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The former owner of Formula One motor racing is in talks about a $600m deal that could transform the face of global tennis by combining the organisers of the men’s and women’s tours under a single commercial entity.

Sky News has learnt that CVC Capital Partners is in detailed negotiations about an investment in the merged professional tours.

The talks are believed to be at an advanced stage.

A merger of the men’s and women’s tours has been a long-held ambition of executives throughout the sport.

CVC is said to be targeting approval from the ATP and WTA boards later this month.

The plans, which are understood to have been under discussion for several months, would see the ATP and WTA’s commercial activities unified under the name One Tennis, in which CVC would hold a minority interest.

Denmark's Caroline Wozniacki in the final of the 2016 Hong Kong Open
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The buyout firm’s most recent sports deal was the purchase of a stake in the International Volleyball Federation’s commercial rights

Mark Webster, the chief executive of ATP Media, would hold the same role at One Tennis, according to insiders.

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If completed, it would be the latest attempt involving CVC to reshape a major global sport at its most elite level.

It is in the process of buying a stake in the Six Nations Rugby championship, although that deal has attracted interest from the Competition and Markets Authority.

CVC already owns stakes in Premiership Rugby and Pro14, and is negotiating to buy a stake in the South African equivalent.

The buyout firm’s most recent sports deal was the purchase of a stake in the International Volleyball Federation’s commercial rights, while it is also examining deals in the US’s NBA basketball league and women’s football in England.

CVC is understood to believe that there is significant potential in combining the men’s and women’s tennis tours in order to accelerate the sport’s recovery from the pandemic.

The investment firm is likely to target greater investment in tournaments and player prize money, improved broadcast production capabilities and an enhanced global digital platform for the sport’s fans.

Last year, Wimbledon was cancelled for the first time since the Second World War, and most of the elite tournaments on the calendar were either cancelled, played behind closed doors or had few spectators in attendance.

The French Open, which concludes this weekend and features many of the world’s top players, such as Rafael Nadal and Coco Gauff, is being played with severely restricted crowds.

CVC has set a benchmark for private equity investment in the industry with its decade-long ownership of F1.

The buyout firm was also the controlling shareholder in MotoGP, which it sold as a consequence of its initial investment in F1.

Private equity firms have identified the coronavirus crisis as an opportunity to deploy capital, while also utilising their expertise in areas such as media and broadcast rights and data.

Sky News revealed earlier this year that Silver Lake, the US-based private equity investor, was in advanced talks to buy a stake in the commercial rights of the New Zealand All Blacks.

The ATP and WTA have been contacted for comment, while CVC declined to comment.

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Food and fashion push retail inflation towards ‘two-year low’

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Food and fashion push retail inflation towards 'two-year low'

The annual rate of shop price inflation has eased to its lowest level for almost two years, according to an industry reading that credits food and fashion prices.

The British Retail Consortium (BRC)-Nielsen Shop Price Index showed the pace of price increases slowed to 2.5% over the 12 months to February from 2.9% the previous month.

It was the lowest reading since March 2022, the BRC said.

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It was driven by a significant contribution from food, with prices 5% up on a year ago compared with the 6.1% figure registered at the end of January.

The report pointed to price drops for meat, fish and fruit helping fresh food inflation down to 3.4% from an annual rate of 4.9% just four weeks ago.

The BRC credited easing input costs for energy and fertiliser and “fierce” competition for cash-strapped shoppers among retailers.

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‘We’re seeing fewer weekly customers’

A separate report by Kantar Worldpanel, which logs supermarket price and sales data, also pointed to an easing in grocery price inflation but it believed food shoppers would be spared a big acceleration in prices ahead.

Its strategic insight director, Tom Steel, said: “Though there’s been lots of discussion about the impact the Red Sea shipping crisis might have on the cost of goods, supermarkets have been pulling out all the stops to keep prices down and help people manage their budgets.

“This month, Morrison’s became the latest retailer to launch a price match scheme with Aldi and Lidl, after Asda made the move in January.

“More generally, we saw promotions accelerate this month after a post-Christmas slowdown. Consumers’ spending on offers increased by 4% in February, worth £586m more than the same month in 2023.”

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The BRC pointed out rising costs for things like furniture and electrical goods but extended offers on fashion, to entice spending by customers, during February.

It saw risks ahead to slowing price growth from a series of issues including disruption to shipping in the Red Sea to minimum wage and business rates hikes planned for April.

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Helen Dickinson, the BRC’s chief executive, said: “Easing supply chain pressures have begun to feed through to food prices, but significant uncertainties remain as geopolitical tensions rise.

“Prices of non-food goods will be more susceptible to shipping costs, which have risen due to the re-routing of imports around the Cape of Good Hope.

“Domestically, retailers face a major rise to their business rates bills in April, determined by last September’s sky-high inflation rate.

