BUSINESS LIVE: Hargreaves Lansdown agrees takeover; Bellway sales slump; Asda increases checkout staff

US stocks rose yesterday after jobs data eased fears about a slowdown in the world’s largest economy.

There were fewer weekly jobless claims than expected, calming markets after Friday’s employment figures triggered a sell-off in global markets.

Bellway’s sales beat expectations in the first half as the housebuilder was boosted by improved buyer confidence following a fall in mortgage rates.

British housebuilders, hit by a prolonged contraction in the cost of living, are set to benefit from the first cut in UK interest rates in more than four years.

Many UK mortgage lenders cut rates in anticipation of the long-awaited move earlier this month, although the Bank of England played down the prospect of a series of rapid cuts.

“Customer confidence has improved, driven by a moderation in both mortgage interest rates and consumer price inflation, and an increase in wages,” Bellway said.

The brighter outlook comes as Britain’s new Labour government plans to tackle a chronic housing shortage by easing planning restrictions and increasing the supply of land.

Bellway’s sales fell 31 per cent to £2.35 billion, above analysts’ average forecast of £2.27 billion.

Hargreaves Lansdown has agreed to be acquired by a consortium backed by private equity giant CVC Partners and the Abu Dhabi wealth fund, in a 1,140p per share deal worth £5.44bn.

As part of the deal, Hargreaves investors will also receive a dividend of 30 pence per share.

The group of bidders includes buyout giant CVC, along with Nordic Capital and Platinum Ivy, a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA). The consortium is owned equally by the three companies.

In a stock market update, the consortium said the deal would be completed in the first quarter of 2025 if shareholders approve the terms.

‘While the Board of HL Independent has been pleased with the progress made by the new management team, it considers that the Cash Offer represents an attractive opportunity for HL Shareholders to obtain immediate and secure cash value for their investment at a level that may not be achieved until the strategy is executed over the medium to long term and therefore intends to unanimously recommend that HL Shareholders vote to approve it.

‘We are pleased to see that the Consortium agrees that HL has an important objective of making it easier for the UK consumer to save and invest for a better future.’