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Market Update

Barclays Exits Italian Retail Business; Bunzl and Braemar in Focus

Author: Sarla Buch
Last Update: 12:53 PM ET August 30 2016

4:00 PM Frankfurt – Bunzl completed the acquisition in Canada and agreed to acquire Hungary-based food services supplier. Braemar Shipping plunged after weak fiscal outlook. Mediobanca agreed to acquire Barclays’s domestic retail unit for €240.5 million. Petrofac net swung to profit. Shell divest certain assets in the Gulf of Mexico.

European markets lacked direction and investors awaited rate decision in the U.S.

In London trading, FTSE 100 index slipped 24.46 or 0.4% to 6,813.59 and in Frankfurt the DAX index advanced 118.94 or 1.1% to 10,663.08.

In Paris, CAC 40 index jumped 45.20 or 1% to 4,469.45.

Bunzl Plc slipped 1.1% to 2,393 pence after the U.K.-based non-food consumable products distributor reported revenues in the first-half ending in June soared 10% from a year ago to £3.4 billion.

Net profit in the period jumped 6% from a year ago to £111.4 million compared to the £105.1 million and diluted earnings per share increased to 33.4 pence from 31.8 pence.

Separately, today Bunzl completed Canada-based acquisitions of Plus II Sanitation Supplies Inc and Apex Sanitation Products Ltd, the sanitation services providers.

The distributor also signed an agreement to acquire Hungary-based Silwell Kft, a disposable food items service supplier without disclosing of financial terms.

Braemar Shipping Services Plc plunged 9.1% to 368.90 pence after the U.K.-based marine logistics service provider estimated weak result in the fiscal year ending in February 2017 compared to fiscal 2016.

Chief executive officer James Kidwell said this was mainly due to lower activity in ship-broking, lower tanker freight rates, slow-down in demand and on the weakness in the offshore business.

Mediobanca Group jumped 2.5% to €6.54 after the Italy-based retail banking services provider agreed to acquire domestic rival from Barclays Plc through its subsidiary CheBanca! for €240.5 million.

The deal involves selling 85 branches employing 564 staff and Barclays is expected to take a loss of £258 million.

The deal, first announced in December, will double Medobanca’s retail size in funding to more than €20 billion with 220,000 retail clients of which 50,000 in the “premium” bracket.

The deal has come at a tough time for the Italian bank as investors have dumped shares of in the banking sector on the rising bad loans. Mediobanca stock has dropped 36% in the year so far.

Petrofac Limited rose 0.2% to 868.50 pence after the Jersey-based oil and gas producer said revenues in the first-half ending in June soared 22.3% from a year ago to $3.9 billion.

Net in the period swung to profit from a year ago to $12 million compared to the loss of $182 million and diluted earnings per share swung to 3.50 cents from diluted loss per share of 53.52 cents.

Royal Dutch Shell Plc gained 0.3% to 1,901 pence after the Netherlands-based oil and gas producer agreed to sell certain assets in the Gulf of Mexico to independent oil and gas company EnVen Energy Corp for about $425 million, plus royalty interests.

The transaction is expected to close in October.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc