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IKEA purchases US logistics tech company Locus to boost online growth
IKEA acquired U.S. logistic technology firm Locus on Tuesday. The Swedish furniture retailer claimed that the deal would improve its delivery to customers, as it expands online sales. This acquisition is part of a $2.2billion push by Ingka Group - the largest global IKEA franchisee - in the U.S., where it is competing with Wayfair and Walmart, and also has to contend with increased tariffs on imported goods that increase its costs. IKEA refused to reveal the value of the transaction. Locus' most recent funding round, in 2021 was reported to have valued the company at $300 million. IKEA claimed that acquiring Locus will simplify its logistics, and reduce its global delivery costs by approximately 100 million euros ($117.41) per year. Locus is a software that uses artificial intelligence (AI) to group orders, predict routes, and minimize the time that delivery vehicles are stuck in traffic. This planning process, which was previously done manually by IKEA employees, has been automated, Parag Parekh told Ingka Group's chief digital officer in an interview. Parekh said that Locus would also allow IKEA customers to have more options and delivery windows, receive live updates about their packages, and get them faster. The technology will be tested in the U.S., UK and possibly other countries before being used globally. He said, "Speed is an important aspect, but for us it's the flexibility and the ability to track... And more importantly, all of this will help drive a more positive customer experience." Locus shareholders included Singapore sovereign wealth fund GIC, private equity firms Alpha Wave and Tiger Global and Qualcomm Ventures before the acquisition of all shares by Ingka, the retailer’s investment arm. Locus, as part of the agreement, will continue to serve clients outside IKEA. IKEA DOUBLES DOWN ON U.S. MARKET DESPITE TARIFFS IKEA, best known for its big, bright-blue suburban stores that display sofas, beds, and bookcases labyrinthinely, has focused on its online business in the last five years, and has invested in smaller, city-centre shops to target younger, more urban consumers. In 2024, online sales represented 28% of IKEA's total retail sales, up from just 11% in 2019. The purchase comes just one week after Ingka Investments purchased a Manhattan building for $213 millions, continuing to expand in the U.S. despite President Donald Trump's higher tariffs on imported furniture. Parekh stated that "in terms of macroeconomics, there is probably uncertainty in the quarters to come." "As a company, we remain committed to America."
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The pipeline agreement between Russia and China is expected to take a decade for exports to increase
Industry sources said that despite recent progress made by Russia in negotiations with Beijing regarding a new gas pipeline, it will take at least 10 years for natural gas exports from China to increase significantly as a result. Alexei Miller said that a legally binding memorandum had been signed by the CEO of Russian Gas Corporation Gazprom on the Power of Siberia 2 Pipeline during President Vladimir Putin’s visit to China in the last month. This development highlights Moscow's efforts in reorienting its vast reserves of gas towards Asia, after its energy trade with Europe – once its biggest market – collapsed due to Western sanctions imposed following Russia's invasion into Ukraine in 2022. It has never been reported when the pipeline will be completed. Key terms of the Pipeline Deal are not yet agreed. The proposed pipeline that would pass through Mongolia is expected to deliver 50 billion cubic meters (bcms) of gas per year from the Arctic Yamal area - similar to the Nord Stream pipeline damaged in Germany. After years of negotiation, however, the key elements of the agreement - such as pricing, investment terms, or the timing of delivery - are still unresolved. Two sources in the industry said that even if a deal is finalised by the end of the year, it will take five years for the pipeline to be completed and deliveries to begin. It would also take another five years to increase supplies. A person with knowledge of the situation said that Gazprom does not expect Power of Siberia 2 to reach its half-capacity before 2034-2035, if deliveries start after 2031. The Oxford Institute for Energy Studies analysts also believed it was a probable scenario. In a report published last month, they stated that a final agreement could result in the first supply being achieved by the end 2030 or 2031 and a significant part of ramp-up by January 1, 2035. The Power of Siberia 1 pipe, which will reach its planned capacity of approximately 38 billion cubic meters this year, is the pipeline that Russia started pumping gas to China from eastern Siberia in late 2019. During Putin's visit to the US last month, 6 bcm more was agreed through this route. Separately China agreed to export 12 billion cubic meters per year via the Far Eastern route to Russia, beginning in 2027. China is able to import gas from a variety of sources, including Turkmenistan and Turkmen liquefied gas. Russia will cover around 22% in 2024. (Reporting and Editing by Tomaszjanowski)
