New research from Nottingham University Business School (NUBS) has shown that some company mergers may promote product innovation and benefit society, contrary to previously held opinions.
In previous research, merger decisions, which see companies merge to create a single firm, have been criticised for removing competition in the market and for their adverse effects on innovation.
Antitrust authorities, which challenge company mergers, prevented mergers due to their possible adverse effects on innovation and competition, previously supported by research in this area.
Professor Arijit Mukherjee, from Nottingham University Business School, challenges this in his new research paper, published in Economics Letters, and suggests that mergers may increase product innovation and benefit society in the presence of passive cross ownership – where businesses hold non-controlling shares in rival businesses.
Competition among businesses encourages them to invest a significant amount in the research of competitors. Both passive cross ownership and cooperative research tend to reduce investments by reducing competitive behaviour or, in other words, creating more collusive behaviour among the businesses.
On the other hand, mergers between businesses creates an upward pressure on investments in research by increasing the profits of the businesses. The intensity of competition in the product market plays an important role to determine the net effect.
In an industry with severe price wars, mergers may increase product innovation and benefit society in the presence of passive cross ownership or cooperative research.
Professor Mukherjee said: “Challenging mergers due to their adverse effects on innovation is a complex matter. This research explains how passive cross ownership and cooperative research contribute to this complexity.
“The intensity of competition in the product market plays an important role for the innovation and welfare raising effects of a merger. These factors make decision making by antitrust authorities difficult.”
Antitrust authorities may actually reduce product innovation and the betterment of society by preventing mergers in these industries when there is a severe price war among the businesses. Over £2.6m for city projects supporting local prosperity
A network of over 30 groups and organisations is set to receive over £2.6m in funding to deliver advice, support and training for Leicester businesses, people and communities.
The local projects will be supported through Leicester City Council’s allocation of cash from the Government’s UK Shared Prosperity Fund (UKSPF).
An open call was launched in May 2023, inviting bids for projects under two categories – Supporting Local Business or People Skills and Communities. Voluntary and community sector organisations in Leicester, together with the council, the city’s universities and business support organisations, were able to bid.
A total of 12 projects – six in each category – have now been approved and will receive funding ranging from £75,000 to over £300,000. They will be delivered by a network of over 30 groups and organisations and will offer a varied programme of support for local businesses and people.
Deputy city Mayor Cllr Adam Clarke, who leads on climate, culture and the economy, said: “Whilst this is a relatively modest amount of funding, the expertise within the projects being supported means we are well placed to deliver huge value to local businesses and community organisations.
“Taken together, these projects represent a programme that will help strengthen the city’s prosperity by delivering advice and support directly to local businesses, communities and people during very challenging economic times.”
The 12 Leicester projects supported through the UK Shared Prosperity Fund are as follows:
- Empower Biz – a comprehensive business support programme led by The Race Equality Centre aimed at individuals running a business who are of African or African-Caribbean heritage. Will include improvements to the African Caribbean Centre, in Highfields, to create a black business hub and co-working space.
- Everyday English – an innovative ESOL (English for Speakers of Other Languages) programme led by Leicester Adult Education and delivered in partnership with community groups and venues across the city.
- ExSEL – a project led by Leicester Social Economy Consortium to support the expansion and development of social enterprises across the city.
- Futures – careers advice, guidance, employability support and entry-level training targeted at long-term unemployed and economically inactive people.
- Growth accelerator for social entrepreneurs – a programme of expert training, consultancy and support to help social entrepreneurs grow their business, delivered by the University of Leicester’s School of Business, in partnership with the Cooperative and Social Enterprise Development Agency and Community Enterprise Engine.
- Leicester Accelerator – a business support project delivered by East Midlands Chamber to help local businesses enhance their digital and low carbon business skills.
- Leicester Productivity Programme – expert help and advice for local small businesses to support growth and help identify areas where productivity can be improved, delivered by leading business support organisation Exemplas.
- Moneywise Living – one-to-one support for people to gain financial and digital skills to help deal with the rising cost of living, delivered by Reaching People – a membership organisation of over 35 local voluntary, community and social enterprise (VCSE) organisations.
- NBV Enterprise Solutions – expert advice aimed at early-stage businesses – trading for between one and three years – to support survival and growth.
- Positive Communities 2 – a project aimed at supporting people into employment delivered by the Bangladesh Youth and Cultural Shomiti charity working with seven local grassroots organisations.
- Twin Training Limited – one-to-one support and training to help people with basic skills and ESOL training.
- Zinthiya Trust – support for the most vulnerable households in Leicester to help strengthen their finances during the cost-of-living crisis. Will provide money and energy advice, to help reduce household bills.
Council to invest in Retford Market
Proposals to invest more than £400,000 in Retford’s market are being put forward by Bassetlaw District Council as it seeks to modernise its approach, broaden its appeal and protect the future of the town’s historic market.
