INVESTMENTS

PM plays down Chinese-owned lithium plant

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Original article by Andrew Tillett
The Australian Financial Review – Page: 5 : 13-Jun-24

Chinese Premier Li Qiang will visit a lithium processing plant at Kwinana during his official trip to Australia. The plant’s major stakeholder is a China-based company, and Prime Minister Anthony Albanese has rejected suggestions that the federal government’s Future Made in Australia policy is being undermined by Chinese investment in critical minerals projects. He says Labor values foreign investment, although he adds that the nation must "move up the value chain" rather than merely exporting mineral resources.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

BHP runs down clock on $64b Anglo deadline

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 21-May-24

The UK’s Takeovers Code requires BHP to make a formal and binding takeover offer for Anglo American by 22 May. However, there is now a high probability that BHP will abandon its proposed bid, given that the target has rejected BHP’s improved offer of 0.8132 of its share for every Anglo American share. Meanwhile, media reports in the UK have indicated that two major Anglo American shareholders are willing to accept a simpler offer from BHP that does not involve breaking up the company.

CORPORATES
BHP GROUP LIMITED – ASX BHP, ANGLO AMERICAN PLC

Lithium miners plead foreign entity case to US

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Original article by Peter Ker
The Australian Financial Review – Page: 16 : 21-May-24

Australian miners are seeking access to lucrative subsidies available under the US Infrastructure Investment and Jobs Act and the Inflation Reduction Act. However, critical minerals that are "subject to the control" of Russia, China, Iran and North Korea are not eligible for the subsidies, as the US considers those countries to be "foreign entities of concern". This has led to concern that two of Australia’s biggest lithium mines, Greenbushes and Mt Marion, will be ineligible for the subsidies as they are 26 per cent and 50 per cent owned by Chinese companies Tianqi and Ganfeng respectively. The other 50 per cent of Mt Marion is owned by Australia’s Mineral Resources, and Tim Picton from MinRes believes it would be "counter-intuitive" for product from Mt Marion to be viewed as subject to the control of a foreign entity of concern.

CORPORATES
TIANQI LITHIUM CORPORATION, GANFENG LITHIUM COMPANY LIMITED, MINERAL RESOURCES LIMITED – ASX MIN

Anglo American rejects second, higher BHP takeover offer

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Original article by Peter Ker
The Australian Financial Review – Page: Online : 14-May-24

BHP CEO Mike Henry says it is disappointing that Anglo American’s board has rejected a revised takeover offer and has not been willing to enter into further discussions. The initial offer had comprised 0.7097 of its shares for every Anglo American share; however, BHP increased this to 0.8132 of its shares last week, valuing the target at $64.4bn. Henry adds that the two companies are a "strategic fit", and the combined group would have a leading portfolio of high-quality assets across a range of commodities.

CORPORATES
BHP GROUP LIMITED – ASX BHP, ANGLO AMERICAN PLC

High-profile backers give BHP green light for improved Anglo bid

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 7-May-24

Argo Investments’ Andy Forster believes that BHP’s takeover bid for Anglo American makes sense, but he adds that BHP will need to sweeten its bid in order to gain the target’s support. He adds that BHP must adopt a "disciplined" approach to the takeover bid. Wilson Asset Management has also expressed support for BHP’s takeover bid; WAM Leaders Fund portfolio manager Matt Haupt notes that Anglo American’s copper assets will generate synergies for BHP, and he believes that the latter has the capacity to increase its offer by 5-10 per cent.

CORPORATES
BHP GROUP LIMITED – ASX BHP, ANGLO AMERICAN PLC, ARGO INVESTMENTS LIMITED – ASX ARG, WILSON ASSET MANAGEMENT, WAM LEADERS LIMITED – ASX WLE

High-profile backers give BHP green light for improved Anglo bid

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 7-May-24

Argo Investments’ Andy Forster believes that BHP’s takeover bid for Anglo American makes sense, but he adds that BHP will need to sweeten its bid in order to gain the target’s support. He adds that BHP must adopt a "disciplined" approach to the takeover bid. Wilson Asset Management has also expressed support for BHP’s takeover bid; WAM Leaders Fund portfolio manager Matt Haupt notes that Anglo American’s copper assets will generate synergies for BHP, and he believes that the latter has the capacity to increase its offer by 5-10 per cent.

CORPORATES
BHP GROUP LIMITED – ASX BHP, ANGLO AMERICAN PLC, ARGO INVESTMENTS LIMITED – ASX ARG, WILSON ASSET MANAGEMENT, WAM LEADERS LIMITED – ASX WLE

Labor’s plan to woo right investments

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 1-May-24

The federal government is set to overhaul the nation’s foreign investment rules, which will include fast-tracking applications from investors with a proven record of investing in Australia. The reforms will also result in closer scrutiny of proposed foreign investment deals that have national security implications, such as critical infrastructure and mineral resources. Treasurer Jim Chalmers will outline the proposed reforms in a Lowy Institute speech on Wednesday; he will also reveal more details of Labor’s flagship Future Made in Australia policy.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY

BHP needs bid lift for Anglo deal

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Original article by Perry Williams
The Australian – Page: 17 : 1-May-24

Research house Bernstein says BHP’s takeover bid for Anglo American can secure the target’s support at the right price. BHP’s offer comprises 0.7097 of its shares for every share in Anglo American; this valued Anglo’s shares at Stg25.08 at the time the offer was made. Bernstein analysts suggest that BHP’s bid could succeed if its offer is increased to around Stg29 per share. Anglo American deemed BHP’s initial approach to be "opportunistic", and contended that it significantly undervalues the company’s assets. Anglo American has given BHP a deadline of 22 May to make a firm offer or walk away from the proposed deal.

CORPORATES
BHP GROUP LIMITED – ASX BHP, ANGLO AMERICAN PLC, BERNSTEIN RESEARCH

Optus parent writes off billions

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Original article by Jenny Wiggins
The Australian Financial Review – Page: 13 & 18 : 30-Apr-24

Singapore Telecommunications has announced a $S3.1 billion ($3.5 billion) writedown, most of which relates to its Australian subsidiary Optus. However, its potential impact has been offset by Optus’s agreement with TPG Telecom to share regional telecommunications networks; the agreement will see TPG pay Optus service fees of $1.59 billion over 11 years. Optus will use that money to accelerate its investment in 5G networks and complete them two years faster than foreshadowed. TPG’s deal with Optus comes after competition regulators rejected a $1.8 billion deal proposed by TPG and Telstra in 2023 to share networks and spectrum.

CORPORATES
SINGAPORE TELECOMMUNICATIONS LIMITED, SINGTEL OPTUS PTY LTD, TPG TELECOM LIMITED – ASX TPG, TELSTRA CORPORATION LIMITED – ASX TLS

BHP hunts big game in Africa

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 17 : 30-Apr-24

BHP’s primary interest in making a takeover bid for Anglo American is the latter’s copper assets, which include the Quellaveco, Los Bronces and Collahuasi projects. The proposed $59.6bn deal would see BHP regain exposure to commodities that it has been seeking to exit for the last decade, such ad diamonds and manganese. BHP has also indicated that it has no desire to hold long-term ownership of Anglo American’s platinum and iron ore assets in South Africa. Nevetheless, BHP is expected to make a sweetened takeover offer for Anglo American. Rivals such as Glencore could also potentially make a bid now that Anglo American is in play.

CORPORATES
BHP GROUP LIMITED – ASX BHP, ANGLO AMERICAN PLC, GLENCORE PLC