BRITAIN'S Serious Fraud Office has raided the offices of metals tycoon Sanjeev Gupta's UK operations of GFG Alliance, in a probe into its links with the collapsed financier Greensill.
The raids come almost one year after the SFO launched an investigation into suspected fraud and money laundering by the Indian-British giant GFG.
The SFO said in a statement that its investigators visited GFG offices on Wednesday (27) to request documents including balance sheets, annual reports and correspondence.
"Investigators spoke with executives at multiple addresses, who co-operated with the operation," the SFO added.
"As the investigation is ongoing, the SFO can provide no further comment."
A number of sites across England, Scotland and Wales were raided, according to Britain's domestic Press Association news agency.
A GFG spokesman declined to comment on the matter.
However, according to an internal staff memo, the group denies wrongdoing and is complying with the SFO investigators.
"We have consistently rejected any wrongdoing on our part and pledged to cooperate fully to ensure they can conclude their investigations as quickly as possible," the memo read.
"We will comply with the information request orders and will continue to cooperate fully in all manners."
Wednesday's development comes a day after news that the French headquarters of GFG Alliance and a foundry had been raided by investigators probing suspicions of money laundering and abuse of corporate assets.
The raids last week at the Paris corporate office and the Aluminium Dunkerque foundry were part of a preliminary investigation opened in July last year and is being conducted by a specialised financial crime brigade, according to a source close to the case.
Gupta and his Liberty Steel firm was once seen as the saviour of British steelmaking.
However, since the collapse of Greensill, which specialised in short-term corporate loans via a complex and opaque business model, GFG has scrambled to cut costs in order to survive. But Gupta had said in December that his group had made "great progress" after the fall of the financier.
The group is meanwhile undertaking a drastic overhaul after the high-profile Greensill failure.
Liberty Steel, which employs 3,000 people in Britain, has already announced a restructuring and the sale of several factories in England.
(AFP)
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Economy grows 0.1 per cent in fourth quarter, defying expectations
Feb 13, 2025
THE UK economy expanded by 0.1 per cent in the final quarter of 2024, contrary to forecasts of a contraction, according to official data released on Thursday.
The growth, supported by a stronger-than-expected 0.4 per cent rise in December, offers some relief to chancellor Rachel Reeves as she navigates broader economic challenges.
Economists polled by Reuters had predicted a 0.1 per cent contraction in the quarter. Over the full year, GDP grew by 0.9 per cent, up from 0.4 per cent in 2023. However, when adjusted for population growth, output per capita declined by 0.1 per cent, reflecting continued pressure on living standards and public finances.
Sterling rose by as much as a third of a cent against the US dollar following the release of the data.
"A pleasant surprise, but we're not out of the woods yet. Beneath the surface of these latest figures, domestic demand via consumption and business investment was weaker than expected," said Scott Gardner, an investment strategist at Nutmeg, a wealth manager owned by JP Morgan.
December’s growth was driven by the services sector, including wholesalers, film distributors, pubs, and bars, along with machinery and pharmaceutical manufacturers, the Office for National Statistics said.
However, the data also showed that growth relied on government spending and stockpiling by businesses, while business investment fell sharply by 3.2 per cent and household spending remained flat.
The drop in investment was largely due to a decline in transport equipment, a volatile component that had been strong in the previous quarter.Economic outlook
Last week, the Bank of England cut its 2025 growth forecast to 0.75 per cent, while the National Institute of Economic and Social Research predicted a higher growth rate of 1.5 per cent.
The economy recorded moderate growth in the first half of 2024 as it emerged from a shallow recession in late 2023. However, growth stalled in the second half, with the third quarter showing no expansion.
Businesses have raised concerns about a £25 billion increase in employment taxes introduced in Labour’s first budget on 30 October, warning of potential job cuts and price hikes.
Other economic pressures include weak demand in Europe, higher energy costs, and potential disruptions to global trade due to US tariffs under president Donald Trump.
Reeves and prime minister Keir Starmer have pledged to reduce planning delays and regulatory barriers to support investment.
After the latest data release, Reeves reiterated the government’s commitment to economic growth.
"We are taking on the blockers to get Britain building again, investing in our roads, rail, and energy infrastructure, and removing the barriers that get in the way of businesses who want to expand," she said.
The Conservative opposition highlighted the fall in GDP per capita, arguing that Reeves was overseeing a decline in living standards, even if the economy avoided a technical recession.
With borrowing costs rising and economic growth subdued, Reeves may face pressure to announce spending cuts next month to stay within her fiscal targets when government forecasters update their projections.
