Tag: Acquisition

  • Shell Pakistan’s domestic operations set for sale to Saudi company 

    Shell Pakistan’s domestic operations set for sale to Saudi company 

    On Wednesday, Shell Pakistan (SHEL.PSX) announced that its parent company’s subsidiary, Shell Petroleum Company, has entered into an agreement with Wafi Energy for the sale of its domestic operations. 

    The international branch of Shell (SHEL.L), known as Shell Petroleum Company, anticipates the completion of this sale by the fourth quarter of 2024, pending regulatory approvals. 

    Back in June, Shell Petroleum Company declared its intention to divest its 77 per cent ownership stake in Pakistan.  

    This decision follows a series of global operational updates by Shell and significant losses incurred by Shell Pakistan (SPL) in 2022.  

    These losses were primarily attributed to fluctuating exchange rates, the devaluation of the Pakistani rupee, delayed receivables, and the backdrop of a financial crisis and economic slowdown in the country. 

    According to Reuters, Wafi Energy, an entirely owned affiliate of Asyad Holding Group, a fuel retailer based in Saudi Arabia, is the acquiring party. 

    Shell Pakistan’s operations encompass more than 600 mobility sites, 10 fuel terminals, a lubricant oil blending plant, and a 26 per cent ownership interest in Pak-Arab Pipeline Company Limited. 

  • Chinese company shows interest in buying K-Electric for $1.77 billion

    Chinese company shows interest in buying K-Electric for $1.77 billion

    In a recent development, China’s state-owned Shanghai Electric Power (SEP) has reiterated its interest in acquiring the shares of Karachi’s sole power company, K-Electric, with a renewed offer of $1.77 billion.

    According to Shan Abbas Ashari, the investment advisor of the Saudi group Al-Jomaih Power Limited, a major shareholder of K-Electric, the Saudi group has indicated the possibility of selling its shares at a price of $2 billion.

    Ashari stated that a deal with Shanghai Electric, involving the acquisition of K-Electric shares, is set to be rekindled. He mentioned that SEP had initially proposed the $1.77 billion offer to acquire K-Electric several years ago, and this offer would now be revisited.

    Ashari highlighted the growing electricity demand in Karachi, which should have already reached 5,000 MW. He emphasised that this demand could further increase if all industries were integrated into the company’s grid.

    Moreover, Ashari emphasised that Pakistan stands as an ideal investment destination for Saudi Arabia and other Gulf countries due to its rapidly expanding population, distinguishing it from Europe.

    However, he acknowledged that investors from Saudi Arabia and Kuwait faced challenges following the K-Electric deal. Stay tuned for further updates on this significant investment development.

  • Microsoft to buy ‘Call of Duty’ maker, Activision, for $69 billion

    Microsoft to buy ‘Call of Duty’ maker, Activision, for $69 billion

    Xbox-owner Microsoft is edging closer to finalising its $69 billion acquisition of the video game giant Activision Blizzard, the creator of ‘Call of Duty.’ The UK regulatory body, on Friday, gave its approval for the revamped deal, addressing previous regulatory concerns.

    Microsoft, a US tech giant, initiated this bid early last year, aiming to secure its position as the world’s third-largest gaming company by revenue, following China’s Tencent and Japan’s PlayStation maker, Sony.

    This acquisition has undergone rigorous scrutiny from both US and UK regulators. The Competition and Markets Authority (CMA) in the UK had previously blocked an earlier version of the deal in April. However, the CMA, in its recent statement, mentioned that the “restructured deal makes important changes” and paves the way for potential clearance. The CMA will now consult on the required “remedies” before making a final decision.

    Microsoft’s Vice Chairman and President, Brad Smith, expressed optimism about the CMA’s review process, stating, “We presented solutions that we believe fully address the CMA’s remaining concerns related to cloud game streaming, and we will continue to work towards earning approval to close the deal by October 18.”

    Bobby Kotick, CEO of Activision Blizzard, which also produces popular games like ‘Diablo’ and ‘Candy Crush,’ hailed the UK regulator’s announcement as “a significant milestone for the merger.”

