British engineering software company AVEVA (AVV) has agreed a merger deal with long-run suitor Schneider Electric of France. The deal, worth in excess of £3bn, will create one Britain’s biggest software businesses and, importantly, will remain listed on the London stock market.
This move for predicted by Shares back in November 2016 as a likely outcome following the departure of long-standing CEO Richard Longdon.
AVEVA shareholders will own around 40% of the enlarged company. They will also get a £100m cash windfall when the deal completes, worth £10.14. AVEVA shares shoot to the top of the FTSE All Share leader board on the news, rallying 23% to £23.67.
Elsewhere, London stock markets remain fairly quiet in early trade on Tuesday, with the FTSE 100 blue-chip index making marginal gains at 7,416.
British housebuilder Redrow (RDW) expects full year revenue and profit to continue to rise into 2020, after posting better-than-expected full year results to 30 June. The figures showed a bumper 20% hike in sales and 26% increase in pre-tax profits of £315m. That sparks a near 5% share price rally to 650.5p.
UK bicycles and car parts retailer Halfords (HFD) maintained full year profit guidance on Tuesday as it reported retail like-for-like sales growth of 3.5% in the 20 weeks to 18 August. Halfords stock nudges 2% higher to 321.9p.
British manufacturers say exports are gaining strength, according to a new survey by the manufacturers’ organisation EEF. Output and orders soared to historic highs in the third quarter - up 34% and 37% respectively - thanks to an ongoing weak pound.
Broadband and calls telco TalkTalk (TALK) is exploring an exit from its mobile operations, according to reports in the Financial Times. The business is attempting to battle back from a string of operational mishaps and weak trading amid highly competitive markets. TalkTalk shares move 1% forward at 203.7p.
Online gaming company 888 (888) posted a 9% rise in first half revenue on the strength of its casino and sports betting business. It also unveiled a proposed $0.04 per share interim dividend, although investors are unimpressed with pre-tax losses hitting $17.3m thanks to one-off costs. The stock barely moves at 265.25p.
