European Movers: Unilever (ULVR LN) +1.1%, Lufthansa (LHA GY) +1.0%, Novartis (NOVN SW) +0.5%, BAE Systems (BA/ LN) -0.6%, Smiths Group (SMIN LN) -3.5%
BAE (BA/ LN) - The UK MoD is planning to push back major shipbuilding programs to make GBP 10bln worth of savings, the Times reports citing sources. A replacement program for six "Type-45" destroyers will be deferred by years, according to the report. (The Times)
Lufthansa (LHA GY) downgraded to Sell from Neutral at Goldman Sachs
Novartis (NOVN SW) - Co. agrees with Synnovation Therapeutics to acquire SNV4818, a pan-mutant-selective PI3Kα inhibitor, exploring a next-gen approach for the treatment of patients with HR+/HER2- breast cancer and potentially other solid tumour indications. Deal would be USD 2bln upfront and up to USD 1bln in milestones, with it expected to close in H1'26. (Novartis)
Smiths Group (SMIN LN) - FY 2025 (GBP): Revenue 1.44bln (prev. 1.41bln Y/Y), Operating Profit 248mln (prev. 234mln Y/Y), cuts 2026 organic revenue growth to between 3-4% (prev. guided 4-6%). (Smiths Group)
Unilever (ULVR LN) - Unilever is in talks to separate its food business and combine it with McCormick (MKC) in an all-stock deal that could come within weeks, according to the WSJ. This was later confirmed by Unilever.
Unilever's potential spin-off of its food division to merge with McCormick is significant, underscoring a strategic move to streamline its portfolio and focus on core operations. This could attract investor interest, reflecting a trend toward consolidation in the packaged foods sector. Conversely, the downgrade of Lufthansa by Goldman Sachs signals potential challenges ahead, impacting market sentiment for the airline amid a changing travel landscape.