MERGERS AND ACQUISITIONS – AUSTRALIA

Ore discounts force Atlas, MinRes link-up

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Original article by James Thomson, Sarah Thompson, Anthony Macdonald
The Australian Financial Review – Page: 11 & 16 : 10-Apr-18

Atlas Iron’s directors have endorsed a proposed merger with Mineral Resources, which requires the support of at least 75 per cent of Atlas shareholders. The deal values Atlas shares at $A0.0302, with stockholders to receive one Mineral Resources share for every 571 shares they hold. Atlas CEO Cliff Lawrenson has praised Mineral Resources, and he attributes the merger to the widening discount between lower-grade iron ore and the benchmark price. He says it is uncertain whether the discount is structural or cyclical.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, MINERAL RESOURCES LIMITED – ASX MIN, FORTESCUE METALS GROUP LIMITED – ASX FMG, AWE LIMITED – ASX AWE, MITSUI AND COMPANY LIMITED, HOULIHAN LOKEY HOWARD AND ZUKIN, DLA PIPER, GILBERT AND TOBIN LAWYERS

Cook tries to ease Santos bid tax concerns

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Original article by Matt Chambers
The Australian – Page: 19 & 30 : 6-Apr-18

Harbour Energy CEO Linda Cook has given her assurance that Santos will remain an Australian company if Harbour Energy’s $A13.5 billion bid for the oil and gas company succeeds. Responding to concerns that Harbour Energy is registered in the Cayman Islands and that corporate tax from Santos might be reduced if Harbour Energy assumes control of it, Cook stressed that the company Harbour Energy has established to acquire Santos is Australian, and therefore subject to the same amount of tax that Santos pays at the moment.

CORPORATES
SANTOS LIMITED – ASX STO, HARBOUR ENERGY LIMITED, ENN GROUP, HONY CAPITAL, ROYAL DUTCH SHELL PLC, CHRYSAOR, MORGAN STANLEY AUSTRALIA LIMITED, JP MORGAN AUSTRALIA LIMITED

Santos suitor could offload key gas assets

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 : 5-Apr-18

Mark Samter of Credit Suisse has identified the Cooper Basin infrastructure at the Moomba gas plant as one of the Santos assets that Harbour Energy could potentially agree to divest in order to secure approval from the Foreign Investment Review Board. Samter says Santos’s assets in Western Australia could also be earmarked for sale if the $A13.5bn takeover bid succeeds. Approval from the FIRB is widely seen as a key risk for Harbour’s bid.

CORPORATES
SANTOS LIMITED – ASX STO, HARBOUR ENERGY LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, WATERMARK FUNDS MANAGEMENT PTY LTD, QUADRANT ENERGY PTY LTD, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, HONY CAPITAL, ENN GROUP

Rebranding a possibility for transformed Foxtel

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Original article by Max Mason
The Australian Financial Review – Page: 15 : 4-Apr-18

News Corp has increased its stake in Foxtel to 65 per cent following the completion of the pay-TV company’s merger with Fox Sports. News Corp has indicated that integrating the two businesses is the immediate priority, and any decision on dropping the Foxtel branding is unlikely in the near-term. Foxtel may also launch new streaming services with their own branding, as part of its strategy to increase its customer base.

CORPORATES
FOXTEL MANAGEMENT PTY LTD, FOX SPORTS AUSTRALIA PTY LTD, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, TELSTRA CORPORATION LIMITED – ASX TLS, 21ST CENTURY FOX INCORPORATED, SKY PLC, WALT DISNEY COMPANY

Santos heats up with $13.5bn bid

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Original article by Matt Chambers
The Australian – Page: 19 & 22 : 4-Apr-18

Analysts say that gaining Foreign Investment Review Board approval for its $A13.5bn bid for Santos will be the greatest hurdle for US-based Harbour Energy. Santos has granted due diligence after the private equity-backed firm offered $A6.50 per share, compared with an initial approach in August which was pitched at $A4.55 per share. Harbour Energy has flagged plans to expand Santos’s drilling program in the Cooper Basin and increase domestic gas supply if its bid succeeds.

CORPORATES
SANTOS LIMITED – ASX STO, HARBOUR ENERGY LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, EIG GLOBAL ENERGY PARTNERS, ROYAL DUTCH SHELL PLC, ENN GROUP, HONY CAPITAL, WOODSIDE PETROLEUM LIMITED – ASX WPL

Not too late to unwind CFMMEU

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 6 : 28-Mar-18

The full bench of the Fair Work Commission will hear an appeal against the Construction, Forestry, Mining & Energy Union’s merger with the Maritime Union of Australia on 9 April. The merger formally took effect on 28 March, but the Australian Mines & Metals Association and Master Builders Australia believe that it can be overturned on legal grounds. The appeal will be based on the argument that a contempt court action against the MUA constitutes criminal proceedings, which would make the merger unlawful.

