Sainsbury (J) (SBRY)-Asda deal raises competition concerns in nearly 500 places, watchdog says. The Competition and Markets Authority has pinpointed 463 locations that raise potential concern following its initial investigation into the £15bn deal. The high number is likely to intensify speculation that the two companies will have to offload hundreds of stores in order to gain the watchdog’s blessing for the merger.
Royal Bank of Scotland Group (RBS) has told staff about plans to create a standalone digital bank to compete with rapidly growing fintech groups like the mobile-only bank Monzo and Revolut. The new bank will be called Bó and will be led by Mark Bailie, the former chief operating officer of RBS, according to a Sky News report that cites anonymous sources. The reason for calling the new lender Bó is unclear, although one source said that it meant “to live” in Danish.
A company that operates one of the few working mines in the UK has warned it will delay filing its accounts as it tackles a cash crunch. Sydney and Aim-listed Wolf Minerals Limited (WLFE), which runs the Drakelands tungsten mine near Plymouth, said it would postpone publication of its accounts for the year to June 30 until a “funding solution is finalised”. The company will suspend trading of its shares on the Australian Securities Exchange as its annual report had been due for release this week. Under Aim rules it does not have to produce its report until December, so it will continue to trade on London’s junior market.
IG Group Holdings (IGG) took another sharp slide to hit an 11-month low after the City blasted the “extremely poor” timing of its chief executive’s shock departure. Just a week after warning investors that new watchdog rules had hit trading, boss Peter Hetherington quit the company following a 24-year stint, including three years in the top job. His exit comes as IG grapples new ESMA rules that attempt to stop inexperienced investors being stung in the risky spreadbetting market.
Daily Mail and General Trust A (Non.V) (DMGT) hit a three-month low after Liberum warned investors that rising paper prices will hit earnings next year. The company is “taking the right steps” but is facing the prospect of slowing growth in its MailOnline division.
DCC (DCC) plans to tap investors to bolster its M&A war chest sent its shares sliding 310p to £70. DCC, which works on a range of projects from distributing fuel to making beauty products, raised £606m through the placing to drive its spending spree. The firm also announced the acquisition of Canadian musical instrument distributor Jam Group for £130m.
Carnival (CCL) was the biggest FTSE 100 faller after it warned its fourth-quarter earnings would be hit by climbing fuel costs.
Halfords Group (HFD) has warned over profits as it steps up its investment behind plans to become a services “super specialist”. Chief executive Graham Stapleton said it needed to lift capital expenditure to £60m per year from £40m to ensure it could “thrive” amid the rapidly changing retail sector. The bikes-to-motor-parts business said the decision to invest in stores meant pre-tax profits would now be flat in 2020, before returning to growth a year later.
Saga (SAGA) boss has insisted the over-50s business is on the road to recovery as its insurance arm draws in more customers and its travel unit is boosted by retirees with a taste for adventure. Although profits in Saga’s insurance division fell 7.7% to £109.3m for the six months to July, chief executive Lance Batchelor said the unit was not “dragging us down” as it won a slew of new customers over that period. He said the FTSE 250 company, best known for its cruise ship holidays, was not interested in spinning off its insurance arm nor had it had any official approaches.
The owner of Toby Carvery, Harvester and All Bar One defied a downturn in the casual dining sector as the World Cup and soaring temperatures over the summer buoyed sales. Mitchells & Butlers (MAB), which owns more than a dozen pub and restaurant chains including O’Neills and Vintage Inns, reported revenues up 2.2% in the eight weeks to September 22 on a like-for-like basis – stripping out the impact of newly opened and closed premises. However it confirmed previous warnings that margins were likely to slip thanks to the rising cost of food, wages, energy and rents, which have weighed heavily on the sector this year.
TUI AG Reg Shs (DI) (TUI), the world’s biggest travel agent, has defied industry worries that it would be knocked off course by this summer’s record heatwave. The FTSE 100 company said it was on track to meet a 10% increase in annual underlying earnings on a constant currency basis. Bookings for this winter and next summer were also in line with expectations. The announcement calmed concerns that Tui may have struggled to sell holidays in the so-called “lates market”. Earlier this week Thomas Cook issued a profit warning, lowering annual guidance by £40m. Its chief executive said it had come unstuck following an “unprecedented heatwave”.
Questor: we’ll step off the Pershing Square Holdings Ltd NPV (PSH) rollercoaster now there’s a chance to cut our losses
