INVESTMENTS

Amatil chiefs back $9.3bn takeover bid

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Original article by Eli Greenblat
The Australian – Page: 13 & 16 : 27-Oct-20

Shares in Coca-Cola Amatil closed 16.28 per cent higher at $12.50 on 26 October, after its independent directors endorsed a takeover proposal from Coca-Cola European Partners. The cash offer of $12.75 per share also has the support of CC Amatil’s chair Ilana Atlas and CEO Alison Watkins, as well as 30.4 per cent shareholder The Coca-Cola Company. Atlas says the board decided to recommend the $9.3bn bid after assessing the company’s earnings outlook.

CORPORATES
COCA-COLA AMATIL LIMITED – ASX CCL, COCA-COLA EUROPEAN PARTNERS, THE COCA-COLA COMPANY

CC Amatil and Coke Europe in merger talks

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Original article by Sue Mitchell
The Australian Financial Review – Page: 14 & 20 : 26-Oct-20

Shares in Coca-Cola Amatil were placed in a trading halt on 23 October, pending an announcement on a "potential material transaction". Bloomberg has reported that the beverages group is in advanced talks with Coca-Cola European Partners regarding a takeover proposal that could be worth around $10bn. The Coca-Cola Company has a 30.4 per cent stake in CCA and a 19.3 per cent stake in CCEP, positioning it to play a key role in any deal that emerges. A takeover of Australia’s largest non-alcoholic beverage would most likely need to be approved by the Foreign Investment Review Board.

CORPORATES
COCA-COLA AMATIL LIMITED – ASX CCL, COCA-COLA EUROPEAN PARTNERS, THE COCA-COLA COMPANY, BLOOMBERG LP, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

FIRB investment fees set to jump on property and business

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Original article by Matthew Cranston
The Australian Financial Review – Page: 12 : 18-Sep-20

The federal government has previously reduced to zero the ‘dollar value threshhold’ for foreign bids to be assessed by the Foreign Investment Review Board. It has now adjusted the fees that are applied to foreign investment applications, so as to reflect the costs of reviewing them under the new threshold process. The change will see some fees increased and some reduced; in the case of residential property, all fees will rise, except for properties valued at $38 million or more.

CORPORATES
AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

China turning off the cash tap

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Original article by Glenda Korporaal
The Australian – Page: 1 & 2 : 9-Jun-20

A report produced by KPMG and the University of Sydney shows that Chinese investment in Australia fell to a 12-year in 2019. Chinese investment fell by 60 per cent to $3.4bn in total, including the acquisition of Bellamy’s Australia for $1.5bn. The report also shows that China-based investors made just 42 deals in Australia during 2019, compared with 74 in 2018. The report covers completed deals worth more than $US5m. Doug Ferguson of KPMG says Chinese investment in Australia is likely to continue to fall in 2020.

CORPORATES
KPMG AUSTRALIA PTY LTD

Tighter test for foreign investors

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 5-Jun-20

The federal government will announce a revamp of Australia’s foreign investment regime on 5 June; the government wants to close what it contends are ‘national security’ gaps in the current rules. One of the changes will see the Foreign Investment Review Board apply a National Security Test to assets defined as a ‘sensitive national security business’; such assets include water, telecommunications and energy. The government intends to legislate the changes in July, with the intention of having them come into effect in January.

CORPORATES
AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

Seven takes Bauer to court over mags deal

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Original article by Lilly Vitorovich
The Australian – Page: 15 : 9-Apr-20

Seven West Media has stated that Bauer Media’s contract to buy Pacific Magazines is unconditional following recent regulatory approval for the $40m deal. Seven has launched court action to ensure that Bauer completes the deal. There has been speculation that Germany-based Bauer could withdraw from the Australian market following its decision to shut down its New Zealand arm. Seven in turn has flagged the possibility of further asset sales to reduce its $541m debt.

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM, PACIFIC MAGAZINES PTY LTD, BAUER MEDIA AUSTRALIA PTY LTD, BAUER MEDIA KG

Thriving US equities tipped to defy global risks

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Original article by David Rogers
The Australian – Page: 28 : 11-Feb-20

Kevin Anderson of State Street Global Advisors expects US economic growth to slow in 2020, but he says the country is unlikely to go into recession. Anderson adds that the asset manager has an overweight exposure to equities, and it is particularly upbeat about US shares. He says earnings will be a major driver of returns from equities in 2020, and the US is less vulnerable to an earnings shock than other markets. Meanwhile, Anderson is not unduly concerned about a recent flattening of the US yield curve, saying it was primarily due to 10-year bonds being regarded as a safe-haven investment.

CORPORATES
STATE STREET GLOBAL ADVISORS INCORPORATED

Kaufland exit helps Coles

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Original article by Eli Greenblat
The Australian – Page: 17 : 24-Jan-20

JP Morgan analyst Shaun Cousins says Coles and Metcash have most to gain from Kaufland’s decision to abandon the $100 billion Australian grocery market before it had even opened a store. He says the gap in the market that the German retailer had sought to fill was not obvious, while Citigroup’s Bryan Raymond says Kaufland’s exit has removed a major risk from what he says has been a very rational grocery industry in the past 12 months.

CORPORATES
COLES GROUP LIMITED – ASX COL, METCASH LIMITED – ASX MTS, KAUFLAND STIFTUNG & CO KG, JP MORGAN AUSTRALIA LIMITED, CITIGROUP PTY LTD

Retail invasion over as Kaufland beats a retreat from the Australian market

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Original article by Eli Greenblat
The Australian – Page: 15 & 23 : 23-Jan-20

Shares in grocery retailers Coles and Woolworths rallied on 22 January, after German supermarket group Kaufland announced that it has abandoned plans to expand into the Australian market. Kaufland has advised that its 200 employees in Australia will receive their full entitlements; the majority had previously been employed by Coles or Woolworths. Schwarz Group is believed to have invested about $500m in Kaufland’s Australian operations, with plans to open at least 20 stores across the country.

CORPORATES
KAUFLAND STIFTUNG & CO KG, SCHWARZ GROUP, COLES GROUP LIMITED – ASX COL, WOOLWORTHS GROUP LIMITED – ASX WOW

Japan tipped to lead inbound M&A

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Original article by Lucas Baird
The Australian Financial Review – Page: 14 : 6-Jan-20

Alex Cartel of Deutsche Bank expects Japanese companies to pursue more takeover deals in Australia during 2020, following bids for Carlton & United Breweries and DuluxGroup in 2019. He notes that Japan has replaced China as a key driver of inbound mergers and acquisitions deals in the last several years. Simon Ranson of JP Morgan adds that offshore private equity firms are cashed up, noting that factors such as the low Australian dollar will make the nation attractive to them.

CORPORATES
DEUTSCHE BANK AG, JP MORGAN AUSTRALIA LIMITED, CARLTON AND UNITED BREWERIES, DULUXGROUP LIMITED, ASAHI GROUP, NIPPON PAINT, HERBERT SMITH FREEHILLS PTY LTD, BELLAMY’S AUSTRALIA LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION