Tesla Motors Inc and SolarCity Corp have made progress in putting together a deal that will merge the electric car maker and the solar panel installer, people familiar with the matter said. 
 
The two companies, which count billionaire Elon Musk as a major shareholder, are in the final stages of carrying out due diligence on each other, and could agree on the terms of a deal in the coming days, though it is still possible that their negotiations end unsuccessfully, the people said on Saturday. 
 
It could not be learned whether SolarCity would be successful in including a go-shop provision in a merger agreement with Tesla that would allow it to continue to solicit bids from other potential buyers for a short period of time. 
 
The sources asked not to be identified because the negotiations are confidential. Representatives for SolarCity and Tesla did not immediately respond to requests for comment. 
 
Tesla announced last month that it had made an all-stock offer for SolarCity worth $2.8 billion. It argued that by acquiring SolarCity, the two companies would form a one-stop clean energy shop, offering consumers solar panels, home battery storage and electric cars under a single trusted brand. 
 
SolarCity has not publicly revealed its views on Tesla&#39;s offer since it announced on June 27 that it had formed a special committee consisting of two board members to evaluate the offer. The committee said it had retained legal and financial advisers and would review the proposal against SolarCity&#39;s standalone prospects and a broad range of strategic alternatives. 
 
As chief executive of Tesla, chairman of SolarCity and the biggest shareholder in both companies, Musk has recused himself from voting on the deal at both companies. Several Tesla and SolarCity executives, including Musk&#39;s cousins SolarCity CEO Lyndon Rive and SolarCity board member Peter Rive, have also recused themselves from voting. 
 
Elon Musk said on July 20 when he revealed his master plan &quot;part deux&quot; for Tesla that he is looking to create a &quot;smoothly integrated and beautiful solar-roof-with-battery product.&quot; 
 
&quot;We can&#39;t do this well if Tesla and SolarCity are different companies, which is why we need to combine and break down the barriers inherent to being separate companies,&quot; Musk said. 
 
(Reuters)

The two companies are in the final stages of carrying out due diligence on each other, but failure of negotiations is still a possibility

Tesla Motors Inc and SolarCity Corp have made progress in putting together a deal that will merge the electric car maker and the solar panel installer, people familiar with the matter said. The two companies, which count billionaire Elon Musk as a major shareholder, are in the final stages of carrying out due diligence on each other, and could agree on the terms of a deal in the coming days, though it is still possible that their negotiations end unsuccessfully, the people said on Saturday. It could not be learned whether SolarCity would be successful in including a go-shop provision in a merger agreement with Tesla that would allow it to continue to solicit bids from other potential buyers for a short period of time. The sources asked not to be identified because the negotiations are confidential. Representatives for SolarCity and Tesla did not immediately respond to requests for comment. Tesla announced last month that it had made an all-stock offer for SolarCity worth $2.8 billion. It argued that by acquiring SolarCity, the two companies would form a one-stop clean energy shop, offering consumers solar panels, home battery storage and electric cars under a single trusted brand. SolarCity has not publicly revealed its views on Tesla's offer since it announced on June 27 that it had formed a special committee consisting of two board members to evaluate the offer. The committee said it had retained legal and financial advisers and would review the proposal against SolarCity's standalone prospects and a broad range of strategic alternatives. As chief executive of Tesla, chairman of SolarCity and the biggest shareholder in both companies, Musk has recused himself from voting on the deal at both companies. Several Tesla and SolarCity executives, including Musk's cousins SolarCity CEO Lyndon Rive and SolarCity board member Peter Rive, have also recused themselves from voting. Elon Musk said on July 20 when he revealed his master plan "part deux" for Tesla that he is looking to create a "smoothly integrated and beautiful solar-roof-with-battery product." "We can't do this well if Tesla and SolarCity are different companies, which is why we need to combine and break down the barriers inherent to being separate companies," Musk said. (Reuters)

One-stop clean energy shop: Tesla, SolarCity merger in the offing

Two of China&#39;s biggest steelmakers are planning to merge, they said, as the industry faces a global glut that has hammered producers worldwide. 
 
