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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Pharma & Biotech

Most followed: Fancy a pint? Oil or lager?

Companies featured: Royal Dutch Shell, BG Group. Anheuser Busch InBev, Greenwich Meantime, Jaguar Land Rover, 88 Energy, Purplebricks, Hunan Wanxiang

A pint of petrol or a pint of Grolsch? Which, logically, should cost more to buy?

The thought only comes to mind because two mega-mergers are in focus this morning: Shell's (LON:RDSB) takeover of BG Group (LON:BG.) and Anheuser-Busch InBev's downing of SABMiller (LON:SAB).

Shell first, and news that its acquisition of BG has moved a step closer with the authorities in Australia waving the deal through.

Just the Chinese to go now, and then once state-owned BG Group will become part of the Anglo-Dutch integrated oil major.

I note in passing that Proactive Investors has this morning done a feature on Kalibrate Technologies (LON:KLBT), the petrol forecourt software specialist.

I wonder if it has considered branching out into the beer business, where the prices seem to change as frequently, but only in an upwards direction?

Among the dearest brands are Peroni and Grolsch – the former presumably because it has a flashy looking bar pump and the latter possibly because of its admittedly cool bottle.

If reports are to be believed, both SABMiller brands will be up for sale as part of Anheuser-Busch InBev's strategy to mollify competition authorities who might otherwise be a bit concerned about the brewer's dominant position in the lager market.

I say lager, but the brewing giant's underwhelming presence in the ale market is about to get smaller still with the proposed sale of the Greenwich-based Meantime Brewing Company, which SABMiller bought in May.

Talking of premium brands, Jaguar Land Rover – two brands synonymous with Britain's inability to develop and retain ownership of its iconic marques – is said to be eyeing up the Silverstone motor racing circuit and using it as a base for the company.

The car maker, owned by Indian holding company Tata, could use the circuit as a showcase for its range of vehicles.

Among the small caps, the hot news item of the day is the Icewine well number one drilling update from 88 Energy (LON:88E).

Has it struck oil or, better still, the considerably more expensive lager?

The short answer is yes (to the hydrocarbon question, not the lager one).

During drilling a 110 foot interval was encountered, yielding gas shows significantly above background. Oil shows with minor fluorescence and crush cut were also recorded. The interval appears to be predominantly tight with the shows likely associated with residual oil.

Also, scattered showers can be expected in the north-west, with low pressure moving over the Midlands.

Even if you cannot understand the technical jargon, the 14% share price increase tells you all you need to know.

Finally, news that online estate agent Purplebricks intends to float on Aim before the end of the year but a Chinese company is taking things a bit more leisurely.

Hunan Wanxiang Agricultural Technology plans to launch an initial public offering (IPO) on the London Stock Exchange main board by the end of 2016 via its holding company Wanxiang Group Holding PLC.

Hunan Wanxiang Agricultural Technology is one of the largest Camellia oil tree planting companies in China.

I wonder if a pint of Camellia oil is less or more expensive than petrol? Either way, I bet it is cheaper than lager.

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