Rolling coverage of the latest economic and financial news
- Latest: TransDigm won’t make firm bid for Meggitt
- Rates could rise if recovery continues and inflation looks persistent
- Any rise would be ‘relatively limited’ says Bank of England’s Saunders
- Cleaning company McBride hit by raw material cost surge
- Takeovers of UK companies by foreign buyers jumped in Q2
Earlier:
- UK orders national security review of graphene firm’s takeover
- UK house prices hit record high despite cut in stamp duty break
- Intro: China’s exports beat forecasts in August, up 25.6%
- German industrial production jumps 1% – supply bottlenecks easing?..
- …but investor confidence hit by supply chain shortages
Heads-up: UK chancellor Rishi Sunak will deliver a three-year spending plan and a budget statement on Wednesday October 27, the Treasury has said.
Sunak, who has ramped up public spending to protect the economy against the hit from the coronavirus pandemic, had previously said he would announce the latest official economic forecasts on that date (via Reuters).
Another big Government announcement: the Chancellor will deliver a three year Whitehall-wide Spending Review AND the Budget on Wednesday October 27. Big day.
Related: Boris Johnson unveils £12bn-a-year tax rise to pay for NHS and social care
Just in: US aerospace company TransDigm has dropped its attempt to take over UK defence rival Meggitt.
TransDigm says that “after careful consideration” it does not intent to make a firm offer for the historic UK firm, which was in a two-way takeover battle.
“We have long admired and studied the Meggitt business and believed that a combination between the two companies could provide value to investors of both companies. However, based on the quite limited due diligence information that was made available and the resulting uncertainties, TransDigm could not conclude that an offer of 900 pence per Meggitt share would meet our long-standing goals for value creation and investor returns.
TransDigm and our advisers put substantial time, effort, resources and expense into evaluating a potential transaction. We reached a memorandum of understanding with the Meggitt Pension Plan trustees, arranged the necessary financing for the acquisition which we anticipated would position us roughly in the range of leverage levels that we have used historically for larger acquisitions, and communicated our willingness to make commitments to HM Government comparable to those offered by the other bidder for Meggitt.
Meggitt tumbles as TransDigm says it won’t make an offer https://t.co/RGow3t5dBt
Related: Kwarteng mustn’t fall asleep at the controls over Meggitt | Nils Pratley