5 things FDs need to know this week
As the week comes to an end, we pick out five highlights from the past five days
1. Tata Steel and ThyssenKrupp agree merger
India’s Tata Steel and Germany’s ThyssenKrupp have reached a preliminary deal to merge their European operations, after more than a year of talks.
The merger will create the continent’s second largest steel producer, after ArcelorMittal and will be named ThyssenKrupp Tata Steel, in a 50-50 joint venture.
Headquartered in the Nehterlands, the merger will create 4,000 job losses. The formal signing wil take place in January 2018.
2. Rise in R&D tax credit claims
the number of claims for research and development tax credits in 2015-16 has risen by 19% year-on-year, new statistics from HMRC have revealed.
The latest data shows that companies submitted 26,255 claims for research and development tax credits in 2015-16, up from 22,445 in 2014-15. The total amount of R&D support claimed rose to £2.9bn, an increase of £470m from the previous year.
The total value of R&D expenditure against which claims were made was £22.9bn in 2015-16, an increase of 4 per cent from the previous year.
3. Indian billionaire to boost Anglo American stake
The billionaire who invested £2 billion in Anglo American earlier this year, Anil Agarwal, has announced plans to buy a further £1.5 billion in shares, which would increase his stake to about 20%, and make him the biggest shareholder in the miner.
Mr Agarwal wants to use buy the shares through his family trust, Volcan, which is how he funded his initial 13% stake, but has previously said he is not planning to make a takeover bid, after his idea was rebuffed last year.
4. Toys R Us files for bankruptcy
The toy firm has filed for chapter 11 banruptcy protection in the US and Canada to attempt to restructure its $5 billion worth of debt.
Toys R Us has nearly 1,600 stores and 64,000 employees but the firm’s European, Australian and Asian operations are not part of the bankruptcy proceedings.
5. Compass’s CEO to step down
The CEO of the world’s biggest catering company, Richard Cousins, has announced he is stepping down.
The news comes just months after he also left a board position at Tesco.
Mr Cousins, who will step down in March 2018, gave no reason for his departure. He will replaced by Compass’s chief operating officer for Europe, Dominic Blakemore.
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