18th Jul 2025 07:44
(Alliance News) - Reckitt Benckiser agreed to sell brands including Air Wick and Cillit Bang in a deal worth USD4.8 billion, while Burberry said it is still in the early stages of its turnaround as first quarter sales fell.
Here is what you need to know before the London market open:
----------
MARKETS
----------
FTSE 100: called up 0.3% at 9,001.94
GBP: higher at USD1.3418 (USD1.3414 at previous London equities close)
----------
BROKER RATINGS
----------
Citigroup cuts Barclays to 'neutral' - price target 366 pence
----------
JPMorgan places Softcat on 'negative catalyst watch'
----------
COMPANIES - FTSE 100
----------
Reckitt Benckiser said it has agreed to sell its Essential Home business to private equity firm Advent International, in a deal worth up to USD4.8 billion. The consumer health and hygiene products firm said it will retain a 30% equity stake through Advent's acquisition vehicle, to provide a "potential long-term value enhancement opportunity". The Essential Home portfolio includes brands such as Air Wick, Cillit Bang and Calgon. The enterprise value of USD4.8 billion includes up to USD1.3 billion of contingent and deferred consideration, Reckitt said. The firm said it expects to incur USD800 million of one-off costs for the transaction. It anticipates returning around USD2.2 billion of excess capital in a special dividend to shareholders following completion of the deal. Reckitt said the transaction is expected to complete by the end of 2025. The special dividend will be in addition to its ongoing buyback. Reckitt plans to announce the next portion of its buyback alongside first half results next week Thursday.
----------
Oil major BP said it has struck a deal to sell its US onshore wind business, BP Wind Energy North America, to North American energy infrastructure developer LS Power. BP said the business will be operated as part of LS Power's Clearlight Energy. The US onshore wind business has 10 operating onshore wind energy assets across seven US states, with a combined gross generating capacity of 1.7 gigawatts. "The deal is part of BP's focusing of its low carbon energy portfolio, prioritising investment choices whilst delivering value for shareholders," the company said. The financial details of the transaction were not disclosed.
----------
COMPANIES - FTSE 250
----------
Burberry said retail revenue fell 5.5% to GBP433 million in the first quarter to the end of June from GBP458 million a year earlier. Retail sales were down 2% compared to the prior year at constant exchange rates. The luxury goods maker said comparable stores sales were down 1% overall, but climbed 1% in the Europe, Middle East, India & Africa region. Comparable store sales were up 4% in the Americas, but dropped 5% in Greater China and 4% in the wider Asia Pacific region. "We are still in the early stages of our turnaround, and the macroeconomic environment remains uncertain," Burberry commented. The firm said it will deliver margin improvement by focusing on simplification, productivity and cash flow. "We remain confident that we are positioning the business for a return to sustainable, profitable growth," the company added.
----------
OTHER COMPANIES
----------
The UK Civil Aviation Authority said it has launched a review into the expansion of Heathrow Airport. The regulator said the review will "explore how best to ensure the efficient and timely delivery of expansion plans while protecting the interests of consumers". The CAA set out its scope for how it will assess the current model and consider "credible alternatives and different regulatory models used for other UK and international infrastructure projects". It said it will publish a working paper for consultation in autumn, which will outline potential regulatory models and evaluation criteria. "Expanding capacity at Heathrow airport would be one of the largest capital expenditure programmes in the UK. We are committed to reviewing the regulatory framework now so that it best supports the efficient delivery of sustainable expansion and delivers value for consumers," said CAA Director of Consumers & Markets Selina Chadha. "It is right that we review our framework to help us determine the most effective regulatory approach to support this major national infrastructure project."
----------
By Michael Hennessey, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
ReckittBPBurberrySoftcatBarclays