Business News Round Up (25/06/2020)
Mitie lines up £271m acquisition of Interserve’s FM business
Outsourcing contractor Mitie has announced it is to buy the facilities management (FM) arm of Interserve for a combined consideration of £271 million.
The firm has signed a conditional share purchase agreement to acquire the entire issued share capital of Interserve FM for £120m in cash and a 23.4% shareholding in Mitie to be held by or on behalf of Interserve’s shareholders. Mitie plans to part-fund the deal through a £201m rights issue
The new organisation will be evenly balanced between the public and private sectors and will be the largest facilities management company in the UK, employing over 77,500 people.
Completion of the transaction is subject to certain conditions, including approval from Mitie’s shareholders, and is expected to complete by the end of this year. Mitie will also be engaging with the Competition and Markets Authority as part of the process.
Phil Bentley, Mitie group chief executive, said: “We are pleased to have signed a sale and purchase agreement to acquire Interserve’s Facilities Management.
Recovery ‘could take four years’ says research group
Scotland is now in its deepest recession in living memory and recovery could take up to four years,” according to the latest data.
When output does recover, the underlying structure of Scotland’s business base “will be altered forever.”
In its latest commentary, the Fraser of Allander Institute says that in the optimistic scenario, the economy is projected to take until the end of 2021, at the earliest, to fully recover lost output. In the pessimistic scenario, it warns that a second wave of the virus could delay the “new normal” until 2024.
Director Professor Graeme Roy says: “The near 20% drop in economic activity in April for Scotland highlights the scale of the economic crisis that we face.
https://dailybusinessgroup.co.uk/2020/06/recovery-could-take-four-years-says-research-group/
New tourism taskforce group meets to consider sector’s recovery
A NEW taskforce created to drive forward the recovery of Scotland’s vital tourism sector is to meet for the first time.
The Scottish Tourism Recovery Taskforce (STRT) is made up of more than 30 businesses with experience from across the industry. It is co-chaired by Tourism Secretary Fergus Ewing and Business Minister Jamie Hepburn.
The taskforce will meet regularly in the coming weeks to provide strategic advice on recovering from the impacts of coronavirus (COVID-19).
Its creation follows a package of measures including the recently published tourism and hospitality guidance and a business support package worth more than £2.3 billion.
The taskforce is to agree its key priorities but will broadly look to:
- develop a domestic marketing campaign to promote the staycation market
- undertake an urgent review of access to funding support including addressing gaps and considering future stimulus packages at both Scottish and UK level
- evaluate the investment and ownership models of larger hotels chains and businesses
- consider necessary training and skills development to support tourism and hospitality staff
- commission early restart and recovery plans for the event sector
- generate public conversation about tourism and the benefits for local and rural communities
https://scottishbusinessnews.net/new-tourism-taskforce-group-meets-to-consider-sectors-recovery/
LIVERPOOL UNVEILS £1.4BN RECOVERY PLANS
A £1.4bn plan designed to help both boost the post-Covid recovery and preparations for a post-Brexit economy have been drawn up by Liverpool as it looks to prevent a socio-economic crisis deeper than the 1980s recession.
The city has submitted a 178-page report to the Prime Minister and the Chancellor outlining how it aims to do so through a multi-layered programme which, if brought forward, would create 25,600 jobs, provide an additional 12,000 construction roles and more than 9,700 apprenticeships.
Commissioned by Mayor of Liverpool Joe Anderson, the fully-costed study sets out a five-year vision that also underlines Liverpool’s role as a “global gateway in post-Brexit Britain”.
Co-signed by metro mayor Steve Rotheram, the Liverpool Economic Recovery Plan (LERP) also has the backing of 72 figures from the city’s commercial, legal, financial and cultural sectors including Liverpool FC chief executive Peter Moore, vice-chancellor of the University of Liverpool professor dame Janet Beer and John Godfrey of Legal & General.
https://www.insidermedia.com/news/north-west/liverpool-unveils-1.4bn-recovery-plans