The Competition and Markets Authority (CMA) has given the all-clear for Tesco's (TSCO) takeover of grocery wholesale supplier Booker (BOK) after ruling the pair out as competitors.
The CMA says ‘Tesco, as a retailer, and Booker, as a wholesaler, do not compete head-to-head in most of their activities.’
The decision was widely expected but it will leave many Tesco shareholders unhappy, worried about the £3.7bn deal’s value for money, and potential distraction it may become on the supermarket’s own recovery.
Hence Tesco’s muted share price in early trade on Wednesday, staying largely flat at 206.55p. Shares in Booker are similarly staid, barely nudging 0.5% higher to 226.8p.
NEW CARILLION BOSS TO START EARLY
Investors in beleaguered construction services group Carillion (CLLN) rally behind fresh blood to try at turn the struggling group around. Carillion, which has issued multiple profit warnings this year, has appointed Andrew Davies as chief executive earlier than expected.
The former BAE (BA.) and Chemring (CHG) executive was due to join on 2 April next year, but he will now parachute into the top job on 22 January, much to the relief of shareholders.
The stock rallies more than 6% in early trade on Wednesday to 17.15p, the biggest riser on the FTSE All Share, although the share price has collapsed from 192p highs since July, for context.
Going firmly the other way is industrial supplies business Low & Bonar (LWB) after its profit warning today that costs CEO Brett Simpson his job.
Shares in the company slump more than 22% to 52.5p after confirming tough trading conditions that will drag on profit for the year to 30 November.
The company is now guiding for between £30m to £31m pre-tax profit versus previous expectations of £32.2m after a particularly weak l;ast quarter at its Coated Technical Textile business.
CEO Simpson has left the top job immediately although he’ll remain an employee until April.
POWER CUTS DRAG ON DRAX
Biomass energy generator Drax (DRX) flags a likely £10m earnings hit after unplanned outages at the Drax Power Station due to rail access restrictions.
That’s limiting biomass deliveries and generation on two renewable obligation certificate (ROC) units has been cut. That drags Drax shares more than 5% lower on Wednesday to 262p, valuing the business at £1.07bn.
NMC Health (NMC) reiterates full year 2017 profit and revenue guidance as it confirms trading has been on track with expectations.
The market is anticipating a little under £228m of pre-tax profit on £1.6bn of revenue, or thereabouts. But investors remain in cautious mode, nudging the stock a couple of percentage points lower to £28.01.
The stock has risen from £15.38 during calendar 2017 to date.
Investment company Alpha Growth (ALGW) has confirmed its main market flotation today. The company claims a track record of dealing in esoteric and specialist alternative investments for institutional clients.
