LONDON’S BUSINESS NEWSPAPER
THE HIGH STREET’S FUTURE? IT MIGHT BE IN HOUNSLOW. ELENA SINISCALCO ON A BRAVE NEW IDEA P14-15 TUESDAY 28 FEBRUARY 2023
ISSUE 3,941
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GETTING BREXIT DONE (SO, CAN WE TALK ABOUT SOMETHING ELSE NOW?)
CITY A.M. REPORTERS PRIME MINISTER Rishi Sunak appeared to close the book on the first tempestuous chapter of Britain’s postBrexit relationship with the EU yesterday with the signing of a new deal for Northern Ireland. The Prime Minister secured what he called a “decisive breakthrough” in talks with the European Commission’s President Ursula von der Leyen in Windsor. The so-called ‘Windsor Framework’ will change customs arrangements for goods
crossing the Irish Sea, and the Northern Ireland Assembly will have the chance to trigger the ‘Stormont Brake’ if changes to EU rules which would apply to Northern Ireland were considered unacceptable. That would act as an effective veto. Last night, figures within the DUP, the unionist Northern Irish party, said that progress had been made but that there were still areas of concern. Jacob Rees-Mogg, the de facto spokesperson for a group of hard Brexiteer backbenchers within the Tory party, said that “there will be quite a significant number of Conservatives
who are unhappy”. Rees-Mogg also set the stage for another round of Tory in-fighting, warning that the opinion of Boris Johnson would be “fundamental”. The former Prime Minister had pushed for the negotiations with the EU to end, and a bill to rip up the Northern Ireland protocol – which he agreed in 2020 – pursued through parliament instead. However last night the mood music was that Sunak would be able to move his deal through parliament without a widespread Tory rebellion. Steve Baker, the arch-Brexiteer and now Northern
Ireland minister, said it was a “fantastic result” for the UK. Both the FTSE 100 and 250 enjoyed a spark of life thanks to the deal, as did the pound, which rose 0.8 per cent against the dollar. Business groups welcomed the deal and the constructive language used by both Sunak and von der Leyen in yesterday’s press conference, with the latter saying the pact marked a “new chapter in our partnership” and making warm noises regarding the UK’s participation in continent-wide research projects. The City of London Corporation said the
“positive news” on the deal would “allow us to focus on the critical challenges facing our economy”. “With this resolution I welcome the chance for UK financial services to once again engage productively with our partners in the EU for the benefit of both our economies,” the body’s policy chairman said last night. The unexpected inclusion of the ‘Stormont Brake’ will also put pressure on all Northern Irish political parties to rebuild the assembly in the country, which has not sat since the DUP pulled out of power-sharing in October.
Dealmakers of the world unite: City bosses expect 2023 rebound in M&A activity CHARLIE CONCHIE
BOSSES at the UK’s top firms are braced for a wave of takeovers this year as foreign buyers continue to swoop on cheap London-listed companies amid a rebound in dealmaking, new research has found. Nearly ninety per cent of FTSE 250
directors said they believed UK firms were vulnerable to foreign takeovers this year, with a weak pound and falling valuations making firms an appealing prospect for buyers, according to research from investment bank and broker Numis. Numis found that overseas corporates and private equity firms
were “motivated to be active in UK M&A this year”, with 97 per cent of UK corporates predicting increased competition for UK businesses and assets. The predictions come after London-listed Wood Group said last week it had rebuffed a number of offers from US buyout giant Apollo,
while events firm Hyve said it was mulling a £306m takeover approach from US private equity outfit Providence Equity. Lawyers said the quality of UK firms combined with a weak pound meant unsolicited approaches were likely to come thick and fast this year.
“Private equity and strategic buyers are keen to do deals and a significant amount of preparation and outside-in diligence is underway,” Katherine Moir, M&A partner at Clifford Chance told City A.M. yesterday. £ CONTINUED ON PAGE 3
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