APPRENTICESHIP LEVY LAUNCHED INTO CHAOS

04 NEWS THURSDAY 6 APRIL 2017
CITYAM.COM
US commissioner backs the City
retaining its euro-clearing crown
Wood investors like
more cost-cuts? Yes
WILLIAM TURVILL
@wturvill
THE CITY has received backing from
the US as European politicians call for
euro-clearing activities to be moved
from London and into the Eurozone.
Sharon Bowen, the commissioner
of the Commodity Futures Trading
Commission, said yesterday it was not
for regulators to decide where
business should take place.
The European Central Bank has
EU and US wave
through $43bn
ChemChina deal
WILLIAM TURVILL
@wturvill
CHINA’S biggest-ever foreign takeover
has moved two steps closer to completion,
winning approval in Europe yesterday
and the United States the night
before.
ChemChina is expecting to complete
its $43bn (£34bn) takeover of Swiss
chemicals firm Syngenta in the first
half of this year.
The deal yesterday won antitrust approval
from the European Commission,
subject to ChemChina selling
“significant parts” of its European pesticide
and plant growth regulator
business.
Competition commissioner Margrethe
Vestager, who last week
blocked the London Stock Exchange-
Deutsche Boerse merger, said: “It is
important for European farmers and
ultimately consumers that there will
be effective competition in pesticide
markets, also after ChemChina’s acquisition
of Syngenta.”
She added: “ChemChina has offered
significant remedies, which fully address
our competition concerns. This
has allowed us to approve the transaction.”
previously attempted to remove euroclearing
from the City, and EU calls
for it to try do so again have
intensified since the UK voted for
Brexit last year.
“We hear the noise around euro
location policy for supervisory
reasons... how have we dealt with this
in the US?” Bowen said at a Eurofi
event. “We [do] not require that US
dollar-denominated transactions are
cleared in the US. In fact, the CCP
[central counterparty clearing house]
The European Union approval came
shortly after the US antitrust authorities
waved through the deal on the
condition of three ChemChina divestments.
In the US, the Federal Trade Commission
said ChemChina had agreed
to divest assets in the areas of: herbicide
paraquat, which is used to clear
fields before growing season; insecticide
abamectin, which protects citrus
and tree nut crops; and fungicide
chlorothalonil, which protects
peanuts and potatoes.
The ChemChina-Syngenta deal was
agreed in February 2016. It is one of
three major deals agreed in the sector
which is currently on the way to completion.
The European Commission gave its
backing to the $130bn merger of US
chemicals companies Dow Chemical
and DuPont last week, again conditional
on certain divestments. This
deal is expected to complete no earlier
than 1 August. DuPont chief executive
Edward Breen said last week he was
anticipating approval from the US Department
of Justice “shortly”.
Meanwhile, Germany’s Bayer last
year agreed a $66bn takeover of US
seeds company Monsanto.
which deals with the largest US dollar
set of transactions is not located in
the US. We don’t see this as an issue
as we have a great communication
with this institution and its primary
supervisor.
“More importantly we consider
that it is not for regulators to
determine where business should
take place, this is a global markets.
“We believe that this view is
essential as it encourages innovation
in our economy.”
KARL PLUME
US SEEDS and agrochemicals
company Monsanto, which is in the
process of being bought by Germany’s
Bayer AG for $66bn (£53bn), reported
a better-than-expected quarterly
profit yesterday, helped by strong
demand for its soybean and corn
seeds.
The world’s largest seed supplier
said sales of corn seeds and traits rose
eight per cent, while sales of soybean
seeds and traits jumped 10.2 per cent
in the second quarter ended 28
WILLIAM TURVILL
@wturvill
OIL SERVICES firm John Wood
Group yesterday increased its costsaving
estimates for its merger with
Amec Foster Wheeler.
Wood Group, which agreed the
terms of a £5bn merger with Amec
last month, initially said synergies
would total £110m a year. The
company has now upgraded the
figure by £40m to £150m “as a
result of further ongoing analysis
MAKEOVER TIME? South Korea’s CJ
Group weighs up bid for The Body Shop
THE CJ Group yesterday said it was mulling a bid for high street stalwart The Body
Shop in a regulatory filing, though nothing had been decided yet. Current owner
L’Oreal put the brand up for sale earlier this year. Names linked to a possible deal
include including former L’Occitane boss Emmanuel Osti and Apax Partners.
Monsanto second quarter profit
jumps on strong seed demand
February, as farmers in the US
prepare to plant the largest combined
corn and soybean acres on record.
Robust late-season seed demand in
South America propelled gains.
Monsanto agreed in September to a
$128-per-share buyout offer from
Bayer that, if approved by regulators,
would create a company
commanding more than a quarter of
the world market for seeds and
pesticides. Monsanto said it remains
confident its deal will pass regulatory
muster and is on track to close by the
end of 2017.
Reuters
of existing information and
integration planning”.
Wood Group, which under the
deal would acquire Amec for
£2.2bn, expects to make the savings
by reducing operating costs,
cutting management roles and
consolidating offices.
After increasing its cost-savings
estimates, Wood Group’s shares
jumped three per cent to 782
yesterday. FTSE 250-listed Amec’s
shares also bounced two per cent
to 545p.
PPG paints rosy
picture to land
deal for Dulux
WILLIAM TURVILL
@wturvill
US PAINTS maker PPG Industries
yesterday ramped up its bid to take
control of Dulux, again imploring
the brand’s owner, AkzoNobel, to
engage in talks. PPG also pledged to
address issues raised by the Dutch
company.
AkzoNobel has rejected two
offers from PPG, the second of
which valued the company at
€24.5bn (£21bn), last month.
Shareholders, led by activist
investor Elliott Advisors, have been
frustrated by the approach and
urged the company to engage in
discussions.
AkzoNobel has explained that it
is not engaging because it feels the
offers undervalue the company, and
that a deal would raise complex
antitrust concerns. There has also
been noisy political opposition in
the Netherlands to the deal.
PPG yesterday reiterated its
invitation for AkzoNobel to engage
in talks, saying it believes a
“combination of the two companies
has a strong strategic rationale and
presents a highly compelling and
unique opportunity for both
[companies] and their respective
shareholders”.
“Together, we can create a
stronger company that will benefit
all of AkzoNobel’s stakeholders,
including its Netherlands-based
employees,” said Michael McGarry,
PPG chairman and chief executive.
Bovis appoints ex-Galliford boss as
chief and rejects takeover approach
New boss Greg Fitzgerald worked for Bovis’ rival for more than 30 years
CAITLÌN MORRISON
@citycait
BOVIS Homes has appointed ex-
Galliford Try boss Greg Fitzgerald as
its new chief executive, at the same
time as it turned down a takeover
offer from the rival house builder.
Fitzgerald, who worked at Bovis’
rival for more than 30 years, will take
up his new role from 18 April 2017. He
retired from Galliford in 2014.
While announcing the new
appointment, Bovis confirmed it had
rejected a takeover bid by Galliford.
Previously, Bovis was urged by
investor Royal London Asset
Management to welcome an offer
from Redrow rather than the
Galliford offer.
However, Redrow announced at the
end of March that it was giving up its
pursuit of Bovis.
“We are delighted that Greg has
agreed to be our new chief executive,”
said Ian Tyler, non-executive
chairman. “He brings a wealth of
housebuilding experience and I am
confident he will rapidly drive
performance across the Bovis
business.”
Bovis was previously reported to be
in talks with Andrew Davies, boss of
construction firm Wates Group,
about taking on the chief executive
role.
Bovis’ share price closed up 5.38 per
cent to 892p last night on the news of
Fitzgerald’s appointment.