Business

MADRID — Spain said on Wednesday it would keep watch to ensure the "strategic autonomy" of Telefonica after Saudi Telecom (STC) acquired a significant stake in the Spanish telco giant, becoming its largest shareholder. 

In an announcement late Tuesday, STC said it had paid 2.1 billion euros ($2.25 billion) for a 9.9 percent share in Telefonica which has a strong presence in Latin America and the United Kingdom. 

"Telefonica is not just a flagship company but a strategic operator and the government is going to be vigilant to ensure Spain's strategic autonomy," government spokeswoman Isabel Rodriguez said. 

Speaking to reporters in Brussels, Economy Minister Nadia Calvino said the government had in recent years "strengthened" the mechanisms to protect its "strategic sectors" and pledged to apply "all necessary measures" to defend its interests. 

STC said the move would allow it to benefit from the "potential" offered by Telefonica's "unique portfolio of best-in-class infrastructure assets" while insisting it did "not intend to acquire control or a majority stake" in the company. 

Any foreign investor seeking to acquire a stake of 10 per cent or more in a strategic Spanish company must first seek Madrid's approval in a measure approved in 2020 to protect struggling firms during the pandemic. 

"Preserving our strategic autonomy is essential," wrote Labour Minister Yolanda Díaz on X, formerly known as Twitter, calling for "better regulation and protection to avoid" takeovers in companies considered strategically sensitive. 

In a statement, Telefonica characterised as "friendly" the acquisition by STC which is 64 per cent owned by Saudi's PIF sovereign wealth fund and has operations in Kuwait, Bahrain and Malaysia.

Telefonica, which has a strong presence in Brazil, Germany and the UK, posted a net profit of 2 billion euros last year although it has struggled with heavy debt levels. 

NAIROBI — The United Arab Emirates announced on Tuesday $4.5 billion in clean energy investments in Africa during a landmark climate summit hosted by Kenya that is aimed at attracting funding for efforts to combat global warming.

"We will deploy $4.5 billion... to jumpstart a pipeline of bankable clean energy projects in this very important continent," said Sultan Al Jaber, who heads the government-owned renewable energy firm Masdar, the UAE's national oil company ADNOC and the COP28 climate talks.

Heads of state, and government and industry leaders, are among thousands of attendees at the Nairobi summit where Africa is promoting its potential as a clean energy powerhouse.

The Africa Climate Summit will be followed by the COP28 summit later this year in Dubai, which is expected to feature competing agendas for the world's energy future. 

"If Africa loses, we all lose," warned Jaber, who is also the UAE's minister for industry and advanced technology.

He said the investment aimed "to develop 15 GW [gigawatts] of clean power by 2030" and "catalyse at least an additional $12.5 billion from multilateral, public and private sources".

As of 2022, the continent's renewable generation capacity was 56 gigawatts, according to the International Renewable Energy Agency.

The three-day event in Nairobi, which began Monday, is billed as bringing together African leaders to define a shared vision for green development on the diverse continent of 1.4 billion people. 

On Tuesday, the summit will offer proposals to reform global financial structures that have resulted in only a tiny fraction of investments in climate solutions being directed towards Africa.

Jaber called for a "surgical intervention of the global financial architecture that was built for a different era", urging institutions to lower debt burdens.

Countries in Africa are hamstrung by mounting debt costs and a dearth of finance, and despite an abundance of natural resources just three per cent of energy investments worldwide are made in the continent.

MUNICH — One of the world's biggest auto shows opened in Munich on Monday, with Tesla ending a 10-year absence to jostle for the spotlight with Chinese rivals as the race for electric dominance heats up.

Chancellor Olaf Scholz will officially inaugurate the IAA mobility show, held in Germany every two years, on Tuesday.

But carmakers used Monday's press preview as an early chance to show off some of the new models that will be hitting the road soon.

The industry-wide shift towards electric vehicles will be front and centre at this week's fair, with Chinese carmakers out in force as they eye the European market.

US electric car pioneer Tesla, owned by Elon Musk, will return to the IAA for the first time since 2013 and is expected to unveil a revamped version of its mass-market Model 3.

That Tesla, usually a holdout at such events, is coming to Munich shows it is taking the growing competition seriously, said Jan Burgard from the Berylls automotive consulting group

"The electric car market with its many new players will be divvied up over the next few years and people want to know: who is offering what?" Burgard told the Handelsblatt financial daily.

Having captured an increasingly large part of the prized Chinese market, Chinese upstarts are now hoping to win over European customers with cheaper electric cars.