Baosteel Group, China&#39;s second-largest steelmaker, is &quot;planning a strategic restructuring with Wuhan Iron and Steel Group&quot;, another giant, both companies&#39; listed units said in separate statements to the Shanghai stock exchange yesterday. 
 
But the restructuring plan has not yet been confirmed, the statements said, without giving further details.&nbsp;The two firms rank 5th and 11th respectively in the world. 
 
Baosteel produced 36.1 million tonnes of steel last year, its website says -- more than Brazil and three times more than Britain, according to the World Steel Association, whose ranking shows that if Baosteel was a country, then it would be eighth in the world. 
 
But Chinese steel demand has slumped as its economic growth has slowed and the global steel industry is assailed by huge overcapacity, which has plunged manufacturers into losses from Asia to Europe to the US, and seen political rows and accusations of dumping. 
Shanghai-based Baosteel&#39;s net profit plummeted 83 percent to 1.0 billion Yuan (USD 150 million) last year, while Wuhan Steel lost 7.5 billion Yuan, compared with a 1.3 billion Yuan net profit in 2014. 
 
Beijing has vowed to eliminate 100-150 million tonnes of capacity -- out of a total of 1.2 billion tonnes - by 2020.&nbsp;&quot;The merger of Baosteel and Wuhan Steel fits with the government strategy of improving efficiency and reducing competition and overcapacity,&quot; Xu Xiangchun, chief analyst at consultancy Mysteel Research, told Bloomberg News.&nbsp;&quot;With these two leading the effort there might be more mergers ahead.&quot; 
 
Wuhan Steel chairman Ma Guoqiang denied speculation of a merger at a shareholder meeting earlier this month, the Beijing News reported. 
Trading in both firms&#39; shares was suspended on Monday. 
 
(AFP)

Global steel industry is assailed by huge overcapacity, which has plunged manufacturers into losses from Asia to Europe to the US

Two of China's biggest steelmakers are planning to merge, they said, as the industry faces a global glut that has hammered producers worldwide. Baosteel Group, China's second-largest steelmaker, is "planning a strategic restructuring with Wuhan Iron and Steel Group", another giant, both companies' listed units said in separate statements to the Shanghai stock exchange yesterday. But the restructuring plan has not yet been confirmed, the statements said, without giving further details. The two firms rank 5th and 11th respectively in the world. Baosteel produced 36.1 million tonnes of steel last year, its website says -- more than Brazil and three times more than Britain, according to the World Steel Association, whose ranking shows that if Baosteel was a country, then it would be eighth in the world. But Chinese steel demand has slumped as its economic growth has slowed and the global steel industry is assailed by huge overcapacity, which has plunged manufacturers into losses from Asia to Europe to the US, and seen political rows and accusations of dumping. Shanghai-based Baosteel's net profit plummeted 83 percent to 1.0 billion Yuan (USD 150 million) last year, while Wuhan Steel lost 7.5 billion Yuan, compared with a 1.3 billion Yuan net profit in 2014. Beijing has vowed to eliminate 100-150 million tonnes of capacity -- out of a total of 1.2 billion tonnes - by 2020. "The merger of Baosteel and Wuhan Steel fits with the government strategy of improving efficiency and reducing competition and overcapacity," Xu Xiangchun, chief analyst at consultancy Mysteel Research, told Bloomberg News. "With these two leading the effort there might be more mergers ahead." Wuhan Steel chairman Ma Guoqiang denied speculation of a merger at a shareholder meeting earlier this month, the Beijing News reported. Trading in both firms' shares was suspended on Monday. (AFP)

Chinese steel giants plan merger in face of global glut

German steel firm Thyssenkrupp and Indian steel company Tata Steel could sign a Memorandum of Understanding (MoU) on merging their European steel businesses within weeks, German business monthly Manager Magazin reported on Friday, citing inside sources. 
 
