(Alliance News) - Stock prices in London are seen opening slightly lower on Friday with investors monitoring the latest developments around the Omicron variant of Covid-19, as markets in London shut early ahead of the Christmas holiday.
In a light day for UK company news, consumer goods company Reckitt Benckiser sold a well-known skincare brand to Karo Pharmaceuticals. Defence contractor Babcock International took further steps towards its simplification ambitions. Octopus Renewables Infrastructure Trust bought two wind farms in Finland.
IG futures indicate the FTSE 100 index is to open 10.64 points lower at 7,362.70. The blue-chip index closed up 31.68 points, or 0.4%, at 7,373.34 on Thursday.
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.
Reckitt Benckiser said it has entered into an agreement for the proposed sale of its E45 skincare brand and related sub-brands to Swedish healthcare firm Karo Pharma, for an enterprise value of GBP200 million.
The Slough-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 4-6% 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."
Babcock International Group said it has completed the sale of its Power business to M Group Services for GBP50 million.
The Power business provides engineering services in the UK overhead line electric transmission and distribution industry.
CEO David Lockwood said: "I'm delighted that we continue to make real strides in delivering our plan of streamlining the group. The business is a great fit for M Group Services, and I wish them every success as they continue to grow their operations."
The move is part of Lockwood's plan to simplify Babcock's structure and improve the company's environmental, social and corporate governance.
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.
Ahead of the long holiday, investors in London were weighing concerns about further coronavirus restrictions at a time of tighter central bank policy against signs that the Omicron strain of the virus is not as potent as earlier variants such as Delta.
The NHS is in danger of being "overwhelmed" by the surge in Omicron cases, UK Health Secretary Sajid Javid has warned, despite further evidence it causes less severe illness than earlier Covid-19 strains.
Javid said officials were monitoring the data "hour by hour" after new figures showed the Covid infection rates in the UK reaching record levels with an estimated 1.4 million people with the virus.
The warning came as the UK Health Security Agency estimated someone with Omicron was between 31% and 45% less likely to attend accident & emergency facilities and 50% to 70% less likely to be admitted to hospital than an individual with the Delta variant.
The findings are broadly in line with studies published on Wednesday by Imperial College London and the University of Edinburgh.
Javid said that, while the UKHSA conclusions were "promising", Omicron cases were continuing to rise at an "extraordinary rate".
The pound was quoted at USD1.3400 early Friday, marginally lower from USD1.3402 at the London equities close Thursday.
The euro was priced at USD1.1331, up from USD1.1310. Against the yen, the dollar was trading at JPY114.40, firm from JPY114.36.
Brent oil was quoted at USD76.50 a barrel Friday morning, up from USD76.22 late Thursday. Gold stood at USD1,809.50, firm from USD1,807.10.
In Asia on Friday, the Japanese Nikkei 225 index closed down 0.1%. In China, the Shanghai Composite ended down 0.7%, while the Hang Seng index in Hong Kong was up 0.1%. The S&P/ASX 200 in Sydney closed up 0.4%.
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 cited by FXStreet.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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Babcock (BAB)
Octopus Energy (ORIT)
Reckitt (RKT)
