International News 05 February 2025
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Triumph Group has been acquired by Warburg Pincus and Berkshire for a sum of US$3 billion
Private equity firms Warburg Pincus and Berkshire Partners are in advanced discussions to acquire Triumph Group, an aircraft parts manufacturer, in a deal valued at US$3 billion, including debt. The acquisition price is set at US$26 per share, representing a 39% premium over the closing price on Friday and a more than twofold increase compared to Triumph's valuation in October. Triumph, a company that provides services for both military and commercial aircraft, has a market capitalisation of approximately US$1.45 billion. While the deal could be announced soon, there is still a possibility that it may not go through. As of the end of September, Triumph had a long-term debt of US$960 million. Responses to requests for comments from Triumph, Warburg Pincus, and Berkshire Partners are still pending.
Trump's tariffs could push Bitcoin to higher levels in the long run
It is anticipated that the implementation of President Donald Trump's tariff policy will have a substantial impact on global financial markets, including Bitcoin (BTC). Experts predict that, over time, these tariffs will result in a substantial increase in the price of Bitcoin. The tariffs are designed to weaken the US dollar in international trade, rebalance trade, and enhance the competitiveness of US exports. Some commentators have suggested that this policy could be a precursor to a new agreement similar to the Plaza Accord of 1985. The tariffs are predicted to trigger inflation, which will harm US trading partners and accelerate the depreciation of fiat currencies worldwide. Consequently, people from different countries may turn to Bitcoin and other hedge assets. However, in the short term, the crypto market is facing significant pressure, with Bitcoin experiencing a price drop of 7.2% in the last week.
European carmakers' shares plummet, dragged down by Trump's tariff policy
European carmakers, including Volkswagen and Stellantis, saw their shares decline as US President Donald Trump imposed tariffs on goods from Mexico, Canada, and China, raising concerns about potential duties on imports from the European Union (EU). Shares of Volkswagen and Stellantis, which have significant operations in Mexico, fell by around 6%, while Volvo Cars, Mercedes Benz, BMW, and Porsche experienced respective declines of about 3.4% to 5.2%. Meanwhile, French auto parts supplier Valeo experienced a 7% plunge in share prices. The European cars and parts index fell by 3.4%, reaching its lowest point in over two weeks. Experts believe the impact on European carmakers could be more significant than direct tariffs on EU goods, estimating that VW's revenue could be affected by 8 billion euros ($8.2 billion) and Stellantis by 16 billion euros.