CLO Executive Centre

The UK has been talking to administrators about next steps for Thames Water as it intensifies preparations for a possible form of temporary nationalization, reports Bloomberg (19 June, Rocha, Morpurgo). Environment Minister Steve Reed is rejecting calls from creditors for special treatment on sewage fines, setting the stage for a showdown which could end with plans to rescue the company falling apart. “The government would always act in the national interest on these issues,” he told UK lawmakers on Thursday. “Thames Water must meet its statutory and regulatory obligations to their customers and to the environment. It is only right that the company is subject to the same consequences as any other water company.” Reed was responding to reports that the creditors of the UK’s largest water and sewage utility are asking the government and regulator Ofwat to allow license changes and pass emergency legislation to protect it from environmental directives.

From "UK Talks to Administrators in Case Thames Is Nationalized"
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Russia's economy is "on the brink of going into a recession," Economy Minister Maxim Reshetnikov announced at yesterday's St. Petersburg International Economic Forum covered by the Associated Press (19 June). Reshetnikov remarked, "Judging by the way businesses currently feel and the indicators, we are already, it seems to me, on the brink of going into a recession." The country's economy, which has so far outperformed predictions, was hit with a series of sanctions after Russia invaded Ukraine again in February 2022.

From "Russia's Economy Minister Says the Country Is on ‘the Brink of Recession’"
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The Bank of England held interest rates at 4.25 percent as expected on Thursday, reports Reuters (19 June, Abdulla, Milliken), saying it was focused on risks from a weaker labor market and higher energy prices as conflict in the Middle East escalates. The central bank kept its guidance saying it would take a "gradual and careful" approach to further rate cuts.

From "Bank of England Keeps Rates Steady"
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A Spanish court on Thursday rejected an appeal by Airbnb and left in place an order to block almost 66,000 rental listings, reports the Associated Press (19 June). Spain’s government in May ordered Airbnb to block the listings in the country after the Consumer Rights Ministry flagged them for violations. It said Airbnb had to immediately take down 5,800 of them. The ministry has said the listings it flagged did not include their license number or specify whether the owner was an individual or a company. It said others listed numbers that didn’t match what authorities had. Airbnb said the ministry’s actions went against Spanish regulations that hold owners of short-term rentals, not the platform, as responsible for listing such information. It also said the Madrid court’s decision was not made on the merits of the ministry’s order, adding that will take longer to decide. The government has said the platform’s short-term rentals in city centers and tourism hot spots are contributing to Spain’s housing crunch. The company responded that Spain’s housing crisis comes down to “a lack of supply to meet demand,” and said anything else “is a distraction.”

From "Spanish Court Rejects Airbnb Appeal, Keeps Order to Block Listings"
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The Competition Bureau of Canada is calling on Ottawa to boost competition in the airline industry with sweeping changes, reports the Toronto Globe and Mail (19 June, Atkins), including allowing foreign-owned carriers to fly domestic routes and phasing out restrictions on foreign ownership. The recommendations are among 10 the Bureau made in a new market study released Thursday. To increase customers’ choices in Canada’s highly concentrated airline industry, the report also recommends that the government remove the Transport Minister’s ability to ignore antitrust findings when reviewing airline takeovers and partnerships.

From "Watchdog says Canada Should Allow Foreign-owned Airlines to Fly Domestic Routes to Boost Competition"
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Kolmar Group founder and Chairman Yoon Dong-han has filed a lawsuit against his son, reports the Korea Economic Daily (19 June, Yun-Sang), demanding the return of shares gifted to him amid sibling rivalry over a management dispute. The lawsuit, filed with the Seoul Central District Court, seeks to reclaim 4.6 million shares in Kolmar Holdings Co. The shares, gifted to his son, Vice Chairman Yoon Sang-hyun, in December 2019, represent about 13.4 percent of the company, about half the son's 31.75 percent stake. The father, Yoon Dong-han, currently owns 5.59 percent of Kolmar Holdings, while his daughter Yoon Yea-won and her husband have a combined 10.62 percent stake. At the heart of the dispute is a deepening rift between Yoon Sang-hyun and his sister, Yoon Yea-won, chief executive of Kolmar BNH Co. (200130), the group’s health supplements arm.

