MERGERS AND ACQUISITIONS – AUSTRALIA

BHP’s bold Anglo American bid

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Original article by Nick Evans
The Australian – Page: 13 & 16 : 26-Apr-24

BHP says that acquiring Anglo American would increase its exposure to ‘future facing commodities’, given that the latter has significant copper assets. Anglo American has advised that its board is considering the Stg31bn ($60bn) offer, which it has described as "unsolicited, nonbinding and highly conditional". BHP’s offer comprises 0.7097 of its shares for every Anglo American share. The bid values the target at Stg25.08 per share, although BHP is effectively proposing to pay Stg16.82 per share because the offer is conditional on Anglo American selling its stakes in Anglo Platinum and Kumba Iron Ore to its current shareholders. 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, ANGLO AMERICAN PLATINUM CORPORATION, KUMBA IRON ORE LIMITED

Whitehaven wraps up BHP mines deal

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Original article by Glen Norris
The Australian – Page: 16 : 3-Apr-24

Whitehaven Coal MD Paul Flynn says the company is committed to Australia’s coal sector "for the long haul", following the completion of its deal to acquire two coal mines in Queensland’s Bowen Basin. Whitehaven announced the $6.4bn deal to buy the Blackwater and Daunia coking mines in October, and Flynn says 95 per cent of their employees have agreed to stay on under the mines’ new ownership. Whitehaven has also advised that global steelmakers have expressed strong interest in the proposed sale of a 20 per cent stake in the Blackwater mine.

CORPORATES
WHITEHAVEN COAL LIMITED – ASX WHC

Alumina agrees to Alcoa’s takeover

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Original article by Chris Herde
The Australian – Page: 16 : 13-Mar-24

Alumina’s directors have recommended that shareholders should vote in favour of Alcoa’s $3.3bn takeover offer in the absence of a superior proposal. Alumina chairman Peter Day says the time is right to combine the two companies, which are joint venture partners in Alcoa World Alumina & Chemicals. Alumina’s 40 per cent stake in AWAC is its sole asset, and its shareholders will own about 31.6 per cent of the merged group. Alumina was founded in 2002 via the demerger of Western Mining Corporation’s aluminium and bauxite assets.

CORPORATES
ALUMINA LIMITED – ASX AWC, ALCOA INCORPORATED, ALCOA WORLD ALUMINA AND CHEMICALS

Southern Cross rejects ARN Media takeover

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Original article by Sophie Elsworth
The Australian – Page: 17 : 8-Mar-24

Southern Cross Media Group has formally rejected a takeover offer from ARN Media and Anchorage Capital Partners, contending that it undervalues the TV and radio stations group. However, chairman Rob Murray has indicated that Southern Cross would be open to a revised offer. He adds that the group’s radio stations and digital audio platforms are its key focus; it owns 99 radio stations across Australia, while ARN Media owns 58 radio stations.

CORPORATES
SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, ARN MEDIA LIMITED – ASX A1N, ANCHORAGE CAPITAL PARTNERS PTY LTD

ACCC cedes on Suncorp takeover

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Original article by Lucas Baird, James Eyers, Liam Walsh
The Australian Financial Review – Page: 17 : 6-Mar-24

The Australian Competition Tribunal has published its full reasons for approving the ANZ Bank’s $4.9bn deal to acquire the banking arm of Suncorp Group. It concluded amongst other things that it will not result in any substantive change in the structure of the market and is unlikely to lead to increased ‘coordination’ between the nation’s four major banks. The Australian Competition & Consumer Commission has advised that it will not appeal against the tribunal’s ruling. The federal government must also approve the deal on national interest grounds.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, SUNCORP BANK, SUNCORP GROUP LIMITED – ASX SUN, AUSTRALIA. COMPETITION TRIBUNAL, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Saint-Gobain wins over CSR board in $4.3b takeover

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Original article by Simon Evans
The Australian Financial Review – Page: 19 : 27-Feb-24

French firm Saint-Gobain has said in a statement that the board of CSR has unanimously recommended that shareholders of the building products firm accept its $4.3 billion takeover bid, with the two firms having signed a scheme implementation deed. CSR chairman John Gillam said that the two companies had been in discussions since early January, when CSR had rejected a lower bid by Saint-Gobain. Saint-Gobain stated that it expected to achieve $60 million in synergies by the third year of its ownership of CSR, of which $50 million would come from the cost side.

