Home Business and Economics This Week In Business: Mastercard, Barneys, and More

This Week In Business: Mastercard, Barneys, and More

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Mastercard To Buy Part Of Nets

Mastercard announced plans to buy a majority of Scandinavian payments group Nets on Tuesday. The takeover, valued at almost $3.19Bn, includes clearing services, instant payment services, and e-billing solutions of Nets’ corporate services business. In addition, the acquisition will be complementary to Mastercard’s already existing Send and Transfast technologies.

Currently, Mastercard expects the deal to close in the first half of 2020. The deal, which is another effort to consolidate the financial sector, further pushes Mastercard’s attempt to enter Nordic markets. Right now, the deal will be dilutive for up to 24 months, following the deal’s closing.

Barney’s New York Files For Bankruptcy

Luxury department store Barney’s New York filed for Chapter 11 bankruptcy. Recently, the firm faced rising rent and unsuccessful attempts to find a buyer. Because of this, it will close stores in Chicago, Las Vegas, and Seattle. It will also close several warehouses across the nation. Barney’s has also faced a steep rent increase at its New York location, rising to $30M from $16M.

“Like many in our industry, Barneys New York’s financial position has been dramatically impacted by the challenging retail environment and rent structures that are excessively high relative to market demand,” CEO Daniella Vitale said. “In response to these obstacles, the Barneys New York board and management team have taken decisive action by entering into a court-supervised process, which will provide the company the necessary tools to conduct a sale process, review our current leases and optimize our operations.”

Tesco To Cut 4,500 Jobs

British supermarket chain Tesco recently announced plans to cut 4,500 jobs. Because of changing consumer habits, Tesco is restructuring to allow for a daily format rather than a weekly shop. Currently, Tesco has made no plans for compensating the displaced workers.

“In a challenging, evolving retail environment, with increasing cost pressures, we have to continue to review the way we run our stores to ensure we reflect the way our customers are shopping and do so in the most efficient way,” said Tesco UK boss Jason Tarry.

Tencent To Buy 10% Stake In Universal Music

Tencent is set to buy a 10% stake in Universal Music Group from Vivendi. As the worlds biggest music company, Universal already streams its content via Tencent. “The deal would give UMG a preliminary equity valuation of [$33.6bn],” said Vivendi, the group’s parent company. Tencent also has an option to buy a further 10% of UMG within a year.

Apple Card Will Not Allow Cryptocurrency Purchases

Apple Card will not allow its users to purchase cryptocurrencies, according to a post on partner Goldman Sachs Group’s website. In addition, Apple Card cannot buy casino gaming chips, race track wagers, or lottery tickets. Goldman Sachs refused to comment, and Apple did not respond to a request to comment.

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