Europe

Sweden’s state-owned pension fund AP2 has written down its entire stake in bankrupt battery maker Northvolt AB, according to the fund’s annual report, Bloomberg News reported. AP2, which has been a shareholder of Northvolt since 2021, said the stake was worth 1.5 billion kronor ($137 million) at the beginning of 2024, corresponding to 17% of its investments in sustainable infrastructure. Northvolt filed for chapter 11 protection in the U.S. in November after a bid to secure rescue funding fell short, leaving the company with little cash and $5.8 billion in debt.

Europe is prepared to act in response to possible restrictions to trade, German Economy Minister Robert Habeck said on Monday, after holding discussions with industry lobbies and the EU's top trade representative about the threat of tariffs from the U.S., Reuters reported. "Europe must and can only react unitedly and decisively to unilateral trade restrictions. And we are prepared for this," Habeck said in a statement.

One of the rescue bidders for Thames Water has written to the High Court in London questioning the feasibility of finding new equity for the beleaguered utility by April, Bloomberg News reported. Covalis Capital LLP is one contender to provide Thames with billions in new equity it needs after its existing shareholders declared the business “uninvestible.” The deadline to bring in another investor is Monday.

Industrial production in Germany sank in December, driven by a fall in output from the car industry, a further weak note for the troubled sector as it faces the threat of U.S. tariffs, the Wall Street Journal reported. Output declined 2.4% on month in December, German statistics agency Destatis said Friday. Production fell 4.5% in 2024 as a whole. The fall in December, more than offsetting the 1.3% growth in November, was driven by auto production, which contracted 10%.

Gerresheimer AG, the German maker of packaging for drugs and cosmetics, is exploring a potential sale amid interest from private equity funds, Bloomberg News reported. Dusseldorf-based Gerresheimer is working with advisers to gauge interest from possible buyers asking not to be identified because the information is private. Shares of Gerresheimer jumped as much as 15% in German trading on Friday, giving the company a market value of about €2.7 billion ($2.8 billion). Warburg Pincus, EQT AB and KKR & Co. are among suitors that have been studying the business.

The Bank of England will use newfound Brexit freedoms to shield Britain’s banks from international red tape, Andrew Bailey has said, The Telegraph reported. The Governor said that the Bank was seeking to exclude some domestic lenders from incoming rules that require lenders to hold more money in reserve to help survive a crisis. Mr Bailey said leaving the European Union meant the UK could shield smaller banks from some elements of the stringent Basel rules, which were drawn up internationally in the wake of the 2008 financial crash.

The European Commission is reviewing elements of its flagship Green Deal environmental policy, as worries over rising costs and a lack of competitiveness with China and the U.S. grow within the continent, the Wall Street Journal reported. Commission officials met on Wednesday and Thursday with businesses and industry groups to discuss broad changes to its sustainability legislation that will start to go into effect this year.

Volvo Cars will not pay Northvolt any money for its 50% stake in their Novo Energy battery venture, which it had agreed to acquire, the automaker's quarterly report said on Thursday, Reuters reported. The automaker last week agreed with Northvolt to take over its stake in the venture, which included a planned Gothenburg battery cell factory, without disclosing the amount involved. Northvolt, once considered Europe's best hope for a battery champion, filed for U.S. chapter 11 bankruptcy protection last November. "The purchase consideration rounds to 0 m SEK.

German photovoltaic solutions provider Tauber-Solar said on Tuesday that it has taken over the insolvent German business of Austria's Encome Energy Performance, strengthening its services in the photovoltaic and battery storage sector, RenewablesNow.com reported. Effective from February 1, Tauber-Solar has assumed the operating and maintenance (O&M) activities of Encome Energy Performance Deutschland GmbH. The asset deal covers 150 O&M contracts for over 360 PV systems and includes the transfer of 28 employees.