Industry news

Premier Foods has agreed to sell the Branston brand to Mizkan, a Japanese company for £93 million as the business seeks to reduce debts of over £1 billion.

The Branston deal comes after a previous deal to Mizkan in July which saw the sale of the Sarson’s and Haywards brands for £41 million.

The completion of the deal will have seen £370 million raised since March to reduce the company’s overall debt.

A new £75 million four year expansion project by Royal Mail is to create 1,000 jobs with the creation of new processing facilities.

New deports will be constructed in Cornwall, Chorley and Hampshire while other deports will be expanded under the program.

The move comes as Royal Mail looks to the increase its parcel processing abilities throughout the UK and overseas.

Employment Minister Mark Hoban said: "It is great news that 1,000 new jobs will be created across the country as a result of this investment. We've now got a record number of people in employment and these jobs will provide welcome opportunities for people who are looking for work."

American based Meritor are to invest £36 million in a factory situated in Wales in order to transform the parts manufacturing site.

The factory currently employs 450 workers and the development investment is designed to modernise a site that was constructed during the WW2.

Business Minister Edwina Hart said: "This important investment is very welcome, particularly during these challenging economic conditions and I should like to congratulate the company on the work undertaken to date that will enhance production efficiency and incorporate a range of low carbon environmentally friendly features."

Engery supply company SSE have proposed a £800 million scheme to create a hydroelectric power programme with the construction of a new dam and reservoir.

The program would rank as Scotland’s largest ever hydroelectric project however the scheme has raised fears over damage to tourism.

The proposal is to be assessed by the Highland Council's south planning applications committee with local authorities recommending that no objection is raised.

A failure to implement effective engagement is harming BPO relationships according to research commissioned by arvato UK & Ireland.

87 percent of 100 BPO clients felt there was something limiting the outsourcing relationship with only 2 percent responding that they felt that their BPO provider was ‘very engaged’ and only 56 percent viewed there provider as being a trusted supplier.

Matthias Mierisch, CEO and Chairman, arvato UK & Ireland, said: “Just because BPO includes the word process, trusted partnerships shouldn’t stop there. If a client’s goal is to achieve fundamental improvements or real growth, it requires people and partnership too!”

Martyn Hart, Chairman, National Outsourcing Association, added: “Outsourcing is long term. All things are subject to change so flexibility is paramount. It is essential for both the customer and supplier to be aligned so that they each understand where the other is going, and how this helps them accommodate change, or even better, anticipate it.”

Visit arvato at www.arvato.co.uk for the full research documentation.

Pension and life insurance company AEGON has signed a ten year contract with Serco to provide business process outsourcing in a deal worth £170 million.

The deal comes as AEGON moves to increase its market share against rivals including Capita and TCS.

The contract will see the outsourcing of customer contact and support services including claims management through a cloud based infrastructure.

Adrian Grace, UK CEO of AEGON, said: “Our new partnership with Serco will add further impetus to our developing and highly successful protection business”.

MPs have set a cap on prices for electricity generated from nuclear power by energy giant EDF.

The ‘strike price’ which represents the lowest price that the energy firm can expect to receive is close to being agreed upon. This comes after MPs had been in conflict with EDF boss Vincent de Rivaz who had called proposed strike prices as “rubbish”.

An agreement on a strike point will allow EDF to invest in new power sources including the construction of new plants. EDF have already planned to construct a new power plant in Somerset.

News Corporation could offer as much as £1 billion for the Penguin Group as it prepares to offer a bid that could end the Random House Penguin merger.

The success of such a bid would see the book giant join News Corp’s existing publishing arm including HarperCollins.

The announcement of a merger of Penguin and Random House was put forward as a defence against the dominance of digital publishers including Google, Amazon and the rise of the e-reader.

Either deal would involve competition commissions due to the scale of businesses involved.

In a deal valued at £65.5million, the global insurance market has renewed its contract with Xchanging to provide business process services.

The new contract will cover a 5 year term and includes support of the market’s electronic processing platform (IMR).

Geoff Kennard, electronic services director at Xchanging, said: “We are delighted to have been awarded this deal and are privileged to have a key role to play in the market’s plans for the future.”

Digital Agenda Commissioner Neelie Kroes has called for EU and member state loan backing for CEF (Connecting Europe Facility) with around €7 billion going to fund next-generation networks.

The new networks would provide high-speed broadband throughout the European Union.

Member states are due to reach a decision on CEF funding and budget allocation within the next few weeks, which will decide future projects up until 2020.