Latest news with #jointventure
Yahoo
a day ago
- Business
- Yahoo
Wells Fargo Signs a Deal to Sell its $4.4 Billion Rail Asset Portfolio
The $4.4 billion rail equipment leasing division of Wells Fargo & Company (NYSE:WFC) will be sold to a joint venture between Brookfield Infrastructure and GATX Corporation. A team of bankers in suits, discussing the success of the company's banking products. The agreement covers the whole rail operating lease portfolio, which consists of about 105,000 railcars, as well as the rail finance leasing portfolio, which consists of 440 locomotives and 23,000 railcars. According to Wells Fargo & Company (NYSE:WFC), the deal fits with its plan to streamline operations and will not have a significant effect on its financials. Brookfield Infrastructure will own 70% of the business, with the possibility that GATX Corporation may eventually acquire the entire company. GATX Corporation will oversee operations and initially hold a 30% stake in the business. It's anticipated that the deal will close by Q1 2026. David Marks, executive vice president, Wells Fargo & Company (NYSE:WFC) Commercial Banking, commented: "This transaction is consistent with Wells Fargo's ongoing strategy of simplifying our businesses and focusing on products and services that are core to our clients," GATX Corporation acquires operational control, strengthening Brookfield Infrastructure's capital depth and its freight transport infrastructure network. While we acknowledge the potential of WFC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WFC and that has 100x upside potential, check out our report about this READ NEXT: and . Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Zawya
3 days ago
- Business
- Zawya
ADNOC Drilling to take 70% stake for $112mln in rigs JV with SLB
ADNOC Drilling Co. will acquire a 70% stake for $112 million in a joint venture (JV) with SLB's land drilling rigs business in Kuwait and Oman. The JV comprises eight fully operational land rigs under contract with the respective national oil companies of both countries. The formation of the JV and the acquisition of a 70% stake, is expected in Q1 2026 once regulatory approvals are secured. ADNOC Drilling will fund the transaction through its existing debt capacity. The NYSE-listed SLB, formerly known as Schlumberger Limited, is a technology and services provider to the energy industry. Through this acquisition, ADNOC Drilling will gain immediate access to earnings, cashflow and returns through two operating land drilling rigs in Kuwait and six in Oman. "The headline valuation (3.5x EV/EBITDA) is accretive and we estimate could yield a 15% IRR i.e a 200 bps premium to the top end of the domestic framework," said Oliver G Connor, analyst at Citi Research, in a note. The deal is a first step in meeting the company's broader ambition to reach a 10% market share in the Oman/Kuwait market (i.e 30 rigs) with the flexibility to bring rigs back to the UAE in the long term, Connor added. ADNOC Drilling, which is listed on the ADX, expects to consolidate the newly acquired business in its financial reporting from 2026. (Writing by Brinda Darasha; editing by Seban Scaria)
Reuters
3 days ago
- Business
- Reuters
Wells Fargo signs deal to sell $4.4 billion rail assets portfolio
May 29 (Reuters) - Wells Fargo (WFC.N), opens new tab said on Thursday it has signed a deal to sell its rail equipment leasing business to a newly formed joint venture between railcar lessor GATX Corporation (GATX.N), opens new tab and Brookfield Infrastructure (BIP.N), opens new tab. The deal, which the U.S. banking giant said will not have a material impact on its financial position or earnings, includes the entire rail operating lease assets valued at around $4.4 billion, as well as the rail finance lease portfolio. "This transaction is consistent with Wells Fargo's ongoing strategy of simplifying our businesses and focusing on products and services that are core to our clients," said David Marks, executive vice president, Wells Fargo Commercial Banking. In a separate statement, GATX and Brookfield Infrastructure said the rail operating lease portfolio includes roughly 105,000 railcars. Additionally, Brookfield Infrastructure has also agreed to acquire Wells Fargo's rail finance lease portfolio, composed of roughly 23,000 railcars and around 440 locomotives. GATX will initially own 30% and Brookfield Infrastructure 70% of the joint venture, with the former having the option to acquire full ownership over time. GATX will have commercial and operational control, and manage all joint venture assets. The companies said they expect the deal to close in the first quarter of 2026 or sooner.
