MERGERS AND ACQUISITIONS – AUSTRALIA

Oz Minerals poised to pounce: Citi

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Original article by Tess Ingram
The Australian Financial Review – Page: 17 : 7-Jul-15

Citigroup has identified a number of Australian-listed mining groups that could potentially pursue acquisitions in the near-term. They include OZ Minerals, Independence Group, Iluka Resources, Mount Gibson Iron and South32. Citigroup also believes that there is the potential for South32 to become a takeover target, along with Sandfire Resources, Whitehaven Coal, Western Areas, Iluka Resources and Regis Resources.

CORPORATES
CITIGROUP PTY LTD, OZ MINERALS LIMITED – ASX OZL, INDEPENDENCE GROUP NL – ASX IGO, ILUKA RESOURCES LIMITED – ASX ILU, MOUNT GIBSON IRON LIMITED – ASX MGX, SOUTH32 LIMITED – ASX S32, SANDFIRE RESOURCES NL – ASX SFR, WHITEHAVEN COAL LIMITED – ASX WHC, WESTERN AREAS LIMITED – ASX WSA, REGIS RESOURCES LIMITED – ASX RRL, EVOLUTION MINING LIMITED – ASX EVN, OCEANAGOLD CORPORATION – ASX OGC, BARRICK GOLD CORPORATION, LA MANCHA RESOURCES INCORPORATED, KENMARE RESOURCES PLC, X2 RESOURCES PARTNERS LP, GLENCORE PLC, RIO TINTO LIMITED – ASX RIO, NORTH LIMITED, ALCAN INCORPORATED, RIVERSDALE MINING LIMITED

Tassal reels in De Costi

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Original article by Jared Lynch
The Australian Financial Review – Page: 27 : 2-Jul-15

Shares in Australian-listed Tassal Group closed 8.1 per cent higher at $A3.60 on 1 July 2015, in response to a deal to acquire De Costi Seafoods. Tassal has advised that the $A50m cash component of the deal will be financed via debt, while De Costi will also be issued up to 10 million shares in the salmon producer over three years.

CORPORATES
TASSAL GROUP LIMITED – ASX TGR, DE-COSTI SEAFOODS (HOLDINGS) PTY LTD, SYDNEY FISH MARKETS PTY LTD

Brookfield pressed on Asciano bid

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Original article by Perry Williams, Sarah Thompson, Anthony Macdonald
The Australian Financial Review – Page: 1 & 10 : 2-Jul-15

Australian-listed transport infrastructure group Asciano has advised that Canada’s Brookfield Asset Management made an indicative takeover offer on 26 June 2015. The $A9bn non-binding bid values the target at $A9.05 per share, but Jakov Males of UBS Global Asset Management believes that an offer of around $A10 per share would be more appropriate. The proposed takeover bid comprises a cash component and shares in Brookfield Infrastructure Partners.

CORPORATES
ASCIANO LIMITED – ASX AIO, BROOKFIELD ASSET MANAGEMENT INCORPORATED, BROOKFIELD INFRASTRUCTURE PARTNERS LP, UBS GLOBAL ASSET MANAGEMENT (AUSTRALIA) LIMITED, DEUTSCHE BANK AG, FIDELITY INVESTMENTS AUSTRALIA LIMITED, SABMILLER PLC, FOSTER’S GROUP LIMITED, TOLL HOLDINGS LIMITED, JAPAN POST COMPANY LIMITED, MULTIPLEX LIMITED, PACIFIC NATIONAL PTY LTD, PATRICK CORPORATION LIMITED, COLONIAL FIRST STATE GROUP LIMITED, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, GRESHAM PARTNERS LIMITED, CITIGROUP INCORPORATED

South32 may be a target

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Original article by Amanda Saunders
The Australian Financial Review – Page: 19 : 30-Jun-15

X2 Resources is estimated to have access to about $US13bn worth of equity and debt to finance acquisitions in the resources sector. BHP Billiton spin-off South32 is regarded as a potential target for X2, which is headed by former Xstrata CEO Mick Davis. South32 shares have shed around 20 per cent since the demerger, and it could well become a takeover target if the downturn is sustained. Glencore is also seen as a possible bidder for South32.

CORPORATES
X2 RESOURCES PARTNERS LP, SOUTH32 LIMITED – ASX S32, GLENCORE PLC, NOBLE GROUP LIMITED, TPG CAPITAL LP, BARRICK GOLD CORPORATION, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, ANGLO AMERICAN PLC, CITIGROUP INCORPORATED, LIBERUM CAPITAL LIMITED, XSTRATA AG

Australian deal activity tipped to reach next peak in 2018

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 13 & 18 : 30-Jun-15

The value of completed mergers and acquisitions in Australia is expected to total $US74.1bn ($A96.1bn) in 2015, according to a report by Oxford Economics. This compares with $US73.7bn in 2014. The report, which was produced on behalf of law firm Baker & McKenzie, also forecasts that the value of local M&A deals will top $US126.3bn in 2018, followed by a fall in the next two years. Meanwhile, some $US2.4bn ($A3.1bn) worth of IPOs are expected to be undertaken in Australia in 2015, with IPO activity rising to $US6.6bn in 2018.

