(Alliance News) - Reckitt Benckiser on Friday said it has agreed to sell its E45 skincare brand and related sub-brands to Swedish healthcare firm Karo Pharma, for an enterprise value of GBP200 million.
The Slough, England-based firm said the sale is another step forward in its plan to actively manage its portfolio for higher growth, following the recent divestments of its IFCN business in China and its Scholl brand, as well as the acquisition of Biofreeze.
Reckitt said the sale is subject to the satisfaction of customary closing conditions, including consultation with employee representatives in France. If these conditions are are met, the deal is expected to close in the second quarter of 2022.
Chief Executive Officer Laxman Narasimhan said: "E45 is an iconic, trusted skincare brand that over 60 years has become a leader in science-based skincare. As we shift from a brand-led to a category-led growth strategy, we are focusing on high growth categories with brands we can stretch into new places and spaces to support our medium-term growth ambitions, including 4% to 6% growth in Health. Now is the right time to pass E45 on to a new owner, and we are confident that Karo will build on the strength of the E45 brand to capture the significant opportunities ahead."
The London Stock Exchange is open for a half-day on Friday, as is the market in Paris, while markets in Germany and the US are shut entirely on Christmas Eve. New York will reopen on Monday, but London will remain closed until Wednesday.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: called down 0.2% at 7,360.00
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Hang Seng: up 0.1% at 23,223.76
Nikkei 225: closed down 0.1% at 28,782.59
S&P/ASX 200: closed up 0.4% at 7,420.30
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DJIA: closed up 196.67 points, or 0.6%, at 35,950.56
S&P 500: closed up 0.6% at 4,725.79
Nasdaq Composite: closed up 0.9% at 15,653.37
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EUR: up at USD1.1332 (USD1.1310)
GBP: flat at USD1.3400 (USD1.3402)
USD: firm at JPY114.40 (JPY114.36)
Gold: up at USD1,809.25 per ounce (USD1,807.10)
Oil (Brent): firm at USD76.50 a barrel (USD76.22)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Friday's key economic events still to come
Germany, France, Italy, Switzerland and Spain - financial markets closed for Christmas Eve
US - financial market closed to observe Christmas Day.
Ireland - financial markets close early for Christmas Eve.
1230 GMT London Stock Exchange closes for Christmas Eve
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The UK government will reportedly hold "emergency" meetings with energy industry bosses to address rapidly rising wholesale gas prices. Business Secretary Kwasi Kwarteng will meet with chief executives of major suppliers on Monday, according to The Times, which reports the bosses are likely to ask for tax cuts and the relaxation of green levies. Fears of runaway household bills in the new year have been mounting since rising gas prices began bankrupting suppliers in September. Since 2019, energy suppliers in the UK have been subject to a price cap put in place by Ofgem, limiting the amount they can charge customers. With the rising prices, many say they were paying more for gas than they could charge. The cap is moved twice a year based on the price of energy and is due to next be changed in April.
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Japan's consumer prices rose 0.6% in November as higher energy costs helped inflation accelerate, data from the Statistics Bureau of Japan showed. The 0.6% annual price rise was above the 0.1% climb seen in October and in line with market consensus according to FXStreet. Upward pressure on prices came mainly from a 9.2% annual increase in fuel, light and water charges, highlighting that soaring energy costs are being felt by Japanese consumers. Core consumer prices, which strip out fresh food, rose 0.5% year-on-year in November after growth of 0.1% in October.
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Japan's government unveiled its biggest ever full-year budget, including record defence spending to counter intensifying regional security threats. Cabinet ministers approved a draft national budget of a whopping JPY107.6 trillion, about USD940 billion, for the 2022-23 fiscal year, including JPY5.4 trillion for defence. Both figures have been increasing steadily for a decade as the cost of caring for an ageing population rises and the country seeks to boost its military capability.
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Japan is not sending a government delegation to the Winter Olympics in China next year, but does not want to refer to it as a diplomatic boycott. Seiko Hashimoto, president of the organizing committee for the Summer Olympics held in Japan this year, and two other Olympic representatives will be sent to Beijing, Japanese government spokesman Hirokazu Matsuno said. However, Matsuno did not want to call the decision a diplomatic boycott like the one initiated by the US. Matsuno said there was "no specific name" for Japan's approach to the situation.
