UK equities edged higher on Friday, snapping a two-session decline, while sterling remained under pressure against the US dollar. Early trading was shaped by merger speculation in the mining sector and updates from several large-cap UK corporates.
By 08:23 GMT, the FTSE 100 index was up around 0.3%, while the pound slipped 0.07% against the dollar to roughly 1.34. Across Europe, Germany’s DAX was broadly flat, while France’s CAC 40 advanced about 0.6%.
Glencore and Rio Tinto confirm early-stage merger discussions
Glencore (LSE:GLEN) and Rio Tinto (LSE:RIO) confirmed they are holding preliminary discussions over a possible combination involving some or all of their businesses.
Both companies said there is no certainty that a transaction will proceed, but indicated that any deal could take the form of a court-approved scheme of arrangement under which Rio Tinto would acquire Glencore. In line with UK takeover regulations, Rio Tinto must either announce a firm offer or step away by 5 February.
Market commentators suggested a potential transaction could be driven by Rio Tinto’s interest in expanding its copper exposure, potentially gaining access to assets such as Glencore’s Collahuasi and Antamina mines, alongside a broader pipeline of growth projects. For Glencore, analysts noted a deal could offer an exit route for major shareholders and allow a sharper strategic focus on its marketing and trading operations.
Sainsbury’s upgrades cash flow outlook after festive boost
J Sainsbury plc (LSE:SBRY) lifted its cash flow guidance after reporting strong Christmas trading, underpinned by grocery-led growth.
The retailer now expects retail free cash flow to exceed £550 million for the current financial year, up from its previous forecast. Over the 16 weeks to 3 January, total retail sales excluding fuel rose 3.9% year on year, while like-for-like sales increased 3.4%.
Unite Group trades in line, reiterates full-year guidance
Unite Group plc (LSE:UTG) said trading remains in line with board expectations, as the student accommodation provider reaffirmed its full-year outlook.
The group maintained adjusted earnings per share guidance of 47.5p to 48.25p for the 2025 financial year. Fourth-quarter performance met expectations, supported by around 1p of non-recurring management fee income from a university joint venture. Unite also highlighted a restructuring completed late in the year, delivering an estimated 20% reduction in head-office staff costs, alongside steady demand for the 2026/27 academic year despite modest valuation declines in the fourth quarter.
IAG confirms CFO transition plan
International Consolidated Airlines Group (LSE:IAG) announced that Chief Financial Officer Nicholas Cadbury will step down and leave the group in mid-2026.
He will be succeeded by José Antonio Barrionuevo, who currently serves as Chief Financial and Transformation Officer at British Airways. The company said the transition reflects a planned succession process, with Barrionuevo expected to take on the group CFO role following Cadbury’s departure.
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