Legal Scene Digest : Release 1
- The Legal Scene
- Apr 22, 2019
- 2 min read
UBER’s IPO
UBER announced its IPO on 11 April. This may be the largest IPO of 2019.
UBER is valued at $120 billion after its IPO announcement. This valuation could surpass Facebook ’s IPO ($104 billion back in 2012) and Google ($23 billion in 2004). They already have big investors like Jeff Bezos from Amazon and Toyota Motor Company showing intention to invest.
Pre-IPO, UBER received $1 billion as investment for its self-driving car unit. This investment led to the cars being valued at $7.3bn (£5.6bn)
Sainsbury’s and Asda merger
Sainsbury’s and Asda first announced proposals to merge on 28 April 2018.
Sainsbury’s and Asda asserted that the merge will lead to lower buying and operating costs which will result in lower prices for its customers.
The staggering £7 billion merger is under scrutiny of Competitions and Markets Authority (CMA).
The CMA is assessing the impact of there merger on retail industry, particularly how it will affect consumer’s choice post-merger.
Sainsbury’s and Asda proposed to sell up to 150 stores in hopes of persuading the CMA that the merger should go ahead.
It is still unclear whether the merger will be permitted. If the merger is permitted, it will create the largest chain in the UK, overtaking Tesco.
Rail Industry : Stagecoach's Bid
Department for Transport has rejected Stagecoach’s bid for three new franchises. The reason being that the bids are non-compliant because it breached pension rules.
This rejection led Stagecoach’s share to fall by 10%.
Virgin Trains is owned by Stagecoach (49%) and Virgin Group (51%). The disqualification may mean that Virgin Trains could disappear from Britain's rail network by November.
Stagecoach has written to the Department for Transport to get a transparent response of why the bid was rejected..
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