Key Takeaways
- Global manufacturing activity experienced a setback in July, with the J.P. Morgan Global Manufacturing PMI falling to 49.7, marking the first contraction in 2024 and ending a six-month expansion streak.
- Imperial Oil (IMO) has commenced renewable diesel production at its Strathcona facility in Alberta, Canada's largest renewable diesel plant, with an expected annual production capacity of over 1 billion liters.
- The bidding war for Spectris (SXS) continues, as KKR has officially noted Advent International's higher offer and is considering its response, following Advent's raised bid of £4.7 billion ($6.5 billion).
- A consortium led by Pierre Lassonde has proposed to acquire Teck Resources' (TECK) coal business, aiming to thwart Glencore's (GLNCY) efforts to acquire the Canadian miner.
The global manufacturing sector saw a dip in July, with the J.P. Morgan Global Manufacturing PMI dropping to 49.7 from 50.3 in June. This figure, below the neutral 50.0 mark, indicates a contraction in manufacturing for the first time in 2024, ending a six-month period of expansion. The slowdown was attributed to weaker expansions in the U.S. and China, an ongoing downturn in the Euro area, and a return to contraction in Japan. New order intakes also declined for the first time since January.
In the energy sector, Imperial Oil (IMO) has announced the start of renewable diesel production at its Strathcona facility in Alberta. This facility, Canada's largest renewable diesel plant, is projected to produce over 1 billion liters (264.17 million gallons) of renewable diesel annually once fully operational. This initiative aligns with the growing demand for lower-carbon fuel alternatives and represents a significant investment in cleaner energy production.
Meanwhile, the mergers and acquisitions landscape remains active. KKR is currently evaluating its response to Advent International's increased offer for Spectris (SXS). Advent's all-cash offer for the FTSE 250-listed company stands at £4.7 billion ($6.5 billion), a 6.3% premium over its previous £4.4 billion bid. Spectris' board has withdrawn its recommendation for Advent's earlier offer and has unanimously endorsed KKR's superior proposal.
Separately, a consortium led by Canadian mining veteran Pierre Lassonde has put forward a proposal to acquire Teck Resources' (TECK) metallurgical coal operations. This move is seen as an attempt to counter Glencore's (GLNCY) ongoing efforts to acquire Teck. Teck had previously rejected Glencore's $23 billion takeover offer and had been pursuing plans to separate its copper and coal businesses, though those plans were later pulled due to insufficient shareholder support. Lassonde's consortium aims to ensure Teck remains a Canadian enterprise.
In automotive news, Honda's (HMC) total sales in July reached 121,017 units, showing a slight increase of 0.2%. This indicates continued, albeit modest, sales momentum for the automaker.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.