2025-12-11 20:54
Sembcorp buys Alinta in A$6.5bn expansion Deal adds 1.1m customers, 3.4GW capacity Acquisition lifts EPS, boosts Australia push Dec 11 (Reuters) - Sembcorp Industries (SCIL.SI) , opens new tab said on Thursday its units will acquire Australia's Alinta Energy for an enterprise value of A$6.5 billion ($4.32 billion), marking one of the largest overseas expansions for the Singaporean company. The deal hands Temasek-backed power company full control of one of Australia's biggest integrated energy retailers and generators, serving about 1.1 million customers and operating 3.4 gigawatts of capacity across gas, coal, wind and solar. Sign up here. The acquisition also marks a portfolio shift for seller Chow Tai Fook Enterprises, the investment arm of Hong Kong billionaire Henry Cheng, which bought Alinta for A$4 billion in 2017. CTFE has been reorganizing its holdings amid liquidity pressures at the Cheng family's heavily indebted real estate conglomerate, New World Development (0017.HK) , opens new tab, where Cheng serves as chairman and executive director. Sembcorp said it will acquire Alinta Energy via two of its Australian units by purchasing the operating entities Pioneer Sail Holdings and Latrobe Valley Power (Holdings), without revealing the ownership breakdown. The acquisition gives the Singaporean company access to a 10.4 GW development pipeline, including wind and hydro systems, and Alinta's largest asset, a coal plant in Victoria. The 1,200-megawatt Loy Yang B brown coal plant supplies roughly a fifth of the state's electricity, according to Alinta Energy's website. Sembcorp on Monday had said that it had been evaluating potential acquisitions after media reports of talks with CTFE. The company expects the deal to be immediately earnings-accretive, forecasting a 9% rise in pro-forma 2024 EPS and a 14% gain for the 12 months to June 2025. The move also extends Sembcorp's Asia-Pacific expansion drive. The firm, which has been accelerating its renewables pivot, bought solar assets in India from ReNew Energy Global in October and has been deploying capital across the region. CTFE said that under its eight-year ownership, Alinta's EBITDA grew at 13% compound annual growth rate, surpassing its top three peers by 14%. Operationally, Alinta expanded generation capacity by 74% and added over 700 jobs during the same period, it added. ($1 = 1.5038 Australian dollars) https://www.reuters.com/business/energy/sembcorp-industries-acquire-australian-energy-firms-432-billion-2025-12-11/
2025-12-11 20:40
Carnelian eyes selling most of its current investments producing oil and gas Bulk sales effort by PE firms seen as unusual by industry participants Comes as broader buyout industry faces issues returning cash to investors NEW YORK/HOUSTON, Dec 11 (Reuters) - Carnelian Energy Capital is moving to sell six of its North American oil and gas production investments, multiple people familiar with the matter said, at a time of mounting pressure on private equity firms to increase exits and return cash to investors. The moves, representing most of the Carnelian-backed companies that produce oil and gas, and about 40% of its overall investments, have raised eyebrows among industry participants because buyout firms traditionally space out sale efforts to avoid exhausting buyer demand. Sign up here. Carnelian is either actively marketing or preparing to auction the assets in the coming weeks, sources said. Industry participants also noted the U.S. deals market into which Carnelian is selling is subdued compared to recent, albeit record-breaking, years. This is partly due to uncertainty over the outlook for crude prices, which has pushed listed energy producers to prioritize cost-cutting over expansion. Other sources, though, said Carnelian is looking to shed a mix of long-held positions at a time when assets with inventory are in short supply, and stakes in natural gas producers, which are drawing increased interest as the fuel gains traction in powering AI infrastructure. The assets range in value from a few hundred million dollars to more than $1 billion, according to the sources. Neither Carnelian nor the companies disclose production figures, but the producers are considered small by global standards. The sources cautioned there was no guarantee Carnelian would divest all the assets. They spoke on condition of anonymity to discuss confidential deliberations. Carnelian declined to comment. DEALS TO BE DONE Houston, Texas-based Carnelian is a mid-market energy investor headed by Tomas Ackerman and Daniel Goodman. Its last flagship fund, the $975 million Carnelian Energy Capital V, closed in February 2024. In October, it announced a $600 million fund closure dedicated to Canadian energy investments. Carnelian is in advanced talks to sell two portfolio companies in which it invested in 2020 and 2022: Canadian oil producer Hawthorne Energy, and Veritas Permian III, which it co-owns with fellow buyout firm Old Ironsides Energy, six