(With inputs from Reuters)
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Fourth-quarter profit dropped 61 per cent compared to the previous year, marking BP’s weakest results since Q4 2020, when the pandemic reduced global oil demand. (Photo: Reuters)
BP reports lowest quarterly profit in four years, plans strategy reset
Feb 12, 2025
BP reported a quarterly profit of £943 million on Tuesday, falling short of expectations and marking its lowest in four years.
The company said it plans a "fundamental reset" of its strategy, days after reports that Elliott Management had taken a stake in the oil major.
Like other oil companies, BP has faced lower earnings in 2024 following record profits in the past two years, as energy prices stabilised and global oil demand weakened. However, BP has underperformed compared to its peers, increasing pressure on CEO Murray Auchincloss to make changes.
Its shares were up 0.6 per cent at 467.90 pence shortly after the market opened. On Monday, BP shares had risen sharply after reports of Elliott Management’s undisclosed stake, which investors expected would push for strategic changes.
Fourth-quarter profit dropped 61 per cent compared to the previous year, marking BP’s weakest results since Q4 2020, when the pandemic reduced global oil demand.
"We now plan to fundamentally reset our strategy and drive further improvements in performance, all in service of growing cash flow and returns," Auchincloss said in a statement.
Auchincloss has been working to regain investor confidence after the sudden resignation of his predecessor Bernard Looney in September 2023 over undisclosed relationships with employees.
BP’s quarterly earnings were impacted by lower realised refining margins. Its fourth-quarter average refining marker margin was $13.1 per barrel, down from $18.5 per barrel a year earlier.
The company expects refining margins to remain low in the current quarter and foresees a lower level of refinery turnaround activity compared to Q4.
BP's underlying replacement cost profit, its measure of net income, fell to £943 million for the three months ending 31 December, down from £2.41 billion a year ago.
Analyst forecasts had estimated £1.02 billion in a company-provided survey and £968 million based on LSEG data.
(With inputs from Reuters)
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Shein had aimed to go public in London in the first half of this year, subject to regulatory approvals in the UK and China. (Photo: Reuters)
Shein cuts valuation to £40 billion for London listing
Feb 08, 2025
SHEIN is preparing to lower its valuation to around £40 billion for a potential initial public offering (IPO) in London, according to three Reuters sources familiar with the matter.
This is nearly 25 per cent lower than the company's 2023 fundraising valuation as it faces increasing challenges.
The online fast-fashion retailer has been impacted by the recent decision by the Trump administration to end the "de minimis" duty exemption in the United States. The rule had allowed Shein to keep prices low by avoiding import duties.
Analysts and industry experts say the removal of the measure could affect Shein's profitability and increase product prices in the US, its largest market.
One of the sources said the final IPO valuation will depend on the effect of the de minimis change on Shein’s business. Since the removal took effect only this week, it will take time to assess the impact, the person added.
Shein and its competitor Temu accounted for more than 30 per cent of all packages shipped daily to the US under the de minimis provision, according to a 2023 report by the US congressional committee on China. The rule had exempted shipments valued at less than £645 from import duties.
The Reuters sources declined to be named as they were not authorised to speak to the media.
The de minimis removal is part of Donald Trump's decision to impose an additional 10 per cent tariff on China, which he described as an "opening salvo" in a trade dispute between the world's two largest economies. Nearly half of all packages under de minimis came from China, the congressional committee report said.
Shein had aimed to go public in London in the first half of this year, subject to regulatory approvals in the UK and China, Reuters reported last month.
The company was valued at £53 bn in its last fundraising round in 2023, down about one-third from its peak a year earlier, sources have told Reuters. If Shein goes ahead with the lower IPO valuation, it would mark the second consecutive down round for the company. The reasons were not immediately known.
The UK government has been encouraging regulators to adopt a pro-growth approach and has introduced changes to listing rules to attract companies to the London market. A UK government source, who was not authorised to discuss the matter publicly, said it remained interested in Shein launching an IPO in London.
Shein confidentially submitted documents to Britain's Financial Conduct Authority (FCA) in early June, sources told Reuters last year. However, the regulator has not yet approved the listing, and the process has taken longer than usual.
A separate source said the FCA has not made any decision on the IPO approval. Market experts note that such approvals typically take several months. An FCA spokesperson previously stated that timelines depend on the specifics of each case.
Shein switched its IPO plans to London last year after abandoning an attempt to list in the US, where it faced opposition from lawmakers over alleged labour practices and lawsuits from competitors.
The IPO will also require approval from Chinese regulators, particularly the China Securities Regulatory Commission (CSRC), sources have told Reuters.
(Reuters)
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Ben Stokes and Matthew Short of Northern Superchargers walk out to bat during The Hundred match between Manchester Originals and Northern Superchargers on August 11, 2024 in Manchester, England. (Photo: Getty Images)
Sunrisers Hyderabad to acquire Northern Superchargers in £100 million deal
Feb 07, 2025
INDIAN Premier League franchise Sunrisers Hyderabad is set to become the first full owners of an English Hundred team after agreeing to buy Yorkshire’s Northern Superchargers for a reported £100 million.