From "Kolmar Patriarch Wants Shares Gifted to Son Back amid Sibling Rivalry"
Abstract News © 2025 SmithBucklin

Japanese companies are leaving the Tokyo Stock Exchange (TSE) at the fastest pace in over a decade, reports Bloomberg (19 June, Tsutsumi), reflecting a surge in deals and management buyouts as they face more pressure to make better use of their capital. The number of firms that delisted their shares from the TSE or announced plans to do so has reached 59 in the first half, rising from 51 a year earlier and marking the most on record for a comparable period, according to exchange data going back to 2014. If firms continue to exit the TSE at this pace, the figure for 2025 will exceed last year’s annual record of 94 companies. The trend reflects the Tokyo bourse’s broad push to make the Japanese market more appealing for foreign investors by ensuring that listed companies offer high shareholder returns, while firms that aren’t meeting their goals face the threat of being taken off the exchange. The TSE has called on companies to pursue goals including improving their valuations and cutting overly close ties with other companies in the form of cross-shareholdings.

From "Japan Firms Exit Tokyo Exchange at Record Pace in Delisting Rush"
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US President Trump on Thursday issued another 90-day reprieve for TikTok, delaying enforcement of a 2024 law requiring the Chinese-controlled video app's sale or shutdown, the Wall Street Journal (20 June, Bravin). A White House spokesperson said the Trump administration will work over the next three months to broker a deal ensuring US user data on TikTok is secure. "A prior US Supreme Court ruling upheld the law, citing national security concerns regarding TikTok’s data collection and foreign ties.

From "Trump Delays TikTok Ban for a Third Time"
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Candy company Mars has not offered remedies to EU antitrust regulators reviewing its proposed US$36 billion takeover of Kellanova, reports Reuters (19 June, Chee). The deadline for Mars to offer remedies was June 18. Reuters reported on Wednesday that Mars was unlikely to offer remedies for now to address the EU competition enforcer's concerns about its high market share in certain products in some EU countries and its portfolio of strong brands. People close to the matter said the EU antitrust watchdog will launch a full-scale investigation into the deal at the end of its preliminary review which finishes on June 25.

From "Mars Has Not Offered Remedies to EU for Kellanova Deal"
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The Wall Street Journal (20 June, Thomas) reports that Home Depot has made an offer for building-products distributor GMS, which is expected to kick off a bidding war between the home-improvement giant and "serial dealmaker" Brad Jacobs. Earlier this week, Jacobs' QXO submitted an unsolicited bid to acquire GMS for about US$5 billion. Both Home Depot and QXO are looking to expand their share of the market for construction supplies and tools.

From "Home Depot Bid Kicks Off Battle for US$5 Billion Building-products Company"
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Google suffered a setback in its years-long battle against an antitrust fine, reports the Wall Street Journal (19 June, Hancock), after a top adviser to the European Union’s highest court backed a 4.12 billion euro (US$4.74 billion) penalty imposed by EU antitrust regulators over how the tech giant imposes contractual obligations on device manufacturers deploying its Android operating system. Juliane Kokott, an advocate general of the European Union’s Court of Justice in Luxembourg, said Google is wrong to attempt to challenge the fine. She said the company for years held a dominant position in several markets of the Android system that enabled it to benefit from ensuring that users used its services like Google Search. Kokott recommended that judges should uphold the fine, according to a court press release.

From "EU Court Advisor Backs Google’s US$4.7 Billion Android Fine"
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The European Union will bar Chinese companies from participating in EU public tenders for medical devices worth 60 billion euros or more per year after concluding that EU companies are not given fair access in China, reports Reuters (20 June, Blenkinsop). The measure announced by the European Commission on Friday is the first under the EU's International Procurement Instrument, which entered into force in 2022 and is designed to ensure reciprocal market access. The Commission said on Friday that it would exclude Chinese companies from EU government purchases above five million euros. Successful bids will have to ensure they include no more than 50 percent of medical devices from China. If there are no alternative suppliers, the exclusion will not apply. The Commission has previously said it found "clear evidence" that China favored Chinese devices for hospitals and its tender conditions led to abnormally low bids that profit-oriented companies could not offer.

From "EU Bars Chinese Firms from Most Medical Device Tenders"
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X has challenged a New York state law that requires social media companies to disclose how they monitor hate speech, extremism, and other contentious content, reports BBC News (18 June, Jamali). In a lawsuit filed on Tuesday, the social media platform, formerly known as Twitter, argues that the law forces companies to disclose "highly sensitive and controversial speech" that is protected under the constitution's First Amendment. New York Attorney General Letitia James, who is in charge of enforcing this law, is the named defendant in X's lawsuit. Deciding what content is acceptable on social media platforms "engenders considerable debate among reasonable people about where to draw the correct proverbial line," X said. "This is not a role that the government may play." The Stop Hiding Hate Act, passed in December, requires social media companies to disclose steps they take to eliminate hate on their platforms, and to report their progress.