Globe and Mail
3 days ago
- Business
- Globe and Mail
COFCO Coca-Cola Celebrates 25 Years as Witness and Driver of China's Beverage Industry Upgrade
BEIJING - COFCO Coca-Cola Beverages Ltd. (COFCO Coca-Cola) marked its 25th anniversary at a ceremony themed "25 Years of Youthful Vitality and Innovation" in Beijing. As a flagship Sino-foreign joint venture in China's beverage sector, the company's journey mirrors the industry's transformation towards high-quality development. 25 Years in Sync with China's Beverage Evolution Founded in 2000 during China's transition from a planned to a market economy, COFCO Coca-Cola overcame early market challenges by leveraging Coca-Cola's global expertise and COFCO Group's local operational strength. Within a decade, it secured its position among Coca-Cola's Global Top 10 Bottling Partners – a status it maintains today. Video: Growth has been both quantitative and qualitative: · Production Scale: Expanded from 2 factories to 20, and 5 production lines to 103. · Financial Growth: Annual revenue surged from RMB 384 million (approx. $54 million USD in 2000) to RMB 214.92 billion (approx. $30.3 billion USD). · Market Reach: Coverage grew from 5% to 81% of China's expansion, achieved through strategic mergers, new plant construction, and deep market penetration, created a nationwide production and distribution network. Leading Innovation Amidst Consumer Upgrade Responding to rising health consciousness and industry restructuring, COFCO Coca-Cola accelerated its portfolio shift. While traditional CSD market share declined, it pioneered low/no-sugar options, functional drinks, and natural water. Key milestones include: · 2012: Annual sales exceeded 600 million unit cases, accompanied by multiple low/no-sugar launches. · 2024: No-sugar product sales surged 38% innovation leadership exemplifies the industry's shift from price competition to value creation. Digital Transformation for High-Quality Growth 2024 saw breakthroughs in COFCO Coca-Cola's smart supply chain: · "Coke GO" Intelligent Ordering System: Reached 2.1 million retail terminals. · "Yue Xiang Hui" Membership Program: Surpassed 56 million members. · Direct-to-Consumer (D2C) Sales: Jumped to 57% of total end-to-end digitalization fueled a RMB 1.866 billion ($263 million USD) profit increase in 2024 and charts a future path of "Smart Manufacturing + Intelligent Distribution" for the sector. Simultaneously, the company advances green transformation aligned with China's "Dual Carbon" goals. Its upcoming Shaanxi factory will set a new industry benchmark as a green, smart, and advanced facility. Looking Ahead: Continuing the Legacy Reflecting on 25 years of weathering storms and achieving growth, Mr. Li Guoqiang, Chairman of COFCO Group, commended COFCO Coca-Cola's role: "As a pioneering post-reform JV, you've been both practitioners of the market economy and catalysts for industrial upgrading." Chairman Li emphasized the path forward: · Innovation-Driven: Precisely meet diverse and personalized consumer demands with premium products. · Strategic Alignment: Deeply integrate development with COFCO Group's strategy, contributing to its high-quality growth. · New Development Paradigm: Build a "dual circulation" model, setting benchmarks for cultivating new productive forces in FMCG and exploring a distinctly Chinese modernization path. Guided by COFCO Group's core tenets of "Mutual Trust, Win-Win, Innovation," COFCO Coca-Cola stands at a new starting point, poised to lead the next era of industry advancement. Media Contact Company Name: COFCO Coca-Cola Beverages Limited (CBL) Contact Person: Liu Yang Email: Send Email Country: China Website:
Zawya
3 days ago
- Business
- Zawya
ADNOC Drilling buys into SLB's Oman and Kuwait rig business
ADNOC Drilling will acquire a 70% stake in oil services firm SLB's onshore rig business in Oman and Kuwait for up to $112 million, creating a joint venture it seeks to double in the next year, its chief financial officer said on Thursday. The acquisition, expected to close in the first quarter of 2026, will give ADNOC Drilling - a unit of Abu Dhabi state oil major ADNOC - access to eight operational onshore drilling rigs, six in Oman and two in Kuwait. "So we have things in the pipeline that will potentially at least double that existing, initial eight rigs footprint," ADNOC Drilling CFO Youssef Salem told Reuters. ADNOC Drilling will pay $91 million for the stake, with another $21 million payout to SLB linked to business performance, Salem said. The current oil price and macroeconomic environment "put pressure on valuations and multiples globally ... and reduces the pool of potential buyers for such assets, generally, and hence presents a competitive advantage, especially for a cash buyer," he said. The transaction will be financed by drawing from a $1 billion revolving loan that ADNOC Drilling has with a group of regional and international banks. The loan matures in the fourth quarter and will be refinanced before then, Salem said. The deal will mark the first drilling operations outside the United Arab Emirates for the company, apart from a single rig in Jordan. ADNOC Drilling's focus will be on growing its scale in Oman and Kuwait, through acquisitions as well as tenders, while also evaluating expansion into other markets, Salem said. (Reporting by Yousef Saba; Editing by David Holmes)
