Business news in brief
MPs to contact watchdog over Morrisons takeover move
Members of parliament are preparing to write to competition regulators in a bid to secure assurances if the potential £5.5bn takeover of Morrisons progresses, according to reports. The Telegraph said it understands that the Business, Energy and Industrial Strategy Committee intends to contact the Competition and Markets Authority over the private equity move. Earlier this week, Morrisons confirmed that it has rejected a takeover proposal from New York-based firm Clayton, Dubilier & Rice. The revelation sparked a surge in the grocer’s
share price, which rose by around a third on Monday, and drove speculation that other potential bidders could enter the fray. The competition watchdog would be expected to look into any takeover were the supermarket chain to accept a takeover offer. PA
Victorian Plumbing cheers biggest ever AIM float
Online bathroom retailer Victorian Plumbing has seen shares surge higher as it began life as a listed company in the biggest ever float on London’s junior market. The group launched on to the Alternative Investment Market (AIM) with shares priced at 262p, giving it an initial valuation of around £850m, before the stock quickly jumped higher to settle at around 309p after reaching 314p at one stage. Its chief executive, Mark Radcliffe, who founded the Lancashire-based firm in his parents’ garden shed back in 2000, said the initial public offering (IPO) was a “landmark day in the history of Victorian Plumbing”. He said: “The successful completion of our IPO and admission to AIM is an exciting next step on our growth journey.” PA
Purifier ad banned for stating it could destroy coronavirus
An ad for an air and surface purifier has been banned for stating it could destroy coronavirus. The ad for the Go-Vi Eradicator19, seen on the website protect-nhs.co.uk in November, included the claim “Proven to destroy Coronavirus* cells.” Text near the bottom of the page stated: “Go-Vi's Eradicator19* air purification system has been tested by independent laboratories and proved to be effective against the following ... H5N1 & Coronavirus – a reduction of 5.7 logs (99.9998 per cent) in less than 0.44 seconds in destroying airborne H5N1 avian influenza virus.” The ad said testing had been carried out by the Centre National de la Recherche Scientifique, Lyon, France. The Advertising Standards Authority investigated whether the claim that the product could destroy coronavirus cells was misleading and could be substantiated. PA
House sales fell back by nearly 4% in May
Sales of houses fell back by nearly 4 per cent between April and May, according to figures from HM Revenue and Customs. An estimated 114,940 transactions took place across the UK in May, which was 3.9 per cent lower than April. However, the total was still 138.2 per cent higher than May 2020 – a time when house sales were down by around 50 per cent year-on-year due to the impacts of the coronavirus pandemic. A stamp duty holiday was due to end in March but was extended and will now be tapered into the autumn, before returning to normal levels. Jeremy Leaf, a north London estate agent and a former residential chairman of the Royal Institution of Chartered Surveyors said: “These figures are a little dated, reflecting a market pausing in reaction to the anticipated cut-off in the stamp duty concession.” PA
Box-maker DS Smith takes profit hit from Covid crisis
Packaging producer DS Smith has seen a plunge in profits as the Covid-19 crisis hit the business. Bosses said profits were hit by an initial fall in packaging volumes and swings in the cost of raw materials, particularly during the first quarter of the financial year. But, as the year progressed and sites remained open throughout the pandemic, volume grew as online businesses saw a surge in trade and the demand for boxes increased. The second half of the year saw strong growth of 8.2 per cent but it was not enough to offset the heavy falls in the first, the company added. Overall, revenues fell 1 per cent to £5.98bn with pre-tax profits down 37 per cent to £231m in the 12 months to 30 April. PA
Monzo warned about failure over statements for ex-customers
Online bank Monzo has been issued with a formal warning after breaching banking rules by not providing bank statements to 143,000 former customers. The Competition and Markets Authority has also written to Bank of Ireland, NatWest and Virgin Money reminding them of banking rules, which state that any customer or small business closing an account must have a
full transactions history provided within 40 days of leaving. Investigators told the financial institutions that transaction histories must be sent to at least 95 per cent of such customers within 10 working days and future breaches could lead to legally binding extra training or additional oversight by the watchdog. PA
New UK infrastructure bank to be permanent
The chancellor’s new UK infrastructure bank will be a permanent fixture to help tackle climate change and to support local and regional economic growth, the government has confirmed. Legislation is set to be brought forward to put Britain’s first national infrastructure bank – opened by the chancellor in Leeds last week – on a statutory footing to ensure it remains a long-term public institution. It comes in response to recommendations in a report by the Environmental Audit Committee, which sought assurances the infrastructure bank would not end up being offloaded like the Green Investment Bank – the government’s previous attempt to kickstart the green economy. PA