US Set to Grant Tentative Approval to American Airlines-Qantas Venture

June 3, 2019 | CNBC

The U.S. Transportation Department is expected to provide tentative approval to a bid by American Airlines and Qantas Airways to operate a joint venture, two people briefed on the matter said on Sunday.

The department is expected to issue an order tentatively approving the joint business agreement and tentatively granting antitrust immunity, according to the sources, who spoke on condition of anonymity.

Related Water Street Insight: Dispatch From The Farnborough Air Show: Five Challenges for Negotiating Aerospace and Defense JVs in 2016

BMW and Jaguar Land Rover Partner on Electric Cars, Will Work to Develop Next-Gen Powertrain

June 5, 2019 | Electrek

BMW and Jaguar Land Rover are announcing today that they are partnering on electric cars and will work together to develop the next-generation of electric powertrains.
The two automakers made the announcement in a joint press release:

“The BMW Group and Jaguar Land Rover today confirmed they are joining forces to develop next generation electric drive units in a move that supports the advancement of electrification technologies necessary to transition to an ACES future.”

Related Water Street Insight: Autonomous Vehicle Partnerships - Who are the Early Players?

Pemex Bond Holders See Downgrade to 'Junk' Status Ahead

June 6, 2019 | Reuters

Investors at six of the world’s largest asset managers, all of whom own the bonds of Mexican national oil company Pemex, expect them to be downgraded to “junk” status within months.

This could spur massive sales of the company’s bonds and hit Mexico’s economy as well.

Ratings agency Moody’s lowered its outlook on the oil company to negative from stable on Thursday, a day after it took similar action on Mexico’s sovereign debt.

Related Water Street Insights: Why Joint Ventures Fail - And How to Prevent It

Q&A: Allina Health | Aetna CEO on the Joint Venture's First Year

June 6, 2019 | Becker's Hospital Review

First announced in 2017, the joint-venture health plan between Allina Health in Minneapolis and Aetna hit a milestone in its first quarter of operations: more than 12,000 enrollees.

"It was an aggressive, active first year," Allina Health | Aetna CEO Tom Lindquist told Becker's Hospital Review in an interview. He joined the health plan, which offers Medicare Advantage and employer group policies, in March 2018 after his tenure as president of Molina Healthcare's South Carolina plan.

Related Water Street Insight: Healthcare Partnerships: Playing to Win in MedTech Dealmaking

American LNG Exports Threatened as China Turns to Russian Sources

June 6, 2019 | Nikkea Asian Review

TOKYO -- China's efforts to wean itself off U.S. energy is raising concerns that American producers will be left with a glut of liquid natural gas and, consequently, investment delays in planned projects.

China raised retaliatory tariffs on LNG from the U.S. to 25% on June 1 after Washington's recent decision to increase tariffs on most Chinese goods. The move, which could see a buildup of American LNG, casts fresh doubts about the country's energy export strategy.

Related Water Street Insight: 3 Steps to Negotiating Joint Ventures in China

Gold Giants Barrick and Newmont Are Battling to Lure Back Investors Who Fled the Industry

June 10, 2019 | Financial Post

What’s better than GOLD?

In the wake of two mega-mergers that have reset the gold industry, one small detail has delighted Mark Bristow, Barrick Gold Corp.’s chief executive officer: His company’s ability to secure the rights to trade its stock under the ticker GOLD in New York.

Barrick and newly merged Newmont Goldcorp Corp. are in a race to lure back generalist investors who fled the gold sector years ago. While Newmont has the advantage of size — it’s bigger by market capitalization and production — having the ticker GOLD certainly can’t hurt in the fight for brand recognition.

Related Water Street Insights: How to Manage and Run a Joint Venture: Do You Have The Right Stuff?

$4 billion New Pipeline Projects Announced by Phillips 66 to Move Oil to and from the Cushing Hub

June 10, 2019 | OK Energy Today

Phillips 66 has announced two separate 50/50 joint ventures to build a $1.6 billion pipeline from the Bakken to Cushing, Oklahoma and another $2.5 billion project to carry oil from Cushing and the Permian Basin to the Gulf Coast refineries.

The 24-inch Liberty pipeline will carry oil out of the Rockies and the Bakken directly to the Cushing hub in north central Oklahoma. Phillips created a joint venture with Bridger Pipeline LLC to build the line and hopes to have it operational in the first quarter of 2021.

At the same time, Phillips 66 created a second 50/50 joint venture to build the Red Oak Pipeline and move oil out of Cushing and the Permian Basin in West Texas to Corpus Christi, Ingleside, Houston and Beaumont, Texas.

