UK-Australia free trade deal, Paperchase, high street acquisitions, Beyond Meat, contactless payments: your commercial news round-up
updated on 28 January 2021
As the biggest vacation scheme deadline of the year looms and you are busy sending off your final applications, don’t forget to stay up to date with the latest news from the business and legal worlds. Read on for this week’s commercial news round-up.
- The UK and Australia are set to agree on a free trade deal, which could be completed as early as March and will provide a significant boost to the UK’s telecoms sector. The deal is also set to offer UK citizens and business travellers more opportunities to live and work in Australia, and vice versa, according to City A.M. Meanwhile, agricultural products shipped to and from Australia are among those set to have tariffs slashed. Negotiations with New Zealand and the US are still ongoing, according to a source close to the International Trade Secretary Liz Truss, and UK-Australia talks are set to continue in early February.
A new post-Brexit financial services agreement for the UK is hoped to come out of negotiations between the UK and Switzerland, which were initiated yesterday. Chancellor Rishi Sunak said: “The UK and Switzerland are both global financial centres, with a shared commitment to high standards of regulation, market integrity and investor protection.
“Our ambition is to deliver one of the most comprehensive agreements of its kind in financial services as part of our plan to seize new opportunities in the global economy now we have left the EU.”
- High street stationery chain Paperchase will be saved this week in a rescue deal that is set to save around 1,000 jobs and most of the chain’s stores. According to Sky News, Permira Debt Managers, which has provided funding for the business since 2015, will purchase the chain in a pre-pack administration.
Elsewhere on the high street, in a deal worth £55 million Boohoo has bought the Debenhams brand and its website. However, around 12,000 jobs are set to be cut as the fashion retailer will not be taking on any of Debenham’s remaining 118 high street stores. Online retailer ASOS is in talks to buy Arcadia’s top brands, including TopShop, Topman and Miss Selfridge; but it also has no plans to buy the high street stores, which would result in further store closures and job cuts.
- Shares in plant-based healthy snack group Beyond Meat surged by 26% to $199.38 on Tuesday, following the launch of a joint venture with PepsiCo. The joint venture will be called Plant Partnership and hopes to “inspire positive choices for both people and planet”, according to Beyond Meat Founder Ethan Brown. PepsiCo’s global reach made it an ideal partner for the plant-based snack company and this mission.
- Following the increase in contactless payments, the limit on such payments could be raised to £100. The Financial Conduct Authority said: "Recognising changing behaviour in how people pay, as part of a wider consultation, we will shortly be seeking views on amending our rules to allow for a possible increase in the contactless limit to £100." In April 2020, the limit was raised from £30 to £45 after the covid-19 pandemic forced the UK into lockdown. If the increased limit is implemented, the government intends to legislate to prevent a scenario where consumers stop using cash.
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