Daniel Black
Hello,
It’s tough being a breadmaker these days. The owners of Kingsmill and Hovis are in talks about a potential merger as they struggle with multi-million pound annual losses.
The move is driven by changes in the nation’s eating habits, with consumers apparently shunning sliced white loaves in favor of yogurt and croissants, according to a report in the FT.
In other top stories:
- DoorDash confirmed its £2.9bn deal for Deliveroo
- Interest rates were cut to 4.25%
- Shell is considering a bid for BP
Thanks for reading, and connect with me on LinkedIn if you want to discuss how I can help with your next M&A deal.
Deal Tracker
Our weekly roundup of all the confirmed M&A deals in the UK.
The rumour mill
- UK private capital investment hits £29bn in 2024
- Bank of England cuts UK interest rates to 4.25%
- UK government on course to breach its fiscal rules, says think-tank
- Trump to announce trade deal with UK
- JLR and Diageo are among winners as UK-India sign model trade deal
- Rathbones’ assets fell 5% to £104bn ahead of tariff turmoil
- DoorDash strikes £2.9bn deal for Deliveroo
- DoorDash’s grab for Deliveroo puts brakes on London’s tech hopes
- Kingsmill owner in merger talks with rival bread maker Hovis
- Reading agrees to sale of football club to Redwood Holdings
- Resolute Mining buys Ivory Coast projects from AngloGold Ashanti
- ‘Woodoku’ maker Tripledot buys AppLovin’s mobile gaming business for $800mn
- Trakm8 shares triple as it agrees terms for takeover by Brillian UK
- Alpha Group rejects all-cash proposal from Corpay
- Serica is confident in standalone prospects as Enquest halts bid interest
- Database firm’s shares jump 23% after American bid
- Anglo American working with Peabody over coal mine sale after fire
- AB Foods confirms talks with Endless on future of its Bread Unit, Allied Bakeries
- What went wrong for BP? Why the oil major hit reset
- BP shares rise amid reports Shell considering takeover offer
- Shell is studying merits of BP deal as rival’s stock slumps
- Accenture is to acquire digital services provider Yumemi
- Bill Ackman’s Pershing Square invests £676m in Howard Hughes
- Intertek buys Brazilian building products testing firm Tesis
- Synthomer to divest from inorganic chemistry business William Blythe
- Assura extends deadline for posting document on KKR-led takeover bid
- Ovoca Bio to cancel trading on Euronext as plans reverse takeover
- FD Technologies soars on possible £542m buyout by private equity firm
- Empresaria says takeover proposal from consortium undervalues company
- SilverRock is being folded into GB Bank
- UK financial industry players to fund new operator for commercial VRPs
- Exiting Esure owner reportedly in talks to lead £1.5bn investment in Acrisure
- Arlington Capital seeks bank to shop aerospace parts maker FSG
- Ari Emanuel to buy Frieze art fairs from Endeavor
- MHA agrees £20.3 million deal for Baker Tilly’s Greece and Cyprus unit
- Activist investor’s play for Upper Crust owner sets stage for takeover
- Cantor Fitzgerald bolsters UK operations with new City office
- Palatine exits Suntera Global after six years
Salaries and bonuses
- Barclays hikes CEO’s maximum pay to £14.3m
- Private equity professionals were paid less for 2024, but at least they worked less too
Job moves
- UBS hires Morgan Stanley banker Guarino to lead ECM syndicate in Europe
- BFS appoints Ashman co-founder Mark Holloway as CITO
- Temenos veteran Martin Bailey departs after 25 years
- HSBC starts search for new chair as Mark Tucker to step down
- Former HSBC investment bank boss Guyett quits to join EBRD
- JPMorgan & Morgan Stanley cut heads, raised pay in London last year
- Now a boutique cut ECM bankers in London
- HSBC plans 200 hires for UK wealth business
- PwC UK names Duncan Cox as Private Equity business lead
Market trends
UK cuts borrowing costs
The Bank of England cut interest rates to 4.25% this week, the fourth such move since August, citing continued easing in inflationary pressures and a weakening labour market.
However, the decision reveals deep divisions within the Monetary Policy Committee, with Governer Andrew Bailey urging a gradual approach and chief economist Huw Pill opposing rate cuts.
GDP growth is now expected to slow to 1.25% by 2026, while inflation is likely to stay on a softer trajectory.
From FT’s Bank of England expected to cut rates as US trade war hits growth
Lacking leverage in tariff talks
Despite the apparent good news on a trade deal with the US, the UK is at a significant disadvantage during the negotiations both politically and mathematically. Nearly all US goods imported into the UK hold a greater importance to domestic supply chains and consumers than they do to American exporters, giving Washington far more considerable room to impose tariffs without hurting itself.
The FT’s analysis compared the relative reliance of British importers on product groups arriving from America, with US dependency on the UK as an export destination. According to the report, the US holds ‘the whip hand for nearly 96 per cent of goods it exports to the UK.’
This is the highest imbalance among major economies, an asymmetry that leaves London with limited cards to play.
PE doubles down on European clean energy
PE’s relationship with European clean energy has shifted from subsidy-driven speculation to becoming a serious strategic player, according to PitchBook.
It’s no longer just backing wind turbines alone, PE firms now target the digital core of transition, like data centers, software, and grid tech, where returns align with rising demand for greener infrastructure. This was reflected in record deal volumes last year.
Return of the de-SPAC
According to Mergermarket, European de-SPAC M&A is making a strong comeback. In a de-SPAC deal, a private company merges with a publicly-listed SPAC, a special purpose acquisition company created to take another firm public. This offers a faster and less volatile alternative to traditional IPOs.
So far in 2025, the value of de-SPAC deals involving European firms has already surpassed all of 2024, with €3.84bn across just five deals. These include major transactions such as VERAX Biotech’s merger with Voyager Acquisition and Kyivstar’s tie-up with Cohen Circle.
IPOs
- Robinhood rival EToro Group and its backers seek $500 million in US IPO
- Shein’s London IPO is stalled amid US tariff fallout
- Rio Tinto shareholders reject activist bid for review of London listing
