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Market Update

Carrefour, Tesco in Sourcing Partnership, Vedanta to Delist from LSE

Author: Sarla Buch
Last Update: 11:53 AM EDT July 02 2018

4:00 PM Frankfurt Carrefour and Tesco plans to form a global sourcing partnership. Meggitt lifted revenue outlook. Recordati tumbled after it agreed to be acquired by a consortium. Vedanta plan to delist from the London Stock Exchange.

In London trading, FTSE 100 index dropped 76.74 or 1% to 7,560.59 and in Frankfurt the DAX index slid 8.37 to 12,295.32.

In Paris, CAC 40 index slumped 34.71 or 0.7% to 5,288.81.

Carrefour SA dropped 0.7% to 13.76 after France-based grocery retailer and the U.K.-based groceries and general merchandise retailer Tesco Plc plans to form a strategic partnership with global suppliers to source store branded goods.

Tesco reaffirmed that the alliance will be agreed within next two months following formal agreement.

""This strategic alliance is a major agreement as it purchasing expertise of two world leaders, complementary in geographies, with common strategies,"" said chief executive of Carrefour Alexandre Bompard.

Meggitt Plc soared 5.7% to 521.40 pence after the U.K.-based engineering and aerospace equipment maker lifted fiscal 2018 total revenue growth between 4% and 6% from the earlier estimate of 2% and 4% and revenue growth of 6 to 8% in the military segment from the earlier estimate of 3 to 5%.

However, aerospace components maker estimated lower operating margins in the range of 17.7% to 18% after slower-than-anticipated recovery at Meggitt Polymers & Composites Ltd during the first-half.

Recordati SpA tumbled 12.9% to 29.66 after Italy-based drug-maker maker agreed to be acquired by the U.S-based consortium led by CVC Capital Partners for 28 per share or about 3 billion or $3.5 billion.

The agreement includes 2.3 billion in cash and 750 million in subordinated long-term debt securities.

The transaction is expected to close in the in the last quarter of 2018.

Vedanta Resources Plc surged 26.3% to 816.80 after the U.K.-based diversified mining conglomerate today said it plans to delist from the London Stock Exchange.

The mining company offered to acquire the remaining minority stake in the company for 825 pence per share valuing the stake at 2.3 billion and also buy 33.5% of non-promoter shareholders stake for about $1 billion.

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