From "X Sues New York State over Social Media Hate Speech Law"
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The majority stake of the Los Angeles Lakers US professional basketball franchise is being sold, reports BBC News (19 June, Hayes, Morris), in what will mark the most expensive sale of a US sports team in history. The Buss family has owned the team since 1979 and now has made a deal with TWG Global CEO Mark Walter, source said. The sale is reportedly worth an estimated US$10 billion. The deal comes after the March sale of the Boston Celtics basketball team to Bill Chisholm for US$6.1 billion, which at that time was dubbed the priciest sale of a US sports franchise. It had surpassed the 2023 sale of the Washington Commanders American football team for US$6.05 billion.

From "Los Angeles Lakers to Sell Majority Ownership"
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The Swiss National Bank said Thursday it has reduced its target interest rate by a quarter of a percentage point, reports the Associated Press (19 June), citing easing inflationary pressures. The central bank said its policy rate would drop to zero from 0.25 percent, after noting that nearly flat inflation nosed into negative territory in May compared to February. The bank attributed the drop in inflation in Switzerland primarily to declining prices in the tourism and oil sectors.

From "Swiss Cut Key Interest Rate"
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Texas Instruments touted plans to spend more than US$60 billion on semiconductor plants in the US, reports Bloomberg (18 June, King, Hawkins), making it the latest chipmaker to promote its domestic manufacturing ambitions as the Trump administration urges investments and threatens to upend the sector with tariffs. The total includes amounts allotted to plants that are already being built and equipped in the process of bringing them up to full production. The chipmaker will begin construction of two new factories at its site in Sherman, Texas, based on business demand.

From "Texas Instruments Touts Plans to Invest US$60 Billion in the US"
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UBS Group AG said that information about the company had been stolen in a cyberattack on one of its suppliers, reports Bloomberg (18 June, Illien). “A cyberattack at an external supplier has led to information about UBS and several other companies being stolen,” the Zurich-based bank said in a statement on Wednesday. “No client data has been affected. As soon as UBS became aware of the incident, it took swift and decisive action to avoid any impact on its operations.” Earlier, Le Temps newspaper reported that the employee data had been published on the darknet following a ransomware attack on procurement service provider Chain IQ, which was spun off from UBS in 2013. A group of hackers called World Leaks, previously known as Hunters International, is said to be behind the attack, according to Le Temps. Switzerland’s financial regulator said earlier this year that reports of successful cyberattacks on Swiss financial institutions jumped by almost 50 percent in 2024 over the previous year, and warned that outsourcing critical activities to third parties represented a “key operational risk."

From "UBS Confirms Data Stolen After Hack at External Supplier"
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The European Commission accepted commitments from Alibaba Group-owned AliExpress to crack down on sales of illegal products, reports the Wall Street Journal (18 June, Hancock), but said the e-commerce company may have underestimated the risks its platform poses and failed to properly penalize traders posting illegal content. The Commission said on Wednesday that AliExpress has offered to make changes to a number of aspects of its popular e-commerce platform to address concerns including around how it monitors for illegal products, its internal complaints system, its advertising transparency, and the traceability of traders on its services. The Commission said that after a preliminary investigation, it believes the company could be flouting the Digital Services Act–the bloc’s new online content rulebook–because an assessment it carried out to comply with the rules underestimated the risk it poses and didn’t properly enforce penalties on traders repeatedly posting illegal content online.

From "EU Says Alibaba’s AliExpress May Have Broken Online Rules"
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Firearm maker Sturm, Ruger has promoted its vice president of administration to take over as its vice president, general counsel, and corporate secretary, reports Governance Intelligence (18 June, Havelock). Sarah Colbert will succeed current general counsel Kevin Reid, who is retiring after serving in the role since 2008. As a vice president, Colbert will maintain her role on Sturm, Ruger’s leadership team, a position she has held since June 2017. Colbert joined Sturm, Ruger in 2011 as associate general counsel.

From "Sturm, Ruger Appoints Sarah Colbert as New General Counsel"
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Indonesia's antitrust agency has given its "conditional" approval to last year's takeover of the country's biggest e-commerce platform Tokopedia by TikTok after ending its probe into potential monopoly risks, reports Reuters (18 June, Kurniawati). TikTok, owned by China's ByteDance, completed a deal in January 2024 to buy 75.01 percent of Tokopedia for US$840 million from GoTo. The antitrust agency KPPU said it had given conditional approval to the deal after Tokopedia and TikTok agreed to comply with all the requirements asked of them. The agency had listed several requirements for TikTok and Tokopedia, including guaranteed open methods for payment and logistics and measures to prohibit predatory pricing.

From "Indonesia Antitrust Agency Gives 'Conditional' Go-ahead for TikTok's Tokopedia Takeover"
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