Boeing (B.A)
Boeing and Airbus ( AIR.PA ) have secured a deal to spin off Spirit AeroSystems ( SPR ), with the former paying $4.7 billion (£3.7 billion) for the supplier, rising to $8.3 billion including assumed debt. This reverses a move made 19 years ago to spin off the hull manufacturer.
Spirit was the fuselage and wing supplier at the center of the crisis surrounding the Boeing 737 Max airliner, which faced a series of manufacturing problems, including a cracked door panel mid-air in January.
Airbus will acquire the assets involved mainly in the production of its own aircraft for a nominal amount of US$1, while receiving compensation of US$559 million from Spirit.
Dave Calhoun, Boeing CEO, said: “We believe this agreement is in the best interests of the flying public, our airline customers, Spirit and Boeing employees, our shareholders and the country as a whole.
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“By reintegrating Spirit, we can fully align our commercial manufacturing systems, including our safety and quality management systems, and our workforce with the same priorities, incentives and outcomes – focused on safety and quality.”
Spirit was originally spun off from Boeing in 2005 as part of a cost-cutting effort.
Harland and Wolff (HARL.L)
Shares in Harland and Wolff were suspended on Monday after the company failed to publish its annual results on time.
The shipbuilder, which owns the shipyard where the Titanic was built, said the delay in its results was due to “ongoing discussions with its auditors regarding revenue recognition related to the multi-year and complex nature of some of the contracts under which the company operates.” .”
It said its annual report was due to be published during the week of July 8, more than a week after the deadline under AIM rules, and that the shares would be suspended until then.
The Belfast-based firm was plunged into uncertainty last month when it was announced that the UK government was delaying approval of a £200m loan guarantee promised in December to shore up its finances.
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“The review of the revenue split between current year revenue and deferred revenue caused a delay in the audit process and thus the publication of the company’s annual report and audited financial statements,” the company said.
The company was able to publish unaudited accounts showing an operating loss of £24.7m for the 12 months to 31 December 2023, an improvement on a loss of £58.5m a year earlier. Revenues rise from £27.8m in 2022 to £86.9m this year.
Brent crude was trading above $86 after rising 6% last month, while West Texas Intermediate jumped to around $82.
It comes as a private gauge of China’s manufacturing activity showed expansion to the highest level in three years last month. This differed from official data showing a contraction, clouding the outlook.
“Rising geopolitical tensions, which could disrupt global oil supplies from major producing regions,” are supporting prices, said Priyanka Sachdeva, chief market analyst at Phillip Nova Pte. “It is very likely that concerns about a global slowdown will keep any rise in oil prices contained.
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Oil remains higher this year, with the latest rise coming as the Organization of the Petroleum Exporting Countries and its allies (OPEC+) bolstered prices by saying any plan to add barrels back to the market would depend on market conditions.
black stone (BLK)
Shares in BlackRock rose in pre-market trading on Monday after news that it was looking to buy UK data group Preqin for $3.2bn (£2.55bn) in cash.
The firm, which manages more than $10 trillion, is looking to capitalize on booming demand from investors for alternative assets. This includes anything from private equity to infrastructure.
Earlier this year, BlackRock announced a deal to buy Global Infrastructure Partners (GIP) for $12.5 billion, while other investment firms have also made recent deals.
BlackRock said in a statement that the acquisition will complement its Aladdin technology business by bringing together data, research and the investment process for fund managers.
“Together with Preqin, we can make private investment markets easier and more accessible, while building a more connected platform for investors and fund managers,” said Sudhir Nair, global head of BlackRock’s Aladdin.
Founded in 2003, Preqin will continue to be offered as a stand-alone solution, with the company confirming that it is expected to generate $240 million in recurring revenue by 2024.
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