Today’s news in brief-20/11/23

Van hire firm Redde Northgate has reportedly approached Halfords with a proposed £1.3bn merger deal, indicating a nil-premium merger. Talks between the two companies took place, but Halfords reportedly deemed the offer as significantly undervaluing the business. Halfords, boasting nearly 400 stores and 650 garages, is valued at £512m, while Redde Northgate, a commercial vehicle rental provider, has a market cap of £843m. Redde Northgate may return with an improved offer if the valuation gap narrows. Go Outdoors has witnessed a substantial drop in profits, falling from £21.5m to £13m for the fiscal year ending January 28, 2023. This decline is attributed to increased property, utility, and freight costs during the financial year. However, despite the profit setback, the company recorded a 7% uptick in sales, reaching £338m, primarily driven by consumer purchases in-store. During this period, Go Outdoors expanded its UK store count from 68 to 86, aligning with the growing demand for outdoor activities like camping, hiking, cycling, and fishing. Fortnum and Mason CEO, Tom Athron, has urged the government to abandon the tourist tax to prevent businesses from losing sales revenue to Paris, citing the city's allure due to the upcoming Olympics. Several prominent brands, including Marks and Spencer, Harrods, Burberry, Heathrow Airport, and Jimmy Choo, have joined the plea to scrap the tourist tax. The Centre for Economic and Business Research estimates potential economic gains of £10bn by allowing overseas visitors to shop tax-free, while the Treasury argues potential losses of £2bn in tax revenue. Walgreens is set to pay £1bn to transfer responsibility for Boots' £4.5bn pension scheme to Legal and General, potentially restarting the sale process for Boots. This move aims to dissolve the pension scheme's guarantee, previously a deterrent for private equity firms interested in acquiring Boots. Walgreens had abandoned plans to sell Boots in June the previous year due to changing trading conditions. The potential pension risk transfer deal is designed to make Boots more attractive to buyers. Music Magpie is reportedly in preliminary talks with BT Group and Aurelius Group regarding a potential offer to purchase all issued and to-be-issued share capital. The talks are at an early stage, and no guarantees have been made regarding intentions or offer terms. Music Magpie reported a revenue decrease to £61.9m from £71.3m in the first half, citing poor consumer confidence and postal strikes impacting trading. The parties involved have until December 18 to announce their intentions or declare the absence of an offer, with a possible extension subject to Takeover Panel approval.

Today’s news in brief-20/11/23

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