Foxconn’s bus venture, Telia’s internet deal approved by EU watchdog

The European Commission has cleared two merger cases under EU merger rules, including a new bus manufacturing joint venture involving Foxconn and Mitsubishi Fuso, and Telia and Brookfield’s joint acquisition of Finnish fibre company Valokuitunen.

Foxconn will create a joint venture with Mitsubishi Fuso truck and bus corporation of Japan, which is controlled by Germany’s Daimler Truck AG, relating mainly to the manufacture and supply of heavy and light buses.

The Commission concluded the transaction would not raise competition concerns because it would have a limited impact on the European economic area. In a separate decision, Telia Company AB of Sweden and Brookfield Asset Management Ltd of Canada were cleared to acquire joint control of Valokuitunen Oy of Finland, primarily relating to wholesale fixed Internet access services that other providers can buy to offer home and business Broadband.

The Commission said it found no competition concerns because the joint venture has negligible activities in the European Economic Area. Both cases were reviewed under the EU’s simplified merger review procedure and are listed in the Commission’s public case register as M.12376 and M.12377.

Reference Sources

1. brusselstimes - Foxconn’s bus venture, Telia’s internet deal approved by EU watchdog

Aramco Sees 100 Million-Barrel Oil Loss Each Week Hormuz Is Shut

Global oil markets are losing 100 million barrels every week the Strait of Hormuz is shut, compounding a supply shortage that has already made the Middle East war the most significant supply disruption ever, according to the head of Saudi Arabia’s state oil producer, Amin Nasser. That shortfall in supply is being met by companies and governments dipping into storage, with global stockpiles running dangerously low, he said.

Most of the world’s spare oil production capacity is located in the Persian Gulf, meaning it’s not available to help address the shortfall, he said.

The biggest challenge facing the market is the disruption to the global tanker fleet, Nasser said.

Reference Sources

1. bloomberg - Oil Market in ‘Race Against Time’ on Hormuz, Morgan Stanley Says
2. bloomberg - Aramco Sees 100 Million-Barrel Oil Loss Each Week Hormuz Is Shut
3. thestarmy - Oil market in ‘race against time’ on Hormuz, Morgan Stanley says
4. cnbc - Saudi Aramco CEO says oil market won't normalize until 2027 if Hormuz disruption persists

China’s passenger car exports surge nearly 85% in April as domestic sales slump

China's exports of passenger cars surged in April as carmakers push to expand in overseas markets, while domestic sales continue to fall. Exports of passenger cars from China last month jumped almost 85% from a year ago to around 796,000 vehicles, according to the China Association of Automobile Manufacturers. Among them, exports of new energy passenger vehicles, including battery electric vehicles and Plug-In hybrids, jumped more than 120% last month from the year before, to about 420,000 units.

However, sales of passenger cars at home dropped 25.5% from the year before to 1.3 million vehicles, marking its sixth straight month of year-on-year declines. Domestic car demand in China has weakened due to dialed-back government support for drivers to switch to new energy vehicles, while the country’s uncertain economic outlook, triggered by a prolonged property sector downturn, has also been holding some consumers off from purchasing new cars in the world’s largest auto market. Competition among Chinese carmakers has also been fierce. At the Beijing Auto Show last month, more than 1,450 vehicles were showcased as companies displayed their latest models and technologies, from artificial Intelligence-Infused cars to advanced Ultrafast-Charging batteries.

Some analysts believe that domestic car sales momentum could improve later this year as more new models are rolled out.

Reference Sources

1. apnews - China’s passenger car exports surge nearly 85% in April as domestic sales slump
2. nikkei - China's domestic car demand stays weak but exports strengthen

The CommonWealth English daily news digest is a service curated by CommonWealth English team with the help of AI tools.  

Have you read?

• China–US Trade Talks Resume in South Korea
• US-China AI Talks Gain Momentum Ahead of Trump-Xi Summit
• Microsoft’s Climate Goals Under AI Pressure

Uploaded by Ian Huang