Brookfield Joins Race for Network International: The London Rush

Welcome to the end of a week that hasn’t seen a single morning without a new M&A development. Private equity bellwether Brookfield Asset Management has entered the fray for Middle Eastern credit card processor Network International, trumping a proposal by CVC and Francisco Partners. Meanwhile, Glencore, which is trying to buy Canadian rival Teck Resources, gave a first-quarter update that underscored how the commodity trading industry continues to enjoy one of its most profitable periods eve

(Bloomberg) — Welcome to the end of a week that hasn’t seen a single morning without a new M&A development. Private equity bellwether Brookfield Asset Management has entered the fray for Middle Eastern credit card processor Network International, trumping a proposal by CVC and Francisco Partners. Meanwhile, Glencore, which is trying to buy Canadian rival Teck Resources, gave a first-quarter update that underscored how the commodity trading industry continues to enjoy one of its most profitable periods ever after Russia’s invasion of Ukraine spread turmoil through markets. 

Here’s the key business news from London this morning:

In The City

Network International Holdings Plc: The Middle Eastern credit card processor received a proposal from Canada’s Brookfield Asset Management Ltd. at 400 pence per share in cash, valuing the firm at about £2.13 billion. 

  • Bloomberg reported earlier that Brookfield had held preliminary talks with London-listed Network about a deal
  • Network said on Monday that it received a non-binding bid of 387 pence per share from a consortium of CVC Capital Partners and Francisco Partners

Glencore Plc: The miner said it’s on course for yet another bumper year of trading commodities as the industry continues to cash in on volatile markets.

  • Based on the first-quarter performance, trading profits this year will again beat its guidance range of $2.2 billion to $3.2 billion
  • Glencore’s trading update, released along with its production numbers for the first quarter, comes as the trader-turned-miner pursues rival miner Teck Resources Ltd.

Retail Sales: The volume of goods sold in stores and online fell more than forecast in March as consumers cut back after splashing the cash over the previous two months. 

  • Sales dropped 0.9% from February, while sales excluding auto fuel fell 1%, the Office for National Statistics said 

In Westminster

Rishi Sunak is weighing a critical decision on the fate of his top deputy, taking longer than expected to respond to the conclusion of an independent investigation into bullying allegations against Dominic Raab. An announcement by Sunak is expected today. 

Meanwhile, UK lawmakers have urged regulators to take action to head off “significant risks” posed to workers by the boom of artificial intelligence programs including ChatGPT.

In Case You Missed It 

UK household confidence shot up to its highest level since the war in Ukraine sent living costs soaring after a “sudden flowering of optimism” over the health of the economy and personal finances.

Hedge fund manager Tom Wagner is close to buying a stake in Birmingham City Football Club, people familiar with the matter told Bloomberg. Wagner would join other US buyers targeting the lower UK leagues, boosted by a strong dollar and Americans’ growing interest in British football. 

Finally, for anyone who’s been scratching their heads in recent years and is still looking for a weekend read: Here’s a definitive explainer on why the UK’s once-vibrant stock market is in the doldrums. 

Looking Ahead 

We’ll be in the thick of earnings season next week, which will see reports from major banks including Barclays Plc, consumer giants Unilever Plc and Reckitt Benckiser Group Plc, as well as pharmaceutical powerhouses GSK Plc and AstraZeneca Plc. 

For a more considered take on the UK’s economic and financial news, sign up to Money Distilled with John Stepek.

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