Prosus wins conditional EU antitrust nod for Just Eat Takeaway deal
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Dutch technology investor Prosus gained EU antitrust approval on Monday for its 4.1-billion-euro ($4.76 billion) bid for Just Eat Takeaway , after agreeing to sell down its stake in Delivery Hero.Amsterdam-headquartered Prosus, which is majority owned by South Africa's Naspers, announced the deal in February, banking on its artificial intelligence capability to boost Just Eat Takeaway, Europe's biggest meal delivery company.The European Commission, which acts as the EU competition enforcer , said Naspers offered to significantly reduce its 27.4% stake in Delivery Hero to below a specified very low percentage within 12 months, confirming a Reuters story.Naspers also pledged not to exercise the voting rights with its remaining limited stake in Delivery Hero and also not to increase its stake beyond the specified maximum level. It will not recommend or propose any person to Delivery Hero's management and supervisory boards."Today's binding commitments preserve both competition and consumer choice when ordering food at home," EU antitrust chief Teresa Ribera said in a statement."This decision also sends a clear warning to an industry with recent antitrust issues: we won't tolerate any anti-competitive behaviour that may harm consumers," she said.Delivery Hero and its Spanish unit Glovo were fined 329 million euros by the EU antitrust watchdog in June for taking part in a cartel which included an agreement to divide up markets among themselves and not to poach each other's employees.The deal would make Prosus the world's fourth-largest food delivery company after Meituan, DoorDash and Uber , according to ING analysts.
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Indian Express
11 minutes ago
- Indian Express
Lesson for India in the China-EU freeze: Proceed with caution
The 50 per cent tariff shock on Indian exports to the United States has rattled exporters and policymakers alike. Garment manufacturers are scouting for alternative markets, while jewellery exporters are checking if their orders still stand. Meanwhile, the government plans credit measures to support SMEs and exporters who now potentially face a loss of their largest market. India now finds itself in a strategic bind. These developments come barely weeks before Prime Minister Narendra Modi's maiden visit to China since the Galwan clashes of 2020. The outreach aims to stabilise supply chains and secure critical technologies. Yet it coincides with Washington, India's key trading partner, tightening the screws over Delhi's Russia links, leaving India little room to manoeuvre. This is not dissimilar to the position the European Union finds itself in, vis-à-vis China and the United States. A summit marking 50 years of diplomatic ties in July ended in disappointment for Brussels. EU leaders raised concerns over China subsidising its EVs, market access issues, industrial overcapacity, and Beijing's support for Russia. On the other hand, President Xi Jinping warned against EU interference and criticised its de-risking policies. The EU-China diplomatic freeze has lessons for India. Only months earlier, with Donald Trump threatening sweeping tariffs on both the EU and China, Brussels and Beijing looked poised for closer ties. But that changed quickly when Trump paused tariffs on Chinese goods and Washington and Beijing agreed to resume cooperation on AI and critical minerals. The promise of renewed access to the US market dulled Beijing's appetite for compromise with Europe. Once China secured breathing space with Washington, it turned up the pressure on Brussels. It implemented anti-dumping tariffs on European brandy and expanded procurement restrictions on European medical equipment. The Chinese Commerce Minister called for the removal of EU sanctions on two Chinese banks alleged to have assisted Russia. Chinese export controls on rare earths were strengthened, and data localisation requirements affecting EU cloud and fintech companies were enforced. The EU and the US could have coordinated their leverage against China. Instead, the EU is under pressure from both sides, following the signing of a trade deal that imposes a 15 per cent tariff on its exports to the US. After years of border tensions and curbs on Chinese investment, New Delhi appears to be testing a modest thaw in relations. External Affairs Minister S Jaishankar's visit to Beijing in July coincided with the reopening of the Kailash Mansarovar Yatra, the resumption of direct flights, and the reinstatement of tourist visas for Chinese citizens. This revival is driven less by breakthroughs on the border and more by economic reality. The bilateral trade deficit reached a record $99.2 billion in FY25. Imports of solar components, lithium-ion batteries, electronics, and critical intermediaries surged by more than 25 per cent year-on-year. China's dominance in key