Chinese manufacturers are starting "their assault on Europe with the IAA", said industry analyst Ferdinand Dudenhoeffer from the Center Automotive Research in Germany.

Muted European presence 

Chinese groups benefit from lower production costs, allowing them to offer cut-throat prices at a time when entry-level EVs are still a rarity.

Mercedes-Benz CEO Ola Kallenius said it was necessary for European firms to stay competitive in the face of stiff competition.

"Don't make it worse. Don't start a debate that we should work less hours at the same pay, those types of things. That would be going the wrong direction," Kallenius told reporters at the IAA on Sunday.

Volkswagen CEO Oliver Blume meanwhile said he was "impressed" by the speed at which China had advanced its electric car technology.

He added that it was "crucial" for VW to succeed in China's domestic EV market — where it is currently lagging far behind China's BYD and Tesla.

"The more electric cars we have, the more we can benefit from economies of scale," Blume said.

In all, 41 per cent of exhibitors at the industry fair have their headquarters in China, including brands such as BYD, Leapmotor and Geely.

Contrary to the Asian onslaught, participation from European carmakers at the IAA will be muted.

Germany's homegrown champions Volkswagen, BMW and Mercedes-Benz will be joined by Renault from France, but the 14-brand Stellantis Group will only be represented by Opel.

BMW presented its "Neue Klasse" (New Class) generation of electric cars in Munich on Saturday, a series of six vehicles that will be manufactured from 2025.

European automakers are investing heavily in the switch towards zero-emission driving as the European Union aims to end the sale of polluting combustion engine cars by 2035.

The historic transition comes at a challenging time.

While the supply chain problems caused by the pandemic have eased, surging energy prices in the wake of Russia's war in Ukraine and a weaker global economy are weighing on European manufacturers.

Although car sales in the EU have steadily improved over the last 12 months, they remain around 20 per cent below their pre-pandemic levels as inflation and higher interest rates dampen appetites for new vehicles.

Climate protests

Some 700,000 visitors are expected to attend this week's IAA.

Climate groups have vowed to stage protests, including acts of "civil disobedience" aimed at disrupting the fair. 

On Monday morning, Greenpeace activists submerged three cars in a small lake outside the convention centre. 

"The car industry continues to rely on too many cars, that are too big and too heavy. It's sinking the planet with that business model," Greenpeace spokeswoman Marissa Reiserer told AFP.

PARIS — The European Central Bank (ECB) is "close to the peak" of its inflation-fighting interest rate increases, Bank of France governor Francois Villeroy de Galhau said Friday.

While eurozone central bankers' "options are open" between further rate rises or holding steady at their next meeting on September 14, "we are close or very close to the peak of our interest rates," ECB Governing Council member Villeroy told journalists at a Paris breakfast meeting.

The Frankfurt institution began rate increases in July last year to tame soaring inflation in the 20-nation eurozone, with eight hikes so far bringing them to 3.75 per cent — a level not seen since 2001.

Minutes from the governors' last meeting in July showed that they considered holding firm but ultimately decided on a 0.25-per cent raise.

Whatever the decision this month "we are far from the moment where we can start thinking about lowering" interest rates, Villeroy said.

EU statistics agency Eurostat said Thursday that price growth held steady at 5.3 per cent in August, far higher than the ECB's two-per cent target.

The same day, ECB board member Isabel Schnabel said that "a sufficiently restrictive monetary policy is critical for bringing inflation back to our two-per cent target in a timely manner" — without tipping the bank's hand on the September decision.

Villeroy also said Friday that the Bank of France will slightly up its forecast for this year's French growth later this month, from its current 0.7 per cent — slightly below government expectations.

NEW YORK — The US Federal Trade Commission (FTC) announced an agreement on Friday allowing American drug manufacturer Amgen to proceed with its $28 billion takeover of Horizon Therapeutics.

The agreement addresses "potential competitive harm" posed by the takeover and will be subject to a 30-day comment period, the FTC said in a press release.

Under the deal, "Amgen will be prohibited from leveraging its drug portfolio to disadvantage rivals and will be required to seek prior approval before acquiring related products," the FTC said.

The US regulator had filed suit in May to block the purchase, arguing it would entrench the monopoly positions of Horizon's drugs to treat thyroid eye disease and chronic refractory gout respectively.

The agreement settles the FTC suit as well as one filed by six US states, the statement said.

Some of the requirements under the consent order will be valid until 2032, while others must be maintained for fifteen years after the agreement is finalised, said the FTC.

