19th Aug 2020 08:04
(Alliance News) - The UK antitrust regulator said Wednesday it is considering whether the proposed beer tie-up between UK brewer and pub chain Marston's and Danish brewer Carlsberg will harm competition.
The UK Competition & Markets Authority said it is considering whether the proposed brewing and distribution joint venture between Carlsberg and Marston's will result in the creation of a "relevant merger situation" and lead to a substantial lessening of competition in the UK.
Back in May, Marston's announced plans to form a new joint venture for brewing and distribution in the UK with Carlsberg.
The pub operator said it will receive a 40% stake in the Carlsberg Marston's Brewing Co joint venture, plus a balancing cash payment of up to GBP273 million. Marston's said the deal values its brewing business at GBP580 million and the Carlsberg UK brewing business at GBP200 million.
In announcing interim results in June, Chief Executive Officer Ralph Findlay said: "Looking ahead, our transformational deal with Carlsberg positions the company well for the future. Post completion, Marston's will be a focussed pub and accommodation business with a significantly strengthened balance sheet, well placed to rebuild trading momentum and leverage the market opportunities available to us over the medium to longer term."
The CMA is inviting comments on the transaction until September 2.
Marston's shares were down 0.9% early Wednesday.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: down 0.2% at 6,062.88
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Hang Seng: down 0.9% at 25,142.42
Nikkei 225: closed up 0.3% at 23,110.61
DJIA: closed down 66.84 points, 0.2%, at 27,778.07
S&P 500: closed up 7.79 points, 0.2%, at 3,389.78
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GBP: up at USD1.3261 (USD1.3225)
EUR: up at USD1.1943 (USD1.1924)
Gold: down at USD1,988.63 per ounce (USD2,000.40)
Oil (Brent): soft at USD45.08 a barrel (USD45.34)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Wednesday's Key Economic Events still to come
1000 CEST EU euro area balance of payments
1100 CEST EU harmonised consumer price index
0700 EDT US MBA weekly mortgage applications survey
1000 EDT US advance quarterly services
1030 EDT US EIA weekly petroleum status report
1400 EDT US Federal Open Market Committee meeting minutes published
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The UK consumer price inflation rate picked up in July as the country continued its emergence from coronavirus lockdown measures, according to the latest figures from the Office for National Statistics. The annual UK inflation rate was 1.0% in July, accelerating from 0.6% in June. The figure beat consensus, cited by FXStreet, for an 0.6% annual rise in the consumer price index. Output factory prices fell 0.9% in July on a year before, following an annual drop of 0.8% in June. Input prices, meanwhile, fell 5.7% in July on a year before, having fallen 6.4% in June.
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Japan's trade balance recorded a surplus in July as imports fell faster than exports amid a weak economy, the Ministry of Finance reported. Japan's trade surplus stood at JPY11.64 billion in July compared to JPY253.88 billion deficit recorded for the same period a year ago. The country's exports slipped by 19% to JPY5.369 trillion in July from JPY6.644 trillion a year before. Imports fell by 22% to JPY5.357 trillion from JPY6.897 trillion year-on-year.
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BROKER RATING CHANGES
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RBC RAISES AB FOODS TO 'OUTPERFORM' (SECTOR PERFORM) - PRICE TARGET 2,300 (2,200) PENCE
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MORGAN STANLEY INITIATES BABCOCK INTERNATIONAL WITH 'EQUAL-WEIGHT' - TARGET 290 PENCE
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COMPANIES - FTSE 100
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Persimmon said Dean Finch is expected to join as chief executive officer earlier than originally planned. Finch will leave his role as CEO of public transport operator National Express Group on August 31. "Persimmon now expects that Dean will be able to take up his post as Persimmon CEO earlier than originally envisaged and anticipates confirming his start date shortly," the housebuilder said. Finch, who will succeed David Jenkinson, was originally expected to join Persimmon at the end of 2020. National Express said Chief Financial Officer Chris Davies will take over as interim CEO from September 1, until a permanent appointment is made. "The search for a new group chief executive officer is progressing well, with both internal and external candidates under consideration," the FTSE 250 firm said.
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Anglo-Australian miner Rio Tinto said the restart of its Kennecott mine smelter has been delayed by "unexpected issues" emerging after planned maintenance. The Kennecott copper mine is located in the US state of Utah. Rio Tinto said it was working with its customers to limit disruptions and expected the smelter to be "fully operational in two months". However given the delay, 2020 group production guidance for refined copper has been reduced to between 135,000 and 175,000 tonnes from 165,000 to 205,000 tonnes previously.
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Morrisons customers will be able to purchase their weekly shopping from Amazon's website for the first time as the two retailers continue to grow their partnership. Wm Morrison Supermarkets said it has launched a platform for its products on Amazon.co.uk, allowing customers to purchase products which will be picked directly from Morrisons stores. Morrisons had previously launched a same-day online grocery delivery service on its Prime app for customers of the subscription service in major cities across the UK. Starting in Leeds, Amazon.com Inc said all customers who use its website will now be able to buy their shopping using the "Morrisons on Amazon" shop on the platform, making the grocery delivery partnership "more accessible" to customers. Morrisons also operates a larger grocery delivery business directly through its own website, which is fulfilled through a distribution deal with Ocado Group. It said the expansion with Amazon is also "complementary" to its on-demand delivery service it launched with Deliveroo in April.
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COMPANIES - GLOBAL
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Swiss pharmaceutical firm Roche Holdings said it has partnered with Regeneron Pharmaceuticals to develop, manufacture and distribute the US firm's investigational antiviral antibody combination REGN-COV2. REGN-COV2 is being studied in two phase 2/3 clinical trials for the treatment of Covid-19, and in a phase 3 trial for preventing the spread of Covid-19 to household contacts of infected individuals. The treatment was designed specifically by Regeneron to block the infection of SARS Cov-2, the virus which causes Covid-19. Under the agreement, both companies will dedicate a manufacturing capacity to REGN-COV2 each year, and each firm will bear its own distribution expenses in their chosen territories. The collaboration is expected to increase the supply of REGN-COV2 to three and a half times the current global capacity, with the potential for further expansion.
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Australia & New Zealand Banking Group said its performance improved in the third quarter of its current financial year. The bank reported post-tax profit for the three months to the end of June of AUD1.33 billion compared to AUD1.55 billion reported for the six months to the end of March. Total provisional charges were reduced in the third quarter to AUD500 million compared to AUD1.67 billion recorded for the first half. Following the deferral of a decision on the interim dividend in April, ANZ proposed an interim dividend of 25 cents per share. The company said its capital position continues to be strong, allowing it to play a role in supporting the economic recovery in Australia, with a level 2 common equity tier 1 capital ratio of 11.1% at June 30.
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Wednesday's Shareholder Meetings
Gore Street Energy Storage Fund
Discoverie Group
Braemar Shipping Services
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By Tom Waite; [email protected]
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