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Freetrade, a UK-based rival to Robinhood, has been acquired by IG Group for £160 million ($195 million), reflecting a 29% discount from its last valuation. This acquisition highlights the rapid growth of the UK stock trading market, which has seen a 10% annual increase, benefiting companies like Robinhood that recently entered the UK market. Following a 322% rally in its share price over the past year, Robinhood has received a Strong Buy consensus rating from analysts, with an average price target of $48.67 per share, indicating further upside potential.
Freetrade, a U.K. competitor to Robinhood, has been acquired by IG Group for £160 million ($195 million), reflecting a 29% drop from its last valuation. Founded in 2016, Freetrade gained traction with its zero-commission trading platform but faced challenges due to adverse macroeconomic conditions. The acquisition signals potential consolidation in the wealth technology sector, following Hargreaves Lansdown's £5.4 billion purchase by a consortium including CVC Group.
Doubts are rising over the Labour government"s growth agenda, with analysts warning of potential tax increases next year if economic reforms fail to stimulate growth. Despite recent measures aimed at boosting investment, the U.K. economy showed minimal growth, prompting concerns about the sustainability of public services funding. The Chancellor faces a challenging balance between maintaining tax revenues and encouraging business investment, with future tax changes likely contingent on economic performance against forecasts.
U.K. borrowing costs rose following a budget announcement that included £70 billion in spending funded by tax hikes, raising concerns about fiscal responsibility and inflation. Analysts believe this situation differs from the 2022 mini-budget crisis, though market apprehension remains due to the government's investment strategy and upcoming U.S. elections. The British pound has also seen fluctuations against the dollar and euro amid these developments.
U.K. Finance Minister Rachel Reeves is set to deliver the Labour government's first budget in nearly 15 years, addressing a £100 billion spending gap amid rising government borrowing costs and declining business confidence. The budget will propose changes to debt rules to free up investment funds, while tax increases for higher earners and potential adjustments to inheritance and capital gains taxes are under consideration. Analysts warn that balancing fiscal responsibility with growth initiatives will be a challenging task for Reeves.
Hargreaves Lansdown plc
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Freetrade acquired by IG Group as UK stock trading market expands
British Pound Sterling
IG Group Holdings plc
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15:56 16.01.2025
Freetrade acquired by IG Group at significant valuation discount
13:34 16.01.2025
doubts grow over uk economic recovery amid potential tax increases
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08:28 19.11.2024
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12:24 01.11.2024
uk government prepares for first budget amid economic uncertainty and tax speculation
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07:10 28.10.2024
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