Daniel Black
Hello,
It’s been a busy week in the FMCG market, with homecare acquisitions and ice cream IPOs making the headlines. We also saw an unexpected 0.1% growth in the UK economy in Q4, in part due to increased spending in pubs in the run up to Christmas.
My three highlights this week:
- Reckitt is entertaining multiple bids for its £5bn homecare portfolio
- Unilever is closing on a £230m deal for personal care startup Wild
- Cricket’s Hundred tournament is now a billion pound competition
Enjoy the read and remember to connect with me on LinkedIn.
Deal Tracker
Our weekly roundup of all the confirmed M&A deals in the UK.
The Rumour Mill
- UK should regulate companies doing business in the country, British business minister Jonathan Reynolds says when asked about Shein
- UK economy shows surprise growth of 0.1% in Q4 2024
- The pound rose 0.57% to $1.25155 against the dollar after surprise growth data
- Bank of England allots record £54.7bn in short-term repo
- UK equity fund outflows near £100bn since Brexit, with £16bn withdrawn in 2024
- The UK CMA clears BlackRock’s £2.5bn takeover of Preqin
- Auction of stakes in English cricket’s Hundred tournament has pushed its total value to nearly £1bn
- Advent, Lone Star and Apollo are among bidders for Reckitt Benckiser’s homecare assets, with the company seeking up to £5bn for the portfolio
- The Qatar Investment Authority makes multimillion-dollar investment into Utopia Capital Management
- Vitabiotics revives plans to sell its £1bn business
- Unilever nears purchase of personal care company Wild
- JPMorgan Global Growth & Income is to merge with Henderson International, creating an investor with £3.4 billion in net assets
- Diversified Energy is to acquire Maverick Natural Resources for £1bn
- PRS REIT raises dividend 10% as potential buyers show interest
- Fintech Asia completes a £130m reverse takeover of ICFG Pte Ltd, rebranding as ICFG Ltd, as its shares are set to recommence trading on the LSE
- Boaz Weinstein-backed Saba Capital’s activist bid to take over seven UK investment trusts has failed
- UK paytech Paysafe reportedly exploring potential sale amid takeover interest
- L&G sells US protection unit to Japanese insurer for £1.84bn
- ITV investors back a potential deal involving UK broadcaster’s studio arm
- Montagu is set to acquire Multifonds fund accounting software business
- TA Associates makes strategic investment in Facts Global Energy
- Tower Peak opens LatAm offices in Panama and Brazil
- FTV Capital invests £36m into tech-enabled platform Validus
- BGF makes minority growth investment into Paperchase
- Barclays investment bank fees jump 28% on debt underwriting boom
Salaries and bonuses
- BP cash bonus is to be paid at 45% of target after poor performance
- Barclays’ bonuses are at highest level for five years for top performers
- VTB Capital shells out £10m on 12 City employees as wind-down extended until 2029
- The average banking MD generates £3.6m in revenues
- HSBC CEO Georges Elhedery may see a 50% pay rise as senior colleagues disappear
- McKinsey & Co. partners receive same salaries as VPs in banks
Job moves
- Entain chief Gavin Isaacs steps down after five months in role
- Trilantic Europe hires new Partner to head Energy Transition Investments strategy
- Commerzbank to cut 3,900 jobs, as it fends off UniCredit
- Lendscape announces leadership transition, CEO Kevin Day to step down
- Industry veteran Simon Featherstone joins Monument Technology as non-executive chair
- UK challenger Monument Bank names Shaun Bohannon as new CTO
- Lunar appoints Nanna Bergmann to lead payments infrastructure entity Moonrise
- JPMorgan is set to make multiple rounds of job cuts
- Rokos Capital partner Luke Sadrian leaves the hedge fund
- A quiet HFT firm from Chicago, Radix Trading, has started hiring in London
- Carlyle’s UK rising star Mark Dale heads for the exit
Market Trends
Lower rates, dimmer outlook?
As the Bank of England’s long-anticipated cut in interest rates took place last week, it also halved its 2025 GDP growth forecast to 0.75% from 1.5% in November. Inflation is now predicted to reach 3.7% in Q3, driven in part by rising energy prices, while unemployment is forecast to climb to 4.8%.
Trade tensions: Caught between Washington and Brussels
Trump’s tariff threats are rattling global markets, with the UK watching cautiously from the sidelines – for now. While Britain has so far escaped direct US trade penalties, the interconnected nature of supply chains means UK firms could still feel the pinch, if their European partners like Germany (whose US exports amounted to more than £128bn in 2024) are affected.
The UK sends 14% of its exports to the US, with top goods including most mechanical power generators, cars and pharmaceuticals. Bloomberg Economics reports that a 20% US tariff could potentially slash UK GDP growth from 1.1% to 0.4%.
Meanwhile, Labour’s push for closer EU ties may complicate UK-US trade talks, particularly over agrifood imports like hormone-fed beef. Experts therefore warn that Keir Starmer will be forced to strike a difficult balance between Brussels and Washington.
M&A monthly activity update
In January 2025, the UK public M&A market saw three firm offers and six possible ones. The largest deal was American Axle’s £1.16bn offer for Dowlais Group, continuing the trend of high-value transactions. Mixed consideration deals also emerged, indicating a move away from cash-only offers.
Fundraising
- BC Partners is to seek up to £5bn for its new flagship fund
- Rapyd reportedly in talks over new £240m funding round at £2.8bn valuation
- Northcote Equity closes maiden fund at £160m
IPOs
- IVC Evidensia, Europe’s largest veterinary group considers London listing
- Shein poised to slash valuation to £40bn in London IPO
- Saudi Arabian Unicorn Tabby Taps HSBC, JPMorgan, Morgan Stanley for IPO
- Unilever chooses Amsterdam over London for ice cream unit listing
- Will 2025 spark a UK IPO revival?
