Sainsbury (J) (SBRY) and Asda could be forced to sell almost 500 supermarkets after the competition regulator flagged concerns over its £14 billion merger. The Competition and Markets Authority (CMA), which is investigating the deal, identified 463 areas where the businesses overlap, raising fears that lack of competition could mean higher prices and poor service for customers. In its probe, which is now in its second phase, the CMA pledged to examine the potential impact on prices, customer service, choice and suppliers.
Package holiday firm TUI AG Reg Shs (DI) (TUI) shrugged off a long summer heatwave as it said full-year profits would rise by at least 10%. It comes days after rival Thomas Cook’s shares plunged 28% after it warned profits would be lower this year as warmer weather meant holidaymakers delayed trips. Tui maintained expectations for the increase in full-year profits as it benefited from families heading for Turkey and North Africa. Greece and Bulgaria also proved popular.
England’s biggest wine producer, Chapel Down Group plc (CDGP), is planning to open a 5,000 sq ft gin bar and restaurant in central London. Chapel Down, which supplies sparkling wine to 10 Downing Street, has expanded its field of products in the past two years with a beer and cider brand Curious, as well as launching a range of spirits, including the popular Bacchus Gin last year. Chapel’s chief executive Frazer Thompson said the gin works in King’s Cross would build on the success of the company’s Bacchus brand and ‘celebrate the very best English food and drink’.
More than £9 million was wiped off the value of the budget womenswear chain Bonmarche Holdings (BON) after it warned that profits would be lower than previously expected. The retailer blamed warmer weather and fewer shoppers in the High Street as it admitted that full-year profits were likely to come in at £5.5 million rather than the £8 million it had forecast.
The bailed-out owner of Natwest is hoping to shift a million customers on to a new mobile phone-only bank called Bo. Royal Bank of Scotland Group (RBS), which has closed 1,423 branches since it was rescued by taxpayers a decade ago, will run Bo over the internet. Bosses say no one will be forced to move on to it. Around 100 staff working on the project were told the name yesterday, according to Sky News.
Investors wiped £343 million off trading firm IG Group Holdings (IGG) after its boss quit unexpectedly amid a crackdown by watchdogs. Peter Hetherington, 49, said he was standing down immediately but will continue to offer advice until a successor is found. Chief financial officer Paul Mainwaring, 55, will be interim chief executive. It comes as regulators target risky forms of trading, such as spread betting, fearing that people are being encouraged to gamble without understanding the dangers.
Energy regulator Ofgem has ordered 11 of the UK’s biggest suppliers to get better at dealing with complaints after more than half of customers criticised the way theirs had been handled. Centrica (CNA) – British Gas, Npower, SSE (SSE) and EDF are among those asked to present better plans to Ofgem. The regulator has also started working with First Utility, Ovo Energy and Utilita to improve their handling of complaints – with the prospect of tougher action if things do not improve – and is widening its work with Scottish Power.
Investors cannot get enough of Peppa Pig. In a steady-as-she-goes update to the stock market, Entertainment One Limited (ETO), the media company that owns the pink cartoon porker, signalled the outlook was rosy. It is hoping for another boost from the release in China of a Peppa Pig film early next year, which will be just in time for the Chinese Year of the Pig.
Indivior (INDV) has continued to tumble after sneaking out a business update saying its revenue could be hit by more than £100 million. The FTSE 250 pharmaceutical firm has been embroiled for months in a court battle with Indian competitor Dr Reddy’s Laboratories, over a drug called Suboxone Film. Indivior created the drug, which helps addicts wean themselves off heroin, but has accused Dr Reddy’s of infringing its patent by making a cheaper alternative.
Struggling stem cell company Widecells Group (WDC) plummeted after announcing a new £2.7 million funding deal to keep it afloat. A fund managed by investment firm Alpha Blue Ocean will provide the cash, in an arrangement that analysts at Align Research called a ‘death spiral’. Widecells directors Joao Andrade and David Bridgland agreed to loan their shares to the fund for it to sell, effectively allowing it to make money at the expense of other shareholders.
Halfords Group (HFD) suffered, on rumours that it was in the running to buy struggling rival Evans Cycles. Evans is rushing to fill a £10 million cash hole, and has put itself up for sale in the hope that a new investor would fund it through the tough winter. A number of turnaround houses also tabled offers for Evans, owned by private equity house ECI. George Salmon, an analyst at Hargreaves Lansdown, said: ‘Halfords investors should be aware that Evans, which attracted a valuation of £100 million as recently as 2015, needs stabilising.’
888 Holdings (888) shares dropped 15.4%, or 34.6p, to 190.2p as the casino and gaming company said revenue was up by just 1%, at £208.5 million. Regulatory scrutiny around consumer protection and gambling addiction knocked UK bingo revenue by 11%, though the World Cup boosted its sport sector.
Centrica (CNA) climbed 4.25p, to 153.5p after regulator Ofgem announced a crackdown on complaints handling.
BP (BP.) rose 7.3p, to 593.3p as it received approval to develop a new oilfield in the North Sea.
DCC (DCC) fell 310p, to 7000p after it said it was issuing 8.9 million shares to pay for the £130 million acquisition of Jam Group, a Canadian musical instrument and audio equipment firm.
