Food factory workers fearing for their jobs after £1.2billion merger between two ready-meal giants
FOOD factory workers are fearing for their jobs after a £1.2billion merger between two ready-meal giants.
Greencore, the UK’s biggest maker of sandwiches, yesterday struck terms for a merger with Bakkavor the maker of hummus dips, pizzas and desserts.
The deal will create a food colossus with £4billion of revenues from selling salads, sushi, soups, quiches and meals to almost all our supermarkets.
Shares in Bakkavor jumped by 7.87 per cent to 191.8p while Greencore’s shares also edged up by 0.90 per cent to 180.20p.
The takeover of Bakkavor will result in a £600million payday for the “Bakka brothers” — the nickname for Lýdur and Ágúst Gudmundsson, who had run the business until three years ago.
But workers have been put on notice that the deal will result in cost-cutting after the companies said they believed there “is potential for substantial synergies resulting from a combination”.
Eamon O’Hearn, GMB union national officer, said: “GMB is calling for a commitment to no factory closures and no job losses.” Bakkavor already has tense labour relations — and strikes lasted six months at its factory in Spalding, Lincs, before a deal on pay last month.
Greencore employs 13,300 people while Bakkavor employs 17,200 and both firms face significantly higher staffing costs as a result of the Budget’s changes to employers’ NI contributions.
The deal will undoubtedly trigger an investigation from the Competition and Markets Authority because Greencore and Bakkavor have overlapping businesses and a shared customer base.
It will be one of the first merger tests for the competition watchdog since it was given an explicit growth mission by the Government.
There are concerns the new firms could push up prices.
CAUGHT SHORTBREAD
WALKER’S SHORTBREAD has said US tariffs will be “devastating” for the 127-year-old biscuit maker.
Nicky Walker — from the fourth generation to head the family-owned firm — said they would have to “hope for the best” if slapped with 20 per cent levies.
He told us that the Highlands-based company had strategically grown its hefty export business to America in recent years.
The US is now worth more than a quarter of its revenues, at some £38million.
Mr Walker added: “We don’t have the option of moving our manufacturing out of Scotland.
“The provenance of our product is paramount, and we’re proud to be made in Scotland — our tartan packaging screams Scotland.
“We can’t just go and start making shortbread in other countries to avoid tariffs.”
There are hopes that Trump’s late mother being Scottish might help in trade negotiations, but Mr Walker admits it is a “long shot”.
PI PROFIT IS SLICED BY HALF
LOW-cost computer maker Raspberry PI has posted a halving in profits in its first year of being a listed company.
The firm, held up as a rare British success story, blamed the slide in profits on a hangover from pandemic- related shortages and said it had overcome supply issues.
Pre-tax profits fell 57 per cent to £12.6million, but its adjusted earnings of £28.8million were £500,000 ahead of what analysts had predicted.
Sales edged 2 per cent down to £201million this year.
The Cambridge-based firm, whose products are meant to teach coding to kids, said it had faced £12.2million in extra costs associated with its listing last year.
Boss Eben Upton said that its £542million listing had “undoubtedly extended awareness of Raspberry Pi’s value proposition” and had led to “promising” discussions with equipment manufacturers.
TESLA HIT THE SKIDS
TESLA has suffered its worst slump in sales in three years as it faces a consumer backlash in Europe due to Elon Musk’s links to the Trump regime.
Vehicle sales fell by 13 per cent in the last quarter, while in Europe registrations tumbled by 43 per cent.
It also faces stiff competition from Chinese rival BYD.
However, analysts said the slump was also due to Tesla factories being impacted by a delayed launch of its revamped Model Y car.
SHELL TO DRIVE ON DIVERSITY
SHELL might have reacted to Donald Trump’s anti-woke agenda by watering down green targets but it is one of a few corporate beasts to still embrace diversity policies.
Trump’s elimination of diversity, equity and inclusion policies (DEI) has caused companies ranging from Accenture to Goldman Sachs, Disney, Pepsi, Coca Cola, Boeing And Molson Coors to swiftly abandon or “sunset” diversity targets.
The Trump administration has warned suppliers and recipients of any government funds that they must comply with a ban on DEI programmes or risk losing payments.
Many global firms have also deleted web pages referring to their DEI programmes.
However, The Sun’s analysis shows Shell still includes targets in its annual report while its boss, Wael Sawan, is still quoted saying “creating the most diverse and inclusive organisation in the world will make us a better company and is going to be a competitive differentiator for us in the energy transition”.
BP, which is leaning into Trump’s “drill baby drill” agenda and followed Trump’s renaming of the Gulf of Mexico to Gulf of America, is still sticking by its DEI programmes.
BP’s boss, Murray Auchincloss, had previously been the oil giant’s “race and ethnicity champion” in the UK.
Both have huge operations in the US.
MARKET END OF THE PIER
THE leisure group behind the 126-year-old Brighton Palace Pier has become the latest firm to quit London’s junior stock market.
Brighton Pier Group – which also owns a number of bars and mini-golf venues – said it is planning to cancel its listing on London’s Aim market, sending shares slumping by nearly 60 per cent.
The firm, chaired by former chairman of Pizza Express and Patisserie Valerie Luke Johnson, said the decision follows a “review of the benefits and drawbacks” of its stock market listing.
It marks the latest blow to the Aim market after model train firm Hornby revealed plans last month to go private, blaming regulatory hurdles and costs involved.
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