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Croatian JANAF and MOL negotiate an oil transport agreement
The Croatian pipeline operator JANAF will meet with the Hungarian oil company MOL on Wednesday in order to discuss ways of extending their collaboration beyond their current oil transportation agreement, which expires on December 31. JANAF delivers 2.1 million tons of crude oil per year to MOL refineries in Hungary, Slovakia and Romania. Croatian oil company offers to increase its delivery volume as Hungary is under pressure to reduce its dependence on Russian oil via the Druzhba Pipeline. Hungary and Slovakia, two EU member states that want to continue receiving Russian oil despite EU efforts at diversification of supply, are both keen to maintain this source. The Adriatic Pipeline would be the main alternative route for oil shipping. MOL has denied JANAF’s capacity to supply enough oil to its refineries, a claim JANAF rejects. JANAF is ready, both technically and organizationally, to supply all the crude oil needs of MOL's Central European refineries. The company also advocates increasing the amount of oil transported and expanding the collaboration with MOL. JANAF said, "We emphasize the importance of our pipeline because it is the only reliable route that guarantees the continuity and delivery of products." Hungarian officials accuse JANAF imposing high transportation fees. They claim that they are exploiting the situation resulting from the conflict in Ukraine. JANAF denied these claims and stated that it charges MOL standard rate. A spokesperson for MOL responded to a question about the scheduled talks with JANAF on Wednesday: "As usual, MOL is prepared for negotiations." JANAF also faces risks in its agreement with Serbian-owned Russian oil company NIS, which is valid until December 31 2026. The deal may be in jeopardy if U.S. Treasury’s Office of Foreign Assets Control imposes new sanctions against NIS beyond its current deadline of Oct. 8. OFAC sanctioned Russia’s oil sector, as well as the NIS. However, enforcement was repeatedly delayed. JANAF said its transport licence for NIS is valid until 8 October and it will ask to extend the licence.
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Source: India asks Boeing for details after Air India plane's emergency system malfunction
A government source who has direct knowledge of this matter confirmed that India's air safety regulator had requested more information from Boeing Co. after the emergency power system on an Air India Dreamliner 787 was activated unexpectedly on Saturday. Boeing and Air India spokespeople did not immediately reply to requests for comments. Air India reported that during the final approach the crew detected the Ram Air Turbine, an emergency power system. The aircraft landed safely, and all electrical parameters and hydraulic parameters were normal. After a short period of time, the aircraft was grounded for inspections and returned to service. According to the Federation of Indian Pilots, the incident took place at a height of 152 metres (500 feet). According to an email sent by the union to aviation ministry officials, the pilots' union requested that the Directorate General of Civil Aviation (DGCA), the air safety regulator in the country, thoroughly examine and investigate the electrical systems of dozens of Dreamliners. Boeing and a ministry spokesperson did not respond immediately to requests for comments on the email sent by the Federation of Indian Pilots. In June, 260 people were killed in an Air India Boeing 787 accident. Indian investigators found that the fuel engine switches on the aircraft had been switched from run to off almost simultaneously after takeoff. (Reporting and editing by Adityakalra, Kirsten Doovan, and Sharon Singleton; Abhijith Gaapavaram)
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Source: India asks Boeing for details after Air India plane's emergency system malfunction
A government source who has direct knowledge of this matter confirmed that India's air safety regulator had requested more information from Boeing Co. after the emergency power system on an Air India Dreamliner 787 was activated Saturday. Boeing and Air India spokespeople did not immediately reply to requests for comments. Air India reported that the crew of the aircraft, which was flying between the northern Indian city Amritsar and Birmingham, UK, detected the deployment of the Ram Air Turbine during the final approach. Indian investigators reported in July that the RAT was deployed during the initial climb prior to the Air India Boeing 787 accident which killed 260 people a month earlier. Indian investigators found that the fuel engine switches were almost all switched from run to shut off at the same time, just after takeoff. (Reporting and editing by Adityakalra, Kirsten Doovan; Abhijith Gaapavaram)
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Sweden fails to secure strategic reserve power for this winter
