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Summary
- Abu Dhabi would be partnering with Britain to invest in the infrastructure, clean energy, and technology space in the UK.
- UAE’s most active fund Mubadala would be investing £800 million in life sciences in the next five years.
- The British government would be putting £200 million from the government fund.
Abu Dhabi would be partnering with the United Kingdom to invest in the infrastructure, clean energy, and technology space in the UK. According to a report in the Financial Times, one of UAE’s most active funds Mubadala would be putting £800 million in life sciences over five years.
The deal, which would give a much-needed boost to the UK after Brexit, would see the government putting £200 million. In the other sectors, investments would happen on a similar case till 2026, and this could take the total investment up to £5 billion.
UK investment minister Lord Gerry Grimstone said that good opportunities are expected to be found in the selected sectors, and they have very sizeable future opportunities. Mubadala CEO Khaldoon al-Mubarak said that the investment would be of a sizeable amount which would ensure the right kind of returns and scale.
To boost economic growth, the UK government would be forming four investment and regional trade hubs. It also plans to cut tariffs on some US goods that came into force as a response to a dispute over US subsidies to Boeing.
Copyright © 2021 Kalkine Media Pty Ltd.
Let us put our focus on 3 stocks from the infrastructure, clean energy, and technology space which have the largest market capitalisation and could benefit from the deal:
Alternate Energy
ITM Power Plc (LON:ITM)
The British alternative energy company, which is part of the FTSE AIM UK 50 Index, had seen its revenue fall to £178,000 in the six months ended October 31, 2020 from £2.4 million in the same period a year ago. However, for the second half of FY20, its sales were up 4.8 per cent against the same period a year ago. Loss after tax for the period was £12.01 million against a loss of £ 9.8 million in the same period a year ago.
Daily share performance of ITM Power Plc (Source: EODHD/Others, Thomson Reuters)
Company CEO Graham Cooley said that certain units of the company have the potential to scale up production, which would get reflected in the company’s revenues going forward.
The shares of the company were trading at GBX 410.50, down by 2.56 per cent on 24 March at 8:17 AM GMT+1.
Infrastructure
Compagnie De Saint-Gobain (LON:COD)
The French multinational giant in the construction space saw its sales fall 10.4 per cent in FY20 to €38,128 million from €42,573 million a year ago. Its EBITDA fell 9.3 per cent in FY20 to €4,415 million from €4,870 million a year ago.
Company CEO Pierre-André de Chalendar said that the company’s performance for the second half of 2020, when businesses globally were struggling, was the testimony of the transformation in the company that had begun years back.
The shares of the company were trading at EUR 48.56, down by 2.53 per cent on 24 March at 08:16 AM GMT+1.
Technology
Naspers Limited (LON:NPSN)
The South African internet company’s revenue for the six months ended 30 September 2020 increased to $2,479 million from $1,730 million in the same period a year ago. Its profit for the period increased to $2,964 million against $2,265 in the same period a year ago.
The company had said that though the prevailing environment of the pandemic continued to be uncertain and the longer-term impact of it economically was unclear, the company remained cautiously optimistic.
The ADRs of the company last traded at US$46.30, up by 10.24 per cent on 23 March.