Traditionally held on a Thursday, Friday and Saturday, the markets have been a significant part of Retford’s heritage since King Henry III granted its first charter in 1246. The Council is now taking action in order to safeguard this legacy and ensure that the market retains this tradition, and is financially viable for many years to come.
The Council is now asking the public, market traders, local businesses and local stakeholders for their views on two proposals that could create a semi-permanent market, and provide additional trading opportunities through the historic Buttermarket, located in Retford Town Hall. This will take place as part of a six-week consultation, which runs from Friday 17th November until Tuesday 2nd January 2024.
Funding provided by the Government’s United Kingdom Shared Prosperity Fund (UKSPF), in addition to Capital Funding from the Council, has allowed the Council to put forward proposals to install new bespoke, semi-permanent, multi-purpose market stalls on the Market Square in Retford Town Centre; and repurpose the Buttermarket to provide an additional indoor trading space.
The Council’s proposals are:
Proposal 1
To install bespoke, semi-permanent, multi-purpose market stalls on the Market Square in Retford Town Centre.
The primary use of the proposed, multi-purpose stalls will be to host traders who attend the current traditional market days of Thursday, Friday and Saturday.
Installing semi-permanent stalls would also provide the potential for extra trading opportunities for current or new traders on non-market days, subject to the Council’s approval.
When not in use, the stalls could also be converted to seating areas for organised events throughout the year, and for use by local businesses as part of the night-time economy.
Proposal 2
Repurpose the Buttermarket to provide an additional indoor trading space.
Repurposing the Buttermarket, located in Retford Town Hall, could provide an additional indoor trading space that could compliment planned traditional markets, or be used independently for bespoke markets and standalone events, including hospitality.
Cllr Jo White, Cabinet Member for Business and Skills at Bassetlaw District Council, said: “This significant investment will allow us to safeguard the sustainability, vitality and viability of its three market days in Retford, and open up additional opportunities to traders and local businesses.
“The proposals could enable traders and local businesses to expand or diversify their offering, in addition to turning the market square, and Buttermarket, into a year-round, multi-functional space.”
A budget of around £175k for Retford Market is proposed, in addition to a budget of £227k to regenerate the Buttermarket proposal. This would create a total investment of more than £400k for Retford Markets.
Cllr Julie Leigh, Cabinet Member for Identity and Place, said: “Nationally and locally, markets have been in decline over the last 10 years, with the Council’s income from markets reducing year on year. Added to this, the costs of running our markets have increased significantly.
“This funding, in addition to investment from the Council, has allowed us to put forward proposals that will enable us to arrest this decline, making the market more sustainable, securing its future provision, and moving towards a position of financial stability.”
Currently the overall cost to the Council to provide a market in Retford each year, after income, stands at £153,000. The aim is to reinvigorate Retford Market so that it provides a sustainable income, allowing the Council to reinvest into the market for the future.
Financial assistance launched for North Northamptonshire businesses looking to reduce carbon emissions
North Northamptonshire Council have launched a new grant scheme to help local businesses invest in measures to increase energy efficiency, move to a lower carbon economy and reduce greenhouse gas emissions.
Small or medium sized businesses can now apply for grants of between £1,000 and £5,000 towards 50% of project costs, with the remaining amount to be match funded by the business.
The funding can be used for:
- lighting and lighting controls
- heating and heating controls
- insulation
- energy efficient machinery and equipment (e.g. air compressors)
- solar panels
- heat pumps
- biomass boilers
- energy storage
- building energy management systems
Work starts on major Mansfield council housing project
Construction work has begun on a major council housing project to revitalise an estate in Mansfield.
Mansfield District Council’s £7.7m redevelopment scheme on the Bellamy estate will see 22 affordable homes built, to be rented to families on the council’s housing list.
Part of the estate’s upgrade is already complete with a new play park and learn-to-ride cycle track opening earlier this year.
This next stage, led by Mercer Building Solutions, will see the construction of eco-friendly, affordable houses built around the newly installed village green area.
It will see the demolition of existing shops and five flats in Egmanton Road and a new single-storey parade of retail outlets with a convenience store, café and takeaway built to replace them.
There will also be a community orchard planted and a new traffic-calmed through road connecting Thorpe Road and Egmanton Road, which will allow for improved bus connections through this part of the estate.
The project will support new employment and supply chain opportunities for local people and businesses, in line with the council’s procurement policy.
Cllr Anne Callaghan, Portfolio Holder for Housing, said: “It is so exciting to see this major project taking shape. It will make a massive difference to the quality of life for everyone on this estate as well as providing fantastic, much needed, high quality new homes for families.
“This has been a complex project to bring together and Mansfield District Council staff deserve a lot of credit for their work behind the scenes.”
The council’s in-house architects have designed the homes in line with government carbon reduction targets and the Future Homes Standard, which is expected to be adopted nationally by 2025.
