By Pete Schroeder

WASHINGTON (Reuters) -The U.S. Justice Department antitrust division plans to expand the scope of its bank merger review process, the department’s chief said on Tuesday, in a sign the agency may get tougher when scrutinizing such deals.

Jonathan Kanter, the DOJ’s assistant attorney general for antitrust, said the agency’s guidelines, which were last updated in 1995, may be overly narrow given the technology-driven reach of financial services now.

“There are good reasons … to question whether the 1995 guidance sufficiently reflects current market realities,” he said in a speech at the Brookings Institution, a think tank.

The comments are likely to disappoint the industry, which had been hoping Democratic President Joe Biden’s administration would be more open to allowing deals after a spate of bank failures since March.

Specifically, Kanter said any merger review for antitrust purposes must go beyond traditional factors like the impact on local depositors and branches, and consider a broader set of issues. For example, he noted that customers now have access to several types of banks that cater to different needs and clientele, and that customers must retain “meaningful choice.”

“Bank competition affects the interest you earn on your savings account, the monthly payment on your mortgage or your car loan, or the fees you pay to withdraw cash from an ATM,” he said.

“Market realities have shifted, and when we apply the law, we have an obligation to ensure we are addressing the world as it exists today,” he added.

Progressive lawmakers and consumer advocates have long-argued against allowing large banks to grow larger, and in 2021 Biden signed an executive order directing the Justice Department to work with bank regulators to heighten scrutiny of deals.

But bankers had hoped recent rescue deals due to banking industry turmoil sparked by the failure of Silicon Valley Bank in March had shown the merits of allowing strategic deals that shore up weak lenders.

“The speech clearly signals that the [DOJ] will look at bank M&A with far greater skepticism,” said Isaac Boltansky, policy director of the brokerage BTIG, in a note. “The Biden administration remains ideologically opposed to large bank M&A.”

Kanter also suggested credit unions and non-bank financial entities such as fintechs might merit closer consideration as well. That may offer a silver lining for bigger banks, as they increasingly have to compete with such tech players, said TD Cowen analyst Jaret Seiberg.

“We believe this policy change will not be as negative for bank mergers as it may first appear,” he added.

(Reporting by Pete Schroeder, editing by Deepa Babington and Michelle Price)

By Abhirup Roy

SAN FRANCISCO (Reuters) – BTC Power will add Tesla’s standard to its electric vehicle chargers next year, its chief executive told Reuters on Tuesday, days after Ford and General Motors sent shockwaves through the industry by adopting the technology.

Privately-owned BTC, a supplier to 7-Eleven and fleet operators, is the fourth major fast charger maker to embrace Tesla’s standard, following ABB E-mobility North America, Tritium DCFC, and SK Signet.

A national EV charging network is key to addressing worries about range and luring customers away from combustion engine driven vehicles and BTC’s decision accelerates Tesla’s push to dominate the nascent yet fast-growing industry.

“By including the NACS (North American Charging Standard) connector to our chargers we can eliminate the need for unreliable and unpredictable adapters that are being utilized by drivers using our equipment,” BTC CEO Frank Meza said.

Santa Ana, California-based BTC has sold more than 22,000 chargers – more than half of them high-speed ones – to charge point operators, fleets and retailers, and counts Electrify America, Ford and Amazon.com among its customers.

Reuters first reported on Tuesday that electric pickup maker Rivian would adopt Tesla’s charging standard.

Along with the backing of the two Detroit automakers, that also helps Tesla chief Elon Musk’s push to upend the Combined Charging System (CCS) favored by the Biden administration.

The White House, which aims to spur deployment of hundreds of thousands of chargers, said this month EV charging stations with Tesla plugs would be eligible for billions of dollars in federal subsidies as long as they offer CCS connectivity.

Charger makers and CCS operators such as EVgo and Chargepoint have rushed to announce the addition of NACS, despite certain concerns, vying to win Tesla users and limit the risk of losing billing if they only offer CCS.

Tesla shares gained 5% on Tuesday and have more than doubled so far this year. Rivian was up 5.8% on Tuesday. Its stock has lost 19% this year.

(Reporting by Abhirup Roy in San Francisco; Editing by Peter Henderson and Alexander Smith)

(Reuters) – Ball Corp, the world’s largest supplier of beer cans, said on Tuesday it was considering options for its aerospace business, days after a report said the company was looking to sell the unit for more than $5 billion.

