The M&A wave has rippled through to the automotive industry, with luxury carmaker Aston Martin striking an EV supply deal that adds US company Lucid to its growing band of shareholders. Meanwhile, Renault sold a 24% stake in its UK Formula 1 unit to private equity firms, including American actor Ryan Reynolds-led Maximum Effort Investments.
Here’s the key business news from London this morning:
In The City
Associated British Foods Plc: The Primark owner now expects its full-year adjusted operating profit to be moderately ahead of last year as businesses continue to “trade well”.
- Like-for-like sales at the budget fashion chain grew by 7% in the third-quarter, with “particularly strong” sales in health and beauty products as well as seasonal clothing and accessories
- Primark’s store expansion plan is on track and the company has signed the lease for its first store in Texas
Aston Martin Lagonda Global Holdings Plc : The luxury car maker struck a strategic supply agreement for high performance EVs that will see the US-based Lucid Group Inc. getting a roughly 3.7% stake in the UK company.
- As part of the agreement, Aston Martin would issue about 28.4 million new ordinary shares to Lucid, which will also get phased cash payments, totaling an aggregated value of approximately $232 million
Alpine Racing Ltd: French car marker Renault SA agreed to sell a 24% stake in its UK Formula 1 Unit to Otro Capital, RedBird Capital Partners and Ryan Reynolds-led Maximum Effort Investments for €200 million.
- The transaction values Alpine Racing Ltd, the UK entity representing Alpine’s F1 team and activities, at around $900 million
Cineworld Group Plc: The struggling cinema chain said it still hopes to emerge from bankruptcy protection in July, once administrators substantially transfer all of its assets to a new company controlled by group lenders.
- The restructuring plan will not rescue Cineworld Group itself and shares are set to be suspended after administrators are appointed
In Westminster
Chancellor of the Exchequer Jeremy Hunt will meet industry regulators this week to discuss what can be done to stamp out so-called “greedflation” as firms take advantage of the crisis to raise prices. The UK government is stepping up efforts to tame soaring inflation by threatening both a crackdown on corporate profiteering and another round of deep real terms cuts to public sector pay.
Rishi Sunak signaled on Sunday that he may take the unusual step of rejecting recommendations by the independent pay review bodies to screw down public sector wages once more. He’s also set to give more details about his staffing plan for the National Health Service, another sore point for the prime minister.Meanwhile, a report from English health charity The King’s Fund showed the NHS has “strikingly low” levels of key clinical staff and worse health outcomes for diseases like cancer compared with other similar countries. The UK is also heavily reliant on foreign-trained staff and loses many of its nurses to other nations, particularly Australia and New Zealand.
In Case You Missed It
HSBC Holdings Plc will leave its Canary Wharf headquarters and downsize to BT Group’s former head office near St Paul’s, The Times of London reported. The relocation plans are expected to take place in 2027 and will be announced to employees this Monday.
Cambridge-based biotechnology supplier Abcam Plc told market participants it’s exploring strategic options including a potential sale. Its board has hired Lazard Ltd. and Morgan Stanley to advise on the review, the firm said in a statement on Friday, sending its American depositary shares up as much as 15% in New York trading.
Looking Ahead
Money transfer fintech Wise Plc unveils its full-year results on Tuesday, with analysts particularly keen on hearing the company’s prospects for the upcoming year following recent changes in its top management. Other companies slated to update investors tomorrow morning are Telecom Plus Plc and Petrofac Ltd.
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