sectors, such as EV components, green tech, APIs, and telecom equipment, keeps it entrenched in India's efforts to develop its own ecosystem. India is also exploring ways to ease curbs on Chinese investment, particularly in high-tech sectors. But this re-engagement is happening in the context of unresolved strategic issues. Despite an agreement last October, de-escalation along the LAC remains incomplete. Confidence-building measures are still minimal. And public sentiment remains wary. In this context, China may interpret India's opening as a sign of constraint rather than strength. If Beijing could pivot so quickly against the EU once Washington reopened its doors, it could just as easily do the same with India. India's best opportunity to avoid Europe's fate lies in direct negotiations with Chinese firms, ensuring a durable channel of communication, even when geopolitics turn cold. This does not necessarily mean filling out the calendar with high-level dialogues or offering joint ventures with Indian firms, to which Chinese companies may not freely transfer the latest technologies. Instead, India should identify critical supply chains integral to achieving its goals of economic growth, such as EV batteries, displays, EMS and connectors, solar wafers, precision machinery, and tooling. Subsequently, it should engage in dialogue with Chinese brands that have a strong global presence and established connections with upstream players in these fields. With strategic plans spanning two to three decades, these organisations are likely to assess commercial opportunities in India pragmatically and navigate political considerations in both countries as needed. India needs to establish a dedicated, multi-agency team to engage directly with key Chinese firms essential to its industrial goals. This team should comprise supply chain experts, Indian OEMs, state government representatives, and embassy staff, rather than general-purpose investment promotion bodies. Their focus should be on building strong, ongoing relationships with 25-30 major companies through private discussions and practical collaboration, rather than public initiatives. Currently, there is no coordinated outreach with these firms, and policies regarding Chinese companies in India are so unclear that only intermediaries can profit. To attract long-term investment, India needs to offer transparent and predictable guidelines that specify permitted activities, sectors, compliance requirements, and incentives. This clarity will encourage companies to invest, localise, and train for the future, resulting in knowledge and technology transfer. Not because it is mandated, but because companies will need to build for the long term. The Chinese establishment is likely to continue viewing India primarily from a strategic perspective. But when its firms and their shareholders stand to lose money by pulling out, the resistance to weaponising market access or regulatory tools will come from within. In a relationship marked by asymmetry, impassive commercial engagement may be India's strongest safeguard. The writer is Director, Geopolitics and Policy, at Koan Advisory Group, New Delhi. These are his personal views
News18
36 minutes ago
- News18
India's Tariff Diplomacy: Strategic Autonomy In Fractured Global Order
Last Updated: India's tariff diplomacy under PM Narendra Modi offers blueprint for other nations: strategic autonomy is not about isolation but about building resilience through diversification In an era where tariffs have re-emerged as a weapon of choice in global diplomacy, India stands as a compelling case study of a nation that has not only safeguarded its economic interests but also transformed external pressures into opportunities for growth and strategic autonomy. From Washington to Beijing, tariffs have transcended their traditional role as tools for resolving trade disputes, evolving into calculated instruments of geopolitical influence, economic resilience testing, and concession extraction. Carnegie Endowment for International Peace has summarised this world order effectively, it says : The 'global order' is no longer shaped by alliances alone—it is shaped by the ability of nations to protect their own economic sovereignty. Under Prime Minister Narendra Modi's leadership, India has navigated this volatile landscape with a blend of resolve, pragmatism, positioning itself as a pivotal player in a multipolar world. Tariffs are far from a modern invention. Their use as instruments of economic protection and geopolitical leverage dates back centuries. The United States, for instance, passed its first tariff law — the Tariff Act of 1789 — within months of ratifying its Constitution. This act imposed duties of 5-10% on imports to shield nascent American industries from European competition, particularly British manufactures, while generating revenue for the fledgling republic. Similarly, Britain's Corn Laws, enacted in 1815 and repealed in 1846, protected domestic agriculture from foreign grain imports, reflecting the economic nationalism of the era. The 20th century saw tariffs fall out of favour during the high tide of globalisation in the 1990s. The establishment of the World Trade Organization (WTO) in 1995, coupled with a proliferation of Free Trade Agreements (FTAs) and multilateral pacts, relegated tariffs to the margins of economic policy. However, the 21st century has witnessed a dramatic resurgence of tariffs among the architects of globalisation. The U.S.