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  • Business and finance update 7th October 2024

Business and finance update 7th October 2024

UK’s coal farewell

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Good morning. Today we're talking about the end of coal in the UK, Mulberry’s takeover rebuff and TGI Friday’s rescue deal.

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UK’s coal farewell

The UK has made history by becoming the first G7 nation to completely eliminate the use of coal-fired power. It ends a 142-year reliance on the fossil fuel and marks a significant milestone in the country's transition to cleaner energy sources. The move is expected to have a positive impact on the UK's carbon emissions and contribute to its efforts to combat climate change. In recent years, the country has rapidly increased its reliance on renewable energy sources, with solar and other renewables now accounting for 50% of the UK's power generation. While the closure of coal plants is a major step forward, the UK still faces challenges in reducing its reliance on fossil fuels. Natural gas currently accounts for approximately one-third of the country's electricity generation, and further efforts will be needed to transition towards a fully decarbonized energy system. Burning coal emits more greenhouse gas emissions into the atmosphere than any other fossil fuel, so the UK is not the only major economy that’s worked to quit it. The rest of the G7 nations aim to close any coal plants that do not capture their carbon emissions by 2035.

Mulberry fights off takeover

Frasers Group, the retail conglomerate which owns Sports Direct, Evans Cycles and multiple other retail brands from Slazenger to Jack Wills, has made a hostile takeover bid for Mulberry, the luxury handbag maker. Mulberry has rejected the £83m offer, valuing itself at a significantly higher price. The proposed takeover has created a tense standoff between Frasers Group and Mulberry's majority shareholder, Christina Ong. Frasers Group has a 36.8% stake in Mulberry and has been a vocal supporter of the company's turnaround efforts. The rejection of the takeover bid has sent Mulberry's shares plummeting, reflecting investor uncertainty about the company's future. Mulberry's sales have fallen sharply following a downturn in the luxury sector, and last week it announced plans to raise nearly £11m to bolster its finances. The luxury brand is now facing pressure to demonstrate its ability to execute its turnaround plan and deliver value to shareholders.

TGI rescue deal

TGI Fridays is set to receive a much-needed lifeline as a rescue deal is finalised between restaurant investors Breal Capital and Calveton. The restaurant group, known for its American-inspired cuisine, has been struggling in recent years amid increased competition from online shopping and declining footfall on high streets. The deal will involve Breal Capital and Calveton acquiring a majority stake in TGI Fridays' UK operations. While the exact terms of the agreement are still being negotiated, it is anticipated that around 50-55 of the chain's 87 locations will be retained. The rescue deal is expected to save at least 2,000 of its 3,000-strong workforce; however it may still result in around 1,000 job losses. The acquisition comes after TGI Fridays' parent company, Hostmore, appointed administrators to oversee its operations due to financial difficulties.

Elsewhere...

Al Fayed fallout: A long-serving former Harrods executive has claimed that his offer to become boss of the department store chain Fenwick was withdrawn because of his time working under Mohamed Al Fayed.

Mega bucks: OpenAI closed the largest VC round of all time, it raised $6.6bn that values OpenAI at $157bn.

Sport meets fashion: Formula 1 has agreed a deal with luxury goods company LVMH which will invest around $1bn into the sport over the next 10 years.

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