CORPORATES
CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, MARITIME UNION OF AUSTRALIA, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIAN MINES AND METALS ASSOCIATION (INCORPORATED), MASTER BUILDERS AUSTRALIA INCORPORATED

M&A’s hot sectors to drive healthy flow

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 19 : 19-Mar-18

Data from Dealogic shows that $US13.1bn ($A17bn) worth of mergers and acquisitions have been announced so far in 2018, which is 25 per cent higher than the same period in 2017. Herbert Smith Freehills partner Tony Damian anticipates strong M&A activity during 2018, citing healthcare as a sector which is likely to continue to attract suitors. The law firm also identifies financial services, renewable energy and infrastructure as Australian sectors in which M&A activity is likely to be high.

CORPORATES
DEALOGIC (AUSTRALIA) PTY LTD, HERBERT SMITH FREEHILLS PTY LTD, WOODSIDE PETROLEUM LIMITED – ASX WPL, EXXONMOBIL CORPORATION, AWE LIMITED – ASX AWE, MITSUI AND COMPANY LIMITED, I-MED/MIA NETWORK LIMITED, PERMIRA PRIVATE EQUITY LIMITED, DEUTSCHE BANK AG, COALITION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AMP LIMITED – ASX AMP, SUNCORP GROUP LIMITED – ASX SUN, WESFARMERS LIMITED – ASX WES, COLES SUPERMARKETS AUSTRALIA PTY LTD, QUALCOMM INCORPORATED, BROADCOM CORPORATION, UBS HOLDINGS PTY LTD, LAZARD PTY LTD, GOLDMAN SACHS AUSTRALIA PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, MACQUARIE CAPITAL PTY LTD

Credit Suisse picks top takeover targets

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Original article by Simon Evans
The Australian Financial Review – Page: 18 : 14-Mar-18

Hasan Tevfik of Credit Suisse expects mergers and acquisitions activity in Australia to remain strong during 2018, citing factors such as healthy balance sheets and growing business confidence. Credit Suisse has identified 31 listed stocks that could potentially become takeover targets in 2018. They include Santos, Whitehaven Coal, Nine Entertainment Company, Fairfax Media, Ardent Leisure Group, DuluxGroup, Origin Energy and Caltex Australia.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, SANTOS LIMITED – ASX STO, WHITEHAVEN COAL LIMITED – ASX WHC, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED – ASX FXJ, ARDENT LEISURE GROUP – ASX AAD, DULUXGROUP LIMITED – ASX DLX, ORIGIN ENERGY LIMITED – ASX ORG, CALTEX AUSTRALIA LIMITED – ASX CTX, SEVEN WEST MEDIA LIMITED – ASX SWM, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, ADELAIDE BRIGHTON LIMITED – ASX ABC, NUFARM LIMITED – ASX NUF, PRIMARY HEALTH CARE LIMITED – ASX PRY, SYRAH RESOURCES LIMITED – ASX SYR, APA GROUP – ASX APA, BLACKMORES LIMITED – ASX BKL, CHALLENGER LIMITED – ASX CGF, TREASURY WINE ESTATES LIMITED – ASX TWE, PENFOLDS WINES PTY LTD, CHINA NATIONAL CEREALS, OILS AND FOODSTUFFS IMPORT AND EXPORT CORPORATION, WESTFIELD CORPORATION – ASX WFD, UNIBAIL-RODAMCO

Bosses fight CFMEU-MUA super union

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 6 : 9-Mar-18

The full bench of the Fair Work Commission will be asked to overturn the decision to approve a merger between the Construction, Forestry, Mining & Energy Union and the Maritime Union of Australia. The Australian Mines & Metals Association and Master Builders Australia will also seek a stay of the decision, which could give the Federal Government time to pass legislation to subject union mergers to a public interest test. Workplace Relations Minister Craig Laundy has urged the Opposition to support the bill.

CORPORATES
CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, MARITIME UNION OF AUSTRALIA, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIAN MINES AND METALS ASSOCIATION (INCORPORATED), MASTER BUILDERS AUSTRALIA INCORPORATED, AUSTRALIA. DEPT OF JOBS AND SMALL BUSINESS, AUSTRALIAN LABOR PARTY, LIBERAL DEMOCRATIC PARTY, LIBERAL PARTY OF AUSTRALIA

Late push to stop creation of super-union

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 3 : 8-Mar-18

The Australian Mines & Metals Association believes that the Federal Government can still legislate to block the merger of the Construction, Forestry, Mining & Energy Union and the Maritime Union of Australia. AMMA has suggested amending the Ensuring Integrity Bill so the Government’s public interest test for union mergers applies before a date for amalgamation has been set. In the bill’s present form, the public interest test applies before a merger date has been set, but the Fair Work Commission has already set this for 27 March. The bill has yet to be put before the Senate.

CORPORATES
CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, MARITIME UNION OF AUSTRALIA, AUSTRALIAN MINES AND METALS ASSOCIATION (INCORPORATED), AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIA. DEPT OF JOBS AND SMALL BUSINESS, MASTER BUILDERS AUSTRALIA INCORPORATED, NICK XENOPHON TEAM, LIBERAL DEMOCRATIC PARTY, ONE NATION PARTY