Svenska kraftnat, the Swedish transmission system operator, said that a tender for up to 800 Megawatts (MW) of backup electricity generation capacity to be used this winter failed. This leaves Sweden more vulnerable to power outages, it added. In a press release, Pontus de Mare said: "This is concerning." He added that the lack of a reserve made this winter's electricity system more susceptible. Grid operator: The grid operator has stated that the reserve capacity is intended to cover the period between November 16 and March 15, to ensure adequate power supply in the coldest months of the year. Svenska kraftnat was able to receive three bids from six participants who had prequalified, and all of them exceeded the price limit set by the tender regulations, which is 120,000 Swedish Crowns (12,777.24 USD) per megawatt. Svenska kraftnat said that the price cap was the reason for which a strategic reserve could not be contracted to cover the winter ahead. It feared the same outcome would occur next winter if it did not change the level of the price cap. The strategic reserve auction of this year replaced an earlier model, and aimed to bring the process into line with EU state aid regulations. Svenska kraftnat said that it will actively work with the Swedish Energy Market Inspectorate and the Swedish government to find viable solutions. Svenska kraftnat stated that while the risk of power shortages this winter is low, they are expected to increase in the future as consumption is predicted to rise faster than power generation. For units to qualify for the Strategic Reserve, they must meet a set of criteria including high and stable availability. They cannot also be active on the regular or balance power markets. $1 = 9.3917 Swedish Crowns (Reporting and editing by Terje Solsvik).
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Garuda Indonesia receives $1.85 billion in equity from a wealth fund
Garuda Indonesia, the flag carrier of Indonesia, announced that it will receive a capital infusion of $1.85 billion from its majority owner Danantara Indonesia. Garuda disclosed in a disclosure that the asset management arm will inject cash of $1.44 billion, while the loan proceeds of the wealth fund will amount to $405 million. The document stated that the new equity would be used for fleet maintenance, fleet expansion and to improve the carrier’s liquidity. It also said it would be used to repay debts incurred by the state energy company Pertamina on fuel between 2019 and 2021. In a Monday disclosure, the company said that the shareholders of the company will need to approve the $1.44 billion cash infusion. Garuda Indonesia has been struggling financially since the COVID-19 outbreak, and the airline was forced to restructure its debt. (Reporting and editing by Tom Hogue, Muralikumar Anantharaman and Stanley Widianto)
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The operator of the vessel says that a crew member of the attacked Dutch cargo ship died of injuries.
Spliethoff, the Amsterdam-based operator of the Dutch cargo vessel that was attacked last week by Houthis on the Gulf of Aden, announced in a Monday evening statement that a crew member of the ship had died from his injuries. The company didn't release any further information about the deceased crewmember, but a Dutch radio station reported that they were Filipino. A bomb exploded on Minervagracht in international waters of the Gulf of Aden, causing substantial damage to the vessel and a fire. Rescue of 19 crew members, including Russians, Filipinos, and Sri Lankans, was done by helicopter. The Houthis of Yemen claimed responsibility for the attack. Since 2023, the Iran-aligned group launched multiple attacks on ships in the Red Sea. They targeted vessels they believed were linked with Israel as a show of solidarity with Palestinians in response to Israel's Gaza war. Spliethoff also said that another crew member was still receiving medical treatment in Djibouti. His condition is stable and we anticipate that he will return to his home by the end of this week." (Reporting and editing by Raju Gopikrishnan; Charlotte Van Campenhout)
Sources say that MMC Port Malaysia has delayed its IPO until 2026 in order to include full year 2025 results.
Two sources familiar with the matter said on Tuesday that MMC Port Holdings, a Malaysian company, has decided to delay its planned IPO until next year in order to include its financial results for 2025.
The listing is initially scheduled for the fourth quarter 2025. It could raise over $1.5 billion. This would be the largest IPO since IHH Healthcare debuted in 2012 with $2.1 billion. It could also provide a boost to the domestic capital markets.
According to sources, the company is reevaluating the timing of its listing in order to provide more detailed financial disclosures including results for 2025 and to reflect the latest developments in the industry. Sources declined to name themselves as the information wasn't public.
Sources added that a revised timeline will be announced in due time.
One source said that the decision was made despite the fact that there is a healthy interest from investors in the offering.
MMC Port didn't immediately respond to a request for comment sent via email on Tuesday.
(source: Reuters)