>>> Vallourec receives binding offer for two French sites from Altifort

Vallourec receives binding offer for two French sites from Altifort (translated)
17 MAY 2018
Vallourec [EPA: VK], the French oil & gas tubular services company, confirmed it has received a binding offer from French industrial group Altifort for two French sites located in Tarbes and Cosne-sur-Loire, French daily Les Echosreported.
This development was also reported in Le Figaro, which said that the two sites employ 170 people. The terms of the offer were not disclosed.
The original article from Les Echos appeared in print, page 31.
Link to news report from Le Figaro

>>> Metso could sell valves unit - kauppalehti.fi

Metso could sell valves unit - report (translated)
17 MAY 2018
Metso [HEL: METSO], a Finnish energy and mining service company, could sell its valves unit, Kauppalehti reported

In an unsourced analysis on how the company is still without a Chief Executive, the Finnish language daily wrote that Metso has been subject to M&A rumours for quite some time, with Swedish industrial equipment maker Atlas Copcosuggested as a potential merger partner, the previous employer of the company’s previous CEO Nico Delvaux.
The item noted that Metso has been accelerating acquisitions in the valves business. Delvaux, who announced his departure on 18 December, had mentioned the valves business as potential target for sale.
Interim CEO Eeva Sipila commented on 5 February that there are some stalling businesses in the company and the removal of these businesses is one of her main objectives.
Kauppalehti is a Finnish business daily, which is behind a paywall.

FT : Ocado to enter US market with Kroger tie-up

Ocado to enter US market with Kroger tie-up
Partnership deal will see American grocer take 5% stake in British retail technology group

Ocado has struck a partnership deal with Kroger that will take its technology into the US for the first time and see the American grocer take a 5 per cent stake in the British group.

The deal gives Kroger the rights to use Ocado’s technology for grocery and other food distribution related activities in the US on an exclusive basis, in exchange for “monthly exclusivity and consultancy fees which will offset in part the total fees that are expected to be agreed between the two parties”, Ocado said.

The deal with Kroger is the latest in a string of tie-ups announced by Ocado in recent months, soothing market fears that the retail technology and logistics group was struggling to find takers for its ambitious model. Earlier this month, it inked a deal to build Swedish supermarket ICA’s online grocery business, following deals with Canadian grocer Sobeys and French supermarket operator Groupe Casino.

The British supplier of technology and robotic warehouses to the retail industry has pledged to drop talks with other US-based retailers, in exchange for the exclusivity deal. Kroger and Ocado were “already working to identify the first three sites in 2018 for development of new, automated warehouse facilities in the US”, and would identify “up to a total of 20 over the first three years of the agreement”, the UK company said.

If Kroger fails to commit to the target capacity, it will have to pay compensation to Ocado, and could lose exclusivity rights in the “longer term” if market share targets are missed or it does not order enough of Ocado’s distribution centres each year.

As part of the partnership, Kroger will subscribe for 33m new shares in Ocado, equivalent to 5 per cent of its current share capital, at a value of £183m, Ocado said.

Kroger chief executive Rodney McMullen said the partnership would speed up the US grocer’s efforts to “redefine the food and grocery customer experience — creating value for customers and shareholders alike”.

“The opportunity to partner with Kroger to transform the way in which US customers buy grocery represents a huge opportunity to redefine the grocery experience of Kroger’s customers and create value for the stakeholders of both Kroger and Ocado,” added Tim Steiner, chief executive of Ocado. “As we work through the terms of the services agreement with Kroger in the coming months, we will be preparing the business for a transformative relationship which will reshape the food retailing industry in the US in the years to come.”

