Daily Brief - 22 May 2024

Adnoc is buying stake in Galp Energia’s LNG project for $650 million

The United Arab Emirates' main oil company, Adnoc, is buying a 10% stake in Mozambique's LNG project from Galp Energia for $650 million, with up to $500 million in future payments.

This deal secures Adnoc a share in the Coral South development, which produces 3.5 million tons of LNG yearly. Adnoc is looking globally for investments, including recent deals in the US and potential expansion in Africa.

This move aligns with Adnoc's strategy to grow in the LNG sector, alongside efforts from other Middle Eastern countries to boost their global presence in energy.

Springer nature plans €7 billion IPO in Frankfurt this September

Springer Nature, supported by BC Partners, is preparing for an initial public offering in Frankfurt, potentially as early as September.

The academic publisher aims for a market value of up to €7 billion. To facilitate the listing, they have enlisted major banks like BNP Paribas, Commerzbank, Goldman Sachs, and UniCredit, along with Deutsche Bank, Morgan Stanley, and JPMorgan Chase.

This IPO marks their latest attempt following previous postponements due to market volatility. The move comes as Europe's IPO market shows signs of recovery, with companies raising significant funds in 2024.

Bank of America optimistic on rupee after election volatility

Bank of America (BofA) maintains a positive outlook on the Indian rupee despite increased market volatility due to ongoing elections.

Analysts, including Claudio Piron, noted that while implied volatility for the rupee has risen, the currency remains stable. This stability suggests that the Reserve Bank of India (RBI) might prevent sharp fluctuations post-election results, expected on June 4.

The rupee rose to 83.22 per dollar, its highest since April 10. BofA predicts the RBI may allow the rupee to appreciate by 1%-1.5% if a stable government is elected, signaling positive market sentiment.