Closing post
Time to wrap up, after a dramatic day of takeover drama in the City which saw a massive mining merger bid collapse, but a firm offer for the UK’s Royal Mail.
Here’s a recap:
The takeover of Royal Mail by the Czech billionaire Daniel Křetínský has edged closer after its owner agreed terms and conditions on a £3.57bn offer.
In an update to the market on Wednesday, the postal service’s parent company, International Distribution Services (IDS), said it had accepted a cash offer from Křetínský’s EP Group.
The deal means Křetínský, who made his fortune in energy and owns a minority stake in one of the main gas pipelines from Russia into Europe, would pay 360p a share for the 73% of the struggling postal service he does not already own, plus 10p in dividends.
BHP Group has walked away from its pursuit of Anglo American, after failing to win support from its rival miner for a £39bn takeover proposal.
BHP abandoned its attempt to take control of Anglo, just before a ‘put up or shut up’ deadline, and said it was disappointed.
Mike Henry, BHP’s chief executive officer, told the City:
While we believed that our proposal for Anglo American was a compelling opportunity to effectively grow the pie of value for both sets of shareholders, we were unable to reach agreement with Anglo American on our specific views in respect of South African regulatory risk and cost and, despite seeking to engage constructively and numerous requests, we were not able to access from Anglo American key information required to formulate measures to address the excess risk they perceive.
The Guardian has shown how some of the most powerful ticket touts in the UK have discussed a secret plan to try to scupper a Labour crackdown on the industry via a lobbying campaign.
Labour voters now make up the majority of customers at all leading supermarkets apart from Waitrose, according to the latest polling from retail research firm GlobalData.
Rishi Sunak’s election pledge to introduce mandatory national service would leave the UK’s poorest regions millions of pounds worse off, a thinktank has warned.
Orange juice makers are considering turning to alternative fruits such as mandarins as wholesale prices have “gone bananas” amid fears of poor harvests in Brazil.
Ofwat, the water regulator for England and Wales, is understood to be considering cutting fines for sewage-dumping water companies if they are facing financial pressures.
Křetínský: Royal Mail needs investment
Reuters’ Prague bureau have caught up with the man of the moment, Czech billionaire Daniel Křetínský, to discuss his takeover bid for Royal Mail’s parent company IDS.
Křetínský told Reuters that IDS must focus on not losing market share – something that would be “fatal” in the UK.
Here’s the story:
Royal Mail and GLS need sizable, almost immediate investments to defend market share and face shifting market trends, Czech billionaire Daniel Kretinsky told Reuters on Wednesday after the groups’ owner agreed to a £3.57bn pound takeover.
“It is important for logistics companies not to miss this out-of-home delivery wave, which means they need to be ready to invest now,” Kretinsky said.
“We believe that if the group doesn’t respond properly on the out of the home solutions it may have a detrimental impact on its market share. And specifically in the UK, any shrinkage of the market share would be fatal.”
⚠️ CZECH BILLIONAIRE KRETINSKY:
— PiQ (@PiQSuite) May 29, 2024
**GLS WOULD BE LOGICAL PLATFORM FOR POTENTIAL FURTHER ACQUISITIONS IN CONTINENTAL EUROPE
**ROYAL MAIL, GLS NEED SIZEABLE, ALMOST IMMEDIATE INVESTMENTS INTO INFRASTRUCTURE
** GROUP MUST FOCUS ON AVOIDING LOSING MARKET SHARE, UK MARKET SHARE…
