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Market Update

Maersk to Buy Hamburg Sud, Elekta Net Declines 71%

Author: Sarla Buch
Last Update: 10:46 AM ET December 01 2016

4:00 PM Frankfurt – Maersk agreed to acquire Germany-based Hamburg Sud. Elekta said net tumbled 71% on 16% decline in revenues and medical treatment provider secured two orders for MR-supported linear. Remy agreed to buy the U.S.-based Westland Distillery. Wendel sales jumped 10%.

In London trading, FTSE 100 index declined 86.16 or 1.3% to 6,698.12 and in Frankfurt the DAX index slumped 95.03 or 0.9% to 10,545.05.

In Paris, CAC 40 index decreased 15.07 or 0.3% to 4,563.27.

AP Moeller Maersk A/S jumped 4.9% to 9,355 Danish Kroner after Denmark-based oil container shipping group’s subsidiary Maersk Line and the Oetker Group agreed to acquire its Germany-based smaller rival and the world''s seventh largest container shipping line Hamburg Südamerikanische Dampfschifffahrts-Gesellschaft KG.

In 2015, Hamburg Süd had revenues of $6.73 billion. After declining the value of the deal, Chief executive officer of Maersk Line and the Maersk Group Soeren Skou and added that the deal will be in cash only.

Maersk plans to release the deal details after approval of sales and purchase agreement is expected to be done early in the second-quarter of 2017 and the transaction may close by the end of 2017.

Elekta AB decreased 1.3% to 75.25 Swedish kronor after Sweden-based cancer and brain disorder treatment provider said net sales in the second-quarter ending in October plunged 16% from a year ago to 2.4 billion kronor.

Net income in the quarter tumbled 71% from a year ago to 55 million kronor compared to the 189 million kronor and diluted earnings per share dropped to 0.14 kronor from 0.49 kronor.

Separately, Elekta received two orders from Princess Margaret Cancer Centre in Canada and Odense University Hospital in Denmark for high-field MR-supported linear accelerator and expects to receive regulatory clearance in the second-half of 2017.

Remy Cointreau slipped 1.5% to €78.01 after France-based wines and spirits producer agreed to buy the U.S.-based single malt whiskey maker Westland Distillery without disclosing of financial terms.

Remy said the transaction is expected to close before the end of the year.

Wendel SE rose 0.2% to €109.45 after France-based investment group said sales in the nine-month period ending in September jumped 9.5% from a year ago to €6.2 billion.

Separately, today Wendel announced its plans to invest €3 billion to €4 billion in equity investments between 2017 and 2020, including €500 million to €1 billion from like-minded partners.

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