Ashtead buys New York-based Pride, Reckitt Benckiser might sell French's mustard

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The FTSE 100 is expected to open flat on Monday, after closing down 0.63% at 7,322.92 on Friday.

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Industrial equipment rental company Ashtead Group announced it has bought New York-based Pride Equipment Corporation for £279m. The FTSE 100 company's US subsidiary Sunbelt Rentals bought Pride to further enhance its position in the New York City market with a complementary firm renting smaller and medium sized equipment, which offers cross selling opportunities.

Consumer products maker Reckitt Benckiser confirmed it was considering options for its food business, which includes the French’s mustard brand, on Monday. The FTSE 100 firm was the subject of press speculation over the weekend, with the Sunday Times suggesting it was seeking a possible buyer for the food division to fund the takeover of US baby food manufacturer Mead Johnson. “We have ... decided to initiate a strategic review of Food where we will explore all options for this great business,” Reckitt’s board said on Monday.

Babcock International Group, a supplier of support services to the armed forces, was selected as a preferred bidder for a Ministry of Defence programme which is worth about £360m over seven years, If selected, Babcock will become the marine systems support partner for the Royal Navy's new Queen Elizabeth class aircraft carriers and Type 45 destroyers.

Newspaper round-up

One of the most influential shareholder groups in the City has raised doubts about Tesco’s proposed £3.5 billion purchase of the wholesaler Booker, saying that it could put corner shops out of business and trigger a backlash against the retail giant. Hermes Fund Managers said that it planned to raise the issue with Tesco before the vote on the deal. - The Times

The Co-operative Group will reveal this week it has fallen back into the red for the first time since its tumultuous 2013 year, after writing off the value of its investment in the Co-operative Bank. The mutual is set to take a £140m hit as it slashes the value of its 20% stake in the bank to zero, amid ongoing uncertainty about its former financial arm’s future. - Guardian

The government watchdog tasked with helping keep public finances in check is at risk of overshooting its own budget. The Office for Budget Responsibility is set to have a potential shortfall plugged by the Treasury because the cost of moving offices in Whitehall could hit its annual figures. - The Times

US close

Stocks ended the week and the quarter higher, but ended March on a down note as losses set in during the last half hour of trading on Friday amid a small bout of volatility.

The Dow Jones Industrial Average retreated 0.31% or 65.27 points to end the day at 20,663.22, while the Nasdaq Composite was off by 0.04% at 5,911.74 and the S&P 500 swooned 0.23% to finish at 2,362.72.

For the week as a whole, the S&P climbed 0.8%, capping its drop in March at roughly seven points, but for the quarter as a whole it was 5.5% higher - its best performance since the end of 2015.

By sectors, Friday's best performers were: Coal (3.52%), Aluminum (2.72%) and Marine Transportation (1.73%), whilst the worst performers were Integrated oils (-1.41%), Railroads (-1.34%) and Banks (-1.15%).

Economic data on Friday was a mixed bag, with personal income and spending rising as expected in February but spending slipping by a tenth of a percentage point over the month when adjusted for inflation, following a 0.2% decline in January.