MERGERS AND ACQUISITIONS – AUSTRALIA

OZ Minerals boss Andrew Cole won’t follow his mines to BHP

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 19-Apr-23

OZ Minerals CEO Andrew Cole intends to "take a break" after more than eight years at the helm of the copper and nickel miner, and he will not join BHP when the $9.6bn takeover is completed. BHP is paying $28.25 per share for OZ; the company’s shares were trading at around $3 when Cole was appointed CEO in late 2014. Cole is highly regarded within the resources sector, and some Newcrest Mining shareholders had called for him to be recruited to succeed Sandeep Biswas following the latter’s departure in December.

CORPORATES
OZ MINERALS LIMITED – ASX OZL, BHP GROUP LIMITED – ASX BHP, NEWCREST MINING LIMITED – ASX NCM

Mincor board backs Forrest’s $760m takeover bid

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Original article by Brad Thompson
The Australian Financial Review – Page: 15 : 5-Apr-23

Mincor Resources’ directors have recommended that shareholders accept the $1.40-per-share takeover offer from Wyloo Metals in the absence of a rival bid. The Andrew Forrest-backed Wyloo has increased its stake in nickel producer Mincor to 23.2 per cent, enabling it to prevent any rival bidder to move to the compulsory acquisition stage. There had been speculation that Wyloo’s takeover proposal could trigger rival bids for Mincor, whose board has indicated that it has held talks with third parties regarding potential interest in a bid. However, the board says that no alternative proposal is under consideration.

CORPORATES
MINCOR RESOURCES NL – ASX MCR, WYLOO METALS PTY LTD

Nickel miner Mincor seeks better offer after Forrest bids $760m

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Original article by Peter Milne
The Age – Page: Online : 22-Mar-23

Fortescue Metals Group’s founder Andrew Forrest has launched a takeover bid for Mincor Resources via his private company, Wyloo Metals. Forrest is offering $1.40 per share, which represents a 35 per cent premium to Mincor’s closing price on Monday. The nickel miner’s shares rose 41 per cent to $1.47 on Tuesday in response to the bid. Wyloo already has a 19.9 per cent stake in Mincor, which produces nickel sulphide in Western Australia’s Goldfields region. Mincor’s board has advised shareholders to take no action regarding the offer until it has considered the bid and makes a recommendation.

CORPORATES
MINCOR RESOURCES NL – ASX MCR, WYLOO METALS PTY LTD, FORTESCUE METALS GROUP LIMITED – ASX FMG

Barrick out, but analysts say Newmont offer won’t land Newcrest

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Original article by Nick Evans
The Australian – Page: 16 : 8-Feb-23

Shares in Newcrest Mining rose 1.7 per cent to $24.95 on Tuesday. Newmont Corporation’s takeover offer comprises 0.38 of its shares for every Newcrest share, giving its bid an implied value of about $27.16 per share when it was launched. Jon Mills of Morningstar and Kate McCutcheon of Citigroup are among the analysts who are of the view that Newmont’s offer undervalues Newcrest. Meanwhile, Barrick Gold Corporation’s CEO Mark Bristow has ruled out making a rival bid for Newcrest.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, NEWMONT CORPORATION, MORNINGSTAR PTY LTD, CITIGROUP PTY LTD, BARRICK GOLD CORPORATION

$24b Newcrest bid not enough

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Original article by Peter Ker
The Australian Financial Review – Page: 1 & 16 : 7-Feb-23

Investors Mutual portfolio manager Tim Wood says the acquisition of Newcrest Mining by Newmont Corporation makes sense, and there is the potential for a counter-bid. However, Wood contends that Newmont’s offer of 0.38 of its shares for every Newcrest share is insufficient; he adds that the bid is also opportunistic, given that Newcrest does not have a permanent CEO at present. Meanwhile, Newmont president Tom Palmer says the US-based gold producer believes that the proposed $24.4bn merger is a "powerful value proposition" for the two companies’ shareholders, employees and the communities in which they operate.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, NEWMONT CORPORATION, INVESTORS MUTUAL LIMITED