CORPORATES
OXFORD ECONOMICS LIMITED, BAKER AND McKENZIE, UBS HOLDINGS PTY LTD, MACQUARIE CAPITAL PTY LTD, GRANT SAMUEL AND ASSOCIATES PTY LTD

Regulator close to call on NBN cable network deal

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Original article by David Ramli
The Australian Financial Review – Page: 15 : 29-Jun-15

On 23 June 2015, the Australian Competition & Consumer Commission (ACCC) approved a deal for Telstra to lease its telecommunications infrastructure to NBN. The ACCC is yet to rule on a deal for NBN to buy the hybrid-fibre coaxial network of Singtel Optus for $A800m. This deal would significantly speed-up the roll-out of the national broadband network. The ACCC expects to issue a draft ruling on the Optus deal in July.

CORPORATES
TELSTRA CORPORATION LIMITED – ASX TLS, NBN CO LIMITED, SINGTEL OPTUS PTY LTD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIA. DEPT OF COMMUNICATIONS

Accolade’s Burge buy comes with $10m loss

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Original article by Simon Evans
The Australian Financial Review – Page: 18 : 29-Jun-15

Grant Burge Wines sells around 450,000 cases of wine in Australia each year, and ranks among the nation’s 10 biggest-selling wine brands. Accolade Wines acquired the business in early 2015 and has appointed Jeff Bond as general manager. His task will be to turn around Grant Burge’s fortunes, after it posted a loss of $A9.4m in 2013-14. This followed a modest profit of $A264,247 in the previous fiscal year. Revenue was $A40.4m in 2013-14, compared with $A43.2m previously.

CORPORATES
ACCOLADE WINES LIMITED, GRANT BURGE WINES PTY LTD, CHAMP PRIVATE EQUITY PTY LTD, PETER LEHMANN WINES LIMITED, CASELLA WINES PTY LTD, HARDY WINE COMPANY LIMITED, LEASINGHAM WINES, NOTTAGE HILL WINES, BANROCK STATION WINES, MUD HOUSE WINES LIMITED, CONSTELLATION BRANDS INCORPORATED, TREASURY WINE ESTATES LIMITED – ASX TWE, PENFOLDS WINES PTY LTD

Wesfarmers makes $US100m oil, gas play

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Original article by Julie-anne Sprague, Angela Macdonald-Smith
The Australian Financial Review – Page: 23 : 25-Jun-15

Wesfarmers will pay $US100m ($A129m) for a 27.4 per cent stake in a special-purpose vehicle that holds the Quadrant Energy stakes of Angela Bennett and Macquarie Capital. This in turn will give Wesfarmers a 13.7 per cent stake in Quadrant, which was previously known as Apache Australia and owns oil and gas assets in Western Australia. Wesfarmers MD Richard Goyder describes the Quadrant stake as a stand-alone investment for the conglomerate.

CORPORATES
WESFARMERS LIMITED – ASX WES, QUADRANT ENERGY PTY LTD, MACQUARIE CAPITAL PTY LTD, APACHE CORPORATION, AMB HOLDINGS PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD, KMART AUSTRALIA LIMITED, CSBP LIMITED, BROOKFIELD ASSET MANAGEMENT INCORPORATED, SEVEN GROUP HOLDINGS LIMITED – ASX SVW, NEXUS ENERGY LIMITED, BEACH ENERGY LIMITED – ASX BPT, DRILLSEARCH ENERGY LIMITED – ASX DLS

Coal M&A on hold as price falls predicted

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 20 : 17-Jun-15

Anglo American, Vale and Peabody Energy are among the companies that are believed to be keen to sell some of their coal mines in Australia. Coal Ventures director Bede Boyle suggests that New Hope Coal, Glencore and private equity firms are the most likely contenders to buy coal assets. However, Marian Hookham of IHS Coal says many potential buyers appear to be biding their time on expectations of further weakness in the price of coal.

CORPORATES
ANGLO AMERICAN PLC, PEABODY ENERGY CORPORATION, VALE SA, NEW HOPE CORPORATION LIMITED – ASX NHC, GLENCORE PLC, INTERNATIONAL COAL VENTURES LIMITED, IHS COAL, BHP BILLITON LIMITED – ASX BHP, MITSUBISHI CORPORATION, ITOCHU CORPORATION, SUMISHO COAL AUSTRALIA PTY LTD

Former ACCC head believes Ten, Foxtel deal likely to go ahead

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Original article by Max Mason
The Australian Financial Review – Page: 17 : 17-Jun-15

The proposed equity deal between Ten Network and Foxtel will have to be approved by the Australian Competition & Consumer Commission. Former chairman Allan Fels says the growth of internet-based streaming video services should ensure that the deal is not blocked on competition grounds. John Kettle of law firm McCullough Robertson also expects the deal to be approved, and he says contractual arrangements between Ten and Foxtel are likely to attract the most scrutiny.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, FOXTEL MANAGEMENT PTY LTD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, McCULLOUGH ROBERTSON, STARCOM MEDIAVEST GROUP, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, ILLYRIA PTY LTD, NETFLIX INCORPORATED, STAN ENTERTAINMENT PTY LTD, PRESTO ENTERTAINMENT PTY LTD