>>> Aspen's baby formula unit attracts interest from Perrigo, Reckitt, iNova, La

Aspen's baby formula unit attracts interest from Perrigo, Reckitt, iNova, Lactalis - report
17 MAY 2018
South Africa-based Aspen Pharmacare's [JSE:APN] baby formula unit has attracted interest from such companies as Michigan-based Perrigo [NYSE:PRGO] and UK-based Reckitt Benckise [LON:RB], according to a newswire report on 16 May.
Bloomberg, citing sources familiar with the matter, reported that Carlyle and Pacific Equity-backed Australia-based iNova and France's Lactalis are also mulling bids for the business that may be valued at between USD 1bn and USD 1.5bn in a potential deal.
Preliminary information about the unit was also sent out by Aspen to Chinese companies engaged in baby formula production, the item said. They included Health & Happiness [HKG:1112], Beingmate Baby & Child Food [SHE:002570] and Inner Mongolia Yili Industrial [SHA:600887], according to the report. Still, it remains uncertain any of the companies will place bids, the item noted.
Aspen, which in January tapped Centerview to explore options for the infant formula business known as Nutritionals including introducing a strategic partner, could choose to retain the unit should the bids be considered too low, as reported.

>>> Enel rules out rival bid on EDP to China Three Gorges EUR 3.26/share bid - r

Enel rules out rival bid on EDP to China Three Gorges EUR 3.26/share bid - report (translated)
17 MAY 2018
Enel [BIT:ENEL], the Italian energy group, has no plans to make a rival bid on Energias de Portugal [ELI:EDP] to the current EUR 3.26 a share offer by China Three Gorges (CTG), reported, Diario de Noticias.
An Enel source told the paper that despite market rumours over some European power groups mulling rival bids for EDP to the offer launched last week by CTG for the remaining shares in EDP, the Italian firm will not make a bid for the Portuguese energy group and is only looking at deals below EUR 5bn and mainly in Latin America.
EDP said earlier this week that the EUR 3.26 per share CTG bid was too low. The Chinese group already owns 23% of EDP and wants to pay nearly EUR 12bn for the remaining shares.

>>> What to look at today - 17th of May 2018

Stocks in Asia drifted as Treasury yields climbed above 3.1 percent, raising concerns about the appetite for riskier assets. The pound rose on a report that Britain might have reached agreement on its approach toward European customs union. Positive momentum from the U.S. session carried through only to some markets in Asia, with equities rising in Japan, falling in Australia and fluctuating in Korea. Hong Kong was flat, though Tencent Holdings Ltd. surged after reporting a record profit. The 10-year U.S. Treasury yield ticked higher to extend recent gains. The pound got a boost from a Telegraph report that the U.K. will tell the European Union it’s prepared to stay in the customs union beyond 2021. Oil traded above $71 a barrel, while the dollar headed lower.

Nikkei +0.72% Hang Seng -0.20%CSI -0.62% Shanghai -0.42% Shenzen -0.49%

Eur$1.1827 CNH 6.3523 CNY 6.3609 JPY 110.28 GBP 1.3557 CHF 0.9995 RUB 61.73 WTI$ 71.75

S&P -0.12% EuroStoxx +0.06% FTSE -0.11% Dax -0.07% SMI -0.04%

Macro :
- Saudi Arabia, Allies Classify Nasrallah As Terrorist: SPA
- France Wants to Preserve Companies’ Iran Contracts: Le Maire
- Iran Energy Minister Says Expects Contracts to Be Honored: HB