The Sun Group will be the third IPL-linked investor in the eight-team Hundred competition, following Reliance Industries, which owns Mumbai Indians, and RPSG, which runs Lucknow Super Giants.
However, the BBC reported on Wednesday that Sunrisers would be the first to take full ownership of a Hundred franchise.
Yorkshire chief executive Sanjay Patel confirmed the development, saying, “We are delighted to be entering into an exclusivity period with the Sun Group and will be continuing our conversations with them in the coming weeks with a view to setting the Northern Superchargers up for long-term and sustained success.”
Patel, who was previously managing director of the Hundred, added, “It is clear that they are aligned to the values and future direction of the club and will play a huge part in ensuring we can go on to achieve great success in the coming years.”
Yorkshire, a key county in English cricket, is expected to use the sale to help clear a £15m debt owed to a trust set up by chairman Colin Graves. The deal now moves into an eight-week exclusivity period for finalisation.
The Superchargers have not had much success in the Hundred, a 100-ball competition featuring both men’s and women’s teams.
However, they have notable figures, including men’s head coach Andrew Flintoff and players such as Harry Brook and Adil Rashid.
Meanwhile, IPL investors have also taken stakes in other Hundred teams. Reliance Industries has agreed to a reported £60m deal with Surrey for a 49 per cent share in Oval Invincibles, while Manchester Originals has partnered with RPSG.
If GMR, which owns IPL side Delhi Capitals and English county Hampshire, secures a 49 per cent stake in Southern Brave, it would mean four of the eight Hundred teams would have Indian investment.
The England and Wales Cricket Board (ECB), which has not commented so far, is offering 49 per cent stakes in each Hundred team while host counties retain the remaining 51 per cent.
Last week, a Silicon Valley consortium led by Indian-American Nikesh Arora, CEO of US cyber-security firm Palo Alto Networks, agreed to buy a 49 percent stake in the London Spirit franchise for a reported £145m.
Warwickshire and Glamorgan have also agreed to sell 49 per cent stakes in Birmingham Phoenix and Welsh Fire, while Trent Rockets remains available for investment.
So far, six sales have amounted to around £466m, with most of the funds to be distributed among the 18 first-class counties, Marylebone Cricket Club (MCC), and grassroots cricket.
The Hundred has faced criticism for taking players away from county cricket at the peak of the domestic season, but the ECB maintains that proceeds from these sales will support the traditional county game.
(With inputs from AFP)
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BT to remove diversity targets from manager bonuses
Feb 07, 2025
BT will remove diversity, equity, and inclusion (DEI) targets from its manager bonus scheme, replacing them with a measure of overall employee engagement.
The change, set to take effect in April, follows consultation with major investors and has received “strong support,” according to the company, The Telegraph reported.
Currently, 10 per cent of the annual bonuses for up to 37,400 managers are based on representation targets for women, ethnic minorities, and disabled employees, along with engagement levels among under-represented groups. Under the new system, employee engagement will be assessed across all staff.
BT CEO Allison Kirkby, who has been working on the change as part of a strategic overhaul, told the newspaper that she remains committed to diversity. “I believe we need to be as diverse as the customers we service, to be the customer-centric company we aspire to be, and to be able to live up to our purpose,” she said.
The move comes as some major US companies, including Meta and McDonald’s, adjust their DEI policies. Kirkby said, “It sends the message that these things are optional, temporary or not worth prioritising. I want to be absolutely clear: that’s not what we believe at BT.”
Despite the changes, BT will maintain its broader diversity targets, including a goal for 25 per cent of its UK workforce to come from ethnic minority backgrounds by 2030. The top 550 senior managers will still have DEI measures included in their personal bonus calculations.
A BT spokesperson stated: “We remain committed to our inclusion and representation targets and are making good progress towards them.”
Meanwhile, bankers and investors are urging the Financial Conduct Authority (FCA) to reconsider its diversity targets for companies, citing concerns over increased regulatory burdens.
Some Conservative frontbench members have warned Chancellor Rachel Reeves that the initiative could cost the City up to £1 billion, The Telegraph reported.
BlackRock, BT’s fifth-largest shareholder with a 3.8 per cent stake, has also faced scrutiny over its DEI policies.
BT executives are scheduled to meet Indian billionaire Sunil Bharti Mittal, the company’s largest shareholder with a nearly 25 per cent stake.
While the meetings are said to be routine, they highlight Mittal’s influence over the company. BT recently reported financial results reflecting increased competition in the broadband sector.
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