All articles tagged with #divestiture
Capgemini will divest Capgemini Government Solutions, its US unit that provides skip-tracing services for ICE, after French lawmakers criticized the contract. The deal, worth over $4.8m and running until March, follows heightened scrutiny of ICE and immigration enforcement amid recent incidents in Minnesota.
Dana Incorporated has completed the sale of its Off-Highway business to Allison Transmission for $2.7 billion, a move that strengthens its focus on light- and commercial-vehicle markets, reduces debt by about $2 billion, and plans to return $1 billion to shareholders by 2027, supporting its ongoing transformation and growth strategy.
President Donald Trump signed an executive order to save TikTok from a ban by approving a divestiture plan where TikTok's US operations are transferred to a US-based joint venture, with Oracle providing security and US user data stored domestically, ensuring national security while allowing Americans to continue using the platform and supporting US economic activity.
Citi announced that Fernando Chico Pardo and his family will purchase a 25% stake in Banamex for approximately USD 2.3 billion, marking a key step in Citi's plan to divest from Banamex and focus on its core businesses. Pardo will be appointed Chair of Banamex, signaling a strategic partnership aimed at strengthening the bank's future growth and stability in Mexico.
Sinclair, Inc. has announced a comprehensive strategic review of its broadcast business, including potential acquisitions, partnerships, and a possible separation of its Ventures portfolio, aiming to unlock value and lead industry consolidation, while emphasizing its strong financial performance and operational excellence.
AppLovin beat Wall Street earnings and revenue expectations for Q2, with significant year-over-year growth, and provided a higher sales forecast for Q3. Despite the positive financial results, its stock declined slightly in after-hours trading, and the company continues to focus on its core marketing platform after selling its mobile gaming business. The stock is currently in a consolidation pattern with a potential buy point at 428.99.
Barclays warns that a court-ordered breakup of Google Chrome could lead to a 25% drop in Alphabet's stock, highlighting significant risks from ongoing antitrust cases, though analysts remain bullish with a 30% upside potential.
A federal Appeals Court has upheld a law that could ban TikTok in the U.S. unless it sells to an American owner by January 2025. The court's decision allows TikTok to appeal to the Supreme Court, and the company plans to seek an injunction. The ruling raises concerns about First Amendment rights and the platform's role in American communication and business. President-elect Donald Trump may extend the deadline if progress is made on the divestiture order.
Donald Trump, after winning a second term, faces potential conflicts of interest with his 114.75 million shares in Trump Media and Technology Group, which owns Truth Social. Despite his public refusal to sell, Trump could avoid a massive capital gains tax by obtaining a certificate of divestiture, allowing him to reinvest in diversified assets. This move would address ethics concerns and stabilize his volatile net worth. However, the legality of a president obtaining such a certificate is debated, with potential implications for Trump's financial and political interests.
Congress is fast-tracking a bill aimed at forcing TikTok's Chinese parent company, ByteDance Ltd., to divest its ownership stake, with plans to include the legislation in an aid package for Ukraine and Israel. The Senate is expected to swiftly take up the measure, and President Joe Biden has pledged to sign it immediately.
A bipartisan House committee unanimously approved a bill that could force TikTok to divest from its Chinese parent company, ByteDance, within six months or face a ban in the U.S. Lawmakers emphasized that the goal is to protect American data from Chinese access, not to eliminate TikTok. The bill has gained support from key figures, including House Speaker Mike Johnson and President Joe Biden, despite opposition from groups concerned about free speech. TikTok has responded by urging users to contact Congress, prompting concerns about the app's ability to locate and influence Americans.
Coherus BioSciences, Inc. has agreed to sell its ophthalmology franchise, including CIMERLI, to Sandoz for $170 million in cash, aligning with its strategic focus on oncology. The divestiture aims to pay down debt, reduce interest costs, and allow the company to concentrate on its core therapeutic area. Coherus' oncology assets include UDENYCA and LOQTORZI, and the transaction is expected to close in the first half of 2024, subject to certain conditions and approvals.
Ally Financial's stock surged nearly 10% after beating Wall Street earnings estimates and announcing a divestiture that will bolster its capital reserves. The company's solid performance in a challenging year for financial services, particularly auto lenders, has garnered investor confidence. Ally's sale of its point-of-sale financing business to Synchrony Financial is expected to enhance its financial metrics in 2024. Despite potential risks such as CEO transition and market dynamics, Ally's adept management and favorable industry conditions suggest a promising long-term outlook.
The planned $7.1 billion acquisition of cancer test developer Grail by Illumina has been sent back to the Federal Trade Commission (FTC) by a U.S. appeals court, which upheld the regulator's finding that the deal is anticompetitive. The court determined that the FTC used a standard incompatible with the Clayton Act and vacated its order, remanding the case for reconsideration. Illumina has filed a draft registration statement for a potential divestiture of Grail, and if it fails to overturn the European Commission's order or the appeals court rules against it, Illumina will proceed with the divestiture.
The European Commission has issued a formal antitrust complaint against Google, alleging that the company has abused its dominant position in the digital advertising market. The regulator has suggested that forcing Google to sell off parts of its business may be the only remedy if the company is found guilty of the charges. This would be a significant move targeting the main source of the search giant’s revenue, and a rare example of the EU recommending divestiture at this stage in an investigation.