6 things to watch on Tadawul today

6 things to watch on Tadawul today
Al Mashaar REIT Fund incurred a net loss of SAR 40.1 mln (SAR -0.70/unit) for Q4 2020 against a net profit of SAR 6.2 million a year earlier. (File/AFP)
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Updated 14 January 2021

6 things to watch on Tadawul today

6 things to watch on Tadawul today
  • Emaar Economic City Co.’s (Emaar EC) board of directors appointed Ahmed Yousef Boshnak as managing director
  • Brent crude on Thursday gained 54 cents to reach $49.25 per barrel

Here are a few things you need to know as Saudi stocks start trading on Thursday.

1) Tihama Advertising and Public Relations Co. signed a memorandum of understanding (MoU) with Majal Al Soura for Communications and Information Technology Corporation and Integrated Production Corporation for Artistic Production.

2) Ataa Educational Co.’s shareholders approved the board’s recommendation on paying cash dividend at 10% of capital, or SAR 1 a share, for FY 2019/20 ended July 31, 2020.

3) Arabian Shield Cooperative Insurance Co.’s (Arabian Shield) board of directors recommended a 33.33% capital hike to SAR 400 million from SAR 300 million through the issuance of bonus shares.

4) Al Mashaar REIT Fund incurred a net loss of SAR 40.1 mln (SAR -0.70/unit) for Q4 2020 against a net profit of SAR 6.2 million a year earlier.

5) Emaar Economic City Co.’s (Emaar EC) board of directors appointed Ahmed Yousef Boshnak as managing director.

6) Brent crude on Thursday gained 54 cents to reach $49.25 per barrel. WTI crude also increased 62 cents to reach $46.26/bbl.


Canadian firm pulls out of Carrefour takeover after France insists ‘No’

Canadian firm pulls out of Carrefour takeover after France insists ‘No’
Updated 43 min 14 sec ago

Canadian firm pulls out of Carrefour takeover after France insists ‘No’

Canadian firm pulls out of Carrefour takeover after France insists ‘No’
  • Carrefour has more than 12,300 stores in more than 30 countries and employs 320,000 people worldwide
  • Canada's Couche-Tard has offered to take over the French supermarket giant for 16 billion euro ($19.5 billion)

PARIS: Canadian convenience store chain Couche-Tard has reportedly pulled out of a multi-billion euro takeover of supermarket giant Carrefour after the French government said it would veto the deal.
Negotiations over the 16 billion euro ($19.5 billion) deal ended after a meeting between the French Minister of the Economy Bruno Le Maire and the founder of Couche-Tard Alain Bouchard, Bloomberg news agency said, citing sources.
French ministers had insisted Friday they would not agree to the takeover because it could jeopardize food security, an even more important consideration given the coronavirus pandemic.
In an attempt to reassure ministers, Bouchard had promised to invest billions in Carrefour, said he would maintain employment for two years and that the group would be listed on the Paris Stock Exchange in parallel with Canada, Bloomberg reported.
Contacted by AFP, neither Couche-Tard nor Carrefour had confirmed the information on Friday evening.
Although talks had stopped, anonymous sources cited by Bloomberg said negotiations could resume if the French government changes its position.
But on Friday, France’s Economy Minister made his choice public, telling BMTV and RMC: “My position is a polite, but clear and definitive ‘No’.”
“Food security is a strategic consideration for our country and one does not just hand over one of the large French distributors like that,” Le Maire said.
“Carrefour is the biggest private sector employer in France with nearly 100,000 employees,” he noted, and the group accounts for 20 percent of the food distribution market in the country.
The French statements have not convinced the Canadian government.
A Canadian federal source said while they could understand concerns over allowing a foreign firm to take over such a large national employer, concerns over food security were unsubstantiated.
“But we cannot accuse a leading Canadian company like Couche-Tard of endangering the food sovereignty of an entire country,” the source, who requested anonymity, told AFP.

'Food sovereignty'
On Wednesday, Couche-Tard submitted a non-binding offer for Carrefour, valuing the group at more than 16 billion euros ($19.5 billion).
Le Maire made clear immediately that he was not in favor of a deal involving “an essential link in food security for the French, of food sovereignty.”
The government’s reaction had caused “surprise” at Carrefour itself, according to sources who said the comments were “premature” given that merger discussions had barely begun.
“We haven’t decided yet whether the interest shown is attractive for us,” one company official said on condition of anonymity earlier in the week.
Carrefour has more than 12,300 stores of various formats in more than 30 countries and in 2019 generated a net profit of 1.3 billion euros ($1.5 billion) on revenue of 80.7 billion euros ($97.4 billion).
It employs 320,000 people worldwide.
Couche-Tard has a worldwide network of more than 14,200 stores and earned a net profit of $2.4 billion on sales of $54 billion in its last complete year.
In the United States and several European countries, as well as in Latin America and southeast Asia, it operates under Circle K and other brands.