CORPORATES
CSR LIMITED – ASX CSR, SAINT-GOBAIN

Alcoa chases Alumina for $3.4bn deal

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Original article by Nick Evans, Valerina Changarathil
The Australian – Page: 13 & 16 : 27-Feb-24

US-based Alcoa is offering 0.02854 of its shares for every share in Alumina Limited, its joint venture partner in the Alcoa World Alumina & Chemicals business. The all-scrip bid values Alumina at $US2.2bn ($3.4bn), and the offer represents a 13.1 per cent premium to Alumina’s last trading price. The bid has the support of Alumina’s board, as well as the target’s largest shareholder, Allan Gray Australia. China-based CITIC could potentially determine the outcome of the bid, given that it has a stake of about 19 per cent in Alumina.

CORPORATES
ALUMINA LIMITED – ASX AWC, ALCOA INCORPORATED, ALCOA WORLD ALUMINA AND CHEMICALS, CITIC LIMITED

ANZ cleared for $4.9bn Suncorp deal

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Original article by Paulina Duran
The Australian – Page: 15 & 19 : 21-Feb-24

The ANZ Bank will overtake National Australia Bank as the nation’s third-biggest lender after receiving approval for its acquisition of Suncorp Bank. The Australian Competition Tribunal rejected the Australian Competition & Consumer Commission’s assertion that the $4.9bn deal would substantially lessen competition in sectors such as mortgage lending. The tribunal’s deputy president John Halleysays it was of the view that the small increase in ANZ’s market share arising from the merger would not significantly increase the likelihood of ‘co-ordination’ among the major banks in order to limit competition.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, SUNCORP BANK, SUNCORP GROUP LIMITED – ASX SUN, AUSTRALIA. COMPETITION TRIBUNAL, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Bendigo cool on ANZ plan

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Original article by Lucas Baird
The Australian Financial Review – Page: 18 : 20-Feb-24

The Australian Competition Tribunal’s decision on the ANZ Bank’s bid to acquire Suncorp Group’s banking arm will be announced today. The Australian Competition & Consumer Commission blocked the deal in 2023. Bendigo & Adelaide Bank MD Marnie Baker says the ANZ-Suncorp deal is "not a good transaction for competition or consumers", although she has declined to state whether Bendigo will make an offer for Suncorp Bank if the ANZ deal is rejected. Meanwhile, Bendigo has posted a 2023-24 interim cash profit of $268.2m, which is five per cent lower than previously.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, SUNCORP BANK, SUNCORP GROUP LIMITED – ASX SUN, AUSTRALIA. COMPETITION TRIBUNAL, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN

WA gold miners Silver Lake, Red 5 in $2.2bn merger deal

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Original article by Giuseppe Tauriello
The Australian – Page: 15 & 18 : 6-Feb-24

Shares in gold miner Red 5 rose by three per cent to $0.34 on Monday, in response to a proposed merger with Silver Lake Resources. Red 5 is offering 3.434 of its shares for every Silver Lake share, and Red 5 shareholders will own 51.7 per cent of the merged entity if the deal is approved. The deal has the support of both groups’ boards, and Red 5 chairman Russell Clark does not expect a bidding war to emerge. The combined company would be the fifth-largest gold miner on the Australian sharemarket, with annual production of about 445,000 ounces.

CORPORATES
RED 5 LIMITED – ASX RED, SILVER LAKE RESOURCES LIMITED – ASX SLR