The business has attracted the interest of large defense companies such as BAE Systems and Textron, as well as private equity firms, the Reuters report had said.

There is no certainty that any formal decision will be made, Ball Corp said in a statement on Tuesday.

The divestment of the aerospace business, which accounted for 13% of Ball’s consolidated net sales in 2022, would allow the company to focus more on its beverage packaging operations and trim its debt pile of about $9.7 billion.

(Reporting by Shivansh Tiwary in Bengaluru; Editing by Shinjini Ganguli)

(Reuters) -UBS Group AG faces hundreds of millions of dollars in penalties over Credit Suisse’s mishandling of Archegos Capital, after UK, Swiss and U.S. regulators completed their investigations, Financial Times reported on Monday.

UBS has asked the U.S. Federal Reserve, the Swiss Financial Market Supervisory Authority and UK’s Prudential Regulation Authority to publish their findings and announce any penalties jointly at the end of July, FT reported.

Britain’s Prudential Regulation Authority could impose a fine of up to 100 million pounds ($127.81 million), while the U.S. Federal Reserve could impose a penalty of up to $300 million, the newspaper reported, adding that Credit Suisse had set aside just $35 million for potential fines.

The Swiss Financial Market Supervisory Authority does not have the power to fine financial institutions, president Marlene Amstad said in May.

Archegos’ collapse stemmed from its founder Bill Hwang’s aggressive use of total return swaps, a type of financial contract, to boost the effective size of his market positions. The New York-based firm’s demise caused billions of dollars in losses for Credit Suisse.

UBS completed its emergency takeover of embattled rival Credit Suisse last week, forging a Swiss banking and wealth management giant with a $1.6 trillion balance sheet.

It set aside $4 billion for potential lawsuits on the Credit Suisse deal in May, according to a presentation.

The U.S. Fed Reserve, UBS and the Prudential Regulatory Authority declined to comment. The Swiss Financial Market Supervisory Authority did not immediately respond to requests for comment.

($1 = 0.7824 pounds)

(Reporting by Chandni Shah in Bengaluru; Editing by Lisa Shumaker, Jonathan Oatis and Louise Heavens)

(Refiles to add dropped day in paragraph 1)

By Saqib Iqbal Ahmed and Samuel Indyk

NEW YORK (Reuters) -The U.S. dollar edged higher against the euro on Tuesday after data showed U.S. housing starts surged and as traders awaited Federal Reserve Chair Jerome Powell’s congressional testimony later this week for clues to the outlook for monetary policy.

The Australian dollar fell after minutes from its latest central bank meeting showed keeping interest rates unchanged had been under consideration, while Sweden’s crown slipped to a record low against the euro.

U.S. single-family homebuilding jumped in May to its highest in more than a year and permits issued for future construction also climbed, suggesting the housing market may be turning a corner after getting clobbered by Fed interest rate hikes.

The housing market has taken the biggest hit from the Fed’s fastest monetary policy tightening campaign since the 1980s, but recent data have suggested the worst may have passed.

“It was a big increase in the numbers today, and I think the takeaway is that the market may be paying a bit more heed to the FOMC’s warning this month that interest rates will likely need to be hiked further,” said Stuart Cole, chief macro economist at Equiti Capital.

The euro slipped 0.03% to $1.0918 against the greenback after having risen as high as 1.0946 earlier in the session. The dollar was 0.44% lower against the Japanese yen.

Against a basket of six major currencies, the dollar was up 0.06% on the day.

Traders will be paying attention to Powell’s semiannual monetary policy testimony before the U.S. House of Representatives’ Financial Affairs Committee on Wednesday.

“If Mr. Powell remains adamant that the central bank is not done raising interest rates to crush inflation, that could help the dollar stabilize after the big declines we saw last week,” said Joe Manimbo, senior market analyst at Convera.

The Australian dollar was 0.93% lower at $0.6786 after minutes from the Reserve Bank of Australia’s latest policy meeting showed the RBA’s decision to raise interest rates in June was “finely balanced.”

“The minutes cast some doubt on the outlook for higher rates going forward, so that has weighed on the Aussie dollar,” Manimbo said.