–China trade conflict, initiated in 2018 with tariffs on Chinese goods, marked a turning point, signalling that economic coercion through trade barriers was back on the global stage. Similarly, disputes such as the U.S.–EU steel and aluminium tariffs (2018–2021) and Japan–South Korea technology export restrictions (2019–2023) illustrate how tariffs have become tools of strategic rivalry, wielded against allies and adversaries alike. On July 30, 2025, U.S. President Donald Trump announced tariffs ranging from 10-20% on Indian goods on the pretext of safeguarding US industries and the need to bolster American manufacturing. Less than a week later, The U.S. expanded the tariffs with India on imports of Russian oil—knowing fully well that the U.S., EU, and China were themselves buying more from Russia. As of mid-2025, China remains the top buyer of Russian crude—accounting for about 47% of its exports in July with the EU importing 18% of Russian Energy in 2024 & U.S. still purchasing key commodities like fertilizers, uranium, and palladium from Russia. In 2022, during the Russia Ukraine conflict, when crude oil prices were threatening to soar past $150 a barrel, the U.S. privately urged India to step up Russian oil purchases; India responded by ramping up Russian crude imports, purchasing millions of barrels at $20–30 below Brent. This strategic move prevented global oil prices from spiralling to $150–200, stabilising them in the $80–90 range. By doing so, India averted a global inflation surge—saving the world economy & shielding 1.4 billion Indians from fuel price shocks while cutting its own import bill by $7-8 billion a year. India today sources crude oil from over 40 countries across five continents, a diversification strategy built to shield the economy from geopolitical shocks, price volatility, and supply disruptions; this expanded basket — ranging from Russia, Iraq, Saudi Arabia, and the UAE to the U.S., Brazil, Nigeria, and even small producers in Latin America and Africa — means no single nation controls India's energy lifeline, ensuring steady supply for its 1.4 billion citizens while giving New Delhi the leverage to secure the best prices in the global market. On US tariffs, India, as the fourth-largest economy, responded by reaffirming its sovereign right to make independent energy choices, diversifying its trade channels, boosting rupee-based settlements, and protecting its economic security as well as the affordability of fuel for its citizens as was made clear in the detailed MEA statement on August 6. Such aggressive tariff measures might have pressured a nation into reactive concessions or retaliatory escalation. India, however, responded with a measured yet confident strategy, reflecting a sophisticated understanding of its permanent interests—a principle articulated as early as 1848 by British Foreign Secretary Lord Palmerston, who told the House of Commons, 'We have no eternal allies, and we have no perpetual enemies. Our interests are eternal and perpetual, and those interests it is our duty to follow." This maxim resonates deeply in India's approach to 21st-century tariff conflict. Rather than engaging in tit-for-tat tariff hikes, New Delhi pursued a multi-pronged strategy. India had already accelerated efforts to diversify its export markets, concluding trade talks with the European Union (FTA negotiations resumed in 2023, targeting completion by 2026), the United Arab Emirates (CEPA signed in 2022, boosting bilateral trade to $85 billion by 2024), Australia (ECA signed in 2022, with trade projected to reach $45 billion by 2027), and the United Kingdom (FTA talks nearing conclusion in 2025). These agreements reduce India's reliance on any single market. India's response to the 2025 U.S. tariffs encapsulates a broader vision of economic sovereignty through diversification. By expanding trade partnerships, bolstering domestic manufacturing, and maintaining diplomatic flexibility, India under PM Modi has mitigated the risks of over-dependence on any single nation. The Modi government's investments in infrastructure—such as the Rs 44 lakh crore National Infrastructure Pipeline (2019–2025)—have enhanced India's trade logistics, reducing port turnaround times by 40% and boosting export competitiveness. Domestically, through the years, India has doubled down on its Aatmanirbhar Bharat (Self-Reliant India) initiative, launched in 2020, which has driven manufacturing