The FTSE 100 will open at 8am. Among the companies with reports and trading updates today are Dr Martens, Nightcap, Revolution Bars, Auto Trader and De La Rue. Read the Thursday 30 May Business Live blog below.
US energy giant Conoco Phillips buys Marathon Oil in £17.7bn deal
US energy giant ConocoPhillips has bought Marathon Oil in a deal valued at £17.7billion – the latest in a series of acquisitions in the US oil sector.
There was £200billion in sector merger and acquisition activity in the past year, including Exxon Mobil’s £48billion acquisition of Pioneer Natural Resources and the Chevron-Hess tie-up.
The acquisition will enable ConocoPhillips to strengthen its position in shale oil and gas-rich US regions such as the Bakken Basin and the Permian Basin.
Nightcap abandons Revolution Bars bid
London-listed hospitality firm Nightcap has abandoned its attempted takeover of Revolution Bars after its previous offer was rejected.
Revolution Bars earlier this week said Nightcap’s offer, which included a shake-up of the group’s restructuring plans, was ‘incapable of being delivered’.
Nightcap told sharehoders this morning:
‘The board of Nightcap believes that the Possible Offer, if it had been implemented, would have seen Revolution Bars’ highly dilutive £12.5m fundraising replaced by a merger of the two businesses, allowing for Revolution Bars’ shareholders to suffer less dilution and achieve more value from their investment.
‘The Possible Offer would have included a fundraising and the implementation of the restructuring plan… to be followed by a combination of the Nightcap and Revolution Bars businesses as well as a sale of the Peach Pubs brand.
‘Nightcap respects that the board of Revolution Bars wish to pursue a different outcome and as a result Nightcap today confirms that it does not intend to make an offer for the entire issued and to be issued share capital of Revolution Bars.’
City fails to back Czech Sphinx’s £3.6bn Royal Mail takeover
‘Czech Sphinx’ Daniel Kretinsky’s £3.6billion swoop for Royal Mail’s parent company has failed to win over the City – despite the company’s board agreeing to the deal.
Shares in International Distribution Services rose 4.3 per cent, or 13.8p, to 335p on the announcement, still short of the 370p offer price.
Dr Martens profits stomped by US sales slump
Dr Martens has outlined up to £25million of annual cost-cutting measures after the iconic British bootmaker’s profits were hammered by a major slump in US demand last year.
Pre-tax profits fell 42.9% to £97.2million in the year to 31 March after a 24 per cent decline in Americas revenues driven by adrop-off its wholesale business.
The company said the cost cuts would come from ‘organisational efficiency and design, better procurement and operational streamlining’.
Kenny Wilson, Dr Martens’ chief executive, said: ‘We are clear that we need to drive demand in the USA to return to growth in (financial year 2026) onwards and are executing a detailed plan to achieve this, with refocused and increased USA marketing investment in the year ahead.
‘We are also announcing a cost action plan across the group, targeting savings of £20m to £25m. I am confident that the actions we are taking as we enter this year of transition will put us in good shape for the years ahead.’
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BUSINESS LIVE: Dr Martens US sales slump; Nightcap abandons Revolution Bars bid; Auto Trader profits soar
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