Australia

Cross-border home renovation deal is full of gaps

24 Mar 2025

On paper, Chicago-based decks and railings maker Azek complements its buyer, Aussie- and NYSE-listed cladding manufacturer James Hardie. But cost cuts don't cover the 41% premium on the $9bln deal and other synergies look dubious, not least as tariffs are set to hit US consumers.

Shipbuilder raid gingerly tests geopolitics shift

20 Mar 2025

South Korea's Hanwha has snapped up 9.9% of Australia's $1 bln Austal and may double it, months after trying to buy the entire firm. Donald Trump's protectionist shift could make taking over the US navy supplier even harder. Less risky small bites are sensible for the moment.

Corporate anti-woke brigade gets $20 bln champion

26 Feb 2025

After stepping down amid reports of inappropriate behaviour, WiseTech's 70-year-old founder Richard White has returned as chair after a board exodus. That might bring short-term stability for the software firm. But it leaves thornier succession and governance issues unresolved.

Anglo’s self-help plan is working deceptively well

20 Feb 2025

The $41 bln miner’s shares are well below the value of a rejected share-based offer from BHP last year, and CEO Duncan Wanblad is mired in writedowns. But diamond woes are old. And Anglo American’s valuation multiple has at least improved even as its suitor’s stock has dropped.

BHP’s copper dreams get a glimpse at reality

18 Feb 2025

The red metal has grown to almost 40% of the $130 bln miner's EBITDA, in part because prices for its main product, iron ore, fell. It could speed up diversification by buying a rival like Anglo. But with valuations not on his side, CEO Mike Henry is stuck on the slower path.

Glencore’s M&A bind requires bold coal cleanup

17 Jan 2025

The $57 bln miner’s approach to Rio Tinto came to nought, its second thwarted deal in two years. Glencore’s copper unit and low valuation may appeal to partners, but its big dirty fuel business is a downer. Spinning it off isn’t easy, but remains CEO Gary Nagle’s least bad move.

Bain buyout fight shows allure of pensions

9 Jan 2025

The US investment firm is competing with CC Capital to take Australia's $1.7 bln Insignia Financial private. A new owner can accelerate much-needed cost cuts but the target will struggle to grow. Still, the deal is a rare chance to buy into the coveted superannuation industry.

Nuclear power pitch has magical thinking at core

20 Dec 2024

Australia's opposition parties head into an election claiming atomic energy is $170 bln cheaper than a renewables-heavy grid. But their plan delays the green transition and relies on misleading financials. It's a radioactive power play that would leave the country worse off.

BHP will try a club deal for Anglo American

17 Dec 2024

The Aussie miner is now free to make another takeover proposal for its smaller rival, whose copper assets still appeal to CEO Mike Henry. But paying a big premium looks harder to justify second time round. Partnering with a rival like Glencore or Vale may smooth the way.

ANZ’s new CEO has his hands partly tied

9 Dec 2024

HSBC's ex-retail boss Nuno Matos will take charge of Australia's second-largest lender. Its subpar performance merits the outside hire. But key projects, like integrating Suncorp's bank, are far from complete. That will limit his ability to shake things up at the $60 bln group.

Mining M&A makes a mockery of windfall taxes

26 Nov 2024

Anglo American has just joined BHP and others disposing of coal assets in securing a cut from new owners if the fossil fuel's price soars. It's savvy but also breezily undercuts their objections to governments pulling similar tricks to reduce costs for consumers.

Macquarie’s lumpy earnings are a luxury problem

1 Nov 2024

The $55 bln investment bank's stock fell 4% as results were hit in part by fewer private equity-like asset sales. But it's still sporting a high valuation despite low returns. CEO Shemara Wikramanayake's impressive track record means the lender can withstand a few blows.

Gold surge adds glitter to tarnished miners

31 Oct 2024

The yellow metal is up 35% this year as investors fret about inflation. Gold miners like Newmont and Barrick have repeatedly failed to capitalise on the ore’s rising value. But new-found financial discipline and modest valuations present investors with a rare opportunity.

Founder’s syndrome gets a new enabler

25 Oct 2024

Shares in $25 bln WiseTech soared 14% after the software firm dropped its scandal-hit CEO Richard White only to keep him on as "founder and founding CEO". Faced with a classic key-man risk problem, the board chose a farcical workaround. It sets them up poorly for the long run.

BHP’s dam disaster dealings leave a bad taste

21 Oct 2024

The miner and partners are offering Brazilian authorities $23 bln in damages for a 2015 catastrophe, but with most of it paid over 20 years. And BHP was in hot water trying to hinder a related $47 bln lawsuit in London. Both take the argument of protecting shareholders too far.

Rio’s $6.7 bln lithium bet is a pricey slow burn

9 Oct 2024

The $112 bln miner is paying a 90% premium to buy Arcadium in cash. That’s probably not justified by the synergies – and Rio Tinto has yet to reveal them. Boss Jakob Stausholm can point to forecasts of a lithium demand surge, but right now investors have to take his word for it.

Rio boss may be about to eat his M&A words

7 Oct 2024

Jakob Stausholm is in talks to buy Arcadium Lithium, soon after saying deals only make sense if cost cuts cover the premium. On that score, he can perhaps offer a 40% bump, valuing his prey at $4.2 bln. With one investor wanting double that, Stausholm faces an unpalatable choice.

Bain jets towards first-class lounge Down Under

2 Oct 2024

The private equity firm is selling 25% of Virgin Australia to Qatar Airways for an undisclosed sum ahead of an IPO. Fold in last year’s dividend recap and assume it’s growing like larger rival Qantas, and the airline is en route to delivering Bain a sky-high 40%-plus return.

Murdoch leaves Rightmove little room for error

1 Oct 2024

The Australian tycoon’s REA Group walked away after four rejected bids for the UK property listings portal, prompting the latter’s shares to slump. Rightmove can get to the offer price if it grows revenue at 11% a year and keeps its 75% margin. But that’s not simple to do.

Murdoch’s UK property bid may yet get even sweeter

23 Sep 2024

Rightmove is mulling an improved $8.1 bln offer from Australia’s REA Group, owned by the media tycoon. A chunky premium and other UK refuseniks’ share price slumps are reasons for the listing portal’s board to say yes. But the buyer’s latest bid implies an ability to pay more.