It was only in November last year when Dechra Pharmaceuticals, the pet medicine maker, was a member of the FTSE 100, with a peak market cap of about £5.8 billion. Fast forward to this morning, now a member of the FTSE 250, when they agreed to a £4.5 billion takeover deal from Swedish investment firm EQT — a lower price to the offer on the table a few months ago.

Here’s the key business news from London this morning:

In The City

Dechra Pharmaceuticals Plc: The veterinary drugmaker agreed a takeover deal with EQT AB, valuing the company’s share capital at about £4.5 billion, one of the largest UK take-private deals this year.

• At 3,875 pence per share, the price is lower than the level disclosed in mid-April, when the two companies said they were in talks at 4,070 pence a share

Permanent TSB Group Holdings Plc: Both the Irish government and NatWest Group Plc sold a €110.5 million stake in the Irish bank overnight.

• The placing was priced at €2.025 per share, a discount of about 8% to the company’s last closing price

Dalata Hotel Group Plc: The Irish hotel chain has agreed to buy the Apex Hotel London Wall for £53.4 million, the group’s fifth hotel in London.

• The deal is expected to complete the deal in July, and it’ll be rebranded as Clayton Hotel London Wall

In Westminster

Rishi Sunak is trying to repair the UK’s relationship with China without being seen doing it. The British Prime Minister has in recent weeks sent a trade minister to Hong Kong while his envoy to the former colony called for handling more disagreements with Beijing behind closed doors. Foreign Secretary James Cleverly is expected to make a trip to China in the coming months.

Elsewhere in politics, Sunak’s administration has also refused a demand from the UK’s Covid-19 inquiry to hand over former Prime Minister Boris Johnson’s WhatsApp messages and pandemic diaries, setting up a legal battle that risks amplifying accusations of a cover-up.

In Case You Missed It

Rio Tinto Plc plans to invest $395 million in a seawater desalination plant in the Pilbara, Western Australia, to support water supply for the company’s coastal operations and communities in the region. The construction is due to begin next year, with the facility expected to be operational and producing water in 2026.

Meanwhile, the UK housing market is sputtering again, with economists predicting the downturn has further to run as rising interest rates bite into the budgets of consumers. The warning comes after reports Thursday showed house prices resumed their decline last month and mortgage approvals unexpectedly fell in April. Households repaid mortgage debt at an historic pace.

This week’s In the City podcast explores how courier services and car rides may reflect how businesses are doing and, ultimately, London’s economic health.

Looking Ahead

An emptied macroeconomic agenda is likely to keep market participants focused on corporate earnings next week. Budget carrier Wizz Air Holdings Plc is set to disclose full-year results on June 8, with investors particularly interested on its outlook for the summer season after rivals highlighted a strong demand as the sector benefits from a post-pandemic recovery in air travel.

EasyJet Plc recently said it’s running 20% above year-earlier levels, citing a shortage of planes and consumers’ willingness to pay more after being idled, while Ryanair Holdings Plc hinted at the prospect of paying a dividend should if its strong performance persist over the next year.

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