The standard requires new homes to have low-carbon heating and high energy efficiency, resulting in considerably lower carbon dioxide emissions than properties built to current Building Regulations.
The houses, comprising three four-bedroom semi-detached houses, eight three-bedroom semi-detached houses, nine two-bedroom semi-detached houses and two two-bedroom detached houses, will be offered at affordable rents and will be owned and managed by Mansfield District Council.
The work is expected to be completed in phases over the next couple of years.
More Bassetlaw start ups secure Enterprise Grants
Bassetlaw District Council is continuing to award Enterprise Grants to start-up and pre-start-up businesses across the district, and since April this year, nine businesses have secured a total of £14,510 to help with business costs such as marketing, equipment or uniforms.
Businesses applying for the scheme can be awarded a grant of up to £2000 or a discretionary one-off grant of £500.
Just some of the businesses to be awarded grants this year include:
- Obviously Optical
- The Mobile Pizza Company
- The Cleaning Lady
- The Ruddy Duck Printshop
- Summit Signs
Dr. Martens appoints non-executive director to new chief brand officer role
Northamptonshire shoe brand Dr. Martens has appointed non-executive director Ije Nwokorie to the role of chief brand officer.
On appointment into this role, Ije will cease to be a member of the Board and will step down as a member of the Audit and Risk, Nomination and Disclosure committees.
The newly-created role of chief brand officer will be a key member of the global leadership team, reporting into Kenny Wilson, CEO, overseeing the Global Marketing, Product and Strategy functions. The chief brand officer will be responsible for setting the overall brand strategy, vision and direction for the next phase of Dr. Martens’ growth.
Ije will join Dr. Martens as chief brand officer from Apple Inc, where he has been senior director, Apple Retail since January 2018. Prior to this he spent 11 years at global brand consultancy Wolff Olins, where he was latterly CEO, leading teams in offices in San Francisco, London, Dubai and New York. He is currently also chair of non-profit organisation charity: water UK.
Paul Mason, chair, said: “Ije has been a tremendous non-executive director since he joined the Board in January 2021. He has deep insight and understanding of brands and has extensive global DTC experience. I am delighted that he’ll be joining the leadership team as chief brand officer, a role for which he is perfectly suited.”
Kenny Wilson, CEO, said: “Ije is a visionary brand storyteller and this, along with his infectious passion for Dr. Martens, makes him the ideal person to lead the next era of our brand development. I am delighted that he will be joining my team in a permanent full-time position of chief brand officer, which will be a crucial role to enable us to become a £2bn revenue brand.”
Ije Nwokorie said: “I’ve always loved Dr. Martens and it’s been a real privilege getting to know the brand from the inside as a non-executive director. Dr. Martens is defined by its rebellious, authentic and creative nature, all of which makes me really excited to be joining Kenny and the team early in the new year and to get to work.”
Optima UK appoints new head of professional services and engineering divisions
Optima UK, the recruitment, training, and business advisory firm, has appointed Susan McAdam to head up its professional services and engineering divisions.
Susan brings a wealth of experience to the post, having clocked up more than 15 years of professional recruitment experience working with a range of businesses from SMEs through to major blue chip companies.
Larraine Boorman, the CEO of the Leicester-based, internationally-operating company, said: “Susan has an excellent track record of delivering success based on developing professional teams and building strong customer relationships.
“We’re delighted that Susan has joined Optima. Her strong skillset, drive and ambition will be important assets as we are continuing to grow across all divisions. Our services are very much in demand across many sectors, so we need the very best people as we move forward.”
Susan said: “Optima felt like the right fit for me, as our ethics and outlook are very much aligned. My aim is to ensure that the whole team has the necessary skills and tools to make sure we can all reach new levels.”
Rolls-Royce visited by ministers following £4bn submarines deal
New head of mortgage sales at Hinckley & Rugby Building Society
Laura Sneddon is the latest mortgage specialist to join the business development team at Hinckley & Rugby. She joins the Society with more than 20 years’ experience in the mortgage industry, including major roles within the specialist Intermediary sector.
“I knew from my first conversation with Hinckley & Rugby that it’s exactly the right job for me,” Laura said. “I feel I’m in the right place, at the right time, to develop specific broker relationships to meet the needs of today’s untypical borrowers. Those brokers, the Society, and I personally, share precisely the same values and goals.”
One of Laura’s main goals is to seek out new opportunities and to engage with new Intermediary partners, in markets where the Society is not so well-known.
Expanding on this, Laura said: “I’m in a position to influence product development and decision-making for the direct benefit of brokers and their clients. And I have an amazing team of enthusiastic professionals who are committed to the same journey.
“We are actively looking at specific demographics, to pinpoint where the Society’s flexible approach can deliver positive outcomes for deserving clients whom many lenders discriminate against.”