The yuan slipped towards a seven-month low on Tuesday after China lowered its one-year and five-year loan prime rates (LPR) by 10 basis points. It was the first such easing in 10 months as authorities seek to shore up a slowing economic recovery.

The decision knocked the yuan lower, with the onshore yuan finishing the domestic session at 7.1744 per dollar, the weakest such close since Nov. 28.

The offshore yuan was down 0.2% at 7.1827 per dollar, languishing near last week’s trough of 7.1916.

“Chinese authorities are concerned about weak growth but are wary about re-inflating the property bubble, so expectations of large stimulus to the property sector might not be met,” said ING global head of markets Chris Turner.

“The market is moving towards the view that fiscal stimulus might be lukewarm and that’s one of the reasons why the renminbi is staying soft.”

Elsewhere, Sweden’s crown dropped 0.8% to a record low against the euro at 11.817 per euro as concerns about the property sector have weighed on the currency.

The British pound fell 0.23% to $1.27605 ahead of British inflation data on Wednesday and the Bank of England’s interest rate decision on Thursday.

(Reporting by Rae Wee; Editing by Christopher Cushing, Gerry Doyle, Susan Fenton, Sharon Singleton, Jonathan Oatis and Mark Heinrich)

By Scott DiSavino

NEW YORK (Reuters) -Oil futures eased in choppy trading on Tuesday on forecasts for slower oil demand growth in China, the world’s second-biggest oil consumer, and disappointment with the size of cuts in China’s key lending rates.

Adding to the bearish market sentiment, traders noted crude supplies from Iran and Russia have increased in recent weeks.

The price drop, however, was limited by expectations that oil demand will grow in China and India in the second half of the year.

Brent <LCOc1> futures for August delivery fell 19 cents, or 0.3%, to settle at $75.90 a barrel. U.S. West Texas Intermediate (WTI) crude for July delivery fell $1.28, or 1.8%, to settle at $70.50 on its last day as the U.S. front-month.

The more active WTI contract for August delivery, which will soon be the U.S. front-month, was down about 1.0% at $71.93 a barrel.

The crude price decline was led by near 3% losses in U.S. gasoline and diesel futures.

“Oil locked in on anything and everything that has to do with China. This week, energy traders are seeing oil weakness emerge on disappointing stimulus efforts,” said Edward Moya, senior market analyst at data and analytics firm OANDA.

China cut its benchmark loan prime rates (LPR) for the first time in 10 months, with a smaller-than-expected 10-basis-point reduction in the five-year LPR.

The rate reduction followed recent economic data showing China’s retail and factory sectors were struggling to sustain momentum from earlier this year.

“Oil traders may need to see a materialised strong economic rebound in China to improve their outlook on oil demand,” said Tina Teng at CMC Markets in Auckland.

An expert at China National Petroleum’s (CNPC) research arm said China’s crude demand will grow less than previously expected as strong interest for electric vehicles weighs on gasoline use.

China’s fuel oil imports dipped in May after hitting a decade high in April, while exports of low-sulphur marine fuels rose, General Administration of Customs data showed.

The Chinese government met last week to discuss measures to spur economic growth and several major banks cut their 2023 economic growth forecasts for China amid fears that its post-COVID recovery is faltering.

Despite forecasts for less growth in oil demand, consumption in both China and India are still expected to rise in coming months.

Analysts at Eurasia Group, a consultancy, said “Demand growth may get a boost in the second half if Beijing introduces new stimulus measures to bolster economic expansion.”

“India’s booming aviation sector will also contribute to overall demand growth,” analysts at Eurasia said.

India dominated the Paris Airshow as Air India finalised a huge order for 470 planes from Airbus SE and Boeing Co.

On the supply side, Iran’s crude exports and oil output have hit new highs this year despite U.S. sanctions.

Russia is also set to increase seaborne diesel and gasoil exports this month, outweighing cuts by the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia itself.

(Reporting by Scott DiSavino in New York; Additional reporting by Noah Browning in London, Katya Golubkova in Tokyo and Andrew Hayley in Beijing; Editing by David Goodman, Matthew Lewis, Jonathan Oatis and Nick Zieminski)

By David French and Mrinalika Roy

(Reuters) -Civitas Resources on Tuesday said it would acquire oil and gas operations in the Permian basin managed by private equity firm NGP Energy Capital Management for $4.7 billion, expanding its operations into the lucrative shale patch.

