(Alliance News) - The UK Competition & Markets Authority was clearing its plate ahead of Christmas, with announcements on three cases early Wednesday.
The competition regulator ended its probe into housebuilder Taylor Wimpey over ground rents. It said Pennon's acquisition of Bristol Water may impede regulator Ofwat's ability to compare companies in the water sector. The CMA also launched an inquiry into CVS Group's acquisition of Quality Pet Care.
Taylor Wimpey said the CMA investigation into the historical sale of leasehold properties with doubling ground rent clauses by the company is closed, following the agreement of voluntary undertakings.
The housebuilder said the cost of the undertakings falls within the original provision Taylor Wimpey made in 2017. By entering into the undertakings there is no finding that Taylor Wimpey has infringed UK consumer law, it noted.
Chief Executive Officer Pete Redfern said: "Taylor Wimpey has always sought to do the right thing by its customers, shareholders and other stakeholders, and we are pleased that today's voluntary undertakings will draw this issue to a full close, within our original financial provision."
Meanwhile, the CMA said Pennon has until December 31 to give undertakings for its Bristol Water acquisition.
The regulator said the Pennon acquisition of Bristol Water may impede Ofwat's ability to make comparisons between water companies.
In response, Pennon said it intends to provide undertakings to CMA for Bristol Water by December 31.
"The proposed undertakings would seek to maintain separate price controls for the Bristol Water region within a merged water business. This combined entity would enable the most effective and efficient delivery of services for our customers in all the regions we serve, whilst also providing Ofwat with comparative cost and performance data," Pennon said.
Pennon said the CMA will have until January 10 to reach a decision on whether to provisionally accept the proposed undertakings.
Back in June, Exeter-based Pennon announced the purchase of neighbouring Bristol Water for an equity value of GBP425 million and enterprise value of GBP814 million, from iCon Infrastructure and Itochu.
Finally on Wednesday, the competition regulator launched an inquiry into CVS's acquisition of Quality Pet Care. It has until February 18 to make a phase 1 decision. The CMA had said back in September that it would look into the GBP20.4 million acquisition.
Quality Pet Care, which trades as The Vet and has eight practices across the UK, was bought by CVS on August 19. Norfolk-based CVS owns 506 veterinary practices in the UK, Ireland and Netherlands.
Taylor Wimpey and Pennon both were down 0.3% early Wednesday, while CVS Group was up 0.9%.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: down 0.3% at 7,278.72
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Hang Seng: up 0.6% at 23,102.33
Nikkei 225: closed up 0.2% at 28,562.21
S&P/ASX 200: closed up 0.1% at 7,364.80
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DJIA: closed up 560.54 points, or 1.6%, at 35,492.70
S&P 500: closed up 1.8% at 4,649.23
Nasdaq Composite: closed up 2.4% at 15,341.09
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EUR: unchanged at USD1.1267
GBP: up at USD1.3257 (USD1.3248)
USD: unchanged at JPY114.14
Gold: up at USD1,786.77 per ounce (USD1,785.40)
Oil (Brent): up at USD74.00 a barrel (USD73.48)
(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
0700 EST US MBA weekly mortgage applications survey
0830 EST US 3rd estimate gross domestic product
1000 EST US existing home sales
1000 EST US consumer confidence index
1030 EST US EIA weekly petroleum status report
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UK economic growth was revised lower in the third quarter on a quarterly basis but higher on an annual basis, figures from the Office for National Statistics showed. On the quarterly before, UK gross domestic product advanced by 1.1% in the three months to September, slower than a 5.4% rise in the three months to July, but missed consensus of an expansion of 1.3%, which would have matched the first estimate. On a year before, the UK economy grew by 6.8% in the third quarter, slowing sharply from the 24% annual growth rate in the second quarter. The latest reading slightly beat the market forecast, cited by FXStreet, of 6.6% annual growth, which also would have matched the first estimate.
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BROKER RATING CHANGES
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JEFFERIES CUTS CINEWORLD GROUP TO 'HOLD' (BUY) - PRICE TARGET 35 PENCE
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COMPANIES - FTSE 100
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Property developer Land Securities bought a further stake in the Bluewater shopping mall outside London. Landsec said it has completed the acquisition of an additional 25% share in Bluewater from Lendlease Retail Partnership for GBP172 million, representing a net initial yield of 8.15% and an equivalent yield of 8.25%. In a separate deal, Landsec said it will sell 25% of this share - a 7.5% stake - to co-owner M&G for its pro rata share of the purchase price with the deal completing in April 2022. After this, Landsec's ownership of Bluewater will be 48.8%. Bruce Findlay, managing director of Retail at Landsec said: "We're making this acquisition at a time when retail values and rents are starting to stabilise. Together with our co-owners, we have a clear vision for Bluewater which builds on what is already a thriving retail destination. This investment underlines our strategic commitment to major retail destinations that offer something that can't easily be replicated online."
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Croda International said it has agreed to sell the majority of its Performance Technologies and Industrial Chemicals businesses to Cargill for an enterprise value of EUR915 million on a cash-free, debt-free basis. Croda said the disposal of the businesses follows the strategic review that it announced in May. The operations being sold represent 77% of PTIC's 2020 revenue and consist of five manufacturing facilities in the UK, China and the Netherlands. "The divestment delivers Croda's transition into a focused Life Sciences and Consumer Care company with these two sectors accounting for well over 90% of the group's 2020 adjusted operating profit following completion," Croda said.
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COMPANIES - FTSE 250
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Wizz Air said it has bought 15 daily slot pairs from Norwegian Air Shuttle at Gatwick Airport. The deal means the Budapest-based low-cost carrier will base four additional jets at the airport south of London, raising its total there to five. Wizz didn't say what it paid for the slots.
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LondonMetric Property has agreed to buy Savills IM UK Income & Growth Fund for GBP122.2 million. The fund owns a portfolio of 15 properties, mostly in London the south east of England and mostly in urban logistics.
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Grafton Group has agreed to buy Sitetech Building Products, a distributor of specialist construction accessories in Ireland, with sites in Dublin and Cork. Grafton didn't say what it is paying for Sitetech but said it had revenue of EUR16.9 million in 2020.
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Miner Ferrexpo declared an interim dividend of 6.6 US cents, bring its total payout for 2021 so far to 46.2 US cents. It said the payout reflects a strong performance in 2021 and a strong outlook for high-grade iron ore pellets, with premiums at elevated levels.
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Wednesday's shareholder meetings
Dolphin Capital Investors Ltd - EGM re continuation, new investing policy and realisation strategy
dotdigital Group PLC - AGM
Macau Property Opportunities Fund Ltd - AGM
Parkmead Group PLC - AGM
Revolution Bars Group PLC - AGM
Serabi Gold PLC - EGM
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By Tom Waite; thomaslwaite@alliancenews.com
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