Keep an eye on :
- AED BB : Aedifica 9M Net Rental Income EU67.7 Mln Vs. EU57.8 Mln Y/Y
- ADP FP : ADP Paris Airports April Passenger Traffic Falls 1.2% on Strikes
- AIR FP : U.K. Said to Threaten Veto on EU’s New Galileo Contract Tenders
- AMBEA SS : Ambea First Quarter Operating Profit 4.8% Below Estimates
- ATC NA : Altice Europe Has Subscriber Gains in 1Q; Net Debt at EU32.2B
- EN FP : Bouygues 1Q Current Op. Loss EU111M; Confirms FY Forecast
- BPOST BB : Bpost CEO to Be Questioned in Belgian Parliament June 26: Echo
- CEC GY : Fnac Darty Rises; Ceconomy Deal May Be Open to More: Kepler
- CEC GY : Ceconomy Profit Hit by Metro Stake, Masking Operating Turnaround
- CGG FP : CGG 1Q Op. Loss $67.1M; 2018 Outlook Reiterated
- CTY1S FH : Citycon Sells Norway Shopping Center to Midgard for ~EU24m
- DAI GY : Daimler, Deutsche Telekom to Pay EU3.2 Bln Over Toll Collect
- DBK GY : Deutsche Bank Says Pehar to Join Structured Finance Unit in U.S.
- DBK GY : Deutsche Bank Is Said to Shorten Gardening Leave Periods: NYP
- DB1 GY : Ex-Deutsche Boerse CEO Kengeter Loses Shareholder Support Vote
- DTE GY : Daimler, Deutsche Telekom to Pay EU3.2 Bln Over Toll Collect
- EDP PL : Spain Sees CTG Facing Regulatory Hurdles on EDP Bid: Economista
- ENI IM : Portugal Issues Moratorium on New Oil Prospecting Licences
- EUCAR FP : Europcar Says 1Q Very Encouraging in U.K. Amid Turnaround Effort
- EVS BB : EVS Broadcast Sees Full Year Revenue EU115 Mln To EU130 Mln
- FNAC FP : Fnac Darty Rises; Ceconomy Deal May Be Open to More: Kepler
- GALP PL : Portugal Issues Moratorium on New Oil Prospecting Licences
- ILD FP : BlackRock Cuts Stake in Iliad to 4.27%, AMF Says
- III LN : 3i Full Year Total Return +GBP1.43 Bln
- KBC BB : KBC to Buy Back up to EU220m of Stock May 22 - Sept. 30
- KVW NA : VolkerWessels First Quarter Ebitda EU8 Mln
- KWS GY : KWS Saat Nine Month Net Sales EU862.5 Mln
- MMB FP : Lagardere First Quarter Revenue EU1.56 Bln
- LEAS BB : Leasinvest First Quarter EPRA EPS EU1.39
- MAS SM : Andbank Sold 2.4% of Masmovil Shares in Block Trade for EU57M
- MED SW : Medartis Holding Rated New Reduce at Kepler Cheuvreux
- MRK GY : Merck KGaA: PD-L1+ Lung Patients Helped by TGF-β Trap in Trial
- NEUR DC : NeuroSearch Agrees to Release Teva From Pridopidine Obligations
- NN NA : NN First Quarter Net Income Beats Highest Estimate
- PAT GY : Patrizia Immobilien First Quarter Operating Income EU42.7 Mln
- REC IM : CVC, Recordati Are Said to Have Held Talks: Reuters
- ROG SW : Roche’s Tecentriq Boosted Lung Cancer Survival in ‘IMpower150’
- ROVIO FH : Rovio First Quarter Revenue EU65.7 Mln
- SAMPO FH : Sampo Holder Varma Mutual Pension Insurance to Offer Shares
- SEM PL : Semapa First Quarter Net Income EU27.2 Mln
- SEZ FP : Suez 1Q Ebit EU289 Million, Matches Estimates; Repeats ’18 Goals, Suez Wins China EU436M Water Contract With Partners in Changshu
- TEF SM : Banks Advise Telefonica to Suspend Argentine IPO: Confidencial
- TIT IM : Telecom Italia First Quarter Revenue Meets Estimates
- TIT IM : Telecom Italia Says Vivendi’s Direction, Coordination Ceases
- UN01 GY : Holder Advisors, Investor Oppose Uniper Stake Sale Probe: Rtrs
- VLA FP : Valneva Cash Position EU36.2M End March
- DG FP : Vinci Energies to Roll Out Optical Fibre Across France
- VIV FP : Telecom Italia Says Vivendi’s Direction, Coordination Ceases
- VT9 GY : VTG First Quarter Ebitda EU88.9 Mln
- Z01 GY : Zooplus First Quarter Pretax Loss EU5.5 Mln