London’s FTSE indexes were flat on Friday in the absence of any major pieces of economic data, but investors had more M&A to dig into following Barclays’ acquisition of Tesco’s retail banking arm.
The FTSE 100 was up 0.05 per cent at 7,599.50 while the FTSE 250 index, which is more aligned with the health of the domestic economy, edged up marginally to 19,102.80.
Shares in Tesco climbed after Barclays confirmed that it was buying the supermarket’s retail banking arm for around £600m.
Barclays will acquire Tesco Bank’s 2,800 staff and form a 10-year partnership with the retailer to distribute credit cards, unsecured personal lending and deposits using its brand.
C.S. Venkatakrishnan, Barclays’ chief executive, said the deal was a “further demonstration of the investment we continue to make in our UK consumer business.”
Tesco shares were up over two per cent in early trade, taking it to the top of the FTSE 100, while Barclays shares dipped slightly.
On the FTSE 250, housebuilder Bellway saw a significant drop off in completions and revenue in the six months to the end of January.
In a six-month trading update issued today, the firm said it finished 4,092 homes in its interim period against 5,695 for the same period a year prior.
However, shares were up 0.2 per cent after the firm noted “encouraging levels of customer enquiries in the traditionally quieter winter trading period,” as mortgage rates had stabilised.
Air Astana meanwhile has bagged an $847m (£671m) valuation from investors as it gears up for a Valentine’s Day IPO that will be seen as a test of the health of London’s beleaguered listings market.
In an announcement to the market this morning, the Kazakh airline, which is half-owned by BAE Systems, said it would float at a price of $9.5 per share, giving the firm an implied valuation of $847m.