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BROKER RATING CHANGES
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RBC CUTS INTEGRAFIN PRICE TARGET TO 590 (610) PENCE - 'SECTOR PERFORM'
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COMPANIES - FTSE 100
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Lloyds Banking Group customers reported having issues with their online banking system two days before Christmas. Users said they were unable to log into their accounts online on Thursday evening. A message popped up on their screens instead, which read: "We are sorry that our internet banking is currently unavailable. Please try again shortly." Others said they received a message that said the bank was having "technical problems". Customers began tweeting Lloyds reporting they were having issues getting into the app and online banking just after 9pm. A Lloyds spokesperson said the issue lasted for less than an hour. "Our online banking is working normally again. We're sorry some of our customers had issues for a short time this evening."
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COMPANIES - FTSE 250
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Babcock International Group said it has completed the sale of its Power business to M Group Services for GBP50 million in cash. The London-based aerospace, defence and nuclear engineering services company said the Power business provides engineering services in the UK overhead line electric transmission and distribution industry and is part of its Land sector. The Power unit counts clients such as National Grid, Scottish Power Energy Networks and Western Power Distribution. The move forms part of Lockwood's plan to simplify Babcock's structure and improve the company's environmental, social and corporate governance.
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Capita said it has sold its software business, AMT Sybex, to Jonas Computing for up to GBP40 million. The London-based business process outsourcing and professional services company said Jonas Computing will pay GBP23 million on completion in January. An additional amount of up to GBP17 million may be payable to Capita over 24 months subject to conditions. The sale is part of Capita's intention to strengthen its balance sheet and focus on its two core divisions, Capita Public Service and Capita Experience, it said. Capita said the sale of AMT Sybex brings the total proceeds of its 2021 disposals to at least GBP643 million. The company added that it will continue to target GBP700 million in non-core disposal proceeds by June.
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COMPANIES - MAIN MARKET AND AIM
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Octopus Renewables Infrastructure Trust said it has completed the acquisition of two onshore wind farms in Finland. The total consideration for the acquisition, including the option deposit and funding for the final construction payments is EUR140 million. ORIT said the Saunamaa and Suolakangas wind farms have a combined installed capacity of 71.4 megwatts, and are in the final stages of commissioning. "We are pleased to complete this transaction in Finland, acquiring two onshore wind farms, Saunamaa and Suolakangas, expanding our reach into an exciting new European territory. It is especially attractive due to the near term completion of the assets, and the further geographic diversification the acquisition brings to our portfolio," said Chair Phil Austin.
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COMPANIES - GLOBAL
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ByteDance's TikTok has become the world's most popular website in 2021, beating even Alphabet's Google. Web security company Cloudfare said in a blog post that TikTok had first taken the top spot on February 17, but that was only for a day. The short-form video platform also took the top slot in March and in May, but it wasn't until August 10 that it took the top spot for several days. In 2020, TikTok was ranked the seventh most popular domain, showing a significant jump in popularity since last year. Rounding out the top 10 most popular domains were Meta Platform's Facebook, followed by those of Microsoft, Apple, Amazon, YouTube, Twitter and WhatsApp. YouTube is part of Alphabet and WhatsApp part of Meta. TikTok was also the most popular social media domain this year, surpassing Facebook.
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Electric automaker Tesla will update its vehicle software to prevent drivers from playing video games on the console while the car is in motion, the US National Highway Traffic Safety Administration said in a statement. "In a new software update, 'Passenger Play' will now be locked and unusable when the vehicle is in motion." The agency had announced it had launched an investigation into some 580,000 Tesla cars after the automaker's decision to allow drivers to play on the entertainment system's touch screen while the vehicle was moving. The affected models are the Model 3, S, X and Y.
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Friday's shareholder meetings
Abingdon Health PLC - AGM
Origo Partners PLC - AGM
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By Tom Waite; thomaslwaite@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
Babcock (BAB)
IntegraFin Holdings (IHP)
Reckitt (RKT)
