Proactive Investors -
- Blue chips open flat at 7,751
- Vodafone (LON:VOD) Italy sold to Swisscom
- Barratt-Redrow merger under review
UK watchdog investigating Barratt-Redrow merger
The UK competition watchdog has opened an investigation into the high-value merger between British housebuilders Barratt Developments PLC (LSE:LON:BDEV) and Redrow PLC (LSE:LON:RDW).
Barratt struck a deal in February to buy Redrow for £2.5 billion.
Both firms described the deal as a “uniquely compelling opportunity” to “create an exceptional UK homebuilder”.
But the CMA is looking into whether the merger may result in a “substantial lessening of competition within any market or markets in the United Kingdom for goods or services”.
The CMA has opened a window to comment until 2 April.
Vodafone Italy sold to Swisscom for €8bln
Vodafone has announced the €8 billion (£6.8 billion) sale of its Italian operations to Swisscom.
The British telecoms multinational initially confirmed talks with Swisscom on a potential sale in February as part of a major opertational review.
"Today, I am announcing the third and final step in the reshaping of our European operations,” remarked Vodafone boss Margherita Della Valle. “Going forward, our businesses will be operating in growing telco markets - where we hold strong positions - enabling us to deliver predictable, stronger growth in Europe.
“This will be coupled with our acceleration in B2B, as we continue to take share in an expanding digital services market.”
Della Valle said the sale of Vodafone Italy “creates significant value for Vodafone and ensures the business maintains its leading position in Italy, which has been built through the dedicated commitment of our colleagues to serving our customers over many years”.
The sale puts a 7.6 times adjusted EBITDA valuation on Vodafone Italy.
FTSE to open flat
The FTSE 100 blue-chip index will open flat when markets open today after closing 29 points lower at 7,743 on Thursday.
All eyes are on Vodafone, which this morning confirmed an €8 billion sale of its Italian operations to Swisscom.
The debt-ridden British telecoms multinational initially confirmed talks with Swisscom on a potential sale in February as part of a major overhaul of its European footprint.