    The revised proposal submitted by Microsoft to the CMA last month significantly alters the deal. Notably, it ensures that the cloud distribution of these critical games remains with a strong independent supplier, Ubisoft Entertainment, instead of coming under Microsoft’s control. Colin Raftery, Senior Director of Mergers at the CMA, emphasised this change.

    The original concerns of the CMA have been addressed, according to its Chief Executive, Sarah Cardell. She noted, however, that presenting this restructuring during the initial investigation would have been preferable, emphasising the costs and delays incurred when effective remedies are not proposed promptly.

    Outside the UK, the European Union approved the deal in May, while the US antitrust regulator temporarily halted its efforts to block the acquisition after a legal setback.

    Regulators have been concerned about Microsoft potentially restricting access to highly popular games by making them exclusive to the Xbox platform. In July, Microsoft and Sony reached an agreement to continue releasing the ‘Call of Duty’ video game on the PlayStation console, resolving previous disputes where Sony sought to oppose Microsoft’s acquisition of Activision Blizzard.”

  • US firm to buy Pakistan’s Cloudways for $350 million

    US firm to buy Pakistan’s Cloudways for $350 million

    Cloudways, a Pakistani company that offers small and medium-sized businesses cloud hosting and software as a service (SaaS) capabilities, will be acquired by New York Stock Exchange-listed company DigitalOcean Holdings for $350 million.

    A large amount of the consideration, according to a business statement posted on Wednesday, would be paid over a 30-month period after the transaction closes in September.

    According to DAWN, this will be one of the largest acquisitions in Pakistan’s history due to the hefty amount of the transaction. According to the company, this deal will make workflows simpler for small and medium-sized companies that are seeking less complicated ways to develop and grow their digital operations.

    The projected revenue for Cloudways in fiscal 2022 is more than $52 million, which would indicate a three-year compound annual growth rate of more than 50 per cent.

    Since 2014, DigitalOcean and Cloudways have been strong collaborators. About 50 per cent of Cloudways’ clients are currently powered by DigitalOcean infrastructure.

    Serving a clientele that is both global and expanding, both companies will service more than 124,000 clients who make monthly payments of over $50, or around 84 per cent of the pro forma company’s total revenue.

    For specific small and medium-sized enterprises wishing to outsource their on-ramp to the internet, Cloudways offers straightforward on-boarding and day-to-day management.

    The company assists such organisations in offloading the challenges of cloud infrastructure so they may focus more on managing and growing their operations.

  • LG Electronics is stepping into EV charging business

    LG Electronics is stepping into EV charging business

    As the worldwide competition to produce everything linked to EVs intensifies, LG Electronics has acquired AppleMango, a South Korean developer of electric car battery chargers.

    The acquisition, which was done in partnership with GS Energy, a producer of EV charging stations, and GS Neotek, a provider of IT services, will enable LG to take advantage of upcoming commercial prospects.

    According to Paik Ki-mun, senior vice president of LG Electronics, “the EV charging market is likely to increase significantly due to the surging demand for more environmentally friendly automobiles.”

    “We will provide specialised, integrated vehicle charging solutions for a variety of customers, boosting the competitiveness of our existing and assuring our preparation for future prospects,” the statement reads.

    In AppleMango, which will now be a subsidiary of LG Electronics, LG Electronics purchased a 60 per cent share, while GS Energy and GS Neotek acquired 34 and 6 per cent, respectively.

    The deal’s financial details were kept between the firms. The projected cost of the transaction is $7.8 million, according to rumours.

    In order to concentrate on its growing markets, such as electric cars, the internet of things (IoT), and B2B solutions, LG Electronics shut down its loss-making mobile business about a year ago.

    To make EV charging in South Korea a pleasant and simple experience for drivers, LG Electronics is prepared to take advantage of its experience in developing user-friendly interfaces.

    The company added that by entering the EV charging market, LG can increase the synergy between its work on EV batteries, energy storage systems, energy management solutions, and chargers.

    By the end of this year, the tech giant intends to establish an EV charger production line at LG Digital Park in South Korea with the goal of offering specialised EV charging options for private houses, retail establishments, lodging facilities, and public organisations.

    The acquired company brings to the acquisition a wide range of EV charging solution technologies, from slow chargers to rapid chargers for household and commercial use.

    LG did not specify whether it planned to continue selling AppleMango’s chargers.