COMPANY NEWS IN BRIEF

Glencore to buy out BHP in Colombia

Diversified miner Glencore has agreed to buy out the stakes in Colombia's thermal coal mine Cerrejon held by its partners BHP and Anglo American.

Glencore, which said it expects to pay US$230 million for the stakes when the deal completes in the first half of 2022, sees production volumes at the mine declining materially by 2030.

Mining companies have been reviewing their ownership of thermal coal assets as they transition out of the most polluting fossil fuels amid growing climate concerns and a shift towards sustainable investing.

Glencore, which plans to become a net-zero emission company by 2050, has set a goal of managing the depletion of its coal mines by the mid-2040s, rather than selling them, and said owning 100% of Cerrejon would not compromise its climate commitments.

"The disposal of Glencore's current stake in the mine would not be consistent with our stated commitment to a responsible managed decline of our coal portfolio, nor would it result in a genuine reduction of absolute greenhouse gas emissions," it said in a statement on Monday. -Nampa/Reuters

JPMorgan makes retail banking debut

JPMorgan Chase & Co has taken a 40% stake in Brazilian digital bank C6 Bank, the companies said on Monday, making its retail debut in Latin America's biggest economy.

JPMorgan in January announced plans to expand in retail banking through digital channels, starting in Britain. The US bank has concentrated its activity in Brazil in corporate lending and investment banking.

"We're pleased to partner with C6 and support their growth in Brazil, which has become one of the world's fastest-growing digital banking markets," Jamie Dimon, Chairman and CEO of JPMorgan Chase, said in a statement.

Founded in 2019 by former partners at Banco BTG Pactual SA, Latin America's largest independent investment bank, C6 has 7 million clients, according to a statement.

The companies did not disclose the value of the deal or implied valuation of C6. The digital bank was valued at 11.3 billion reais (US$2.28 billion) in December, when it raised 1.3 billion reais. - Nampa/Reuters

Coca-Cola HBC to acquire stake in CaffA

Soft drink bottler Coca-Cola HBC has signed a deal to acquire a 30% stake in Casa Del CaffA Vergnano and become the Italian coffee roaster's exclusive distributor outside Italy.

The agreement follows a similar accord signed in 2018 between global coffee group JAB and Italian roaster Illycaffe, which allowed the Italian coffee maker to exploit JAB's powerful distribution network to reach more clients and channels.

The deal announced on Monday will allow Coca-Cola HBC, which is 23% owned by Atlanta-based Coca-Cola Co, to address a wider range of consumer tastes, the bottler said in a statement, adding that espresso specialist CaffA Vergnano was complementary to its offer of Costa Coffee products.

"With CaffA Vergnano, we are well-positioned to build a total coffee portfolio that caters for a diverse range of consumer preferences," Coca-Cola HBC Chief Executive Zoran Bogdanovic said.

Bogdanovic added that the bottler had worked with Coca-Cola in the deal with the Italian roaster.

In a separate statement, CaffA Vergnano said that, with Coca-Cola HBC as a new strategic partner, it would accelerate its international growth plans. -Nampa/Reuters

Payoneer goes public after SPAC merger

Payment’s provider Payoneer went public on the Nasdaq stock exchange on Monday after it closed a merger with a blank-check firm backed by fintech entrepreneur Betsy Cohen.

Payoneer shares, trading under the ticker symbol PAYO.O, rose slightly in early trading. The listing came four months after the Israeli company announced its plan to merge with special-purpose acquisition company FTAC Olympus Acquisition Corp in a deal valued at about US$3.3 billion.

It is expected to have up to US$563 million in cash, including US$300 million in the form of private investment in public equity, or PIPE, from investors that include Wellington Management, Dragoneer Investment Group and Fidelity Management & Research Company.

Payoneer, founded in 2005, provides e-commerce services to individual online sellers as well as platforms, including Airbnb and Amazon. It has published a bullish forecast on revenue for 2021 due to accelerated digital commerce during the pandemic.

The company expects US$432 million in revenue in 2021, compared with US$94.7 million in 2020. It eyes process transaction volume of US$64 billion, a jump from US$44.4 billion in 2020. It plans to invest in more features and pursue acquisitions.-Nampa/Reuters

Disney delays its first test cruise

Walt Disney Co's cruise division said on Monday it had postponed its first test cruise since the onset of the pandemic after a few volunteers showed inconsistent Covid-19 test results.

Several cruise lines have planned to resume voyages from the United States after many months, with Royal Caribbean Group's Celebrity Edge last weekend becoming the first vessel from a major operator to sail from a US port.

The Disney Dream ship was scheduled to set sail with about 300 volunteers on Tuesday, but the cruise was cancelled as a small number of employees showed inconsistent Covid-19 test results that were considered positive by the US Centres for Disease Control and Prevention.

Disney Cruise Line did not say when it would next commence sailing of the ship.

Royal Caribbean executive Michael Bayley last week said two unvaccinated teenagers had tested positive on its Adventure of the Seas ship, adding that 92% of guests were fully vaccinated. -Nampa/Reuters