NOVEMBERASIA BUSINESS OUTLOOK9NEWSROOMKOREA ZINC PLANS $1.5B SHARE BUYBACK TO RESIST TAKEOVER EFFORTSSwiss companies like ABB and Kuehne+Nagel are ramping up investments in India, driven by the country's growing appeal as a trade destination. A new US$100 billion trade and economic partnership agreement (TEPA) signed in March with the European Free Trade Association (EFTA), led by Switzerland, is set to incentivize further investment by reducing tariffs on Swiss exports to India, spanning chocolates, watches, and machinery. The agreement, which is expected to spur investment upon ratification, aims to strengthen economic ties and provide Swiss businesses easier access to India's expanding market of 1.4 billion people.The deal reflects a shift among European businesses, which are increasingly exploring alternatives to China amidst ongoing trade tensions with the U.S. and concerns over China's slowing economy. India, by comparison, has demonstrated significant economic growth, which companies like ABB have capitalized on, with its orders in India growing by 27 percent annually over the last three years. ABB's CEO, Morten Wierod, highlighted the company's expansion in India, with investments in factories, offices, and R&D facilities that have boosted its workforce from 6,000 to 10,000 since 2020. ABB sees India becoming its third-largest market after the U.S. and China.Despite India's rising prominence, ABB and other Swiss companies maintain a strong presence in China, underscoring a balanced approach to growth in both Asian markets. Korea Zinc has repurchased 9.85 percent of its shares for $1.5 billion in an effort to prevent shareholders from selling their holdings to the company's main investor, Young Poong, and private equity firm MBK.The largest zinc smelter in the world, Bain Capital, which supports Korea Zinc's present executives, separately acquired a 1.41 percent share in the business, the firm stated in a regulatory filing.Korea Zinc, which is owned by the Choi family, has been engaged in a fierce struggle for control of the $18 billion zinc empire with the Chang family, who co-founded it. In September, MBK received an initial joint bid from Young Poong, the Chang family's conglomerate.Analysts claim that prior to the buyback, the Choi family of Korea Zinc enjoyed the support of shareholders who held up to 36 percent of the business, including strategic partners like Hyundai Motor Group.In order to increase shareholder value, Korea Zinc said that it would cancel all of its recently acquired shares and spend 2.07 trillion won ($1.5 billion) on the repurchase.As fewer shares were available for trading as a result of tender bids from both parties, Korea Zinc's shares surged 10 percent on Monday to a record high of 1.38 million won, or 55 percent above their buyback price of 890,000 won. Young Poong's stock also increased by 5.3 percent. NEWEST INDIA-SWITZERLAND AGREEMENT OPENS DOORS FOR INVESTMENTS WORTH $100B
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