OSLO (Reuters) – Facebook ( FB.O ) will double the size of its data center in Sweden’s northern city of Lulea, raising its total investments in the region to about 8.7 billion crowns ($987 million), the company said on Monday. FILE PHOTO: Facebook CEO Mark Zuckerberg speaks at Facebook […]
Sweden and its Nordic neighbors, with cheap electricity and low temperatures, are attractive for data centers, with many Silicon valley giants /and cryptocurrency miners rushing to move in.
Nestle and Starbucks strike $7.15 billion coffee licensing deal
LOS ANGELES/LONDON (Reuters) – Swiss-based Nestle , the world’s largest food and beverage company, will pay Starbucks Corp $7.15 billion in cash for exclusive rights to sell the U.S. chain’s packaged coffees and teas around the world, tying a premium brand to Nestle’s global distribution muscle. The agreement announced on Monday could rev up Starbucks’ roughly $2 billion business selling packaged Starbucks coffee, Teavana tea and other products through grocery stores and other retailers, including in China.
The alliance, which amounts to a licensing arrangement, frees Seattle-based Starbucks to focus on improving its mainstay U.S. cafe business, where traffic growth has stalled amid competition from fast-food chains and upscale coffee houses, while rapidly adding shops in China. Starbucks will use proceeds to increase planned stock buybacks to $20 billion from $15 billion through fiscal 2020. It said the deal would add to earnings per share by 2021. Nestle said it expects the alliance to add to its earnings by 2019, but will not alter its share buyback plans. In addition to the cash payment, Starbucks will receive revenue from product sales and royalties.
“This global coffee alliance will bring the Starbucks experience to the homes of millions more around the world through the reach and reputation of Nestle,” said Starbucks Chief Executive Kevin Johnson, calling the arrangement a brand amplifier.
Nissan to gradually withdraw from diesel vehicle market in Europe
PARIS (Reuters) – Japanese carmaker Nissan will gradually stop selling diesel cars in Europe, in a further sign of weakening demand for those cars as customers worry about tax rises and looming bans and restrictions related to diesel in many countries. A Nissan spokeswoman said there would be a gradual withdrawal of diesel cars in Europe. A source had earlier told Reuters last month that Nissan would cut hundreds of jobs at its Sunderland plant, Britain’s biggest automotive factory, due to falling demand for diesel models in Europe.
The auto industry and its suppliers are facing a global regulatory crackdown on diesel emissions and are adjusting their businesses, including investing heavily in electric vehicles. German carmaker Volkswagen (VOWG_p.DE) is also still in the process of emerging from a 2015 emissions cheating scandal that resulted in about $30 billion in fines and other costs.
“Along with other manufacturers and industry bodies we can see the progressive decline of diesel but we do not anticipate its sudden end in the short-term. At this point in time and for many customers, modern diesel engines will remain in demand and continue to be available within Nissan’s powertrain offering,” said the Nissan spokeswoman.
“In Europe, where our diesel sales are concentrated, our electrification push will allow us to discontinue diesel gradually from passenger cars at the time of each vehicle renewal,” she added.