Scottish Business Briefing – Monday 17 June, 2013

The Co-op bank's capital plans have been approved. Picture: PA

BANKING

Co-op agrees £1.5bn rescue deal for banking arm

The Co-operative Group today unveiled a deal with regulators that will see the mutual plug a £1.5 billion shortfall in the balance sheet of its banking arm. No taxpayers’ money will be involved in the plan, which will address the shortfall identified by the Prudential Regulation Authority (PRA), the new City watchdog, through a process where bonds are converted into shares. (Scotsman)

ECONOMICS

M&A set to flourish in Scotland – if prices right

SCOTLAND is poised for a strong run of mergers and acquisitions providing the gap in price expectations between buyers and sellers can be overcome, a new survey suggests. The research points to the highest level of M&A activity taking place in the energy sector, with oil and gas deals likely to take centre stage. (Scotsman)

FOOD, DRINK & AGRICULTURE

Grahams enter cheese market with cheddars range

DAIRY business Graham’s is sinking its teeth into Britain’s multi-billion-pound cheese maket,launching a range of Scottish cheddars. The six-figure investment sees the Bridge of Allan-based firm roll-out mild, mature and extra mature cheeses. It marks the first product launch since the introduction of Graham’s spreadable butter two years ago (Scotsman)

INDUSTRY

HCS to expand into Aberdeen after £9m deal

ENGINEERING firm HCS, which specialises in hydraulic systems for the oil and gas industry, has unveiled plans to expand into Aberdeen after changing hands in a £9 million deal. The Glenrothes-based firm plans to open a base in Europe’s oil capital following the management buy-in. (scotsman)

MEDIA & LEISURE

UK staycations lead to caravan park expansion

A Scottish caravan park operator is increasing capacity and eyeing acquisitions amid strong demand for staycations in austerity Britain. Verdant Leisure has started work on a £400,000 development at its Thurston Manor site near Dunbar, in East Lothian, in response to strong interest from people who want to buy holiday properties. (Herald)

RETAIL

High Street sees return of Scottish shoppers

Scottish shoppers are venturing out onto the high street but are focused on good deals, data has suggested. The Scottish Retail Consortium (SRC) footfall figures showed numbers were 3% higher than a year ago - an improvement from the 1% rise in April. Scottish retailers faired much better than the whole of the UK, where shopper numbers were down 0.7%. (BBC)