DE40: DAX continue to rise 📈Gerresheimer loses amid dropping takeover talks

Solid wall Street sentiment supports European markets, DAX continue to rise in Thursday session.

• Final eurozone CPI data unchanged: 2% YoY and 0.3% MoM

• Heidelberger dominates the German equity market, surging nearly 10% today and up 73% year-to-date

• Shares of semiconductor firms Siltronic and Aixtron gain around 8% following TSMC's results

• Gerresheimer shares drop nearly 4%; Nordex resists selling pressure despite negative wind sector headlines

• The mood on the German stock market suggests continued upward momentum, with a renewed attempt to return to recent all-time highs.

• Gerresheimer takes center stage after its management suspended takeover talks.

Source: xStation5

Gerresheimer drops takeover talks

Gerresheimer AG has officially announced the termination of discussions with private equity funds regarding a potential takeover. After analyzing the status of negotiations, the company’s management concluded that continuing talks was not in the best interest of the company or its stakeholders.

• A strategic review of the company's Moulded Glass division will be accelerated over the coming months, with results to be presented no later than Capital Markets Day on October 15.
• The company reaffirmed its commitment to pursuing growth projects, with a strong focus on systems and solutions for the biologics segment.
• Gerresheimer also maintained its medium-term guidance of organic revenue growth between 6–9% and an organic adjusted EBITDA margin of 23–25%.

According to earlier reports, KPS ended discussions with Warburg Pincus regarding an offer for Gerresheimer. The absence of a formal bid may disappoint speculative investors who had positioned themselves for a takeover premium scenario.

Source: xStation5

Wind sector under pressure

The Dutch government plans to slash its offshore wind investment budget by as much as 40%, while a political party in the UK has threatened to cancel wind energy subsidies if it wins the next election. Shares of Vestas and Orsted dipped slightly, but Germany’s Nordex posted a 1% gain.

The ambitious Dutch target of 50 gigawatts of offshore wind capacity by 2040 is now deemed unrealistic, with the government planning to significantly scale back its ambitions. In the UK, a rising political force—after several local election wins—has sent letters to eight major energy companies, threatening to void renewable energy contracts in upcoming auctions.

Source: xStation5