JAPANESE – AUSTRALIA

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

Divestments on cards in Asahi CUB buyout

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Original article by Simon Evans, Tim Boyd
The Australian Financial Review – Page: 13 & 16 : 23-Jul-19

Asahi Beverages Australia’s executive chairman Peter Margin has downplayed suggestions that the acquisition of Carlton & United Breweries may force the Japanese group to sell some beer brands due to competition concerns. CUB is estimated to have a 48.8 per cent share of the Australian beer market, while the market share of Asahi’s brands is about 1.2 per cent. CUB may have increased its market share in June after it engaged in heavy price discounting and trade loading in the lead-up to the end of the financial year.

CORPORATES
ASAHI BREWERIES LIMITED, CARLTON AND UNITED BREWERIES, ASAHI BEVERAGES AUSTRALIA PTY LTD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, LION PTY LTD, COOPERS BREWERY LIMITED, ANHEUSER-BUSCH INBEV SA/NV, SABMILLER PLC, FOSTER’S GROUP LIMITED, STONE AND WOOD BREWING COMPANY PTY LTD

Asahi puts $16bn on bar for CUB

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Original article by Bridget Carter, Eli Greenblat
The Weekend Australian – Page: 25 & 28 : 20-Jul-19

Japan-based Asahi is set to acquire Carlton & United Breweries in a $16bn deal, subject to approval by the Foreign Investment Review Board and the Australian Competition & Consumer Commission. The deal includes beer brands such as Victoria Bitter and Carlton Draught, and is expected to be finalised in the March 2020 quarter. Asahi secured the deal after Anheuser-Busch InBev abandoned plans for an IPO of its Asian brands, including CUB. The IPO documents show that CUB had a 48.8 per cent share of the Australian market in 2018, while rival brewer Lion – which is owned by Japan’s Kirin – had a 36.4 per cent market share.

CORPORATES
CARLTON AND UNITED BREWERIES, ASAHI BREWERIES LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, ANHEUSER-BUSCH INBEV SA/NV, LION PTY LTD, KIRIN HOLDINGS COMPANY LIMITED

Japan Inc splashes out on Dulux

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Original article by Perry Williams
The Australian – Page: 17 : 18-Apr-19

Directors of DuluxGroup have endorsed a cash offer of $9.80 per share from Japan-based Nippon Paint, which values the deal at $3.8bn. DuluxGroup CEO Patrick Houlihan says the deal will allow the Melbourne-based company to sell its products in more international markets, following the recent launch of its Selleys range in Indonesia. Nippon Paint has stressed that DuluxGroup will retain its branding and leadership team.

CORPORATES
DULUXGROUP LIMITED – ASX DLX, NIPPON PAINT, SELLEYS CHEMICAL COMPANY PTY LTD, PARCHEM CONSTRUCTION PRODUCTS PTY LTD, CRAIG AND ROSE, JAPAN POST COMPANY LIMITED, TOLL HOLDINGS LIMITED, MITSUBISHI UFJ FINANCIAL GROUP INCORPORATED, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT, ORICA LIMITED – ASX ORI

Mitsubishi in $4.1bn swoop for CBA arm

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Original article by Joyce Moullakis
The Australian – Page: 17 & 21 : 1-Nov-18

Brett Le Mesurier of Shaw & Partners expects the Commonwealth Bank of Australia to return capital to shareholders following a deal to sell its global asset management business. Japan’s Mitsubishi UFJ Financial Group will pay $4.1bn for Colonial First State Global Asset Management, which CBA had previously intended to demerge with its financial planning and mortgage assets. CBA expects to generate a post-tax gain of around $1.5bn from the sale of CFSGAM, while the bank’s common-equity tier-one capital will be boosted by 60 basis points.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT, MITSUBISHI UFJ FINANCIAL GROUP INCORPORATED, SHAW AND PARTNERS LIMITED, COUNT FINANCIAL LIMITED, FINANCIAL WISDOM LIMITED, AUSSIE HOME LOANS LIMITED, COLONIAL FIRST STATE GROUP LIMITED, MORTGAGE CHOICE LIMITED – ASX MOC, COUNTPLUS LIMITED – ASX CUP, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, MLC LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, SOCIETYONE AUSTRALIA PTY LTD, SUNCORP GROUP LIMITED – ASX SUN, TRIBECA INVESTMENT PARTNERS PTY LTD, MITSUBISHI UFJ TRUST AND BANKING INCORPORATION

Mitsui offer for AWE deemed fair

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 18 : 22-Feb-18

AWE Limited has posted a 2017-18 interim net loss of $A23.8m, although its underlying loss narrowed from $A11.5m previously to just $A5.3m. Meanwhile, an independent expert’s report by Grant Thornton has concluded that the $A602m takeover offer from Japan-based Mitsui is "fair and reasonable". The firm values AWE’s shares at between $A0.78 and $A1.06, compared with Mitsui’s offer of $A0.95 per share. RBC Capital Markets says Mineral Resources and China Energy Reserve & Chemical Group are unlikely to make new offers for AWE.

