9th Sep 2025 07:47
(Alliance News) - Anglo American announces a "merger of equals" with Teck Resources, Unite's buy of Empiric is moving closer, while Dunelm posts improved annual earnings.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called down 0.1% at 9,215.94
GBP: higher at USD1.3570 (USD1.3545 at previous London equities close)
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ECONOMICS
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UK Prime Minister Keir Starmer will hold the first meeting of his new-look Cabinet on Tuesday as the race to replace Angela Rayner as deputy Labour leader gets under way. Starmer's official spokesman said his message to the "refreshed, reshaped" Cabinet would be to put delivery and growth "front and centre" in the second phase of government. The prime minister completed a major government reshuffle triggered by Rayner's resignation after she was found to have breached the ministerial code over her underpayment of stamp duty on a seaside flat earlier this year. But he now faces the prospect of weeks of manoeuvring for the deputy Labour leadership role she has vacated as the race to replace her is set to stretch past the Labour Party conference and into October.
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BROKER RATINGS
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Goldman Sachs raises Segro to 'buy' (neutral) - price target 730 (690) pence
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COMPANIES - FTSE 100
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Miner Anglo American reports it has agreed a deal to combine with Teck Resources, creating a "critical minerals champion and top five global copper producer". The "merger of equals" will see Anglo issue 1.3301 ordinary shares to Teck shareholders, in exchange for each outstanding Teck class A common share and class B subordinate voting share. "Subject to satisfaction of certain conditions, the Anglo American board also intends to declare a special dividend of USD4.5 billion (expected to be approximately USD4.19 per ordinary share) to be paid by Anglo American to its shareholders," it adds. "Immediately following completion of the merger, Anglo American and Teck shareholders will own approximately 62.4% and 37.6% respectively, of Anglo Teck PLC." The enlarged firm is expected to have stock market listings in London, Johannesburg, Toronto and New York, the latter through American depositary receipts. Anglo Teck is expected to "offer more than 70% copper exposure", the firms say. The deal is expected to be completed in the next 12-18 months. Anglo Teck will be headquartered in Canada and will be "committed to the heritage of both companies and their significant business leadership roles in Canada, South Africa and the UK". Anglo American Chief Executive Officer Duncan Wanblad says: "We are unlocking outstanding value both in the near and longer term - forming a global critical minerals champion with the focus, agility, capabilities and culture that have characterised both companies for so long. Having made such significant progress with Anglo American's portfolio transformation, which has already added substantial value for our shareholders over the past year, now is the optimal time to take this next strategic step to accelerate our growth." Anglo American last year was the object of takeover interest from miner BHP Group. BHP's was unsuccessful in its pursuit of a takeover. Teck Resources last year completed the sale of its remaining 77% interest in a steelmaking coal business to Glencore. Last month, Anglo American said it intended to seek damages after Peabody Energy's "wrongful termination" of its bid to acquire Anglo American's steelmaking coal assets in Australia. Peabody announced it dropped its plan to buy the steelmaking coal portfolio from Anglo American nearly five months after an "ignition event" at the Moranbah North mine on March 31. The enlarged Anglo Teck will "will remain committed to Anglo American's announced portfolio simplification". This includes work to separate De Beers and sealing "steelmaking coal and nickel disposals".
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Student accommodation developer Unite Group says its performance so far is in line with financial guidance, as its takeover of peer Empiric Student Property nears. Unite reports that 94% of rooms in its portfolio have been sold for the 2025/26 academic year. "This reflects a strong sales performance in the period since A-level results in mid-August (90% sold as at 12 August 2025) with sales to international and postgraduate students expected to continue through September. Our sales to date support rental growth of 4-5% and we continue to target occupancy of at least 97%," Unite adds. Unite says its financial performance in the year to date, and the outlook for the current academic year, supports its aim of achieving adjusted earnings per share between 47.5 pence and 48.25p for 2025. Unite last month agreed to a takeover of Empiric. Empiric shareholders will receive 0.085 of a new Unite share, plus 32 pence in cash, valuing each share in Empiric at roughly 94.2p for GBP634 million. Including dividends, this rises to a 107.5p per share valuation, or GBP723 million in total. Empiric shareholders will vote on the deal on October 6. FTSE 250-listed Empiric reports on Tuesday that occupancy for the 2025/26 academic year is 84%, a rise of 7 percentage points from 77% in mid-August. "With student application data remaining strong, the Empiric Group's sales pattern continuing to be ahead of the wider market and a reservation period that typically extends through the autumn until the start of the January term, Empiric continues to target an occupancy rate of 97% for the academic year," it adds.
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COMPANIES - FTSE 250
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Homewares retailer Dunelm Group says annual revenue and profit edged up, and while trading in its new financial year has been pleasing, it is "yet to see signs of a sustained consumer recovery". Dunelm reports pretax profit of GBP211.0 million for the year to June 28, rising 2.7% from GBP205.4 million. Revenue rises 3.8% to GBP1.77 billion from GBP1.71 billion. "In my final set of results at Dunelm, I'm pleased to report another successful year, marked by growth in sales and profits, increased market share and meaningful strategic progress. Having had the privilege of being a part of this awesome business, I want to thank our incredible colleagues, whose commitment and adaptability has driven our performance this year and throughout our history," Chief Executive Officer Nick Wilkinson says. "We've learned to navigate a volatile consumer environment, raising the bar on what really matters to our customers - delivering amazing value and helping them to create stylish, joyful and hard-working homes." Dunelm in July named Clodagh Moriarty as its new chief executive officer, with effect from October 1. Dunelm's final dividend has been raised 1.8% to 28.0p per share from 27.5p, bringing its total ordinary payout to 44.5p, up 2.3% from 43.5p. Total dividends, including 35p special payouts paid in each of the two financial years, are 1.3% higher at 79.5p from 78.5p. Looking ahead, Dunelm says it is "pleased with early trading in the new financial year, although yet to see signs of a sustained consumer recovery".
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OTHER COMPANIES
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National Express owner Mobico maintains its annual guidance after a "solid performance" in the first half of 2025. Mobico's pretax loss for the six months to June 30 narrows to GBP7.1 million from GBP29.3 million. Revenue increases 7.0% to GBP1.32 billion from GBP1.24 billion a year earlier. "Mobico has delivered a solid performance in the first half of 2025, with revenue growth supported by continuing positive passenger demand," Non-Executive Chair Phil White says. "Although our operating profit performance in the first half was mainly impacted by the under-performance of two contracts in WeDriveU, due to operational issues and a competitive trading environment in the UK, we remain confident of achieving our full year adjusted operating profit guidance of between GBP180 million and GBP195 million."
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By Eric Cunha, Alliance News news editor
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Related Shares:
SegroMobico GroupDunelmUniteEmpiricAnglo AmericanGlencoreBHP Group