MinRes hands Hancock victory in Warrego fight

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 : 7-Feb-23

Hancock Energy has secured control of takeover target Warrego Energy after Mineral Resources agreed to sell its stake to the Gina Rinehart-backed company. Hancock now has a 50.54 per cent stake in Warrego, which means that its cash bid will automatically be extended by two weeks. Mineral Resources had built up a 19.17 per cent holding in Warrego, and described it as a "strategic stake" rather than a prelude to a rival takeover bid. Strike Energy, which launched a takeover bid for Warrego in late 2022, has advised that it will consider its options.

CORPORATES
WARREGO ENERGY LIMITED – ASX WGO, HANCOCK ENERGY PTY LTD, MINERAL RESOURCES LIMITED – ASX MIN, STRIKE ENERGY LIMITED – ASX STX

ACCC calls on banks in merger probe

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Original article by Joyce Moullakis
The Australian – Page: 13 & 16 : 4-Jan-23

The Australian Competition & Consumer Commission is currently assessing the ANZ Bank’s proposed deal to acquire Suncorp Group’s banking arm. Sources have indicated that the ACCC has requested information and data from the nation’s major and regional banks as part of the process, using its compulsory powers under the Competition and Consumer Act 2010. This information is said to include bank returns, net interest margins, funding costs and market share. The ACCC is seeking submissions on the ANZ deal by 18 January, and it aims to make a final decision on the transaction in June.

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

Dividend looms in BHP-OZ takeover

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Original article by Nick Evans
The Australian – Page: 13 & 16 : 23-Dec-22

BHP and OZ Minerals signed a scheme implementation deed on Thursday, concluding a takeover bid that began in August. OZ shareholders will vote on the deal in late March or early April, while the $9.6bn takeover will also require regulatory approval in Brazil and Vietnam. An independent expert’s report will also have to conclude that the deal is in the best interests of OZ shareholders, who will receive $28.25 per share. OZ will be able to use its franking credits to pay a dividend of up to $1.75 per share before the takeover is finalised; however, any dividend will reduce the price that investors will receive for their shares.

CORPORATES
BHP GROUP LIMITED – ASX BHP, OZ MINERALS LIMITED – ASX OZL

Origin suitor EIG expects intervention

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Original article by Perry Williams
The Australian – Page: 13 & 16 : 14-Nov-22

US private equity firm EIG has teamed up with Canadian firm Brookfield to make a $18.4 billion bid for Origin Energy, with EIG expected to acquire Origin’s integrated gas business if the bid succeeds. EIG CEO R Blair Thomas says it has had to deal with windfall taxes and price caps at its German and UK operations, and expects that the federal government will intervene in Australia’s domestic gas market. Thomas says the gas industry needs to keep the public onside as it progresses through the energy transition, with many households angry about soaring gas prices.

CORPORATES
ORIGIN ENERGY LIMITED – ASX ORG, EIG GLOBAL ENERGY PARTNERS, BROOKFIELD ASSET MANAGEMENT INCORPORATED

Economic turmoil to weigh on M&A: Goldman

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Original article by Joyce Moullakis
The Australian – Page: 15 : 14-Nov-22

Mark Sorrell of investment bank Goldman Sachs believes that global merger and acquisition activity will remain subdued until at least 2024. He notes that until recently, there had been widespread expectations that sentiment toward M&A deals would improve in the second half of 2023, but factors such as geopolitical tensions and aggressive interest rate increases have pushed back the likely time-frame for any rebound. Data from Refinitiv shows that there has been a 60 per cent decline in announced deals involving Australian companies in 2022, compared with the same time in 2021.

CORPORATES
THE GOLDMAN SACHS GROUP INCORPORATED, REFINITIV AUSTRALIA PTY LTD