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FCC Servicios Medio Ambiente, the environmental services division of Fomento de Contstrucciones y Contratas (FCC), is in exclusive talks with Europe Services Groupe (ESG) to acquire its French operating business. The potential deal, subject to approvals and customary conditions, would allow FCC to enter the French market. ESG's business includes waste collection, street cleaning, and professional cleaning services, with operations in Paris and Lyon. FCC Servicios recently acquired Urbaser's UK business and manages waste in over 5,400 municipalities across Europe. The acquisition of ESG's business would be a significant step in FCC's growth strategy. [Extracted from the article]

FCC Servicios Medio Ambiente has completed the acquisition of Urbaser's UK business for £398 million ($506.7m). FCC Servicios, a Spanish company, has been operating in the UK since 1989 and will use this acquisition to expand its waste management operations across the country. Urbaser, also a Spanish company, handles around 1.5 million tonnes of waste per year. The acquisition includes facilities for composting, materials recovery, energy recovery, final disposal, domestic recycling centers, municipal waste collection services, recycling center management, and street cleaning. FCC Servicios' advisers for this deal were Santander Corporate & Investment Bank and Linklaters. [Extracted from the article]

Renewi, a European waste-to-product company, has agreed to sell its UK business to waste management company Biffa. The deal is valued at £125 million ($159 million) and will result in a net cost of €57 million ($96 million) to Renewi. The transaction will be funded through Renewi's existing credit facility and is part of Renewi's strategic shift towards growth in commercial and industrial waste in the Benelux region. Biffa, owned by Energy Capital Partners, aims to expand its low carbon collections network and contribute to the UK circular economy. [Extracted from the article]

Hywel Ball, the UK boss of Ernst & Young (EY), is set to step down as the company prepares to divide his role. EY will begin the process of selecting an internal successor for Ball in the second half of this year. The decision to separate Ball's role of UK chair and managing partner aligns with the governance code of the Financial Reporting Council. Ball has been with EY for two decades and was appointed to lead the UK business in 2020. This announcement follows EY's decision to abandon plans to spin off its global consulting business and a significant portion of its tax practice. [Extracted from the article]

The UK government has given clearance for the £15 billion merger between Vodafone and Three's UK business, with Vodafone owning 51% and CK Hutchison's Three owning 49% of the combined business. However, the government has set several conditions, including the establishment of a National Security Committee and technical group to monitor security issues, as well as a review of the network migration plan by an external, government-approved auditor. The Competition and Markets Authority (CMA) is currently conducting a Phase 2 investigation into the merger, which is expected to conclude in mid-September. Vodafone and Three have stated that they will not provide remedies to the CMA's concerns, with Three's CEO emphasizing the importance of the merger for the company's future. [Extracted from the article]

Walgreens Boots Alliance (WBA) is reportedly looking to sell its drugstores in the UK. The original merger between Walgreens and Boots took place about ten years ago. Boots Opticians is a joint venture between WBA and De Rigo, with WBA holding the majority share. WBA attempted to sell the UK business in 2022, but negotiations fell through. The company operates 12,500 drugstores globally and employs about 330,000 people. [Extracted from the article]

According to a recent survey conducted by polling company Savanta, UK business leaders believe that the Labour Party is the best party for business. The survey found that Labour holds a 17-point lead over the Conservatives, the largest gap recorded since the survey began in September. Nearly half of those surveyed said that the best election outcome would be for Keir Starmer's party to either win a majority or be the largest party. This shift in business opinion towards Labour is seen as transformational, especially after the left-leaning leadership of Jeremy Corbyn. The survey interviewed 1,000 UK business decision makers from May 10 to May 24. [Extracted from the article]

Get briefed ahead of your morning calls with the latest UK business headlines, key data and market reaction [ABSTRACT FROM AUTHOR]

