MEGA-MERGERS between supermarkets could be on the horizon after the Government’s overhaul of the competition watchdog.
The Competition and Markets Authority has been told to be more agile and tighten its remit only to deals that “harm” UK-based consumers — while also being given responsibility for economic growth.
Mega-mergers between supermarkets could be on the horizon after the Government’s overhaul of the competition watchdog[/caption]
The changes prompted speculation of a wave of mega-mergers, especially in the retail sector.
The CMA in 2019 vetoed a £7billion merger between supermarkets Sainsbury’s and Asda — arguing it could harm consumers by reducing competition.
Since the deal was blocked, Aldi and Lidl have grown to have a bigger combined market share than either firm.
One senior banker said the new direction “makes deals which might have been considered impossible, possible again”.
When asked if the Government would be open to mergers between supermarkets, Business Secretary Jonathan Reynolds told The Sun yesterday: “The test of any market that the CMA makes has to reflect how markets are changing.
“I think traditional conceptions of the number of market participants and that sort of thing have changed as the economy has changed.”
He highlighted how the CMA recently approved Vodafone’s takeover of Three, albeit with conditions, in an example of a market shrinking from four telecom operators down to three.
The overhaul of the CMA comes after criticism its wide-ranging brief added to regulatory burdens for business while its investigations into takeovers and mergers were too lengthy and restrictive.
Mr Reynolds added: “We believe effective competition policy is consistent with having the kind of business confidence and attractiveness that the UK clearly needs to make a difference.”
Business Secretary Jonathan Reynolds[/caption]
CIGS BOSS: I DON’T VAPE OR SMOKE
THE boss of cigarette giant British American Tobacco says he does not smoke or vape.
Tadeu Marocco, chief executive of the £68billion firm for the past two years, told The Sun: “I tried to smoke in the past, I didn’t like it.
British American Tobacco chief Tadeu Marocco says he does not smoke or vape[/caption]
“I’m not a drinker either, so maybe that makes me quite boring.”
BAT now makes half of its revenue from “smokeless” products such as vapes, heated tobacco and nicotine pouches.
Its shares dropped by almost 9 per cent yesterday after it put £6.2billion aside for potential compensation in a Canadian lawsuit brought by smokers who suffered health problems.
Mr Marocco wants governments to crack down on illicit single-use vapes, as there is “no control” over materials.
They also account for a third of the UK vape market.
He said plans to introduce £200 fines for retailers in June “will do nothing” and urged bigger penalties.
He also said the UK is the biggest black market for cigarettes in Europe.
UNILEVER GOES DUTCH ON ITS ICE CREAM FLOAT
UNILEVER is to list its spun-off £13billion ice cream business primarily in Amsterdam, despite a charm offensive by Chancellor Rachel Reeves to secure a London listing.
CEO Hein Schumacher said Unilever made pledges to the Dutch government to keep its food business in the Netherlands when shifting its HQ to London five years ago and listing there would mean lower costs.
Shares in Unilever, which makes Ben & Jerry’s, Magnum and Wall’s ice creams, fell yesterday after it warned of weaker sales growth this year and challenges in Asia.
BARCLAYS’ £500 GIFT TO STAFF
BARCLAYS is handing a one-off share award worth £500 to nearly all its 90,000 global staff after its profits surged by almost a quarter.
The banking group posted a pre-tax profit of £8.1billion for 2024, compared with £6.6billion the previous year — a 24 per cent jump.
It followed a surge in dealmaking and the recent takeover of Tesco Bank.
The strong results have also benefited boss CS Venkatakrishnan, who has seen his total pay double to £10.5million.
Barclays, which has faced years of regulatory scrutiny, also revealed yesterday that it was subject to a probe by the City watchdog over its anti-money-laundering controls, and is in a separate dispute with HMRC.
GEIGER IN U.S. SALE
SHOE brand Kurt Geiger has been sold to US footwear business Steve Madden in a £289million deal.
The British company, which started in 1963 with one store on London’s Bond Street, now has 70 shops and has goods stocked in a further 400 US department stores.
It now makes £140million of sales in the US, where its handbags are more popular.
Kurt Geiger has been owned by private equity firm Cinven since 2015.
MUSK A.I. DEMAND
ELON Musk has vowed to drop his $97.4billion (£78.4billion) bid for artificial intelligence firm OpenAI if the ChatGPT- maker cancels its plans to become a for-profit business.
OpenAI boss Sam Altman has already rejected the takeover offer by the world’s richest man, saying OpenAI is “not for sale”.
Mr Musk, who co-founded OpenAI with Mr Altman as a non-profit outfit in 2015 before leaving, called him a “swindler” in an exchange on social media.
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