sources said. Old Ironsides is also selling its Veritas stake, one of the sources added. Natural gas-focused Azul Resources, in which Carnelian invested in 2021, has agreed to sell some Haynesville assets to Apex Natural Gas, which is backed by hedge fund Citadel, Bloomberg reported last week. Additionally, Carnelian has been marketing for sale in recent weeks Grit Oil and Gas II, six sources said. Grit operates in South Texas' Eagle Ford formation and is one of Carnelian's longest-held investments, dating back to 2019. Carnelian plans to market early next year Zavanna Energy and Parallax Energy, eight sources said, with Moelis hired to sell Zavanna, a producer focused on North Dakota's Bakken basin, five of them added. Both Zavanna and Canadian producer Parallax only received initial commitments from Carnelian last year, according to public statements. Private equity firms typically hold an investment for upwards of three years to allow its value to grow before they exit. The six Carnelian portfolio companies and Old Ironsides did not respond to requests for comment. Citadel and Moelis declined to comment. Carnelian's second, third and fourth funds were performing well versus the industry's traditional benchmark, delivering a net internal rate of return of between 17.2% and 20.8% at the end of 2024, according to the Florida State Board of Administration. The timing of exits from private equity investments generally depends on various factors, such as favorable market conditions, the success of an investment, buyer interest and whether the firm plans to raise a new fund in the near future. Increasingly, buyout firms are also facing pressure from investors to speed up the pace of exits. https://www.reuters.com/business/energy/buyout-firm-carnelian-raises-eyebrows-with-rare-effort-sell-multiple-energy-2025-12-11/
2025-12-11 20:39
Trump meeting with candidates to replace Powell as Fed chief Leavitt says Trump expects Powell's successor to cut rates Fed lowered rates by 25 basis points on Wednesday WASHINGTON, Dec 11 (Reuters) - President Donald Trump was happy to see the Federal Reserve cut interest rates by 25 basis points this week, but wants to see further reductions in borrowing costs, White House spokeswoman Karoline Leavitt told reporters on Thursday. "I know there was a quarter-point reduction this past week, and the president was pleased to see that, but he thinks more should be done," Leavitt said. Sign up here. The U.S. central bank cut interest rates on Wednesday, but signaled borrowing costs are unlikely to drop further in the near term as it awaits clarity on the direction of the job market, inflation and the overall economy. Trump has repeatedly criticized Fed Chair Jerome Powell for not cutting rates earlier and more aggressively. The president is interviewing candidates to replace Powell, whose term as head of the central bank ends in May. Leavitt declined to say if Trump could make a decision on Powell's successor before Christmas, or to give any details about his conversations with candidates for the job. Trump last week said he would make a decision early next year. Asked if the president expected his nominee to cut rates further, Leavitt told reporters, "I think the president has been quite clear about what he believes the Fed should be doing, which is lowering interest rates." Trump told reporters on Wednesday he would be meeting with former Fed Governor Kevin Warsh later in the day. He has also identified White House economic adviser Kevin Hassett as a potential leader for the U.S. central bank. Treasury Secretary Scott Bessent, who is leading the search effort, previously said the short list also included Fed Governor Christopher Waller and Fed Vice Chair of Supervision Michelle Bowman - both Trump appointees from the president's first term - as well as BlackRock's Rick Rieder. Democratic Senator Elizabeth Warren, the top Democrat on the Senate Banking Committee, which must approve Fed nominees, on Thursday called Trump's top contenders to lead the Fed "sock puppets," singling out Hassett as someone who would not be able to maintain the central bank's independence. Hassett, widely seen as the front-runner to succeed Powell, works directly for Trump as director of the National Economic Council. https://www.reuters.com/sustainability/sustainable-finance-reporting/trump-thinks-more-should-be-done-lower-interest-rates-white-house-says-2025-12-11/
2025-12-11 20:31
