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Market Cap of the World`s Five Largest Automobile Manufacturers Plunged by $63bn in 2020

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The COVID-19 pandemic has had a severe impact on the global automotive industry, causing supply chain disruptions and factory closures. All of this placed intense pressure on the market already coping with a downshift in global demand.

According to recent data, the market capitalization of the world’s five leading automobile manufacturers plunged by $63bn amid coronavirus crisis, falling from $426.5bn in December 2019 to $363.5bn last week.

Volkswagen Group and Toyota Lost $33.1bn in Market Capitalization

The world’s largest automobile manufacturer, the Volkswagen Group, managed to reduce the effects of Covid-19 in the first half of the year. Nevertheless, the Group`s financial report revealed that sales revenue decreases by 23.2% since January, reaching €96.1bn at the end of the second quarter of the year. Until the end of June, the Volkswagen Group reported a significant year-on-year decline of 27.4% in its deliveries to 3.9 million vehicles.

Frank Witter, a member of the Group Board of Management responsible for Finance and IT, said: “The first half of 2020 was one of the most challenging in the history of our company due to the Covid-19 pandemic. Thanks to the great team effort, we have gradually been able to ramp up operations within the Group and up until now, have steadily managed to navigate through this unprecedented crisis.”

At the end of December, the market capitalization of the world’s leading automobile manufacturer stood at $87.6bn, revealed the Yahoo Finance data. Since then, this figure dropped by $17.7bn, reaching $69.9bn last week.

Toyota Motor Corp, as the second-largest automobile manufacturer in the world, lost $15.4bn in market capitalization amid COVID-19 outbreak, falling from $196.9bn in December 2019 to $181.5bn last week. The company’s financial results revealed the smallest quarterly profit in nine years as the coronavirus pandemic halved its car sales. Toyota’s operating profit plunged 98% to $131.73 million for the three months ended June.

Market Cap of the Largest US Automobile Companies Plunged by $20.8bn

The world’s third-largest automobile manufacturer, Daimler, has also witnessed a staggering drop in market capitalization amid the COVID-19 crisis. Statistics show the company`s market cap plunged by $9.1bn in the last eight months, falling from $52.8bn in December 2019 to $43.7bn last week. Daimler also reported a substantial Q2 2020 loss due to the sharp fall in sales caused by the coronavirus pandemic.

In the second quarter of the year, Daimler’s total unit sales plunged by 34% to 541,800 passenger cars and commercial vehicles. The company’s revenue also dropped by 29%, reaching €30.2bn in Q2 2020.

The combined market capitalization of Ford and General Motors, as the two leading US automobile manufacturers on this list, plunged by $20.8bn since the COVID-19 outbreak. Statistics show Ford market cap fell from $37.9bn in December 2019 to $27.5bn last week, a $10.4bn drop in eight months.

Ford was already struggling before the pandemic hit and was in the midst of an $11 billion restructuring plan to control costs and roll out new vehicles. The virus forced the company to close US factories for more than seven weeks during the second quarter. Nevertheless, the company reported a $1.12bn net profit in Q2, despite the virus.

As the fifth-largest automobile company, General Motors lost $10.4bn in market capitalization in the last eight months. Statistics show the company’s market cap fell from $51.2bn in December 2019 to $40.8bn last week.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Aliko Dangote Remains Africa’s Richest Man With $12.1 Billion Net Worth -Forbes

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Aliko Dangote Remains Africa’s Richest Man With $12.1 Billion Net Worth -Forbes

Nigerian industrialist, Aliko Dangote, is Africa’s richest person for the tenth year in a row.

In the Forbes Africa latest billionaires list, Dangote’s total net worth stood at $12.1 billion, a $2 billion increment when compared to last year. Thanks to the 30 percent increase in the price of Dangote Cement share.

Nassef Sawiris of Egypt followed Dangote with $8.5 billion net worth with the majority of his investments coming from construction and other investments.

In third place was Nicky Oppenheimer of South Africa with an $8 billion total net worth.

Mike Adenuga and Abdulsamad Rabio, the two Nigerians, came fifth and sixth with $6.3 billion and $5.5 billion net worth, respectively.Forbes Africa's billionaires list

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Portland Paints, Chemical and Allied Products Plc Agreed to Merge

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Portland Paints, Chemical and Allied Products Plc Agreed to Merge

Portland Paints and Products Nigeria Plc and Chemical and Allied Products Plc have agreed to merge, according to the latest statement from both companies.

In a statement released through the Nigerian Stock Exchange, the Board of Directors of CAP said we are “pleased to inform you that following discussions and negotiations, the Boards of CAP and Portland Paints have reached an agreement to undertake a merger between both entities (the “Merger” or the “Proposed Merger”).

Accordingly, we “hereby present to you the terms and benefits of the Proposed Merger for your consideration and seek your support and approval to effect the Proposed Merger.

“The Proposed Merger presents a compelling opportunity to create significant value for shareholders of CAP and achieve the company’s strategic growth objectives as a larger company with a broader product portfolio, more corporate owned brands and diversified revenues.

“The resultant entity is also expected to benefit from enhanced distribution capabilities in addition to economies of scale and operational efficiencies.”

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Tony Elumelu Acquires Shell, Total, ENI Stakes in OML 17

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Tony Elumelu Acquires Shell, Total, ENI Stakes in OML 17

Tony Elumelu owned Heir Holdings Limited and its related company Transnational Corporation of Nigeria Plc on Friday announced it has completed the purchase of 45 percent stake in Oil Mining Lease (OML 17) through TNOG Oil and Gas Limited.

The acquisition includes all assets of Shell Petroleum Development Company of Nigeria Limited (30 Percent), Total E&P Nigeria Ltd (10 percent) and ENI (five percent) — in the lease.

It was further stated that TNOG Oil and Gas Limited will also have the sole right to operate OML 17.

The field presently has a production capacity of 27,000 barrels per day. Also, there are estimated 2P reserves (proven and probable) of 1.2 billion barrels and an additional one billion barrels in possible reserves — all of oil equivalent.

A consortium of global and regional banks and investors provided a financing component of $1.1 billion for the largest oil and gas financing in Africa in over a decade.

In a statement released on Friday, Shell said the completion was after all the necessary approvals have were received from authorities.

“A total of $453m was paid at completion with the balance to be paid over an agreed period. SPDC will retain its interest in the Port Harcourt Industrial and Residential Areas, which fall within the lease area,” the SPDC said.

Speaking after the completion of the deal, Elumelu said “We have a very clear vision: creating Africa’s first integrated energy multinational, a global quality business, uniquely focused on Africa and Africa’s energy needs. The acquisition of such a high-quality asset, with significant potential for further growth, is a strong statement of our confidence in Nigeria, the Nigerian oil and gas sector and a tribute to the extremely high-quality management team that we have assembled.

“As a Nigerian, and more particularly an indigene of the Niger Delta region, I understand well our responsibilities that come with stewardship of the asset, our engagement with communities and the strategic importance of the oil and gas sector in Nigeria. We see significant benefits from integrating our production, with our ability to power Nigeria, through Transcorp, and deliver value across the energy value chain.

“I would like to thank Shell, Total and ENI, for the professionalism of the process, the Federal Government of Nigeria, the Ministry of Petroleum Resources, and the NNPC for the confidence they have placed in us.”

Tony Elumelu is the Chairman of Heirs Holdings Limited, Transcorp and United Bank for Africa Plc.

Also, read Transcorp Plc Acquires FGN’s 100% Equity in Afam Power for N105 Billion

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