growth through policies like the Production Linked Incentive (PLI) scheme. By 2025, the PLI scheme had attracted Rs 4.78 lakh crore ($60 billion) in investments across 14 sectors, including electronics, pharmaceuticals, and renewable energy, creating over 8 lakh direct and indirect jobs. For instance, India's electronics manufacturing sector, bolstered by PLI incentives, grew from $48 billion in 2019 to $115 billion by 2025, with companies like Apple shifting 14% of iPhone production to India. This domestic capacity building has cushioned India against external trade shocks, ensuring that tariff-induced disruptions do not derail economic momentum. India's exports hit a record USD 824.9 billion in 2024-25 (up 6%), with electronics up 32.5%, pharmaceuticals up 9.4%, agriculture up 7.4%, and services surging 13.6%, putting the country on track to cross USD 1 trillion in FY 26. India's resilience in the face of tariff pressures stems from its unique position as one of the world's largest and most dynamic consumer markets. With a population of 1.45 billion, a middle class projected to drive consumption to $6 trillion by 2030, and a workforce adding 12 million new entrants annually, India wields significant bargaining power. Its domestic market is attractive for global investors and trade partners, making it difficult for any nation to sideline India in the global trade architecture. For example, India's pharmaceutical industry, often called the 'pharmacy of the world", supplies 20% of global generic drugs by volume, including critical medications for the U.S. and EU. This market leverage gives India the confidence to negotiate from a position of strength. Moreover, India's focus on emerging sectors like renewable energy and semiconductors aligns with global trends. The National Green Hydrogen Mission, launched in 2023 with a Rs 19,744 crore outlay, aims to make India a global leader in green hydrogen production by 2030, attracting $8 billion in investments by 2025. Similarly, the India Semiconductor Mission has secured commitments from companies like TSMC and Micron, with $10 billion in planned investments to establish India as a chip manufacturing hub. On August 12, 2025, the Union Cabinet approved four new semiconductor manufacturing projects under the India Semiconductor Mission, with a total investment of approximately Rs 4,594-4,600 crore, spanning across two units in Odisha and one each in Andhra Pradesh and Punjab. India is also set to produce it's first indigenous semiconductor chip soon. top videos View all In a world where economic leverage is increasingly weaponized, India's tariff diplomacy under Prime Minister Narendra Modi offers a blueprint for other nations: strategic autonomy is not about isolation but about building resilience through diversification. Pradeep Bhandari is BJP's National Spokesperson. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect News18's views. tags : Narendra Modi view comments Location : New Delhi, India, India First Published: August 13, 2025, 12:56 IST News opinion Opinion | India's Tariff Diplomacy: Strategic Autonomy In Fractured Global Order Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Mint
41 minutes ago
- Mint
Indian chemical stocks are still the FPI darlings. Will they withstand the US tariff heat?
The chemicals and petrochemicals sector has been the biggest draw for foreign money in Indian equities in the last 11 months. It is the only industry to clock uninterrupted foreign portfolio investment (FPI) inflows, even as other sectors saw choppy trends during this period. In July 2025, overseas investors pumped in $130 million into Indian chemical and petrochemical stocks, following a hefty $278 million in June, showed data from NSDL. A year ago, FPIs had pulled out net equity investment worth $61 million from the sector. The telecom equipment space topped the charts for FPI inflows in July, attracting $570 million in net equity investment, followed by metals and mining with $388 million, and food, beverages and tobacco at $175 million. While the chemicals and petrochemicals sector saw 11 consecutive months of FPI buying, the telecom sector witnessed a steady inflow of foreign money since December. Metals and mining, along with food, beverages, and tobacco, attracted foreign inflows only in July. According to NSDL, FPIs were net sellers in the Indian equity markets in July, with a total outflow of ₹17,741 crore. Investors in chemical companies have been rewarded handsomely. In the year to 12 August, dye maker Indochem topped the list, delivering 308% gains, while specialty chemicals producer Camlin Fine Sciences gave 115%. Pigment manufacturer Kesar Petroproducts (63%), aroma and fragrance maker Privi Specialty Chemicals (59%), and life sciences-focused Anupam Rasayan (52%) also posted stellar returns. However, in the last one month, most chemical stocks have come under pressure because of US President Donald Trump's tariffs. Hikal slipped 