Pilot shipment to resume Congo's cobalt exports in days, regulator confirms Mines chamber seeks talks with ARECOMS over export delays Annual cobalt export cap set at 96,600 tons from 2026 KINSHASA, Dec 11 (Reuters) - The Democratic Republic of Congo has pledged to uphold cobalt export quotas allocated to miners for 2025 despite months of delays under new rules, its mining regulator has said, as a pilot shipment is being prepared to move “within days.” The world’s top cobalt supplier, accounting for over 70% of output, introduced quotas in October after a months-long export ban to curb oversupply and stabilise prices. Exports, however, stalled as companies waited for clarity on compliance. Sign up here. Congo’s Chamber of Mines said in a letter to the mines ministry it had sought talks with regulator ARECOMS to address delays and concerns over its 10% strategic stock, but has yet to receive a response. Glencore (GLEN.L) , opens new tab is among miners cleared to test the system, ARECOMS told Reuters Thursday, confirming that first cargo will move “in the coming days” once a 10% royalty is paid. ARECOMS did not disclose volumes or timing for the first cargo. “It was essential to ensure the robustness of controls before resuming exports,” the regulator said in response to questions. "We can guarantee that the quotas allocated to companies by ARECOMS will be respected." The quota system allocates 18,125 metric tons for the fourth quarter and will cap annual exports at 96,600 tons from 2026. China's CMOC (603993.SS) , opens new tab, and Glencore, the world’s top producers received the largest shares — 6,650 tons and 3,925 tons respectively — while ARECOMS retained 10% for a strategic reserve. Glencore declined to comment. Kinshasa-based analyst Jean Pierre Okenda said the lack of clarity on ARECOMS’ 10% strategic stock was troubling. “We see no direct link between creating a 10% stock and market needs,” he said, warning of risks if transparency and accountability are absent. https://www.reuters.com/world/africa/congo-vows-uphold-cobalt-quotas-exports-resume-within-days-2025-12-11/
2025-12-11 20:21
Seizure aims to target shadow tanker fleet selling oil to China, other nations Venezuelan government calls US actions 'piracy'; experts argue legality under international law Shipments totalling nearly 6 million barrels of crude suspended after seizure, source says HOUSTON/LONDON/WASHINGTON, Dec 11 (Reuters) - The U.S. is preparing to intercept more ships transporting Venezuelan oil following the seizure of a tanker this week, as it increases pressure on Venezuelan President Nicolas Maduro, six sources familiar with the matter said on Thursday. The seizure was the first interdiction of an oil cargo or tanker from Venezuela, which has been under U.S. sanctions since 2019. It came as the U.S. executes a large-scale military buildup in the southern Caribbean and as U.S. President Donald Trump pushes for Maduro's ouster. Sign up here. The latest U.S. action has put shipowners, operators and maritime agencies involved in transporting Venezuelan crude on alert, with many reconsidering whether to sail from Venezuelan waters in the coming days as planned, shipping sources said. Further direct interventions by the U.S. are expected in the coming weeks targeting ships carrying Venezuelan oil that may also have transported oil from other countries targeted by U.S. sanctions, such as Iran, according to the sources familiar with the matter who declined to be named due to the sensitivity of the issue. U.S. ASSEMBLES TANKER TARGET LIST: SOURCE Venezuela's state oil company PDVSA did not reply to a request for comment. Venezuela's government this week said the U.S. seizure constituted a "theft." Asked whether the Trump administration planned further ship seizures, White House spokeswoman Karoline Leavitt told reporters she would not speak about future actions but said the U.S. would continue executing the president’s sanctions policies. “We're not going to stand by and watch sanctioned vessels sail the seas with black market oil, the proceeds of which will fuel narcoterrorism of rogue and illegitimate regimes around the world," she said. The U.S. has assembled a target list of several more sanctioned tankers for possible seizure, according to one of the people familiar with the matter. The U.S. Justice Department and Homeland Security had been planning the seizures for months, according to two of the people. A reduction or halt in Venezuelan oil exports, the main generator of revenue for the Venezuelan government, would strain the Maduro government's finances. The U.S. Treasury said on Thursday it imposed sanctions on six supertankers that, according to PDVSA's internal documents and ship monitoring data, recently loaded crude in Venezuela, and on four Venezuelans, including three relatives of the country's first lady, Cilia Flores. It was not known whether the newly sanctioned ships were among those now targeted for interception. Wednesday’s seizure comes after the U.S. in recent months has carried out more than 20 strikes against what it says are drug vessels in the Caribbean and Pacific, killing more than 80 people. Experts say the strikes may be illegal extrajudicial attacks, while the U.S. says it is protecting Americans from drug cartels it has branded as terrorist organizations. Further ship seizures could be aimed at tightening the financial screws on Maduro, according to a source briefed on U.S. Venezuela policy. Maduro has alleged that the U.S. military buildup is aimed at overthrowing him