Markets Defused is an easy-to-understand and straightforward recap of the day’s most engaging business and stock market news.
- Google parent Alphabet fell as investors fear a forced breakup of the company
- AstraZeneca’s UK vaccine hub under threat amid government funding rug-pull
- Pringles owner Kellanova lifted by confirmation of Mars takeover
- Wizz Air shares down as flight ‘subscription’ offer goes viral
Google parent Alphabet fell as investors fear a forced breakup of the company
Shares in Google parent company Alphabet Inc (NASDAQ:GOOG) fell more than 2% on Wednesday as the threat of a forced breakup loomed.
The US Department of Justice (DOJ) is said to be contemplating the breakup of the company – which dominates search and online advertising, whilst owning YouTube and also the Android smartphone operating system – in the wake of a federal court ruling that the company holds an illegal monopoly over the internet search market.
A breakup is one of several potential remedies the DOJ is reportedly exploring as a result of the ruling.
Whilst being among the more drastic potential measures, it could see the forced divestment of significant parts of Google’s business to potentially separate the likes of the Android operating system, the Chrome browser, or its advertising platforms.
The federal ruling, delivered last week, concluded that Google unlawfully maintained its dominance in the search engine market by paying billions of dollars to companies like Apple to ensure that Google remained the default search engine on their devices.
In New York, Alphabet shares closed $3.90 or 2.35% lower priced at $162.03, and they were slightly lower during ‘afterhours’ dealing.
AstraZeneca’s UK vaccine hub under threat amid government funding rug-pull
AstraZeneca PLC (LSE:AZN) shares closed Wednesday’s session slightly lower amid reported that its proposed £450 million investment in a vaccine manufacturing hub in Merseyside is under threat due to potential funding cuts from the UK government.
Rachel Reeves, Britain’s Chancellor of the Exchequer is reportedly considering reducing the state aid for the project from the £65 million initially promised by her predecessor, Jeremy Hunt, to £40 million.
The cut is part of a broader review of investment decisions made by the previous government, as the new leadership aim to address a £22 billion deficit in public finances.
AstraZeneca has meanwhile warned that if the funding is not secured, the project may be relocated to France.
The Merseyside site currently employs 400 people and focuses on childhood vaccinations, and it is seen as a key part of AstraZeneca's plan to expand its vaccine manufacturing capabilities.
Talks are reportedly ongoing between the government and AstraZeneca regarding the potential delivery of the project.
In London, AstraZeneca shares were down 18p or 0.14% closing at 12,902p.
Pringles owner Kellanova (NYSE:K) lifted by confirmation of Mars takeover
Pringles owner Kellanova (NYSE:K) popped nearly 8% higher in Wednesday’s deals with the confirmation that it will be bought by Mars in a $36 billion all-cash deal.
It followed media reports and speculation last week.
Kellanova, which also owns the Pop-Tarts, and Cheez-It brands among other, is being priced at $83.50 per share, which is a 33% premium.
The deal is expected to close in the first half of 2025, pending shareholder and regulatory approval.
Kellanova is the snack’s brand business that was spun off breakfast cereals behemoth Kellogg in 2023.
The acquisition by privately owned Mars will see the new company significantly expanded, adding the Kellanova brands to a portfolio already comprising the likes of Mars, Snickers, M&Ms, Twix, Skittles, along with pet-food brands such as Pedigree and Whiskas.
Kellanova stock jumped $5.78 or 7.76% in regular trading on Wednesday to close at $80.28.
Wizz Air shares down as flight ‘subscription’ offer goes viral
Wizz Air Holdings PLC (AIM:WIZZ) shares closed nearly 3% lower on Wednesday after a new marketing drive ‘went viral’.
The budget airline, which mostly services routes for eastern Europe, is offering a subscription membership which would allow travellers to fly unlimited times within a year, for an initial cost of £425 (€499).
It would include flights across Wizz Air's network, although the airline will only make 10,000 memberships available.
Members of the scheme will be able to book flights up to 72 hours before departure, through an additional £9 fee per flight segment, and, it only covers a small personal item as carry-on baggage and extra charges will be applicable for any additional luggage.
In London, Wizz Air was down 40.24p or 2.95% closing at 1,322p.