UK

GlaxoSmithKline and Pfizer have agreed to combine their consumer health businesses to create a market leading joint venture with sales of around £9.8bn. The companies expect to divest assets to cover the cash cost of the integration.

S4 Capital, the digital and marketing services company created by Martin Sorrell, the former CEO of WPP, has finished its £74m placing and open offer to finance its merger with MightyHive, the California-based digital advertising company.

The Bank of England said this week that it wait for Europe to take a lead on a number of important developments regarding the minimum requirement for own funds and eligible liabilities (MREL) before clarifying its own position.

The Bank of England has published two consultation documents for what it describes as the “final major piece” in the development of a bank resolution regime in UK.

In this round up, Bank of China’s monthly index shows decreasing onshore funding cost, Value Partners’ flagship fund became MRF-eligible and a quarterly London RMB business report shows that the city still leads the way on offshore RMB trading in Europe.

Grainger plc, the UK residential property manager, has completed its £346m rights issue to finance its full takeover of Grip Reit, having received a high take-up from its shareholders.

The UK’s CityFibre has signed a £1.12bn debt package from seven banks, as the Goldman Sachs-linked fibre broadband infrastructure provider rolls out its nationwide competition against incumbent firms BT and Virgin Media.

Experian, the Irish-incorporated, FTSE 100-listed credit checking agency, has signed a $1.95bn revolving credit facility, which it self-arranged.

The Restaurant Group (TRG), owner of the UK chains Garfunkel's, Joe's Kitchen and Frankie & Benny's, has reported a 92% take-up on its £315m rights issue to acquire the restaurant chain Wagamama from private equity firms Duke Street and Hutton Collins Partners.

Goldman Sachs International conducted business with Lars Windhorst, the colourful German financier, despite warnings from its compliance department that he was a high risk counterparty.

UK government bonds have been playing their traditional role as a haven trade for sterling investors amid the Brexit turmoil of the last 2.5 years. But some investors warn that this could change if the Labour Party wins a general election, as a ‘Corbyn premium’ will push up Gilt yields.

Equity capital markets bankers expect more corporate restructuring deals and rights issues in 2019 as companies begin to deal with a turn in economic cycles. More are likely to have to take a similar approach to the Kier Group, which is raising a £264m rights issue this month.