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KKR, Global Infrastructure Partners to take CyrusOne private for $11.5 billion

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November 15, 2021

(Reuters) -KKR & Co Inc and Global Infrastructure Partners (GIP) will take U.S. data center operator CyrusOne Inc private for $11.49 billion in cash, the latest deal in a sector that has boomed during the COVID-19 pandemic.

The coronavirus-driven shift to remote work has increased the usage of cloud-based services, driving up demand for data centers that help power the digital infrastructure.

KKR and GIP will pay $90.50 for each CyrusOne share as per the deal announced on Monday, representing a 5.9% premium to the company’s last closing price. CyrusOne shares rose 3.6%.

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The buyout values the Dallas-based company, which has more than 50 data centers globally, at about $15 billion including debt.

In a similar move, real estate investment trust American Tower agreed to buy CyrusOne’s rival CoreSite Realty Corp for $7.5 billion.

Infrastructure and real estate funds have also scooped up data center assets in recent months to capitalize on the demand surge.

In June, Blackstone Funds agreed https://www.reuters.com/business/blackstone-take-qts-realty-trust-private-10-bln-deal-2021-06-07 to purchase QTS Realty Trust Inc for $10 billion to gain access to the company’s more than 7 million square feet of data center space throughout North America and Europe.

Denver-based CoreSite, the operator of 24 data centers in the United States, was 2.1% higher in premarket trading.

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Reuters had first reported CoreSite was fielding acquisition interests last week, and in September had reported that CyrusOne was working with investment bank Morgan Stanley to explore strategic alternatives.

(Reporting by Chavi Mehta and Nathan Gomes in Bengaluru; Editing by Aditya Soni)

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Canada’s Shopify records Black Friday sales up 21%

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November 27, 2021

(Reuters) – Canadian e-commerce company Shopify Inc recorded worldwide sales of nearly $2.9 billion on Black Friday, an increase of about 21% in comparison to last year, the company said Saturday.

New York, London and Los Angeles were among the top-selling cities, the company said, while apparel and accessories was the top-selling product category.

Shopify also said it funded 23,000+ tonnes of carbon removal to counteract emissions from the delivery of every order placed on its platform on Black Friday.

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(Reporting by Aakriti Bhalla in Bengaluru; Editing by Nick Zieminski)

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Xiaomi to open car plant in Beijing with annual output of 300,000 vehicles – Beijing govt

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November 27, 2021

SHANGHAI (Reuters) – Chinese smartphone giant Xiaomi Corp will build a plant that can produce 300,000 vehicles annually in Beijing for its electric vehicle unit, authorities in the capital said on Saturday.

The plant will be constructed in two phases and Xiaomi will also built its auto unit’s headquarters, sales and research offices in the Beijing Economic and Technological Development Zone, the government-backed economic development agency Beijing E-Town said on its official WeChat account.

Beijing E-Town said it anticipated the plant reaching mass production in 2024, a goal announced by Xiaomi’s Chief Executive Lei Jun in October.

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In March, Xiaomi said it would commit to investing $10 billion in a new electric car division over 10 years. The company completed the business registration of its EV unit in late August.

The company has been opening thousands of stores to spur domestic sales growth for its smartphone business but eventually intends to use these shops as a channel for its plans to sell electric vehicles.

(Reporting by Brenda Goh; Editing by William Mallard)

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Eni sells Snam 49.9% stake in Algeria gas pipelines for 385 million euros

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November 27, 2021

MILAN (Reuters) -Italian energy group Eni has agreed to sell gas group Snam 49.9% of its stake in strategic pipelines carrying Algerian gas into Italy for 385 million euros ($436 million), the two companies said on Saturday.

The pipelines will be jointly controlled by the two companies, they said in a joint statement.

Italy imports more than 90% of its overall gas needs and Algerian gas currently accounts for around 30% of flows.

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“This transaction allows us to free up new resources to be used on our energy transition path,” Eni Chief Executive Claudio Descalzi said.

Eni is working on spinning off a series of oil and gas operations into new joint ventures to help reduce debt and fund its shift to low-carbon energy.

Snam, which owns a 20% stake in the TAP pipeline that carries Azeri gas into Italy, makes most of its money from managing Italy’s gas transport grid.

It has pledged to spend more on new green business lines such as hydrogen and, like other gas grid operators in Europe, is upgrading its gas network to be hydrogen ready.

“In the future, North Africa could also become a hub for producing solar energy and green hydrogen,” Snam CEO Marco Alvera said.

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The pipeline companies involved in the deal posted net income of around 90 million euros in 2020.

($1 = 0.8836 euros)

(Reporting by Stephen Jewkes, editing by Giselda Vagnoni)

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