HSBC Holdings Plc is launching accounting and tax tools for its small UK business customers to help them comply with the country's new Making Tax Digital rules. The partnership with accounting-software fintech Ember will allow businesses to prepare quarterly reports, instead of yearly ones, starting from 2026. HSBC's online banking platform will offer real-time profit and loss, self-assessment tax, and available dividends reports, putting the bank in competition with accounting software giants Xero Ltd. and Sage Group Plc. Ember, which recently secured £4 million in funding, sees the tax rule changes as a significant opportunity for banks, as many affected business owners lack the necessary tools for digital tax records. [Extracted from the article]

Bank of Ireland Group Plc has announced that it will wind down its corporate lending arm in Great Britain. The decision is based on the bank's desire to generate long-term sustainable returns. Approximately 40 employees in London and Manchester will be affected, but the wider UK business will not be impacted. The wind down of the existing book is expected to take up to 36 months to complete. This decision is part of the bank's strategy to focus on enhancing returns and investing in areas with greater potential for growth. [Extracted from the article]

Ithaca Energy has entered into an exclusivity agreement with Eni's UK assets, giving them a 4-week period to progress contracts for a potential combination. Under the terms, Ithaca would take control of Eni's UK assets in exchange for issuing new Ithaca shares, expected to be around 38 to 39%. Eni's UK business includes assets in four hubs and had a production of 40-45kboe/d in 2023. The proposed combination aims to add scale and diversification to Ithaca's business, boost near-term cash flows, and create a long-term strategic partnership with Eni. The deal will require shareholder approval. [Extracted from the article]

Ithaca Energy Plc, a North Sea oil and gas producer, is in exclusive talks to potentially acquire Eni SpA's UK upstream operations. This deal would increase Ithaca's North Sea output and support Eni's satellite model. Eni would receive new Ithaca stock in exchange for its UK business, holding 38% to 39% of Ithaca's share capital. The potential deal does not include Eni's carbon capture and storage and Irish Sea assets and would require shareholder approval. [Extracted from the article]

The UK has signed a non-binding memorandum of understanding with Texas, the second-largest state in the US, to enhance cooperation in green energy, aerospace, and advanced technologies. This is the eighth trade pact signed between the UK and a US state since Brexit, with a combined GDP of £5.3 trillion ($6.8 trillion). The agreement aims to facilitate mutual recognition of engineering qualifications and promote business in areas such as hydrogen and carbon capture. However, it falls short of a full Free Trade Agreement with the US. The UK has faced challenges in signing FTAs with other countries since Brexit. Texas Governor Greg Abbott and UK Business and Trade Secretary Kemi Badenoch are set to sign the deal in London. Some economists have criticized the UK's strategy of signing non-binding agreements, but the UK Department for Business and Trade argues that companies are already benefiting from these pacts. Further discussions are underway with California, Colorado, and Illinois. [Extracted from the article]

Keir Starmer's Labour Party has reached out to UK business leaders in various sectors, asking them to endorse the party ahead of an upcoming general election. The party plans to publish letters signed by executives supporting Starmer as the next prime minister, aiming to convince voters that the economy will be safe under Labour. This move is part of Starmer's strategy to distance himself from the left-wing policies of his predecessor and appeal to middle England. The letters, drafted by Labour officials, will be sent to numerous firms in an effort to gather as many signatures as possible. [Extracted from the article]

According to insights from UK business Hames Chocolates, some of the latest trends in the confectionery market for 2024 include indulgence, sharing, and enhanced flavor options. The popularity of chocolate is expected to remain strong, and there is an increasing number of shoppers turning to private label brands for their value, quality, innovation, and choice. Consumer trends such as a continued interest in indulgent treats and a desire for genuine sustainability credentials are also impacting the market. Hames Chocolates plans to launch a new range of white chocolate with delicate flavors, and they have expanded their hot chocolate options to include more unusual flavors. [Extracted from the article]

According to insights from UK business Hames Chocolates, some of the latest trends in the confectionery market for 2024 include indulgence, sharing, and enhanced flavor options. The popularity of chocolate is expected to remain strong, and there is an increasing number of shoppers turning to private label brands for their value, quality, innovation, and choice. Consumer trends impacting the market include a continued interest in indulgent treats and a desire for genuine sustainability credentials. Hames Chocolates plans to launch a new range of white chocolate with delicate flavors, and they have expanded their hot chocolate options to include more unusual flavors. [Extracted from the article]

