The weekend’s major news in terms of the grocers was the UK Competition and Markets Authority announcing it is considering launching an investigation into the £12.4bn takeover of Home Retail Group by Sainsbury’s.
The CMA will consider whether the deal creates “a substantial lessening of competition” in the market and will decide by 25 July whether to launch a preliminary inquiry. Sainsbury’s said it had expected the CMA to scrutinise the deal and that it believed the takeover would complete as planned. (The Guardian, Sky News, BBC)
The tycoon behind budget fashion retailer Peacocks has made a surprise bid for Dobbies Garden Centres after Tesco put the chain up for sale. Retail billionaire Philip Day is understood to be considering the deal to diversify his Edinburgh Woollen Mill empire, which includes Peacocks. Other potential suitors looking at Dobbies include Wyevale Garden Centres, owned by private equity firm Terra Firma. (The Times £)
Elsewhere, BHS has dominated the weekend business headlines yet again. Firstly, a viral marketing campaign to “Save BHS” came closer to achieving its purpose on Friday, after a bumper month of sales gave administrators extra time to find a buyer for the collapsed high-street chain. (The Financial Times £)
Frank Field, chairman of the work and pensions committee, has demanded that executives from two City firms who refused to attend hearings over the collapse of BHS be dragged before parliament to answer for their actions. (The Times £) “Arrogance of the City giants involved in the doomed £1 BHS buyout”, writes The Daily Mail on MP’s “fury” as firms send ‘understudies’ to parliament.
The property tycoons and advisers who backed Dominic Chappell’s BHS takeover are set to face questions from MPs over their involvement with the department store chain. (The Guardian) Property developer to be grilled by MPs over ‘Wonga-style’ loan to Dominic Chappell during BHS purchase. (The Daily Mail)
A secretive property dynasty helped Dominic Chappell seal his £1 takeover of BHS from Sir Philip Green last year — then bought one of the struggling department store’s buildings at a bargain price. (The Times £) Property investors provided Dominic Chappell with the £35m needed to show Sir Philip Green’s Arcadia group that he was a credible buyer for BHS, it has emerged. (The Guardian)
As the prospect recedes of a wholesale rescue of BHS, a clutch of smaller UK retailers are watching closely. Faced with potentially the biggest disappearance of a high-street name since Woolworths in 2008, several chains could be hit by any drop in footfall. (The Financial Times £)
Britain’s biggest food producer, 2 Sisters, has been hit by the first of a wave of strikes after workers complained it planned pay cuts to fund the new National Living Wage. According to staff representatives more than 1,000 workers have been drawn into a series of disputes over pay at the group, which makes Fox’s biscuits, Goodfella’s pizza and supermarket meals for a number of leading chains. (The Daily Mail) Staff at 2 Sisters are preparing to strike this week in Newport, south Wales, after a walkout in Sheffield last month. (The Times £)
The Times (£) has a piece on new M&S Steve Rowe, headlined “How ‘Nails’ the Millwall fan aims to knock M&S into shape”. It writes that Rowe, who started at the store chain as a 15-year-old Saturday boy, has outlined his blueprint for breathing life into the high street giant. (The Times £)
Despite being given a rough ride by investors last week, Haitong analysts still rate M&S. While the broker disagreed with some of the retailer’s strategy for revitalising clothing, it said there was still potential for recovery and that the balance sheet was strong. (The Daily Mail)
Bayer is ready to sweeten its £42bn all-cash offer for Monsanto, the world’s biggest producer of genetically modified (GM) seeds. An improved proposal could be tabled as early as this week after weekend meetings of Bayer’s top bosses, City sources said. Monsanto last week rejected the German drugs giant’s $122-a-share deal. (The Times £)
Savers and investors are braced for another month of turmoil as a cocktail of risks cast a shadow over global markets. With concerns for the future of oil prices, fears of a US interest rate hike and uncertainty over the outcome of Britain’s EU referendum, bankers have been queuing up to warn that shares could tank. (The Daily Mail)
To tempt in young, heath-conscious customers, Heck, the family-run maker of burgers, sausages and meatballs has taken a punt on a new range of products that replace meat with quinoa, kale, and chia seeds, ingredients that have all been said to be packed with nutrients in recent years. (The Telegraph)
The sun finally set on the founding families’ involvement with Greene King when Tim Bridge retired as its chairman. The Telegraph has an interview with Bridge as the “veteran calls last orders on 45-year career”. (The Telegraph)
Popcorn brand Joe & Seph’s, which makes flavours such as salted caramel and gin & tonic, has landed distribution deals with supermarkets in France, Denmark and the Netherlands in a bid to become the top premium popcorn brand on the Continent - before its British rivals. (The Telegraph)
No comments yet