Commercial News: The Latest Insights You Need to Know! 📈

SoftBank bets $130mn on robot-assisted solar farm company

SoftBank has invested $130 million in Terabase Energy, a California-based company developing AI-driven robotics to construct large-scale solar farms. This investment, led by SoftBank’s Vision Fund 2, aims to enhance solar farm efficiency by automating construction processes. Terabase’s mobile factory assembly line can install 2,000 solar panels in just eight hours, reducing labour costs and improving workplace safety. With labour shortages affecting the solar industry, automation is expected to play a key role in scaling up renewables energy projects.

Meanwhile, US date centre capital expenditures exceeded $195bn between 2023 and 2024, with 13 mega projects accounting for most of the spending. The demand for AI is driving the rapid expansion of large, energy-intensive data centres, raising concerns over power demand and grid reliability. Some companies are considering co-locating data centres with power plants to improve efficiency, but this approach presents regulatory and cost challenges. The increasing energy consumption of AI-focused data centres is putting pressure on the electricity grid, with warnings from industry experts about critical reliability risks.

In other energy developments, Amazon, Google, and Meta have pledged to support tripling global nuclear capacity by 2050 to meet rising electricity demand. India has also approved legislation to expand oil and gas exploration to support its growing industrial sector. However, the European battery industry is struggling, as seen with Sweden’s Northvolt filing for bankruptcy, underscoring China’s dominance in battery manufacturing. In the oil and gas sector, US Shale magnate Harold Hamm’s Continental Resources has partnered with TransAtlantic Petroleum and Turkish Petroleum to develop reserves in Turkey.

Additionally, several major leadership changes has taken place in the energy industry. Enbridge appointed Steven Williams as board chair, while Exelon added cybersecurity expert David Dewalt to its board. Voltalia named Yoni Ammar as deputy CEO, and Southwest Power Pool appointed Emily Pennel as chief of staff. This shifts reflect the growing emphasis on energy security, technological advancements, and sustainable solutions in the sector.

Trump Tariffs are proving “big headache” for tech giants, says Foxconn

Foxconn has acknowledged that the US government’s tariff policies are creating a “big headache” for major technology companies such as Apple and Amazon. Chief Executive Young Liu highlighted the uncertainty surrounding tariffs, making it difficult for businesses to predict developments over the next year. As a result, Foxconn’s customers are increasingly considering manufacturing in the US, although specific plans remain unfinalized.

The world’s largest contract electronics manufacturer, Foxconn assembles most of the world’s iPhones for Apple and produces a range of other electronic products, including laptops, servers, robots, and medical equipment. The company has been impacted by US efforts to shift manufacturing away from China, with recent tariffs targeting Chinese exports, including a 10% tariff on goods from China and a 25% tariff on Nvidia Blackwell servers produced in Mexico. Foxconn also has manufacturing facilities in India and Vietnam, which could face additional tariffs under Trump’s proposed trade policies.

Despite geopolitical challenges, Foxconn remains optimistic about its AI server business, which has seen a 78% revenue increase in the fourth quarter of 2024. The company expects this sector to more than double in the current quarter, driven by growing demand for AI computing power. Liu believes that advancements in AI, such as the success of Chinese company DeepSeek, will encourage more mid-sized firms to develop their own large language models (LLMs), further boosting server demand.

Foxconn forecasts stable performance in its consumer electronics segment, primarily due to its contract work for Apple. However, the company acknowledges that geopolitical tensions and tariffs could impact overall demand. In response, Foxconn plans to adjust to the overall demand. In response, Foxconn plans to adjust its global manufacturing footprint to mitigate risks. The company reported a 13% drop in net profit in the fourth quarter, with earnings falling to NT$46.3bn ($1.4bn). However, the decline was attributed to lower non-operating income, while its operating profit increased by 32%, reflecting strength in its core business operations.

Meanwhile BMW also warns of €1bn profit hit from global tariff war 🚗

BMW has warned that tariffs from EU, US, and China will cost the company € 1 billion this year, following a 36% drop in profits in 2024. The company, which owns Rolls-Royce and Mini, reported earnings of €11 billion, down from €17 billion in 2023. Slowing sales in China and a recall of 1.5 million vehicles have hurt its performance.

Key Challenges include:

• EU tariffs on Chinese-made electric vehicles, including Mini Cooper EV.

• US tariffs on Mexican imports and aluminium.

