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Message: <blockquote data-quote="Ayah" data-source="post: 23883" data-attributes="member: 3115">Hi guys,Please find this weeks commercial update below!Retailers Call For Transitional Relief ReformBy Rachel Strickland  ([USER=3442]@Rachel S[/USER] )The StoryCoordinated by the British Retail Consortium, over 50 UK retailers including Asda and Primark have written to the Chancellor to reform business rates ahead of the March 11th budget. The retailers claim that since 2017 over £500 million has been lost due to the controversial transitional relief system.Business rates are taxes on property that are used for business. These rates are based on a property’s ‘rateable value’; the market rent value multiplied by a Uniform Business Rate. The transitional relief system limits the speed at which a retailer’s rateable value changes when the property is re-evaluated every five years. This would be helpful for a business if the value of their property had increased as they would not immediately have to pay a higher rate. However, for those who are based in an area where the value of their trading location has decreased, transitional relief means they will not immediately have a lower bill. This is known as ‘downward phasing’ and has been suggested to exacerbate the economic divide between London and the North.Impact on Businesses and Law FirmsRetail accounts for 5% of the UK economy and employs 3 million people. If a reform is not organised, it is likely that an increasing number of businesses will close stores or even face insolvency. High UK property based taxes also act as a deterrent for foreign direct investment.As a property tax, tax departments will play a role in advising retailers on their tax structure and any future tax changes they may face. Business rates have previously been a contentious issue with litigation over what constitutes rateable value and if a business could be exempt. Restructuring & insolvency departments will assess a retailer’s financial situation and offer some guidance on their options. This could involve reorganising a retailer’s balance sheet by closing down certain stores. Monsoon and Arcadia all relied on CVAs last year and restructuring lawyers will play a role in negotiating with businesses and their landlords.Recent CMA Intervention in M&ABy Alice Manners ([USER=3460]@Alice Manners[/USER] )The Story The Competition and Markets Authority (CMA) has been taking an increasingly interventionist approach in UK mergers and acquisitions (M&A).Ticket resale websites Viagogo and Stubhub have been told to stop any moves towards their integration whilst the CMA investigates, concerned that the merger would give the firm too much power in the market.Furthermore, the Phase 2 investigation of JD Sport’s acquisition of Footasylum found that the takeover substantially lessens competition, with the deadline for the final report extended until the 11th May.Amazon’s acquisition of Deliveroo is also being investigated, as is Takeaway.com and JustEat’s merger – a few days before the deal was scheduled to close.Impact on Businesses and Law FirmsWhilst a final decision has not been reached on any of these deals, the CMA’s current approach - particularly as they stopped Sainsbury and Asda’s merger in 2019 - could be perceived as aggressive.With Brexit uncertainty already reducing market moves, law firms may have less work in the area, or will need to consider the impact of the CMA’s more active approach when advising clients trying to remain competitive. If JD is now forced to sell Footasylum, calls for more predictable and quicker intervention by the CMA will likely arise.The CMA is trying to maintain competition in the current uncertain economy, but as a result, companies may be disincentivised from continuing to operate in the UK. If M&A’s cannot proceed, there may be work for law firms in other areas such as business restructure or moving abroad. We could also see more companies, particularly on the high street, going out of business as they struggle to compete.Early investors in Deliveroo have argued that the regulator is setting a “dangerous precedent”. Businesses may be deterred from starting up or investing in new businesses if CMA investigation could cause similar delay.BP Pledges to Cut GHG Emissions to Net-Zero by 2050 or BeforeBy Curtley Bale ([USER=4422]@Curtley Bale[/USER] )The StoryBP has pledged to cut its greenhouse gas emissions to net-zero by 2050 or before in a series of promises by new chief executive, Bernard Looney. These pledges come as the most ambitious of any oil and gas major so far and will lead to a revolution of the way BP operates internally. The company will focus on its 415m tonnes of emissions as well as those of its customers. Whilst there has been little detail released, it is expected that BP’s plan to reach net-zero will include offsetting as well as investing in new low-carbon start-ups.Impact on Businesses and Law Firms Mr. Looney has claimed it’s time for the company to ‘reinvent’ itself amid increasing pressure from those investors who are worried about the future of fossil fuel-based companies. The changes aim to encourage millennials to invest in the company and back its plan for the future. BP’s pledges say they will balance their focus on becoming more green with maintaining dividend levels. The company paid out $8.4bn in dividends last year and spent around $14bn on oil and gas expenditures. The new chief executive has urged the need for a ‘rapid transition’ to zero carbon as he believes the oil and gas industry will soon fail. His promises have led to the biggest revamp in BP’s history with work streams focussed solely on ‘gas and low carbon’ and ‘innovation and energy’. This would suggest that BP realise their longevity as a company must be based on innovation rather than relying solely on offsetting. Law firms will likely be on hand to help with this restructuring across BP’s multiple jurisdictions.BP’s green pledges have now made it a market leader. The promises surpass those made by competitors such as Royal Dutch Shell who have tied executive pay to carbon emission targets. The only other company to make pledges similar to BP is the much smaller Spanish company, Repsol. BP’s move is also expected to worry US giants ExxonMobil and Chevron, who have been slow to take a stance on climate change. By coming out in front of the market, BP has the potential to become an industry leader whilst also securing its status as one of the world’s biggest companies.</blockquote>

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