Business news in brief
P&O ferries snapped up by Dubai’s DP World for £322m
Dubai-based DP World has acquired ferry firm P&O in a £322m deal. DP World, which also operates container ports in London and Southampton, said it will aim to drive efficiency savings at P&O once the deal is complete. P&O runs more than 30,000 voyages a year and handles over 2.5 million freight units, which account for approximately 75 per cent of its revenues. The firm, which operates across Europe, booked sales of £1.1bn in 2017 and earnings of £100m. It offers ferry services across eight major routes between Britain, France, Northern Ireland, the Republic of Ireland, Holland and Belgium and has almost 4,000 employees. PA
Scottish Power profits light up
Energy giant Scottish Power has nearly trebled annual profits. The announcement comes just a day after the firm hiked prices for customers by 10 per cent. The Big Six provider said it recovered from a “difficult” 2017 to see profits in its generation and supply business soar 187 per cent to £271.8m last year. It held the total number of gas and electricity customers stable above 5 million, having previously been been hit by an exodus amid competition from smaller rivals and campaigns encouraging switching. But the profits will come as a bitter blow for some after Scottish Power announced on Tuesday it will increase prices for households on its standard variable tariffs (SVTs) from 1 April – in line with the energy regulator’s higher price cap. PA
Tesla’s top lawyer leaves after just two months
Tesla’s top lawyer is leaving the company after only two months on the job. Tesla said that general counsel Dane Butswinkas will return to a legal practice in Washington DC and continue to work for the firm as outside counsel. No reason for the departure was given. He’ll be replaced by Jonathan Chang, an eightyear company veteran who had been vice president of the legal department. Mr Butswinkas says he has tremendous confidence in Mr Chang and the management team. He is the latest in a long line of top executives to depart the Californian electric car and solar panel company. Last month Tesla announced that chief financial officer Deepak Ahuja would retire, his second attempt at doing so. AP
Intu properties swings to loss in ‘challenging’ year
Shopping centre owner Intu has swung to an annual loss after a collapse in the value of its properties in what it described as a “challenging” year. The company, which owns Manchester’s Trafford Centre and Gateshead’s Metrocentre, had a torrid 2018 following two failed takeover attempts. Retailers have seen tough trading conditions with a number seeking rescue deals with creditors or falling into administration. Rival Hammerson abandoned a £3.4bn takeover attempt last April, while a consortium led by John Whittaker’s Peel Group pulled out of £2.8bn bid in November. PA
Arla to pay £252m profit to farmers following drought
Dairy firm Arla Foods will dish out all €290m (£252m) of its annual profit to farmers following last summer’s drought across Europe. The company, home to brands including Anchor and Cravendale, usually only pays part of its profit to farmers, but is making an exception as the industry struggles to pick up the pieces after a hot summer in 2018. Arla Foods chair Jan Toft Norgaard said: “As a farmer-owned dairy company we care deeply about the livelihood of our farmers and we see how many of our colleagues have been affected by the drought last summer.” PA
Watchdog finds no need to crack down on insurance brokers
The Financial Conduct Authority has found “no evidence of significant levels of harm” as part of its investigation into the wholesale insurance broker sector. The watchdog said it will not introduce intrusive remedies in the sector, which includes members of the Lloyd’s of London market. The watchdog’s areas of concern included management conflict of interest, the information disclosed to clients and the small number of contractual agreements between brokers and insurers that could limit competition. The FCA said it will work with firms to address these concerns, as opposed to installing new regulations. PA
McBride shares slump after profit alert
Shares in household cleaning products maker McBride tumbled by nearly a third after it warned rising costs will hurt annual profits. The group said more expensive raw materials and higher distribution costs were set to see annual underlying pre-tax profits fall by around 10 per cent to 15 per cent. McBride shares slumped 31 per cent on the profit alert. PA