French cosmetics industry,' said Emmanuel Guichard, secretary general of French cosmetics association FEBEA, whose members include L'Oréal, LVMH and C larins. ($1 = €0.8507)
