Europe

Mining group African Minerals has signed a deal with a Chinese steelmaker for a $1.5 billion (£989 million) investment that will help it develop what could be the biggest iron ore mine in the world.

The memorandum of understanding which has been signed with Shandong Iron & Steel—one of the world's largest mill operators—is subject to due diligence and the two parties agreeing a discount for the iron ore produced.

BP has announced it has fitted a larger, tighter containment cap on the ruptured Gulf of Mexico wellhead that has been leaking oil since the Deepwater Horizon explosion in April.

The company will test the new cap's internal pressure shortly by closing its valves. If successful, the company hopes the new cap will stem the flow until more permanent measures can be taken.

Saudi Arabia has received bids from six groups hoping to build four stations along a 450 kilometre high-speed railway line in the country.

Firms involved in the bidding include the German transport group Deutsche Bahn, Italy’s Astaldi, the UK’s WS Atkins,France’s Alstom, Austria’s Strabag, and Singapore-based ST Engineering Ltd.

HSBC is considering making a bid for South Africa’s Nedbank, majority owned by the insurance group Old Mutual, it has been reported.

According to a report by Sky News, HSBC has appointed investment bank Lazard to advise on a possible takeover.

Amazon.co.uk has announced that it will take on the UK’s supermarkets with the launch of its own online grocery store offering free delivery on thousands of products.

Thecompanywill offer a range of 22,000 products, which matches the scope of rivals such as Tesco and Ocado. It will stock 2,000 products at its five warehouses around the UK, with its biggest facility, of 800,000 square feet, to be located at Swansea Bay in Wales. The remaining products, including fresh and chilled items, will be sent from external suppliers.

Libya’s sovereign wealth fund is eyeing a stake in the troubled oil giant BP, according to reports.

Shokri Ghanem, chairman of Libya's National Oil Company, said BP shares were "good value for bargain hunters".

His comments follow reports that BP is seeking investment from Middle Eastern sovereign wealth funds. The company’s shares have roughly halved in value following the oil disaster in the Gulf of Mexico, which began in April; but they climbed 3.5 per cent on Monday following Ghanem’s comments.

Builders' merchant Travis Perkins has agreed to purchase plumbing and heating company BSS Group for £557.6 million.

The cash and shares deal values BSS shares at 435.8 pence, a 4.7% premium on Friday's closing price of 416.2p. It is the largest acquisition by Travis Perkins since the £950 million takeover of the Wickes DIY chain in 2005.

Search giant Google has agreed to buy ITA Software Inc. for $700 million, giving it a foothold in the fast-growing online travel industry.

 Google’s offer beat that of rivals Microsoft and other travel and search related companies who were hoping to prevent Google from taking over ITA.

Last year, international exploration and development company Tullow Oil discovered significant oil resources in the environmentally sensitive remoteness of East Africa. General manager Dr Brian Glover talks to Gay Sutton about the importance of this discovery, and the challenges it presents.