Valuations are being discussed, along with the question of whether Tata would make a payment to Thyssenkrupp - whose European steel business is larger - in the event of a 50:50 venture, the magazine reported. 
 
Neither Thyssenkrupp or Tata had an immediate comment on the report. 
 
(Reuters)

Valuations are being discussed along with the question of whether Tata would make a payment to Thyssenkrupp

German steel firm Thyssenkrupp and Indian steel company Tata Steel could sign a Memorandum of Understanding (MoU) on merging their European steel businesses within weeks, German business monthly Manager Magazin reported on Friday, citing inside sources. Valuations are being discussed, along with the question of whether Tata would make a payment to Thyssenkrupp - whose European steel business is larger - in the event of a 50:50 venture, the magazine reported. Neither Thyssenkrupp or Tata had an immediate comment on the report. (Reuters)

Thyssenkrupp, Tata may merge European steel businesses

Mergers and acquisitions in the global consumer and retail sectors in 2016 are likely to be characterised by lower valuations for small firms and reasonable values for riskier assets, after a string of mega deals in 2015, a report shows.

Last year ended with $365 billion in transactions, the highest dollar value of deals in these sectors since 2008, said the report by consulting firm AT Kearney.

The report, titled &#39;Has the consumer-retail merger market lost its froth&#39;, was based on interviews with thirty six company executives globally and analysed historical data from over 1,000 transactions.

Among other&nbsp;trends, the report found renewed investment interest in the United States and other weste nrn markets by companies in China and Japan keen to expand outside their home markets.

The need for deals will be spurred by tighter margins and slowing growth but that will be offset by a drop in demand for high yield debt from private equity players. Higher interest rates for such debt will increase the cost of capital and hurt deal appetite, the report said.

Consolidation, however, will continue and is likely in the most mature categories like soda beverages, processed foods such as cereals and frozen foods.

Large Chinese companies with limited growth prospects domestically still have access to vast amounts of capital from state-owned banks and are interested in buying valuable assets, brands, and capabilities rather than building them.

Chinese investment in offshore M&amp;A was already at $106 billion by the end of the first quarter of 2016, just short of the total for all of 2015, the report said.

Buyers also remained bullish on India with sixty eight per cent of respondents expecting deal activity in the market to remain at current levels or increase, driven by lower oil prices and a broad push towards deregulation led by Prime Minister Narendra Modi.

The report, titled 'Has the consumer-retail merger market lost its froth' found renewed investment interest in the United States and other western markets by companies in China and Japan

Mergers and acquisitions in the global consumer and retail sectors in 2016 are likely to be characterised by lower valuations for small firms and reasonable values for riskier assets, after a string of mega deals in 2015, a report shows. Last year ended with $365 billion in transactions, the highest dollar value of deals in these sectors since 2008, said the report by consulting firm AT Kearney. The report, titled 'Has the consumer-retail merger market lost its froth', was based on interviews with thirty six company executives globally and analysed historical data from over 1,000 transactions. Among other trends, the report found renewed investment interest in the United States and other weste nrn markets by companies in China and Japan keen to expand outside their home markets. The need for deals will be spurred by tighter margins and slowing growth but that will be offset by a drop in demand for high yield debt from private equity players. Higher interest rates for such debt will increase the cost of capital and hurt deal appetite, the report said. Consolidation, however, will continue and is likely in the most mature categories like soda beverages, processed foods such as cereals and frozen foods. Large Chinese companies with limited growth prospects domestically still have access to vast amounts of capital from state-owned banks and are interested in buying valuable assets, brands, and capabilities rather than building them. Chinese investment in offshore M&A was already at $106 billion by the end of the first quarter of 2016, just short of the total for all of 2015, the report said. Buyers also remained bullish on India with sixty eight per cent of respondents expecting deal activity in the market to remain at current levels or increase, driven by lower oil prices and a broad push towards deregulation led by Prime Minister Narendra Modi.

Global retail and consumer sector deals less pricey in 2016: report

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