Sahaviriya Steel Industries is to ‘mothball’ its iron and steelmaking plant in Redcar with the loss of 1,700 jobs. The Thai company cites the fall in global steel prices as the reason for its decision. The site’s coke ovens and power station will continue to operate. SSI says that it will continue to work with various stakeholders, including Government, with the objective of restarting operations at Teesside at some point in the future. SSI purchased the Redcar facility from Tata Steel in 2011, after it had been mothballed by Tata.
Dialog, one of Europe’s fastest growing semiconductor companies, has acquired Atmel for £3bn. The newly created company will be a market leader in power management and embedded processing products, which are crucial in the mobile power, Internet of Things and automotive sectors.
British American Tobacco (BAT) has bought CHIC Group, a market leading eCigarette retailer in Europe. The deal is part of BAT’s move into next generation products in response to growing pressure on its traditional business model.
Meggitt has expanded its advanced composites with the acquisition of EDAC for £230m. Previously known as Parkway Aerospace & Defense, EDAC is a manufacturer of aerospace components for jet engine and airframe applications.
The aircraft servicing company BBA Aviation has announced it has agreed terms for a proposed £1.35bn takeover of Landmark Aviation.
Palatine Private Equity has sold Playnation to the Austrian gaming company Novomatic. Playnation supplies 20,000 amusement machines to holiday parks, motorway service stations, bowling alleys, family pubs and airports across the UK.
Telford Homes has bought the regeneration business of United House Developments for £23m. The deal means Telford Homes is now responsible for major development work at City North in North London, refurbishment and regeneration of the Balfron Tower and Chrisp Street Market in Poplar and two stages of development at Gallions Quarter near Royal Albert.
The private equity firm Cinven has sold Guardian Financial Services (GFS) to Admin Re for £1.6bn. Established in 1821, GFS provides capital release services to banks and insurers. Admin Re is Swiss Re’s is closed life book business, with the deal creating a division responsible for a book of 4 million UK policies.
The video distribution platform Unruly has been bought by News Corp. The £114m deal will see the company operate as a separate business unit and report to News UK chief executive Rebekah Brooks, who believes the acquisition will ‘create new premium video inventory for our News UK mastheads and other businesses.‘
JCB is to cut up to 400 jobs in the UK in response to a rapid deterioration in world construction equipment markets. The digger manufacturer’s chief executive, Graeme Macdonald, said: “Market conditions in the construction equipment sector have been difficult for some time, but they have worsened quite rapidly in recent weeks. The situation is not about to improve, certainly not in the short term, so we now need to take difficult but decisive actions to align overheads to lower sales forecasts. Regrettably, this will result in up to 400 staff positions becoming redundant across our UK businesses.”