• Ongoing trade tensions between the US and China.

  BMW’s Chief Executive Oliver Zipse stressed that Germany and the US are key export hubs, but warned that trade wars have no winners. With earnings unlikely to recover in 2025, BMW’s stock has fallen over 20% in the past year.

Legal News: Key Updates You Can't Miss! ⚖️

Paul Hastings targets big-ticket public M&A with hire of Kirkland deals start in New York

Paul Hastings has hired a star dealmaker from Kirkland & Ellis in New York as it hones in on large-cap public M&A.

Eric Schiele, who spent nearly two decades at Cravath Swaine & Moore before moving to Kirkland in 2018, has joined Paul Hastings as global co-chair of M&A.

Schiele has advised on $1.2trn in announced deals throughout his career, Paul Hastings said, including guiding Anheuser-Busch InBev in its $123bn acquisition of SABMiller in 2016. Recently, he acted for Kellanova in its $35.9bn sale of Mars - the largest M&A deal of 2024 - and Amcor in its $8.4bn merger with Berry Global.

Paul Hastings chair, Frank Loqez, said Schiele’s hire marked a “major leap forward” in strengthening the firm’s public company M&A platform.

IBA Launches Phase Two of “50:50 by 2030” Gender Equality Initiative

The International Bar Association (IBA) has launched the second phase of its 50:50 by 2030 project to address gender inequality in senior legal roles. In collaboration with the Lexis Nexis charitable foundation, the IBA’s Legal Policy and Research Unit (LPRU) has introduced a global survey to gather insights from female legal practitioners on career barriers, diversity initiatives, caregiving responsibilities, and menopause-related challenges.

Originally challenged by the past IBA president Almudena Arpon de Mendivil Aldama, the initiative has already produced 11 reports on gender disparities across multiple jurisdictions. The IBA has hosted a webinar on 7 March to discuss women’s experiences in the legal field and launched the inspirational Legal Women podcast series, featuring conversations with prominent female lawyers.

Current IBA president Jaime Carey reaffirmed his commitment to accelerating gender equality by expanding strategic initiatives. Additionally, the Global Legal Post will publish IBA Daily News at the IBA’s annual Toronto conference in November. The Women and Diversity in Law Awards 2025 will take place in London on 18 March.

Latham & Watkins sees revenue soar 23% to hit $7bn

Latham & Watkins grew revenue by more than a fifth in the last year to record high of $7bn, against a bullish 29% rise in profit per equity partner (PEP) to $7.1mn.

The firm added $1.3bn to its revenue in 2024, marking a 23% increase in fee income, despite only a 4% rise in headcount. The firm’s revenue per lawyer (RPL) rose 18% to nearly $2mn, with total revenue more than doubling over the past 7 years.

Key highlights of the firm’s success include double-digit growth in major practices such as M&A, private equity, capital markets, banking, litigation, and antitrust. Latham led multiple league tables in 2024, ranking third globally by M&A deal value ($408.4bn), and acting on 31 US IPOs, including the largest of the year, Lineage’s $4.4bn debut on Nasdaq.

In litigation, Latham secured a landmark US Supreme Court victory overturning the Chevron deference doctrine and successfully defended SolarWinds against the US SEC.

The firm’s London office grew revenue by 25% to $850m, despite losing 13 finance partners to rivals. Latham responded by hiring 10 new partners across key practices, while expanding its finance team with hires from Cahill Gordon & Reindel.

Key US lateral hires included a bankruptcy team from Weil Goshal, new partners in hybrid capital (Simpson Thacher), and emerging companies (Cooley). Additionally, Latham promoted 34 Associates and 19 counsel to partner in 2024.

Despite strong performance, Latham faces competition from Kirkland & Ellis, which is projected to approach $9bn in revenue. The financial reporting season will determine if Latham remains a standout performer.

Legal Lingo Unpacked: Your Quick Terminology Breakdown! ⚖️

Growth Capital

Growth Capital investing, also known as growth equity or expansion capital, involves providing funding to established companies that are looking to expand their operations, enter new markets, or accelerate their growth. These companies typically have a prove business model, steady revenue streams, and are seeking additional capital to scale their operations without taking on excessive debt.

Growth funds are used for various growth initiatives such as expanding production capacity, entering new geographic markets, developing new products, rebranding, or making strategic acquisitions.

The investment horizon is usually 3-7 years, with potential for strong returns by expediting growth.