Europe

The first phase of the controversial HS2 rail line is expected to get the go-ahead from the UK government today.

Transport secretary Justine Greening is expected to back the high-speed 100-mile rail link from London to Birmingham, which will be completed by 2026.

The first London-Birmingham phase will cost £17 billion, while the total cost incorporating the second phase—a further section of the line extending to Manchester and Leeds—is expected to reach £32 billion. This northern extension would be completed by around 2032/33.

Sales of Mercedes-Benz reached record figures in 2011, Germany’s Daimler has announced.

Record sales in China and what the company termed “outstanding” development in the US contributed towards the figures reaching an all-time high. The brand also remains the strongest premium marque in Germany, the car maker said.

A total of 1,362,908 vehicles of the brands Mercedes-Benz, smart and Maybach were delivered to customers—around 77,000 units more than the previous record set in 2007 (1,285,900 units).

Oil and gas exploration in the North Sea is continuing apace with the award of a new licence in the UK 26th Licensing Round to a Northern Petroleum subsidiary.

The new licence is located offshore adjacent to Northern's Isle of Wight onshore licence, PEDL 240, which was awarded in May 2008. The part blocks—98/13 and 98/14—cover the offshore extension from PEDL 240 of a prospect that was mapped prior to 2008.

French automotive components manufacturer Valeo has acquired 80 per cent of the China-based lighting specialist Ruby.

Chery Technology, a subsidiary of the Chinese automotive manufacturer Chery Automobile, will retain a 20 per cent stake in the company, to be renamed Wuhu Valeo Automotive Lighting Systems.

The new joint venture will design, manufacture and sell Valeo Lighting Systems products—predominantly for Chery Automobile in the Chinese market—and will be integrated within Valeo’s Visibility Systems Business Group.

Bombardier Transportation has secured an additional order for 130 of its Electrostar rail carriages from UK rail operator Southern, in a contract valued at £189 million (€227 million/$296 million).

“We are delighted to be awarded this contract by Southern. This is a significant project which emphasises the performance of Bombardier’s products in the UK,” said Paul Roberts, chief country representative and president of Bombardier Transportation, Services UK and Passenger Fleet Management Service Line. 

SPX Corporation has completed its acquisition of CLYDEUNION Pumps, a UK based global supplier of pump technologies used in oil and gas processing, power generation and other industrial applications.

In the final agreement as amended 22 December, 2011, the total purchase price comprises £500 million sterling, paid at closing, plus a potential earn-out payment in 2013 based on 2012 EBITDA performance.

International Airlines Group (IAG) and Germany’s flag carrier Lufthansa have reached a binding agreement for IAG to acquire UK-based airline British Midland Limited (bmi).

IAG will pay £172.5 million for bmi, which consists of three distinct business units—bmi mainline, bmi regional and bmibaby.

Canadian business software company Intelex is to open its first overseas office in the United Kingdom.

The office will open in London in February 2012, and will serve as a beachhead for the company’s coming European and Eurasian expansion, as well as helping to serve existing clients in Europe, Asia and the Middle East.

Stephen Ross, Intelex’s vice president of sales and a 10-year veteran of the Intelex team, will relocate to London, England, to help launch the new office.

UK-based Subsea 7 has won a contract worth $185 million from Elf Exploration UK on the West Franklin Field in the Central Graben area of the North Sea.

The scope of the subsea, umbilicals, risers and flowlines (SURF) contract includes engineering, procurement, fabrication, installation and commissioning of the Sealine Package associated with the West Franklin Phase 2 Development.

Irish industrial services group DCC has agreed to acquire the Swedish fuel distributor Swea Energi for €22.7 million.

Swea is the leading distributor of heating oils and transport fuels to domestic, commercial and industrial customers in Sweden. Headquartered in Kungsbacka, near Gothenburg, Swea sells approximately 500 million litres of oil per annum to customers throughout Sweden. The company employs a total of 54 staff across a network of seven sales offices with transport outsourced to a number of regional hauliers.