Milbank, Tweed, Hadley & McCloy LLP has advised EIG Global Energy Partners in the joint sale with their 50% joint venture partner Centrica plc, of the Glens of Foudland, Lynn and Inner Dowsing wind farms (‘GLID’) to a consortium comprising of funds managed by BlackRock and the UK Green Investment Bank Offshore Wind Fund. The enterprise value is approximately £423 million.
Glens of Foudland is an onshore wind farm (26MW) located in Aberdeenshire and the Lynn and Inner Dowsing offshore wind farms (194MW) are located off the coast of North East Lincolnshire.
The cross-practice Milbank team was co-led out of the firm’s London office by Energy and Corporate partners John Dewar and Stuart Harray. The team also included Corporate senior associates, Daniel Wayte and Sarah Ullathorne, Corporate associate, James Mackay and Special Counsel, Matthew Mortimer in respect of UK tax.
John Dewar remarked “We are very pleased to have advised EIG Global Energy Partners, one of the leading capital providers to the global energy industry on the sale of the GLID wind farms. This is a key example of how we continue to provide English law support across a range of core practice areas in some of the most important energy & natural resources projects currently taking place in the United Kingdom and globally.”
Betting on death of petrol cars, Volvo to go all electric by 2030
By Nick Carey and Helena Soderpalm
LONDON (Reuters) – Volvo’s entire car line-up will be fully electric by 2030, the Chinese-owned company said on Tuesday, joining a growing number of carmakers planning to phase out fossil-fuel engines by the end of this decade.
“I am totally convinced there will no customers who really want to stay with a petrol engine,” Volvo Chief Executive Håkan Samuelsson told reporters when asked about future demand for electric vehicles. “We are convinced that an electric car is more attractive for customers.”
The Swedish carmaker said 50% of its global sales should be fully-electric cars by 2025 and the other half hybrid models.
Owned by Hangzhou-based Zhejiang Geely Holding Group, Volvo said it will launch a new family of electric cars in the next few years, all of which will be sold online only. Volvo will unveil its second all-electric model, the C40, later on Tuesday.
Samuelsson said Volvo will include wireless upgrades and fixes for its new electric models – an approach pioneered by electric carmaker Tesla Inc.
Carmakers are racing to switch to zero-emission models as they face CO2 emissions targets in Europe and China, plus looming bans in some countries on fossil fuel vehicles.
Last month, Ford Motor Co said its line-up in Europe will be fully electric by 2030, while Tata Motors unit Jaguar Land Rover said its luxury Jaguar brand will be entirely electric by 2025 and the carmaker will launch electric models of its entire line-up by 2030.
And last November, luxury carmaker Bentley, owned by Germany’s Volkswagen, said its models will be all electric by 2030.
Electrification is expensive for carmakers and as electric vehicles have fewer moving parts, employment in the auto industry is expected to shrink.
Last week, the head of Daimler AG’sDE> truck division said going electric will cost thousands of jobs in the company’s powertrain plants in Germany.
Volvo said it will invest heavily in online sales channels to “radically reduce” the complexity of its model line-up and provide customers with transparent pricing.
The carmaker’s global network of 2,400 traditional bricks-and-mortar dealers will remain open to service vehicles and to help customers make online orders.
Via volvocars.com customers will be able to choose from a simplified range of pre-configured electric Volvos for quick delivery – but they will still be able to order custom-made models.
(Reporting By Nick Carey; editing by Barbara Lewis)
Oil extends losses on worry over possible supply increase from OPEC
By Yuka Obayashi
TOKYO (Reuters) – Oil prices fell more than 1% on Tuesday, extending losses that began last week, as investors unwound long positions on concern that OPEC may agree to increase global supply in a meeting this week and Chinese demand may be slipping.
Brent crude dropped 78 cents, or 1.2%, to $62.91 a barrel by 0138 GMT, after losing 1.1% the previous day. U.S. West Texas Intermediate (WTI) crude slid 74 cents, or 1.2%, to $59.90 a barrel, having lost 1.4% on Monday.
Investors are worried the Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, will boost oil output, said Hiroyuki Kikukawa, general manager of research at Nissan Securities.
“Oil prices remained under pressure as investors were making position adjustments ahead of the OPEC meeting,” he said.
The group meets on Thursday and could discuss allowing as much as 1.5 million barrels per day (bpd) of crude back into the market.
OPEC oil output fell in February as a voluntary cut by Saudi Arabia added to reductions agreed to under the previous OPEC+ pact, a Reuters survey found, ending a run of seven consecutive monthly increases.
Market sentiment was also dampened by weak manufacturing data out of China, Nissan Securities’ Kikukawa said.
China’s factory activity growth slipped to a nine-month low in February, which may curtail Chinese crude demand and pressure oil prices.
(Reporting by Yuka Obayashi; Editing by Tom Hogue)
Brexodus from City of London to the EU slows
By Huw Jones
LONDON (Reuters) – The shift in financial staff and assets from the City of London to the European Union because of Brexit has eased after Britain completed its full departure from the bloc, a tracker from consultants EY showed on Tuesday.
Financial services are not included in the EU-UK trade deal that came into effect on Jan. 1, largely cutting off the City from the EU.
Financial firms in Britain have opened subsidiaries in the EU, with Dublin and Luxembourg the most popular destinations, EY said.
“After the major hurdle of standing up new EU hubs, the days of significant swathes of asset and job relocation announcements appear to have passed and will likely be replaced by the slower yet ongoing movement of people and assets to Europe for compliance purposes,” Omar Ali, a financial services managing partner at EY, said.
EY said in its latest Brexit Tracker that job moves have risen to almost 7,600, up by 100 since October, while the number of new hires in Europe since Britain’s EU referendum in 2016 remains flat at around 2,850 new jobs.
The loss is a small fraction of total jobs in British financial services and is far lower than initial predictions.
There was also an incremental rise in the relocation of assets, now totalling almost 1.3 trillion pounds ($1.82 trillion), up from 1.2 trillion pounds previously, EY said.
On Jan. 4, more than 8 billion euros ($9.63 billion) in daily share trading shifted from London to Amsterdam and Paris, followed by chunks of trading in euro-denominated swaps.
The EU is targeting the clearing of euro swaps, which London dominates, although EU’s Ali said splitting markets would not benefit Europe.
“Fragmentation of European financial services will serve to only benefit the U.S. and Asia,” he said. Some of the swaps trading that has left London has moved to New York.
EY calculated its figures from public statements by 222 of the largest banks, insurers, fintechs and asset managers since June 2016 to the end of February 2021. A quarter, or 57 firms, said Brexit has or will have a negative impact on them, up from 49 in January 2020.
(Reporting by Huw Jones; editing by Barbara Lewis)
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