The Body Shop, a UK-based retailer known for its cosmetics and hygiene products that are not tested on animals, is closing almost half of its 198 stores in the country after falling into insolvency. Administrators have determined that the current store portfolio is not viable, and seven stores will close immediately, including locations on London's Oxford Street and in Canary Wharf. The company will shift its focus to online and wholesale sales, resulting in the loss of over 300 jobs at its head office. The Body Shop's UK business entered administration after being acquired by private equity firm Aurelius from Brazilian cosmetics conglomerate Natura & Co. for £207 million ($262 million). [Extracted from the article]

AutoGrab, an Australian automotive intelligence platform, has announced its expansion into the UK. Rupert Pontin has been appointed as the Head of the UK business. Pontin, along with April Allanson and Paul Kelly, will be responsible for business development strategy and will be active in the UK retail network. AutoGrab offers digital products tailored for vehicle sourcing, acquisition, customer outreach, valuation, market analysis, and selling strategies. Pontin brings over 30 years of experience in the automotive industry to his new role. [Extracted from the article]

According to the Institute of Directors (IOD), UK business leaders are becoming slightly less pessimistic about the economy, although overall sentiment remains negative. The IOD's economic confidence index improved for the fifth consecutive month, but optimism is still low. The recent tax cuts announced by Chancellor of the Exchequer Jeremy Hunt have not significantly boosted confidence, as business leaders are seeking more economic stability. The biggest challenges identified by executives are UK economic conditions, skills shortages, energy costs, taxes, global economic conditions, and compliance with government regulation. [Extracted from the article]

According to two of the largest banks in the UK, the country will need billions in outside investment in order to grow, as domestic uncertainty has led to lower investment levels. Lloyds Banking Group CEO Charlie Nunn emphasized the importance of events like the UK's Global Investment Summit in attracting more investment. The British government has announced £29.5 billion ($37.2 billion) of new investment for the summit, although some of this had already been announced. Lloyds expects the economy to stagnate and unemployment to rise, which will put further pressure on households. HSBC's UK business boss, Ian Stuart, expressed optimism about the British economy, citing recent moves to lower the tax burden on businesses. He also mentioned that British consumer spending was slightly up year-on-year, despite technical issues with the bank's digital services. Stuart apologized for the inconvenience caused by the technical glitch, clarifying that it was not a cyber attack. [Extracted from the article]

Klarna Bank AB has received regulatory approval from the Financial Conduct Authority (FCA) to offer credit and payment products in the UK. However, the approval does not cover the company's popular buy-now-pay-later loans. Klarna established a UK-based entity, Klarna Financial Services UK, to offer all of its consumer-facing products in the country. The FCA's approval puts Klarna's UK business on a secure regulatory footing, and the company has argued that its buy-now-pay-later offerings should also be regulated. Klarna recently reported its first quarterly operating profit in four years and is preparing for an initial public offering. [Extracted from the article]

Money markets are reducing their bets on interest-rate cuts by the Bank of England in 2024 after strong UK business activity data indicated persistent inflation in November. Traders are now expecting the central bank to lower rates by around 60 basis points next year, with two quarter-point reductions fully priced in, starting in September. This is a significant shift from the previous week when traders anticipated almost a full percentage point of rate cuts as early as August. The positive business activity data has eased concerns of a recession, leading to a rise in gilts and the pound. [Extracted from the article]

(Bloomberg) -- Your morning roundup of key UK business news Billionaire Mike Ashley's Frasers Group is once more bolstering its bet on online fashion chain Boohoo Group Plc, whose shares have sunk almost 17% this year. Frasers has also been picking up shares in other UK retailers, with the latest move likely to stoke speculation on whether it's just taking advantage of undervalued stocks or there's more to its actions. [Extracted from the article]