The FTSE 100 made steady upward progress in early dealings helped by a big deal in the housebuilding sector and a cost-cut promise from Sainsbury’s.
London’s blue-chip index was up 10 points at 7,691 in early dealing with the focus on Barratt Developments' £2.52 billion takeover of fellow housebuilder Redrow. The all-share deal will see Redrow shareholders receive 1.44 Barratt shares for every one they hold equating to a premium of around 27% to last night’s close.
Sainsbury’s meanwhile unveiled an eagerly awaited strategy update which includes plans for a £200 million share buyback and £1 billion of cost cuts over three years. The food retailer said the "Next Level Sainsbury's" strategy would put food back at its heart, reset its competitive position and create a strong financial platform.
Elsewhere, Imperial Leather soap owner PZ Cussons (LSE:PZC) tumbled on more problems in Nigeria while recent hot stock Helium One has taken advantage of its soaring share price to raise £4.7 million.