BUSINESS LIVE: Superdry is being removed; B&M expects high profits; Doctor Martens’ boss resigns

(PA) – British packaging giant DS Smith has agreed to a £5.8 billion takeover by a US rival after its suitor emerged victorious for the company.

Under the all-share deal, Memphis-based International Paper will own approximately 66.3% of the combined group, while FTSE 100-listed DS Smith will own the remaining 33.7%.

It comes after International Paper completed a £5.1 billion deal between DS Smith and London-listed rival Mondi, which was agreed in principle last month.

International Paper will also seek a secondary listing of its shares on the London Stock Exchange following the acquisition, with each DS Smith share valued at 415p.

But it warns of back-office job losses across the combined workforce, with around 400 roles identified as at risk so far, although this is under investigation.

It said this was around 0.6% of its combined global workforce and would focus on “corporate, head office and senior management positions across DS Smith’s and the company’s respective businesses”.

Most of the affected roles are said to relate to corporate and administrative departments and are part of the target to save at least £413 million in ‘synergies’ post-acquisition.

Dr. Martens shares plummeted on Tuesday after the shoe maker unveiled a major profit warning and the impending departure of its CEO.

The iconic shoe brand, known for its association with youth subcultures such as mods and punks, said pre-tax profits could fall by around two-thirds this financial year.

Superdry will delist from the London Stock Exchange as part of a restructuring plan to save the company.

The embattled retailer told investors on Tuesday that the plan will also include rent cuts at 39 UK locations.

Britain has received much-needed relief as figures showed wages are outpacing inflation by the largest margin in two and a half years.

Regular wages rose by 2.1 percent year on year in real terms in the three months to February. That was the highest figure since September 2021, reflecting the easing of prices.

Capital gains tax is levied on profits from assets ranging from shares to second homes, buy-to-let properties and personal belongings.

Traditionally this has been applied at lower rates than income tax because it usually concerns the assets that people take a risk on – whether through entrepreneurial risk, or through investments outside of Isas and pensions.

Just as the post-lockdown global supply chain crisis seemed to be in the rear-view mirror, the issues resurfaced with a series of crises involving two of the world’s most important waterways.

Extremely low rainfall since last year, exacerbated by the El Nino phenomenon, has forced Panama Canal authorities to limit daily crossings and limit the amount of cargo ships that can travel through the Atlantic-Pacific highway.

When it comes to the International Monetary Fund (IMF), Europe continues to dominate the choice of who takes the top spot.

The reselection of Kristalina Georgieva, 70, for a new five-year term is no surprise.

The abandoned site of a once-planned massive £3.8 billion factory has been sold in a blow to the UK’s electric car industry.

US private equity giant Blackstone has agreed to purchase the 235-hectare site in Northumberland, where it plans to turn it into one of Europe’s largest data centres.

Danni Hewson, head of financial analysis at AJ Bell, comments on the latest UK jobs statistics, which show unemployment rose to 4.2 percent in the three months ending February:

“For months we have watched cracks begin to emerge in the UK labor market as the post-pandemic boom faded and the cost of living crisis forced businesses to cut back.

“Vacancies have fallen time and time again, and while they are still above pre-Covid lockdown levels, the fact that unemployment has also risen suggests there is a huge gap between the jobs available and the workers who are free are to fulfill them.

The skills gap is nothing new and there has never been a quick fix, but with economic inactivity also up by more than 22%, it is becoming an increasingly important issue.

“How can the UK economy grow if businesses are held back because they cannot find the workers they need to expand and realize their potential? Without that growth, the current economic torpor will become endemic and growing pressure on public finances will leave few options other than tax increases to balance the books.

The number of Footsie firms pushing for pay rises for their CEOs has risen even after the average salary hit £4.5m, a survey has found.

As the debate over excesses in boardrooms intensifies, Deloitte analysis shows that sixteen FTSE 100 companies are looking to review their remuneration policies this year.

Fintech companies including Revolut and Monzo are calling on the government to scrap stamp duty on share trading to revive stock markets.

They are among a group of companies that have signed a list of policy demands aimed at ensuring Britain retains its ‘leading global position’ in the sector.

CVC has revived plans to list in Amsterdam in a deal worth up to £13 billion, in a new setback for London.

The private equity giant halted an initial public offering (IPO) in 2022 and again in 2023 due to market uncertainty.

Profits at Goldman Sachs rose to a better-than-expected £3.3 billion in the first quarter of the year – thanks to a revival of its investment banking arm.

The 28 percent increase compared to the same period last year was helped by a rebound in transaction costs and a strong period for bond trading.

Tesla is cutting more than 10 percent of its global workforce as it struggles with declining sales.

The US automaker, led by billionaire Elon Musk, has been hit by weak demand for electric vehicles (EVs) and a price war with Chinese rivals.