After pulling out from its Pfizer bid last week, British pharma giant GlaxoSmithKline is acquiring Novartis in a billion-dollar deal. Across the Atlantic, Tyson Food is exploring the sale of its pizza crust business, and in Korea, retail major Shinsegae will close underperforming discount stores. Enjoy the read and feel free to share.




Wednesday, 28 March 2018





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After pulling out from its Pfizer bid last week, British pharma giant GlaxoSmithKline is acquiring Novartis in a billion-dollar deal. Across the Atlantic, Tyson Food is exploring the sale of its pizza crust business, and in Korea, retail major Shinsegae will close underperforming discount stores. Enjoy the read and feel free to share.

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Europe


Healthcare shake-up ▪ GlaxoSmithKline is buying Swiss drug maker Novartis out of their joint venture for US$ 13 billion. The British pharma giant is also reviewing its Horlicks health nutrition business. Food majors Nestlé, Unilever and Kraft Heinz are expected to bid for the unit, which could fetch more than US$ 4 billion.



High street woes ▪ Fashion chain Select has become the latest casualty in Britain to file for a company voluntary agreement, putting 1750 jobs at risk. Meanwhile, House of Fraser’s Chinese owner Sanpower wants to stabilise the finances of the struggling department store chain with a GBP 15 million cash injection.



Great expectations ▪ Dutch retailer Jumbo anticipates 'significantly more customers' in its supermarkets ahead of Easter and twice as many shoppers to order groceries online. Swedish fashion chain H&M, which reported a weak first quarter, is set to cut its prices and plans to open 220 new stores this year.




US & Canada


Strategic moves ▪ As part of its focus on protein, US food giant Tyson is exploring the sale of its pizza crust business TNT Crust, which includes two manufacturing facilities. To boost its international presence, UK retailer JD Sports will acquire American shoe and apparel chain The Finish Line for US$ 558 million.



Survival fight ▪ Troubled retailer Southeastern Grocers has filed for Chapter 11 bankruptcy protection to restructure debt. The Florida-based operator of supermarket chain Winn-Dixie, aims to reduce its debt by US$ 500 million as it will continue to operate over 580 stores.



Beating estimates ▪ Despite growing competition from the likes of Under Armour and Gap, Canadian athletic apparel maker Lululemon posted a surprisingly strong Q4 profit and forecasts further growth. The gains came as the company navigates changes following the abrupt resignation of its boss last month.




Asia & Middle East


Tech giant on the rise ▪ US heavyweight Walmart will use Tencent’s mobile payment system in China, giving the tech giant a boost in its battle with Alibaba for pole position in the country’s fast-growing payments market. Tencent has also retained the title of China's most valuable brand.



Shinsegae streamlines ▪ To improve its efficiency, the South Korean department chain has decided to shut several underperforming stores of its discount banner E-Mart. The retailer also faces strong competition from rival Home Plus, which is about to convert some of its discount stores into warehouse outlets.



Growth investment ▪ Retailer JMA Group will spend US$ 16 million to open 20 supermarkets in Dubai by the end of 2018, creating an estimated 1,000 jobs. The company will invest further to launch around 100 convenience stores across the United Arab Emirates, the Persian Gulf and Asia by 2020.




Good intensions


Slim temptation ▪ Amid growing pressure from consumer groups, Swiss food major Nestlé plans to begin selling slimmed-down chocolates in the UK and Ireland, produced with a new technology that promises the same sweetness with 30% less sugar.



Zero waste ▪ Crediting its efficient supply chain, online supermarket Ocado has revealed near zero food waste figures, in what it says is the lowest in the industry. The British company claims that only 0.02% of food and drink was discarded last year.