The deal is transformative for Civitas, which until now operated solely in Colorado’s Denver-Julesburg (DJ) basin. As well as entering an area considered the heart of the U.S. shale industry, the acquisition will boost the company’s production by 60%, Civitas said in a statement.

Under the terms, Civitas has agreed to purchase a portion of Tap Rock Resources’ assets and all of Hibernia Energy III’s operations. It will pay cash, using a mix of existing reserves and debt, and issue 13.5 million shares to NGP.

“Simply put, these transactions make Civitas a better company, and we see tremendous opportunity to add value in the Permian that will complement our leading oil position in the DJ basin,” Civitas Chief Executive Chris Doyle told analysts.

News of the deal, which Reuters was first to report on Monday, sent Civitas’ shares 6% lower. M&A analysts said the scale of the deal might give investors pause.

“Relative to its market cap, Civitas is undertaking one of the more ambitious deal-driven expansions in the recent market,” said Andrew Dittmar, director at Enverus Intelligence Research.

However, one of its largest shareholders voiced support, citing the benefits of adding high quality inventory and portfolio diversification.

“We have great confidence in this team and look forward to watching them execute on this transformative transaction,” Kimmeridge Managing Partner Ben Dell said in a statement.

The Permian, which stretches across parts of Texas and New Mexico, has seen substantial recent deal activity. Producers have been seeking inventory in a region known for having high productivity, allowing private equity firms, such as NGP, to profitably exit investments there.

Enverus’ Dittmar said Civitas paid a similar price multiple to other recent buyers, although some of those had greater opportunities around undeveloped acreage.

Denver-based Civitas said the cash flow generated by the assets was a significant draw: it would allow its dividend payments in 2024 to be boosted by around 20%.

To help the company repay debt it was using to fund the acquisitions, it would halve its $1 billion share buyback target, initially announced in February and to run to the end of next year.

(Reporting by David French in New York and Mrinalika Roy in Bengaluru; Editing by Shilpi Majumdar, Emelia Sithole-Matarise and Grant McCool)

By Giulio Piovaccari

MILAN (Reuters) -Pirelli investor Camfin has proposed Andrea Casaluci as the new CEO of the Italian tyremaker, promoting him from a general manager role days after the Italian government intervened to limit Chinese influence on the company.

The nomination of Casaluci on Tuesday comes as Pirelli deputy CEO Giorgio Bruno, who had been lined up for the top job, decided to pursue his own business interests, Camfin said in a statement.

Camfin is the investment vehicle of Marco Tronchetti Provera, who has led Pirelli since 1992, and will propose that he stay as its executive vice chairman at a July 31 shareholder meeting.

China’s Sinochem is Pirelli’s largest investor with a 37% stake but the Italian government stepped in last week to ensure that Camfin, which owns only 14.1%, appoints the CEO to retain key influence.

Bruno, 63, and Casaluci, 13 years his junior, have both been close associates of Tronchetti Provera in Pirelli, supplier of tyres to Formula One motor racing and one of Italy’s famous business brands.

However an investor, who asked not to be named, said Bruno had always appeared as a low-key figure, with little contact with shareholders.

Casaluci, on the other hand, has long been at Tronchetti Provera’s side at Pirelli presentations, appearing as the one who would ensure continuity with his strategic line, the investor said.

“They’re both excellent managers, but Casaluci, not Bruno, appears the obvious successor of Tronchetti”.

Last week, Prime Minister Giorgia Meloni’s government said it had taken measures to limit the influence of Sinochem on Pirelli under “Golden Power” rules aimed at protecting strategic assets for the country, at a time when relations between China and Western countries have entered a tenser phase.

The intervention, although not imposing a freeze on voting rights or stake reductions on Sinochem, allowed Tronchetti to keep his hold on Pirelli.

As part of the measures, Camfin retained the power to designate Pirelli’s CEO and set strategies, with limited power for Sinochem to interfere in the group’s management.

Rome also said Sinochem would pick eight members of Pirelli’s 15-strong board, leaving four to Camfin.

(Reporting by Giulio Piovaccari;Editing by Keith Weir and Emelia Sithole-Matarise)