Business Roundup for Spain and the UK

Chery arrives in Barcelona CHERY AUTO will be the first Chinese manufacturer to build vehicles in Spain.

Chery is one of several Chinese carmakers selling low-priced electric and fossil fuel vehicles in European Union countries, including Spain.

Negotiations with EV Motors have now concluded, said sources quoted by the financial daily Cinco Dias.  The formal signing is scheduled for April 19.

Production will begin at the disused Nissan site in Barcelona’s Zona Franca logistics and industrial area where the Japanese company halted its Barcelona operation in late 2021 when the last e-NV200 electric van left the assembly line, taking with it approximately 1,600 jobs.

EV Motors is reportedly acquired “full corporate control” of the plant in March 2024.

Less pressure PRICE inflation was easing, said the UK’s biggest supermarket chain Tesco, as it reported pre-tax profits of £2.3 billion (€2.68 billion).

Sales rose 4.4 per cent to £68.2 billion (€79.6 billion) in the year ending on February 24, chief executive Ken Murphy announced, adding that the company was aware that “things were still difficult” for many customers.

Tesco had worked hard to cut prices, Murphy said, with schemes directed at offering shoppers better value for money.

More than 4,000 products were cheaper by late 2023 that at the beginning, the said, with average price cuts of around 12 per cent.

Mining clash Berkeley Energia, listed in Madrid and London, is taking its uranium mining dispute with Spain to arbitration.

The Retortillo project near Salamanca received preliminary approval in 2013, Berkeley said, but met opposition from residents and prompted security concerns from the Nuclear Safety Council.

In 2021 the Energy ministry refused to approve the €250-million investment which would have generated more than 2,500 jobs, and rejected an appeal in 203.

After submitting an arbitration request to the World Bank’s International Centre for Settlement of Investment Disputes (ICSID), Berkeley shares rose by 17 per cent in Madrid and 11 per cent in London.

Beg pardon Marks & Spencer is spending £1 million (€1.17 million) on modifying the diet of the herds which provide its milk.

Working with the 40 dairy farmers who supply them, M & S hopes to reduce the annual 11,000 tons of greenhouse gas emissions caused when the animals burp, break wind and deposit cowpats.

A feed supplement derived from mineral salts and a byproduct of fermented corn should help prevent the cows’ digestive enzymes from forming methane, reducing fresh milk’s carbon footprint by 8.4 per cent.

Patience needed Basf’s Tarragona subsidiary awaits a decision from its German parent company regarding a future recycling plant for electric vehicle batteries.

Director general Carles Navarro said on April 10 that he expected a decision from the chemicals’ multinational “within the next few months.”

Although Navarro avoided going into details regarding the sums involved, the Spanish media revealed last February that the recycling installation would cost between €500 and €700 million.

Brussels is already committed to a €100 million grant, while there should be further subsidies from Spain’s national and regional governments.

Going public Puig, the Barcelona-based cosmetics company, announced on April 8 that it intended to raise more than €2.5 million in an initial public offering (IPO).

The flotation would be the largest seen in Spain since the sale of 150,000,000 shares in Spain’s airport operator Aena in February 2015.

The Puig family plans to sell €1.25 billion in new shares and a still larger sum in existing stock, according to the term sheet outlining key terms and conditions seen by Reuters.

The Puig family would retain a majority holding in the company and most of the company’s voting rights.

A public listing would align the firm, which was founded in 1914 and owns Carolina Herrera, Nina Rici and Charlotte Tilbury, with other exclusive cosmetics companies, chairman and chief executive Marc Puig said.

Not so keen A number of Nationwide members are organising a petition and asking the building society to give them a voice over its proposed Virgin Money takeover.

Nationwide’s chief executive Debbie Crosbie contends that there is no valid reason for asking the opinion of the 16 million members who own the mutual and pointed out that organising a consultation could hold up the £2.9 billion (€3.38 billion) deal.

Members argued that increasing Nationwide by a third was risky and wanted to know how it would benefit customers.