Stocks expected to open lower on FTSE 100, Deliveroo and AB Foods announce M&A news

The recent news in the financial sector has seen significant developments, including Deliveroo’s acceptance of a £2.9 billion takeover offer from DoorDash. The board of Deliveroo, a FTSE 250-listed company, agreed to the offer of 180p per share, which was the same price as the previously indicative offer from DoorDash. Despite this deal, analysts suggest that the offer may not be a “knockout” and could potentially attract rival bids.

In other news, Associated British Foods PLC, the parent company of Primark, has confirmed discussions about selling its Allied Bakeries division. The FTSE 100 group acknowledged recent media speculation about this potential sale and revealed ongoing talks with Endless, the owner of bread brand Kingsmill. Allied Bakeries produces bread under various well-known brands such as Hovis, Allinson’s, and Sunblest. AB Foods had noted in its recent interim results that it was exploring strategic options for the loss-making Allied Bakeries, which is facing challenges in a competitive market.

As trading resumes after the long weekend, the FTSE 100 index is expected to open slightly lower. The decrease comes after Wall Street saw declines, with the tech-heavy Nasdaq down by 0.7%, the S&P 500 falling by 0.6%, and the Dow Jones declining by 0.2%. However, Asian markets show positive movements, with Japan’s Nikkei gaining 1%. Key events for the day include service sector data releases, new car sales figures, and updates on the US balance of trade.

Some noteworthy companies releasing updates today include International Workplace Group and Kosmos Energy, while Facilities by ADF and Huddled Group are expected to report their financial results. In the international market, Ball Corp, Advanced Micro Devices, and Rivian Automotive are set to announce their earnings. Overall, the financial markets are gearing up for an eventful day following the recent significant developments in various sectors.