Welcome to the third edition of The Weekly Briefing powered by Speedeon!
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Each week, we will recap the most interesting commercial news stories shaping the market, from corporate deals to regulatory shifts and highlight why they matter to businesses and law firms.
We aim to help readers sharpen their commercial fluency while keeping track of the legal angles behind the headlines.
The World’s Biggest Leveraged Buyout: EA Sports Goes Private
Electronic Arts has been taken private by a consortium of buyers, which includes Saudi Arabia’s sovereign wealth fund and Silver Lake. Saudi Arabia is seeking to diversify its investments and is increasingly eyeing the video games industry as a lucrative business. The EA take-private now tops the charts as the largest leveraged buyout (LBO) in history, at $55 billion, surpassing the $45 billion buyout of TXU in 2007.
AI is expected to play a significant role in the buyout, as investors hope that the technology will lead to considerable cost cuts, thereby boosting EA’s yearly profits. The financing arrangement for the LBO includes $36 billion of equity by the buyers, including Saudi’s Wealth Fund, and a whopping $20 billion loan organised by JP Morgan.
EA’s shares have been valued at $210 each, although the closing price in New York grew significantly as soon as it was confirmed that the LBO would go ahead.
Drones in Eastern Europe and Denmark
Russia continues its use of drones to cause unrest on the eastern NATO border. Drones have also been spotted at four airports in Denmark. The Danish Defence Minister called this a “hybrid attack”. Large drones were also spotted flying over Copenhagen Airport, which follows recent incursions into Estonian, Romanian, and Polish airspace by Russian drones and aircraft.
Drone incursions of a sovereign nation’s airspace can trigger national security concerns and disrupt supply chains, especially targeting goods transported via aeroplanes. Although the defence and justice ministers of Denmark refused to attribute the drone incursions to Russia, there are still concerns about whether Putin’s nation had any part to play in the incidents.
Euro is On the Rise and the Spanish Economy is Surging
The Euro has seen good times recently. The currency has strengthened by 12% this year amid growing confidence from investors in the single currency and the Eurozone, as well as concerns raised by the Trump administration about the effects of unpredictable tariffs on the dollar. Investors are hedging their exposure to the dollar by buying euro assets, which contributed to the rising popularity of the Euro.
In a similar vein, the Spanish economy is the standout player in Europe at the moment as it has seen an increase of an average of 3% per year. The country’s credit rating has also been upgraded, signalling its ripe economic conditions for investment. The main factors contributing to this steady growth have been tourism, cheap renewable energy sources, which continue to attract investment, and a steady influx of immigrants, particularly from Latin America. The country has simplified legal immigration procedures, which is particularly helpful for the Latin American immigrants who accounted for 70% of Spain’s population growth in 2023.
Price Rises in UK Shops at Highest Rate in 18 Months
The British Retail Consortium announced that prices in UK shops are the highest since March 2024. The inflation figures in recent months have continued to rise as Chancellor Rachel Reeves prepares to announce a new Budget in November, which is expected to raise taxes.
Consumers are feeling the brunt of higher prices, particularly those in households where the majority of their income is spent on food products. Food supply chains continue to be affected by both global factors, such as the war in Ukraine and higher national insurance costs domestically. In August, the official inflation figure for the UK was 3.8% which is almost double the figure of the Eurozone.
A significant factor contributing to high food prices is the rising labour and energy costs for farmers who raise cattle, which in turn keeps beef and milk prices high. Grocery costs are growing faster in the UK than in other European countries, so it remains to be seen whether the November budget will have any positive impact in reducing food inflation.