CORPORATES
AWE LIMITED – ASX AWE, GRANT THORNTON AUSTRALIA, MITSUI AND COMPANY LIMITED, RBC CAPITAL MARKETS, MINERAL RESOURCES LIMITED – ASX MIN, CHINA ENERGY RESERVE AND CHEMICAL GROUP COMPANY LIMITED, LATTICE ENERGY LIMITED, BEACH ENERGY LIMITED – ASX BPT

Mitsui set to snare AWE as MinRes yields

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 : 5-Feb-18

Japan-listed Mitsui is poised to acquire Australian-listed oil and gas producer AWE Limited after Mineral Resources chose not to match Mitsui’s cash bid of $A602m. Shares in AWE closed at $A0.985 on 2 February, compared with Mitsui’s offer of $A0.95 per share. AWE’s key asset is its 50 per cent stake in the Waitsia gas field in Western Australia. Beach Energy also owns 50 per cent of Waitsia, although it is not expected to launch a bid for AWE.

CORPORATES
AWE LIMITED – ASX AWE, MITSUI AND COMPANY LIMITED, MINERAL RESOURCES LIMITED – ASX MIN, BEACH ENERGY LIMITED – ASX BPT, CHINA ENERGY RESERVE AND CHEMICAL GROUP COMPANY LIMITED, SEVEN GROUP HOLDINGS LIMITED – ASX SVW, AUSTRALIA. TAKEOVERS PANEL

AWE expected to hand MinRes rejection notice

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Original article by Paul Garvey
The Australian – Page: 20 : 31-Jan-18

AWE Limited’s board is tipped to declare its support for Mitsui’s cash offer of $A0.95 per share on 31 January. Rival suitor Mineral Resources will then have three days to lift its cash and scrip bid of $A0.83 per share. AWE shares closed at $A0.975 on 30 January, after rising to $A0.99 on the previous day. The third bidder for AWE, China Energy Reserve & Chemicals Group, is not expected to increase its offer.

CORPORATES
AWE LIMITED – ASX AWE, MITSUI AND COMPANY LIMITED, MINERAL RESOURCES LIMITED – ASX MIN, CHINA ENERGY RESERVE AND CHEMICAL GROUP COMPANY LIMITED, CANACCORD GENUITY (AUSTRALIA) LIMITED

Japan Post takes axe to Toll jobs

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Original article by Damon Kitney
The Australian – Page: 17 & 26 : 27-Apr-17

Toll Holdings has shed about 300 jobs at its head office so far in 2017, and the transport and logistics group has revealed plans to axe an additional 1,700 positions over the next year. Toll’s Australian division, which employs about 25,000 people, is expected to bear the brunt of the job cuts. Toll will implement a restructuring program after parent company Japan Post flagged a $US3.6bn ($A4.8bn) writedown of the business and advised that 2017 EBIT is likely to be well below expectations. Japan Post paid $A6.5bn for Toll in 2015.

CORPORATES
TOLL HOLDINGS LIMITED, JAPAN POST COMPANY LIMITED, ASCIANO LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS, LINFOX PTY LTD, KIRIN HOLDINGS COMPANY LIMITED, LION-DAIRY AND DRINKS PTY LTD

Australia is a key market, says Bank of Tokyo

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Original article by James Eyers
The Australian Financial Review – Page: 17 : 1-Dec-16

The Bank of Tokyo-Mitsubishi intends to expand its presence in Australia. Randy Chafetz, the managing executive officer of the bank, says stagnant conditions in Japan will continue to result in pressure on Japanese companies to seek more promising markets in other countries, including Australia. Earlier in 2016, the bank appointed ex-ANZ executive Drew Riethmuller as head of corporate finance operations for Oceania.

CORPORATES
BANK OF TOKYO-MITSUBISHI (AUSTRALIA) LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, DAI-ICHI LIFE INSURANCE COMPANY LIMITED, MORGAN STANLEY AUSTRALIA LIMITED, AMP LIMITED – ASX AMP