Europe

EDFof France is to sell its UK electricity networks business to Cheung Kong Infrastructure (CKI) of Hong Kong for £5.8 billion.

EDF's UK unit, EDF Energy Networks, distributes electricity to 7.8 million customers and generates around a fifth of Britain's electricity.

In acquiring EDF Networks, CKI has obtained low-voltage electricity distribution networks in the east and south of England, and ongoing contracts with businesses including the London Underground, Heathrow and Gatwick airports, and the Channel Tunnel.

Defence group BAE Systems and engine supplier Rolls-Royce have signed a £700 million deal to supply products and services for 57 Hawk training jets to India’s Hindustan Aeronautics Limited.

Over £500 million will go to BAE and £200 million to Rolls-Royce, who will build the engines for the jets. BAE will be supplying products and services to enable the aircraft to be built under licence at Hindustan Aeronautics Limited (HAL)’s facilities in Bangalore, India.

Spain’s Telefonica has reached an initial agreement to buy Portugal Telecom’s stake in Brazil’s Vivo Participacoes after raising its bid a third time to €7.5 billion, according to reports.

The agreement was said to be reached late yesterday, with the boards of both companies yet to ratify it. Madrid-based Telefonica holds its monthly board meeting today.

African Barrick Gold has reported a half year net profit rise of 217 per cent.

Profits at the miner soared to $99 million (approx. €76 million) on the back of increased production and the rising price of gold.

Revenue rose by 64 per cent to $424 million (approx. €326 million) and production by 23 per cent to 356,208 ounces. Realised gold prices jumped by 28 per cent to $1,155 (approx €888) per ounce.

Shareholders in Dana Petroleum are attempting to force the UK-based oil explorer to open takeover talks with South Korean suitor Korea National Oil Corp (KNOC), according to reports.

The Financial Times has reported that Schroders, Dana's biggest shareholder with a 13 per cent stake, has urged its board to engage with KNOC over its £1.67 billion indicative offer.

UK-based snack food manufacturer United Biscuits, whose brands include McVitie's, Jacob’s and KP Nuts, is to be put up for sale by its private equity owners, Blackstone and PAI Partners.

A number of banks, including Goldman Sachs and JP Morgan, are understood to be in competition to handle the sale, which is likely to begin in the autumn.

Orders for new aircraft are flying in at the biennial Farnborough International Airshow, the largest of its kind in the world, and an event at which aerospace companies traditionally make major announcements.

After spending $11 billion on Airbus A380s at last month's Berlin Airshow, Emirates led the way at Farnborough with an order for 30 Boeing 777 aircraft worth £5.9 billion ($9.1 billion). The airline was originally expected to order only twenty.

Spanish telecoms provider Telefónica has withdrawn its bid to acquire a further €7.15 billion stake in Brazil’s leading cell phone company, Vivo, currently owned by Portugal Telecom.

Telefónica and Portugal Telecom each own 50 per cent of Brasilcel, a Dutch registered holding company which owns 60 per cent of Vivo. Brasilcel is also listed on the Brazilian stock market, where the remaining 40 percent of its stock is publicly traded.

Germany’s Siemens AG has signed multi-billion euro deals to supply railway technologies and wind power to Russia.

Under the agreements, Siemens will modernise 22 railway switching yards by 2026 and supply Russian Railways (RZD) with 240 regional trains (a total of 1,200 coaches)over the next 10 years.

The trains will be a specialised version of the Desiro, which will be produced in Russia starting in 2012. Siemens is planning a joint venture with RZD subsidiary Aeroexpress to manufacture the trains.

The European Commission has given the go-ahead for British Airways to enter a joint business agreement with American Airlines after the companies agreed to competition safeguards.

The approval gives the airlines immunity from anti-trust laws that would have prevented them from combining their transatlantic wings. The airlines will now pool revenues, work together on ticketing and co-ordinate schedules.

The strengthening of their Oneworld Alliance on European to North American routes allows them to better compete with rival groups, BA has argued.