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Market Update

Aldi Plans $5 Billion U.S. Investment, Glencore Bids for Rio Coal Assets

Author: Sarla Buch
Last Update: 2:20 PM ET June 12 2017

4:00 PM Frankfurt – Aldi plans to invest $3.4 billion in the U.S. for major expansion in next five-years. France based Dassault agreed to acquire Netherlands-based AITAC. Glencore offered $2.5 billion to Rio Tinto for its Australia-based coal assets. Stanley Gibbons is searching for a buyer.

In London trading, FTSE 100 index slid 5.09 to 7,522.89 and in Frankfurt the DAX index dropped 125.02 or 0.9% to 12,690.23.

In Paris, CAC 40 index declined 62.28 or 1.2% to 5,237.43.

Aldi Inc, the Germany-based discount grocery stores operator said it plans to add approx 2,500 stores in the U.S. by 2022 and plans for invest nearly $3.4 and also spend $1.6 billion to remodel 1,300 of its existing stores by 2020.

Aldi chief executive Jason Hart told Reuters in May that the chain intended to prices at least 21% lower than its rivals and 50% lower than the traditional grocery chains and plans to offer more organic produce.

Dassault Systemes SE dropped 2.9% to €80.84 after France-based 3D software solutions provider agreed to acquire Netherland-based marine and offshore engineering software developer AITAC BV without disclosing financial terms.

As part of the deal, Dassault Systemes also acquires 40% of AITAC’s Croatia-based marine and offshore engineering office, providing naval architecture and engineering services to large shipbuilders.

Glencore Plc gained 0.6% to 296.90 pence after the Switzerland-based commodity trader offered Rio Tinto Plc to acquire 100% stake in its Australia-based Coal & Allied Industries Limited for $2.55 billion cash plus coal price linked royalty.

Glancore proposal satisfies the criteria for a “superior proposal” and is $100 million above than Rio Tinto originally announced the terms of the potential sale on January 24.

Nomad Foods Limited, the British Virgin Islands-based frozen foods supplier said that it agreed to repurchase 9.8 million of its shares beneficially owned by Permira Advisers LLP for $10.75 per share with an aggregate purchase price of about $105.1 million to settle the legacy tax claims.

Stanley Gibbons Group Plc plunged 12.3% to 11.51 pence after the U.K.-based antiques and rare stamp and collectables put itself up for sale.

The stock plunged amid takeover news chaos after Disruptive Capital Finance on today withdrew its offer released on Friday.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc