A long week ahead despite end to Budget wait-and-see
Global factors loom large once more after domestic finances given direction of sorts
Hello Rainmakers,
Perhaps the most surprising event of the week was that Rachel Reeves' first Budget left pretty much everyone slightly aggrieved – apart from fund managers.
Still, the worst Budgets have tended to be those that were initially well-received so perversely there are probably reasons for optimism.
Most optimistically, Wednesday's speech does at least bring to an end the mind-numbing circular conversations of "we'll have to wait and see what's in the Budget".
Given that we are now already four months and one fiscal event into the new Government, at a point in time when many thought we wouldn't have yet had an election, we can hope that politics takes a step back and starts to tread more lightly on our daily lives once more.
At least until Tuesday when Americans stand ready to throw fuel gasoline onto the bonfire that is their political circus.
Wilson – Harold, not Woodrow – famously quipped "a week is a long time in politics". The next week is going to feel longer than most…
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ON RAINMAKERS THIS WEEK
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DRIVING WITH THE BRAKES ON
In a week when deal completions accelerated in case of any unwanted surprises in the Budget, the big deal news from the South West is about the CMA pressing the brakes a little firmer on the £762m takeover of Wincanton by US giant GXO.
The regulator had already put the deal into the slow lane through its use of an interim enforcement order, which stops the two organisations integrating while a merger review takes place.
Earlier today, the CMA revealed it had found enough evidence to believe there are “competition concerns” that warrant further investigation.
Unless GXO comes up with a good explanation in the next week why a group with a UK turnover of £1.8bn swallowing a competitor with £1.4bn turnover won’t affect choice in the market, an in-depth, phase two investigation awaits…
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CAFFE NERO TURNS UP THE HEAT TO 200 DEGREES
After rumours that had been swirling for most of the summer, this week 200 Degrees, the Nottingham coffee roaster and coffee shop owner, was sold to Caffe Nero.
The deal represents a real triumph for 200 Degrees founders Tom Vincent and Rob Darby, who set their first shop up in Nottingham's Flying Horse Walk in 2012. Despite the pesky pandemic decimating the hospitality sector, the pair dug in and now have 21 shops across the Midlands and the North.
In a boon for fans of 200 Degrees everywhere, Caffe Nero has said it will continue to operate as an independent business within its wider group.
We'll have an exclusive interview with Rob Darby in November - don't miss it!
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QUARTERLY BRAGGING RIGHTS NOT MUCH TO CROW ABOUT
While the publication of the latest quarterly M&A deals data by Experian is eagerly anticipated by the region’s professionals community, keen to claim bragging rights for the best legal and financial advisor ranking for the past three months, the latest figures point to a somewhat more serious trend.
The latest data revealed a 7% decline in the amount of deals done during the period. However, it also reported a 22% drop in deal value, to £13bn, across the region.
The small segment continues to struggle, while the mega segment contracted, from four deals in 2023 to just one in 2024, which contributed to the overall reduction in deal values for the region.
On a more positive note, flotations have made a welcome return, with two deals recorded, including the planned listing of Liverpool-based Applied Nutrition.
And quarter three marked the first mega deal for the North West in 2024, with Spanish energy company Iberdrola agreeing to acquire 88% of Electricity North West, the Stockport-based owner of the electricity distribution network for North West England in a transaction, valued at €2.5bn in equity, which places the total value of the company, including debt, at approximately €5bn.
Additionally, and reassuringly, the ever-present Business Growth Fund was revealed as one of the largest investors in the region, supporting five different companies.
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PELICAN BACKED BY GRANDFATHER’S BANK
A hefty deal for a West Yorkshire vehicle supplier promises to add serious momentum to Britain's efforts to clean up its public transport. Wakefield-based Pelican Engineering has secured a major order of electric buses with support from an eight-figure funding package from HSBC UK.
The deal will enable the supply of up to 600 new electric zero emission buses from a Chinese manufacturer, which will then be purchased by UK bus operators.
It's not only great news for the environment, but also demonstrates what a genuinely long-term business relationship can achieve. Pelican has enjoyed an impressively enduring relationship with its bank. Richard Crump, managing director at Pelican Bus and Coach, said it dates back to when his grandfather first opened a business account with HSBC UK.
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SAUCE MAKER ADDS SPICE TO FOOD GIANT’S MENU
From humble beginnings with just four products, Panesar now offers over 750 sauces, salsas, and condiments, generating £59m in revenue and employing 308 staff.
Now joining Paulig’s 2,200-strong workforce across 13 countries, Panesar Foods is set to bring even more international flair.
CEOs from both companies promise a tasty future of expanded flavours and new offerings for global markets.
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ONE WEEK TO GO TO LEADERSHIP AWARDS DEADLINE
This is just one week to go to enter TheBusinessDesk.com’s Leadership Awards, which are a great opportunity to raise the profile of the management teams of the businesses you invest in and advise.
The entry process is straightforward, and free, and there is a category for every size of business.
All the details are at leadershipawards.uk, and the deadline is November 8. Show some leadership today and get an entry sorted!