Major Business Developments in Asia: March 17, 1999

Strategic Insights -

French carmaker Renault SA is planning to take a 35% stake in Nissan Motor Co. (TSE:7201) and will make an investment of between 640 billion yen (US$5.32 billion) and 700 billion yen at an exchange rate of 20 yen to the French franc. The two companies hope to reach a preliminary agreement by the end of the month. The talks may involve Renault's possible capital participation in Nissan Diesel Motor Co. (7210), a truck maker affiliated with Nissan.

In other business news, Cable & Wireless Optus (ASX:CWO) and Citibank have formed an alliance to offer online banking services in Australia, targeting affluent individuals. Denso Corp. (TSE: 6902) plans to acquire an 80% stake in the electric auto parts unit of Magneti Marelli SpA for 18 billion yen (US$149.78 million) in April. The acquisition will give Denso a significant presence in Europe and strengthen its operations in South America and Eastern Europe.

Key Takeaways:

  • Renault plans to invest between 640 billion yen and 700 billion yen in Nissan Motor Co. (TSE: 7201) and will take a 35% stake in the company.
  • Cable & Wireless Optus (ASX:CWO) and Citibank have formed an alliance to offer online banking services in Australia, targeting affluent individuals.
  • Denso Corp. (TSE: 6902) plans to acquire an 80% stake in the electric auto parts unit of Magneti Marelli SpA for 18 billion yen (US$149.78 million) in April.
  • Poltech International Ltd has signed a distribution agreement with Omnipol Ltd, giving it exclusive rights to market radar speed detection equipment in Australia and New Zealand.
  • Philippine Airlines has teamed up with seven airlines from the Association of Southeast Asian Nations (ASEAN) to launch the ASEAN Air Pass, a scheme to boost travel and tourism in the region.
  • Goldman Sachs USA and Chase Capital Partners have bought 7.5 million shares in Madras-based DSQ Software Ltd, giving them about a 26% stake in the company.
  • Bank Bukopin will receive at least Rp150 billion (US$17.65 million) in fresh funds from the Wood Panel Association (Apkindo) for its recapitalization.

Statistics:

  • Renault's proposed investment in Nissan Motor Co. is between 640 billion yen and 700 billion yen.
  • Denso Corp. plans to acquire an 80% stake in Magneti Marelli SpA's electric auto parts unit for 18 billion yen (US$149.78 million).
  • Poltech International Ltd estimates the Australian and New Zealand market for replacement radar speed cameras to be around A$8 million (US$4.99 million) to A$10 million.
  • Goldman Sachs USA and Chase Capital Partners bought 7.5 million shares in DSQ Software Ltd, giving them about a 26% stake in the company.
  • Bank Bukopin will receive at least Rp150 billion (US$17.65 million) in fresh funds from the Wood Panel Association (Apkindo) for its recapitalization.

Sources:

  • Asia Pulse (http://www.asiapulse.com), real-time Asia-based wire with exclusive news, market intelligence and business opportunities.
  • COMTEX (http://www.comtexnews.com) provided by Asia Pulse Pte Ltd.