In today’s top stories, Asda has completed the acquisition of petrol station giant EG Group’s UK and Ireland arm for £2.3bn, while Daimler and Toyota have agreed on a deal to merge their Japanese truck production arms. Elsewhere, the world’s largest solar producer, LONGi Green Energy Technology Co., slashed prices by 31% on Monday, fuelling concerns of a price war. Munich-based Siemens Energy is looking to tap into the incentives contained in the IRA by setting up operations in the US to modernise the country's grid. Lastly, mining giant BHP Group is adopting AI technology from Microsoft to boost copper recovery at its Escondida mine in Chile.
Issa empire consolidates with Asda’s acquisition of EG Group
Asda has completed the acquisition of petrol station giant EG Group’s UK and Ireland arm for £2.3bn. Both were already owned by the Issa brothers, and the combined business should generate £30bn in revenue, employing approximately 166,000 people. All of EG Group’s 1,000+ convenience food locations will be rebranded as Asda, expanding the retailer’s presence in the segment.
LONGi cut fuels solar price war
A price war for solar silicon wafers is rumbling, as the world’s largest solar producer, LONGi Green Energy Technology Co. [601012.SS], slashed prices by 31% on Monday. A glut of new silicon production has seen prices nearly halve since February, ending a shortage of the material that is vital for solar power generation. LONGi president Li Zhenguo warned that excess capacity could push solar companies out of business.
Daimler and Toyota in truck merger
Daimler [DTG.F] and Toyota [7203.T] have agreed a deal to merge their Japanese truck production arms. Daimler’s Mitsubishi Fuso Truck and Bus Corp will merge with Toyota subsidiary Hino Motors Ltd [7205.T] in a holding company which will list on the Tokyo stock exchange, according to a memorandum of understanding announced by the parent businesses in Tokyo on Tuesday.
IRA benefits tempt US expansion for Siemens
Munich-based Siemens Energy [ENR.DE] is looking to tap into the incentives contained in the Inflation Reduction Act (IRA) by setting up operations in the US to modernise the country's grid. The company hopes to increase its presence in the country, which currently accounts for 15% of sales, due to the “the long-term predictability of subsidy conditions under the IRA”, according to CEO Christian Bruch.
BHP brings mining into the AI age
Mining giant BHP Group [BHP.AX] is adopting AI technology from Microsoft [MSFT] to boost copper recovery at its Escondida mine in Chile. The rise of renewable energy is estimated to double the demand for copper over the next 30 years. Meanwhile, edtech groups including Chegg [CHGG] and Duolingo [DUOL] have insisted that AI presents more opportunity than threat to their businesses.