European Markets Drops on Spain Election Results and Greek Worries

Nigel Thomas
25 May, 2015
New York City

Spain

[R]4:00 PM Frankfurt – Spain’s benchmark index dropped 2.3% after voters rejected ruling party in regional and local elections. Amgen terminated its collaboration with AstraZeneca. EDF made a preliminary offer to acquire nuclear reactor maintenance business from Areva for €2 billion.[/R]

European markets traded lower after Spain’s ruling party lost in regional election and Greek debt worries resurfaced.

Spain’s IBEX equity index dropped 2.3% after voters rejected Prime Minister Mariano Rajoy’s ruling party in regional and local elections.

In Paris, CAC 40 index slipped 0.7% or 38.05 to 5,104.84 and markets in London were closed for a Bank Holiday.

AstraZeneca Plc gained 0.8% to 4,460 pence and the company said the U.S.-based Amgen Inc has agreed to terminate psoriasis drug development collaboration on safety concerns and limited number of patients using late-stage experimental drug.

DS Smith Plc rose 0.2% to 377 pence after the European antitrust authorities approved the acquisition of Austria-based paper producer Duropack GmbH for about €300 million.

Electricite de France SA slipped 1.3% to €22.91 after the France-based electricity producer made a preliminary offer to acquire the nuclear reactor maintenance division of Areva SA for about €2 billion.

Mondi Plc increased 0.3% to 1,513.45 pence after the U.K.-based packaging and paper group agreed to acquire Walki Oy’s two extrusion coatings plants in Finland and Poland for €60 million in cash.

The transaction is expected to close in third-quarter of this year.

Nexity SA fell 0.1% to €38 after the France-based residential and commercial real estate developer said CE Holding Promotion sell its 12.2% stake in the company to two institutional investors and New Port SAS at a sale price of €35.5 a share.

Segro Plc fell 0.1% to 422 pence after the U.K.-based industrial property developer agreed to acquire 90% stake in Italy-based logistics developer Vailog S.r.l from its majority shareholder FBH SpA for about €39.6 million.