Germany’s Thyssenkrupp (DE:TKAG) and India’s Tata Steel(N:TISC) struck a preliminary deal on Wednesday to merge their European steel operations in a 50-50 joint venture to create the continent’s No.2 steelmaker after ArcelorMittal (AS:MT).
The deal will not involve any cash, Tata Steel said, adding that both groups would contribute debt and liabilities to achieve an equal shareholding and remain long-term investors.
The companies say they need to consolidate to address overcapacity in the European steel market, which faces cheap imports from China and elsewhere, subdued demand for construction and inefficient legacy plants.
By Christoph Steitz
The pound re-approached recent 15-month highs against the U.S. dollar on Wednesday, boosted by strong UK retail sales data, while caution ahead of the Federal Reserve’s upcoming policy statement maintained downward pressure on the greenback.
GBP/USD was up 0.64% at 1.3589 by 04:40 a.m. ET (07:40 GMT).
The pound moved higher after the UK Office for National Statistics reported on Wednesday that retail sales blew past forecasts in August, increasing 1.0%.
Year-on-year, retail sales climbed 2.4% last month, also better than expectations.
Amazon.com Inc (NASDAQ:AMZN) is working on its first wearable device – a pair of ‘smart glasses’, the Financial Times reported on Wednesday.
The device, designed like a regular pair of spectacles, will allow Amazon’s digital assistant Alexa to be summoned anytime at all places, the report said, citing people familiar with the plans.
There would be a bone-conduction audio system in the device to allow the wearer to hear Alexa without inserting headphones into his or her ears, according to the report.
Japan’s embattled Toshiba Corp (T:6502) has chosen a group led by U.S. private equity firm Bain Capital to buy its prized memory chip unit, three people with knowledge of the talks said on Wednesday, a last-minute dramatic twist to a highly contentious auction.
But it’s unclear whether the decision by Toshiba’s board will mean the sale will now proceed smoothly, as rival suitor Western Digital Corp (O:WDC) has initiated legal action, arguing no deal can be done without its consent due to its position as Toshiba’s joint venture chip partner.
The Bain-led offer for the world’s No. 2 producer of NAND semiconductors is worth some $22 billion, sources have said.
By Taro Fuse and Kentaro Hamada