Airline maintenance provider Lufthansa Technik Philippines (LTP) will lay off 300 employees in April due to the impact of the COVID-19 pandemic on the airline industry that forced some of its clients into bankruptcy, The Star reported. "This decision comes after careful study and consideration of the business situation as a result of the pandemic, its effects on the aviation industry," LTP president and CEO Elmar Lutter said in a letter to employees dated Feb. 11.
Read more
Deutsche Bank AG has scrapped its plan to sell hundreds of millions of euros of debt for German pharmaceutical company Gruenenthal GmbH due to a lack of interest from investors, Bloomberg News reported. The loan was intended to replace some of the company’s existing financing. The family-owned business, which makes painkillers including opioid drugs such as Tramadol, had unsecured term loans and Schuldschein worth 935 million euros ($1.13 billion) due to mature this year, Bloomberg data show.
Angela Merkel will give a welcome speech at Deutsche Bank’s annual New Year reception on Thursday, marking a rare appearance by the German chancellor at an event by a bank that for years has been battling losses and scandals, Reuters reported. Merkel will be speaking just a week after the lender reported its first annual profit since 2014, an important milestone in CEO Christian Sewing’s efforts to revive Deutsche’s fortunes. But investors and analysts said that despite Merkel’s symbolic vote of confidence, the bank’s prospects remain uncertain.
Read more
Germany faces a wave of dealership bankruptcies unless car showrooms are allowed to reopen soon, the ZDK industry association said, Automotive News Europe reported. Showrooms have been shut since mid-December when the German government tightened measures to slow rising cases of the coronavirus. "The situation in automobile retail becomes more difficult with each passing week," Thomas Peckruhn, ZDK vice president, said in a statement. German Chancellor Angela Merkel will chair a meeting on Feb.
L Catterton, the private equity firm backed by luxury French fashion house LVMH, is starting to pull ahead in the bidding for iconic German sandal maker Birkenstock, Bloomberg News reported. Birkenstock’s owners are currently focusing on negotiations with L Catterton as they prefer the investment firm’s track record buying and expanding family-backed consumer brands. They also see the potential to grow in Asia with L Catterton’s network in the region. L Catterton is competing with buyout firm CVC Capital Partners, which had approached Birkenstock earlier.
Read more
German carrier Deutsche Lufthansa AG sold 1.6 billion-euros ($1.92 billion) of bonds on Thursday to partly repay a government bailout that kept it afloat after the pandemic severely disrupted international travel, Bloomberg News reported. Lufthansa will use 500 million euros to refinance financial liabilities due this year, and the rest of the funds will repay part of a 3 billion-euro loan from state development bank KfW, the company said in an emailed statement.
Read more
Bayer AG struck a $2 billion deal to resolve future legal claims that its widely used weedkiller Roundup causes cancer, the German company said on Wednesday, Reuters reported. Bayer has been struggling to finalize the settlement of claims that Roundup and other glyphosate-based herbicides cause non-Hodgkin’s lymphoma, a type of cancer. Bayer inherited the business and the litigation as part of a $63 billion acquisition of Monsanto in 2018. The company has said that decades of studies have shown Roundup and glyphosate are safe for human use.
Commerzbank AG’s restructuring plan echoes that of its biggest rival Deutsche Bank AG, but without the latter’s debt-trading profit engine to pull it through, Bloomberg News reported. The Frankfurt-based lender said late Wednesday that it expects to post a loss of about 2.9 billion euros ($3.5 billion) for 2020, reflecting lower asset values and the cost of cutting about 10,000 jobs. The loss exceeds the 2.7 billion euros that analysts had estimated, and stands in contrast to Deutsche Bank’s announcement Thursday of its first annual profit since 2014.
Read more
New passenger car registrations in Germany fell more than 30% in January to around 170,000 vehicles, an industry source told Reuters on Wednesday. Car dealerships have been hit by a second lockdown amid the coronavirus pandemic in Germany, with non-essential stores closed since mid-December, and by tax breaks for consumers running out at the end of 2020. New car registrations in December had been up by almost 10%.
Read more.
Read more
Fresh from toppling the head of Germany’s top financial regulator last week, lawmakers are turning their fire on finance minister Olaf Scholz and his deputy Joerg Kukies, Reuters reported. As their inquiry into the collapse of Wirecard gathers pace, it has put Germany’s biggest fraud centre stage in national elections in which Scholz wants to stand for chancellor. “The focus of the parliamentary inquiry will more and more shift to the role of Scholz and his ministry,” Florian Toncar, a lawmaker involved in the investigation said.
Read more