Related Water Street Insight: Strategy Under Scrutiny

Alibaba and Russian Firms Form A Social Commerce Joint Venture

June 11, 2019 | Digital Commerce 360

Last week Alibaba, Mail.Ru Group, Russian telco MegaFon and sovereign fund Russian Direct Investment Fund (RDIF) announced they received approval from Russia’s antimonopoly authorities for their “social commerce joint venture.”

The JV will leverage on the existing businesses of AliExpress Russia, the B2C marketplace owned by Alibaba which controls a large part of the ecommerce flows between China and Russia. The partners will pour their “capital, strategic assets, leadership, resources and expertise” in the JV.

Related Water Street Insight: Split Ends: How to Exit a JV by Untangling the Assets

EU Regulators Block Thyssenkrupp, Tata Steel Joint Venture

June 11, 2019 | NASDAQ

Thyssenkrupp and Tata Steel's plan to form a landmark joint venture was rejected by EU antitrust regulators on Tuesday, concerned that the deal would have pushed up prices and reduced competition.

The European Commission said the companies, which had looked to the deal as one way to tackle overcapacity and other challenges in the steel industry, had not done enough to allay its concerns.

The Commission said imports from third countries would not have been able to offset potential price hikes resulting from the deal.

Related Water Street Insight: Cross-Border Joint Ventures: Confronting National Differences in Board Culture

Mozambique LNG Under Starter’s Orders

June 17, 2019 | Wood Mackenzie

US independent Anadarko Petroleum today formally sanctioned its Mozambican liquefied natural gas (LNG) project, Mozambique LNG.

Anadarko is developing Mozambique’s first onshore LNG facility, initially consisting of two LNG trains with a total nameplate capacity of 12.88 million tonnes per annum (mmtpa). Feedgas comes from the Golfinho/Atum field, in Offshore Area 1.

Related Water Street Insights: Key Observations on Joint Venture Launch Planning

UAE's ADNOC and Dutch Chemicals Company OCI Form Fertilizer Joint Venture

June 17, 2019 | S&P Global

Abu Dhabi National Oil Company, the UAE's largest oil producer, and chemicals company OCI formed a joint venture that will combine the UAE company's fertilizer business with the Dutch company's Middle East and North Africa platform, an entity with $1.74 billion in combined annual revenues.

OCI and ADNOC will own 58% and 42% of the joint venture respectively, OCI and ADNOC said Monday in statements. The deal is expected to close in the third quarter, subject to legal and regulatory conditions.

Related Water Street Insights: The Joint Venture Operating Model Blueprint

L3 Technologies and Saudi Arabian Military Industries Enter into Joint Venture

June 19, 2019 | Yahoo Finance

L3 Technologies (LLL) announced today that it has signed a joint venture agreement with Saudi Arabian Military Industries (SAMI) to collaborate on electro-optical and infrared (EO/IR) and special mission systems projects within the Kingdom of Saudi Arabia (KSA). The contract was signed on June 18 in the SAMI Chalet during the Paris Air Show.

In February 2019, L3 and SAMI announced the signing of a Memorandum of Understanding (MoU) relating to the joint venture.

Related Water Street Insights: Joint Venture Board Governance: A New Standard for Joint Venture Board Directors in Saudi Arabia

Arch Coal, Peabody to Combine Wyoming Coal Mines, Other Assets

June 19, 2019 | Bloomberg

The two biggest U.S. coal miners are joining forces as the industry’s fortunes continue to wither.

Arch Coal Inc. and Peabody Energy Corp. are combining mines in Wyoming and Colorado through a joint venture, the companies said in a statement Wednesday. The move, which analysts said was long-expected, will create about $820 million in savings, the miners said.

Related Water Street Insights: Structuring Joint Venture and Partnership Transactions: The Top 10 Joint Venture Ownership and Control Models

Mahindra Finance and Manulife Form Asset Management Joint Venture in India

June 21, 2019 | Yahoo Finance

Mahindra & Mahindra Financial Services Limited (Mahindra Finance) through their subsidiary, Mahindra AMC, entered into a 51:49 joint venture with Manulife which aims to expand the depth and breadth of fund offerings and retail fund penetration in India. The joint venture brings together Mahindra's domestic market strength and track record of building successful businesses and partnerships, with Manulife's global wealth and asset management capabilities and richness of experience in servicing the needs of consumers in Asia and around the world across developed and developing markets.

Related Water Street Insight: 10 Commercial Conflicts to Consider When Structuring a Joint Venture