“April’s rates rise should be based on April’s inflation, and the chancellor should use the… budget to make this correction, supporting business investment and helping to drive down prices for consumers.”

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Record number of in-store transactions made using contactless

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Record number of in-store transactions made using contactless

A record 93.4% of in-store card transactions up to £100 were made using contactless in 2023, according to data from Barclays.

The figures are based on Barclays debit card and Barclaycard credit card transactions.

Shoppers made 231 transactions on average, spending an average of £15.69 each time.

This added up to the typical shopper making £3,620 worth of contactless payments over the year.

While contactless is still more popular among younger age groups, the gap between older and younger people using the tech is narrowing, Barclays said.

Last year, the proportion of active users among 85 to 95-year-olds passed 80% for the first time.

And for the third year in a row, the over-65s were the fastest-growing group for contactless usage, Barclays said.

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A survey of 2,000 people by Opinium Research for Barclays indicated just 3% of over-75s prefer using mobile payments to physical cards – compared with a quarter (25%) of 18 to 34-year-olds who said they prefer to use their phone.

More than a fifth (22%) of people aged 18 to 34 regularly leave their wallet behind when out shopping in favour of paying with their smartphone, compared with just 1% of over-75s.

Just under a fifth (18%) of people said they struggled to remember their PIN.

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For the second year running, the Friday just before Christmas (22 December 2023) was the biggest day for contactless payments, as shoppers picked up last-minute gifts and enjoyed drinks as they clocked off for the holiday.

Karen Johnson, head of retail at Barclays, said: “In 2024, we expect to see a greater shift to payments using mobile wallets, as more bricks-and-mortar businesses integrate the technology into their customer experience.

“Many of our hospitality and leisure clients are finding success by giving customers the ability to order and pay from their table by scanning a QR code.”

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‘Real danger’ UK will miss out on economic growth without green plan – CBI economists warn

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'Real danger' UK will miss out on economic growth without green plan - CBI economists warn

The UK will “miss out” on economic growth unless it finally comes up with an industrial strategy to green the economy, the leading business group has warned.

As the UK economy has stagnated in recent years, the value of green industries like renewables, eco-friendly heating and energy storage is growing and will help unlock further cash for the UK, according to economists at the Confederation of British Industry (CBI).

They found that while Britain’s GDP growth was stuck at around 0.1% last year, its net zero economy grew by 9%, and attracted billions of pounds in private investment.

It argues private investment is key to unlocking growth.

The UK has committed to reaching net zero by 2050, but the report comes after Labour rowed back on its £28bn green investment pledge, and the Conservatives waged a rhetorical attack on climate policies.

Net zero means almost eliminating greenhouse gas emissions and requires changes to almost every sector, from food to housing, transport to construction.

The businesses implementing these changes – including solar panel installers and green finance advisers – added £74bn in Gross Value Added (GVA) in 2022-23, which is larger than the economy of Wales (£66 billion), according to the CBI Economics report.

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But analysts at CBI Economics and thinktank ECIU, which commissioned the report, warned “the strength of future growth is in jeopardy”.

Unless the UK draws up a “Net Zero Investment Plan”, it will lose out to places with larger economies with clear plans, like the US And EU, it said.

Louise Hellem, CBI chief economist, said: “Green growth prizes could deliver a boost of up to £57bn to GDP by 2030, but global competition is heating up.

She added: “If we can’t outspend our international competitors, we need to outsmart them. And the way to do that is really through ambitious policy frameworks that can direct capital into the UK’s green industries.”

Ms Hellem said the UK economy is “well-placed to be a world leader in this space”, given its “unique blend of advanced manufacturing capacity, world leading services industry and energy technical skills”.

“That means that investors do really see opportunities in the UK market.”

‘Real danger’ UK will miss out

Getting to net zero is likely to cost about £10bn a year until 2050, according to the Office for Budget Responsibility, which is roughly equivalent to the annual defence budget, though the majority of the cost is likely to be recouped in savings.

Many technologies that scientists believe are essential to the net zero transition remain extremely expensive, such as hydrogen and carbon capture and storage.

Adam Berman, deputy director of advocacy at industry group Energy UK, said public investment can “de-risk” these technologies and “crowd in” private sector cash, that can then bring down the price.

Jess Ralston from energy thinktank ECIU, said: “The UK is in real danger of missing out on more investment from negative rhetoric and U-turns around net zero, when the EU and US are offering clear plans and are willing to invest themselves.

“Investors want certainty and that comes from long term stable policy – whoever forms the next government will have to remember that, if it wants to see the net zero economy continue to grow.”

Watch The Climate Show with Tom Heap on Saturday and Sunday at 3pm and 7.30pm on Sky News, on the Sky News website and app, and on YouTube and Twitter.

The show investigates how global warming is changing our landscape and highlights solutions to the crisis.

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