20%, while Castrol India and Laxmi Organic eased 4%, Fine Organic and Gujarat Alkalies fell 5%, and Alkyl Amines, Archean Chemical, and Deepak Nitrite were down 7% each. Linde India dropped 8.5%, Atul 10.5%, and Fairchem Organic 12.5%. Losses were steeper for Aarti Surfactants, Aarti Industries, and Vinati Organics at 15% each, Clean Science at 17%, and Camlin Fine Sciences, plunged 24%. A few names, however, swam against the tide: Bliss GVS Pharma gained 13%, Tatva Chintan rose 9%, Tata Chemicals added 5%, Sudarshan Chemical climbed 19%, and TGV Sraac surged an impressive 32%. Now the key question facing investors is whether the momentum in chemical and petrochemical stocks can hold up after US President Donald Trump announced an additional 25% tariff on India, taking the total hit to a hefty 50%. According to the Indian Trade Portal, India is the sixth-largest chemical producer in the world and the third-largest in Asia. It ranks 14th in global chemical exports (excluding pharmaceuticals), contributing 2.5% to global chemical sales. Ratings firm Icra, in its August report, said 60% of India's agrochemicals output is exported, with the US accounting for 18% in FY2025. The US also sources agrochemicals heavily from the EU, Mexico, and China; while the EU now faces a 15% tariff, Mexico's rates match India's, and China continues to face 30%. India is a key US supplier of dyes, pigments, and other chemicals alongside China, the EU, and Mexico. However, tariff advantages for the EU and narrowing gaps with China could increase pricing pressure on Indian exports. The hope that pharma and healthcare might escape US tariffs had sparked some cheer, spilling over into a rally for chemicals and petrochemicals earlier this year, said Nilesh Ghuge, research analyst at HDFC Securities. But that optimism may be short-lived if Trump goes ahead with extra tariffs, he warned. 'Until there's clarity, investors might be better off sitting on the sidelines rather than jumping in head-first." Ghuge sees volumes inching up but says prices may take another couple of quarters to recover. Research co-head at PL Capital, Swarnendu Bhushan, also remains cautious on the sector and does not see a rebound anytime soon. 'Margins are shrinking, volumes are inching up, but prices aren't recovering, with Chinese overcapacity dumping extra supply into the market," he said. Also Read: China has now disrupted specialty chemical market. Startups step up Tariffs could shave off some exports, especially of more commoditised products, said Prashant Vasisht, senior vice president and co-group head, corporate ratings, Icra. Commodity chemicals are high-volume, standardized products—like sulfuric acid or ethylene—made for global and domestic markets. They serve as basic raw materials for other industries and show little difference from one producer to another. "However, certain speciality chemicals could bear the brunt of tariffs and still maintain volumes," he added. Pricey or fair deal? 'Valuations remain lofty for most chemical and petrochemical names, especially with Chinese dumping squeezing margins, but there are still a few decently priced pockets that could quietly deliver alpha," said Ghuge of HDFC Securities. Valuations are well above their five-year averages. Tatva Chintan, for instance, is trading at a sky-high price-to-earnings (P/E) of 615.67 versus its five-year average of 477.37. Tata Chemicals (42.6 from 31.48), Gujarat Fluorochemicals (58.02 vs 44.16), Deepak Fertilisers and Petrochemicals (43.52 vs 30.72), Archean Chemical (34.98 vs 25.67), SRF (60.30 vs 47.88), and Aarti Industries (55.50 vs 41.61) are also sporting richer-than-usual multiples. Market participants point to massive capacity additions in China and a weak global economic outlook as key headwinds, while the positives lie in a healthy domestic demand outlook and a gradual shift in global supply chains towards India. Also Read: Why Coromandel International has thrived while many fertilizer companies have struggled Scope for upgrades Ambit Asset Management's July newsletter noted that after the boom years of FY20–22, the market expected strong growth for FY22–25, projecting a 23% earnings CAGR and 25% median Ebitda margin. Instead, revenue fell at a -3% CAGR and margins dropped to 13% in FY24, before recovering to 18% in the second half of FY25 as businesses stabilised. Looking ahead, after the weak FY22-25 period, the market now expects only a modest recovery—18% revenue CAGR over FY25–27, with average Ebitda margins improving slightly to 18% in FY27 from 16% in FY25. 'We believe there is significant scope of upgrades to these assumptions given global channel inventory is at a 5-year low, which suggests restocking led demand; recent pricing up-move indicates strong improvement in margins as well, and resultantly, we believe there is scope for upgrades," said Ambit Asset. Also Read: India eases quality control norms on key chemicals imported from the US, China