A monitor will be appointed to provide regular updates on Amgen's compliance to the FTC and the states.

Founded in 2005, Dublin-based Horizon develops and markets drugs to treat rare, autoimmune and inflammatory diseases.

Its flagship product is Tepezza, a treatment for thyroid eye disease sold in the US since 2020. It generated $1.7 billion in 2021, more than half of Horizon's sales.

Another major Horizon drug is Krystexxa, used in the treatment of chronic gout. The agreement with the FTC includes specific conditions for Tepezza and Krystexxa.

In a statement, Horizon and Amgen said they "anticipate being able to close the acquisition in early fourth-quarter 2023 and look forward to the opportunity to serve patients around the world suffering from rare diseases".

Shares of both companies jumped as US markets opened on Friday.

Near 2:30pm (1830 GMT), Amgen shares were up .27 per cent at $257.02, while Horizon shares were up 2.27 per cent to $115.30.

DUBAI — An airport terminal able to handle up to 45 million passengers a year will open in Abu Dhabi in November, state media said Thursday, accelerating competition in the crowded Gulf market.

Terminal A in the oil-rich United Arab Emirates capital, touted as one of the world's biggest, will be able to accommodate 11,000 travellers per hour and 79 aircraft at a time, according to WAM news agency.

The new facility, also known as Midfield Terminal Building, "is scheduled to begin operations in early November 2023", WAM said, as the UAE anticipates a surge in arrivals for the United Nations' COP28 climate talks in Dubai in November and December.

The terminal is opening at a time when neighbouring Saudi Arabia is rapidly expanding its airport capacity after announcing a giant new hub in Riyadh which will take up to 120 million travellers by 2030 and 185 million by 2050.

Abu Dhabi's 10 million passengers in the first half of this year pales against the traffic in next-door emirate Dubai, a major aviation hub that welcomed 41.6 million over the same period.

Qatar, another popular transit stop in the wealthy region, completed a multi-billion dollar expansion before last year's football World Cup and Saudi Arabia's Jeddah, near Mecca, is growing to 70-80 million capacity by 2035.

"Covering 742,000 square meters of built-up area, Terminal A is among the largest airport terminals in the world," WAM said.

In 2012, Abu Dhabi's state-owned airport operator signed a 10.8 billion dirham ($2.94 billion) contract with a consortium of firms to build the new terminal.

It will be the new home of Etihad Airways, the UAE's national carrier.

In March, months after announcing Riyadh's new airport, Saudi Arabia unveiled new airline Riyadh Air and placed an order for 78 Boeing 787 Dreamliner jets.

The Gulf powers, many buoyed by last year's spike in oil prices, are hurrying to diversify their hydrocarbon-reliant economies before a predicted drop in demand.

COPENHAGEN — Danish toy giant Lego said on Wednesday its net profit fell in the first half of the year but its market share grew as sales rose slightly.

The company's revenue reached 27.4 billion kroner ($4 billion) between January and June as it "grew 10 per cent faster than the market", Chief Executive Niels Christiansen told AFP in an interview.

"We've been able to outpace the market by the same rate as we've done over the last three, four, five years," he said.

While net profit dropped by 17.7 per cent to 5.1 billion kroner during the period, Lego's revenue rose by one per cent, coming on the heels of three years of record-breaking sales boosted by lockdowns during the Covid pandemic.

The feat was attributed to the success of its franchises Star Wars and Lego Icons, as well as its flagship product ranges Lego City, Lego DREAMZzz and Lego Technic.

While sales rose in the United States, growth slowed in China.

"The return to more normal conditions, where people go into stores and spend again, has been slower in China than what we anticipated," Christiansen said.

During the first half of the year, Lego opened 89 new stores, including 54 in China where the company aims to expand further, bringing the overall number of stores worldwide to 988.

The coloured brick maker said it expects to open 150 stores this year worldwide, including 85 in China.

"I have a strong belief in our opportunity to grow long term in China, because there are still so many families and kids that are that are not yet in the Lego brand," the CEO said.

"They are in cities where we are not yet present."

The world's leading toymaker since 2020 according to market data consultancy Statista, Lego was founded in 1949 by Denmark's Ole Kirk Christiansen.

The company's name is a contraction of the Danish words "play well" (Leg godt).

After running into hard times in the 2000s, the unlisted company still wholly owned by the Christiansen family recovered by focusing on franchises and films, in particular Lego Batman, Harry Potter and Ninjago.