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DP World Acquires Leading US-based Logistics Provider

DP World said that the acquisition will be funded from existing available resources (WAM).
DP World said that the acquisition will be funded from existing available resources (WAM).
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DP World Acquires Leading US-based Logistics Provider

DP World said that the acquisition will be funded from existing available resources (WAM).
DP World said that the acquisition will be funded from existing available resources (WAM).

DP World has announced the acquisition of 100 percent of syncreon for an enterprise value of $1.2 billion.

The transaction is subject to customary completion conditions and is expected to close in second half of 2021.

Syncreon is a US based global logistics provider that specializes in the design and operation of complex supply chains for the high growth automotive and technology industries. It provides specialized value-added warehousing and distribution solutions through a variety of manufacturing, export packaging, transportation management, reverse/repair and fulfilment services.

Syncreon has a global presence across 91 sites in 19 countries and services a large and diversified portfolio of customers made up of multinational companies, state news agency WAM reported.

In FY2020, the group reported revenue of $1.1 billion with 57 percent generated in EMEA (predominantly Europe) and 42 percent in North America. It has longstanding partnerships with customers averaging 18 years, and high contracts renewal rates.

Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said: "We are delighted to announce the acquisition of syncreon, which adds significant strategic value to DP World given its strong logistics solutions capability, and will allow DP World to deliver end-to-end solutions to cargo owners."

The acquisition will be funded from existing available resources.

DP World continues to make positive progress on its capital recycling programs and remains fully committed to its leverage target of below 4.0x Net Debt/EBITDA by the end of 2022.

For his part, Brian Enright, CEO of syncreon, said: "We are excited to join the DP World group as we believe that syncreon will benefit from the group’s significant expertise in the wider supply chain and excellent relationships with cargo owners. We share the vision of serving our customers through removing inefficiencies and delivering value add solutions. While we have enjoyed great success over the years, we believe being part of DP World will enable us to take the business to other markets."

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Oil Steadies, But on Track for Biggest Weekly Loss in Over a Month

A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo
A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo
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Oil Steadies, But on Track for Biggest Weekly Loss in Over a Month

A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo
A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo

Crude oil futures steadied on Friday after strong US retail sales data, but Chinese economic indicators remained mixed and prices were headed for their biggest weekly loss in more than a month on concerns about demand.
Brent crude futures gained 8 cents, or 0.1%, to $74.53 a barrel by 0338 GMT, while US West Texas Intermediate crude was at $70.82 a barrel, up 15 cents, or 0.2%, Reuters said.
Both contracts settled higher on Thursday for the first time in five sessions after data from the Energy Information Administration (EIA) showed that US crude oil, gasoline and distillate inventories fell last week.
Brent and WTI are set to fall about 6% this week, their biggest weekly decline since Sept. 2, after OPEC and the International Energy Agency cut their forecasts for global oil demand in 2024 and 2025 and concerns eased about a potential retaliatory attack by Israel on Iran that could disrupt Tehran's oil exports.
IG market strategist Yeap Jun Rong said while oil prices remained subdued on Friday, there were signs of near-term stabilization after the market factored in fading geopolitical risks over the past week.
"The recent run in stronger-than-expected US economic data does offer further relief around growth risks, but market participants are also side-eyeing any recovery in demand from China, given recent stimulus unleash," he said in an email.
US retail sales increased slightly more than expected in September, with investors still pricing in a 92% chance for a Federal Reserve rate cut in November.
Meanwhile, third-quarter economic growth in the world's top oil importer China was at its slowest pace since early 2023, though consumption and industrial output figures for September beat forecasts.
China's latest data dump offered somewhat of a mixed bag, with the country now officially falling short of its 5% growth target for the year and the absence of a sizable fiscal push seems to leave some reservations on overall oil demand, said IG's Yeap.
China's refinery output also declined for the third straight month as weak fuel consumption and thin refining margins curbed processing.
Markets, however, remained concerned about possible price spikes given simmering Middle East tensions, with Lebanon's Hezbollah militant group saying on Friday it was moving to a new and escalating phase in its war against Israel after the killing of Hamas leader Yahya Sinwar.
Geopolitical risks, such as developments in the Middle East, will continue to drive fears of supply disruptions and in turn short-term spikes in oil prices, said Priyanka Sachdeva, senior market analyst at Phillip Nova.