MERGERS AND ACQUISITIONS – AUSTRALIA

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

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

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