and gaining control of the OPEC nation's oil resources. The new U.S. tactic focuses on the activities of what is called the shadow fleet of tankers that transports sanctioned oil to China, the largest buyer of crude from Venezuela and Iran. A single vessel will often make separate runs on behalf of Iran, Venezuela and Russia, the sources added. The seizure of the tanker, carrying the name Skipper, caused at least one shipper to temporarily suspend the voyages of three freshly loaded shipments totaling almost 6 million barrels of Venezuela's flagship export grade, Merey, sources said. "The cargoes were just loaded and were about to start sailing to Asia," said a trading executive involved in dealing and shipping Venezuelan oil. "Now the voyages are cancelled and tankers are waiting off the Venezuelan coast as it's safer to do that." SURVEILLANCE OF TARGETS U.S. forces were monitoring tankers at sea and some vessels in Venezuelan ports, either being repaired or loaded, and waiting for them to sail into international waters before taking action, one of the sources said. In the runup to the seizure of Skipper, which was previously sanctioned for its oil trading with Iran, U.S. forces had stepped up surveillance of waters close to Venezuela and neighboring Guyana, another of the sources said. At the White House, Leavitt said the seized vessel was expected to sail to a U.S. port where the government intends to seize its cargo of oil through a formal legal process. The timing of further seizures would partly depend on how quickly arrangements could be made for ports to receive seized ships for unloading oil cargoes, one of the sources said. Many of the vessels in the shadow fleet that transport sanctioned oil are old, their ownership is opaque and they sail without top-tier insurance coverage. That would make many ports reluctant to receive the vessels. Another vessel, the Seahorse, which is under UK and European Union sanctions for its oil trading links with Russia, was monitored in November by a U.S. warship and briefly detained before sailing into Venezuela, one of the sources said. While the Venezuelan government described the U.S. seizure as "an act of international piracy," legal specialists said it did not fall under such a definition under international law. "Because the capture was endorsed and sanctioned by the U.S., it cannot be considered piracy," said Laurence Atkin-Teillet, a specialist on piracy and the law of the sea at Britain's Nottingham Law School. "The term piracy in this context appears to be rhetorical or figurative, rather than a legal usage." https://www.reuters.com/business/energy/us-preparing-seize-more-tankers-off-venezuelas-coast-after-first-ship-taken-2025-12-11/
2025-12-11 20:21
Dec 11 (Reuters) - Kalshi and Crypto.com said on Thursday they had launched a national alliance of prediction market operators that includes cryptocurrency exchange Coinbase (COIN.O) , opens new tab, retail trading platform Robinhood (HOOD.O) , opens new tab and sports gaming operator Underdog. The group, Coalition for Prediction Markets (CPM), comes as the U.S. prediction market has boomed since the start of the year. A federal court's dismissal last year of a prohibition on election betting has also fueled the sector's surge. Sign up here. "This was the catalyst for growing investor interest, and this new coalition will further legitimize the sector, strengthening operating rules and setting a higher bar for integrity standards," said Nick Jones, founder of crypto firm Zumo. Prediction market platforms let users trade binary contracts on outcomes in politics, sports, economics and entertainment. Investors are increasingly viewing prediction markets as a potential growth area, prompting several major firms such as Robinhood and Underdog to enter the space. However, critics have argued that it is nothing more than an online gambling platform. "The U.S. is the biggest frontier for prediction markets, and the momentum we're seeing makes a unified industry voice not just important, but necessary," said Matt David, executive board member of CPM. Prediction market startups Kalshi and peer Polymarket have expanded rapidly in 2025, with Kalshi's valuation more than doubling to $11 billion after its latest funding round. The coalition's focus will include strengthening the federal framework for prediction markets, setting nationwide integrity standards to curb insider trading, and pushing back against state-level overreach, the companies said. "We spent years working with the CFTC because prediction markets must operate with strong federal safeguards that prevent insider trading, protect consumers, and ensure these markets remain transparent and corruption-free," said Sara Slane, head of corporate development at Kalshi and executive member of the coalition. The group said more companies were in talks to join. https://www.reuters.com/business/finance/kalshi-cryptocom-launch-prediction-markets-coalition-investor-interest-soars-2025-12-11/
