Apollo’s deals in the UK are falling like flies. First, on Friday it was ending talks with THG Plc on an indicative takeover proposal. Now, it is the turn of John Wood Group Plc, whose talks with the US private equity giant have ended without a firm offer.
(Bloomberg) — Apollo’s deals in the UK are falling like flies. First, on Friday it was ending talks with THG Plc on an indicative takeover proposal. Now, it is the turn of John Wood Group Plc, whose talks with the US private equity giant have ended without a firm offer.
Here’s the key business news from London this morning:
In The City
John Wood Group Plc: Apollo Management Holdings said it doesn’t plan to make an offer for the engineering services company, ending a long-running takeover attempt by the US firm.
- Last month Wood gave Apollo access to due diligence materials to see if an offer can be made at 240 pence per share
British American Tobacco Plc: The cigarette maker is promoting Finance Director Tadeu Marroco to succeed Jack Bowles as chief executive officer.
- BAT will start a search for a new group finance director and Javed Iqbal will replace Marroco on an interim basis
Currys Plc: The electronics retailer increased its full year adjusted pretax profit expectations after trading in the UK and Ireland was better than expected especially in the final two months of the year.
- A challenging trading environment in the Nordics, however, means the company’s international full year adjusted ebit is expected to be “materially lower” than last year
In Westminster
Ukraine’s President Volodymyr Zelenskiy is in London today for “substantive negotiations” with Rishi Sunak. Sunak will confirm the provision of hundreds of air defense missiles among other equipment like attack drones ahead of Ukraine’s expected military surge.
Over the weekend, Sunak vowed to waste no time in tackling illegal immigration, one of his five core pledges to voters. He faces growing criticism about the direction of his government from the Tory right wing.
Reducing National Health Service waiting lists is another of the Prime Minister’s promises that faces adversity after senior doctors in England began voting on strike action over pay on Monday. Meanwhile, patience is wearing thin for England’s teachers, who are considering another six months of strikes after members of the National Education Union turned down an improved pay offer from the government last month.
Sunak may be looking beyond UK borders as he prepares for his first in-person meeting of the Group of Seven nations in Japan. In the run-up to the meeting, he’s expected to announce a new defence and technology collaboration with the Japanese government.
In Case You Missed It
Spending four figures a month on rent is a typical sacrifice for Londoners, but now it’s becoming the norm for the rest of the UK. The average monthly rent on a newly let home outside of London surpassed £1,000 ($1,253) for the first time in April, according to a report from broker Hamptons International.
Keep an eye out for movement on the Manchester United front this week. The Times reported on Friday that Jim Ratcliffe is close to securing his takeover over the club, with the The Glazers and The Raine Group willing to enter final talks with the British petrochemicals billionaire.
Looking Ahead
The latest batch of labour market data tomorrow may keep the Bank of England on edge. Bloomberg Economics forecasts the unemployment rate to remain unchanged at 3.8% in the three months to March. But probably more important for the BOE will be wage figures, Bloomberg Intelligence said. It expects total pay growth, excluding bonuses, to rise to 6.8% year on year, from 6.6% previously. BOE Chief Economist Huw Pill is set to discuss the most recent monetary policy report in a live Q&A this evening.
Vodafone Plc’s full-year results at 7 a.m. give new CEO Margherita Della Valle an opportunity to lay out her vision, which could entail cost cuts and a sustained dividend. Service revenue growth in the final quarter may prove to be a low point, given the price hikes that kicked in early this year. Also in focus will be the prospect of a UK mobile merger with CK Hutchison, which reportedly may be unveiled this month.
Imperial Brands Plc, Boohoo Group Plc and Greggs Plc also report tomorrow. Vodafone peer BT Group Plc is up on Thursday.
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