Jewel magnates’ Alinta buy is a gift to TPG 16 Mar 2017 The billionaire Cheng clan is snapping up Australia's Alinta Energy from the U.S. buyout firm and others. With a mooted $3 bln price, the surprise deal handily beats a likely IPO valuation. Hong Kong's richest families apparently can't get enough of stable Aussie businesses.
Australia stares down its troublesome twins 8 Mar 2017 The central bank is on hold. But present inaction brushes off future uncertainty. Stubbornly low inflation argues for even lower interest rates, while a bubbly housing market cries out for tighter policy. At least rising U.S. rates should put helpful downward pressure on the currency.
NAB’s capital loss points to dividend challenges 6 Feb 2017 The Australian lender's Tier 1 capital ratio dropped after a payout to shareholders. Rising funding costs, intense competition and tougher capital rules threaten Australian banks' ability to remain generous, a key attraction of an otherwise unimpressive sector.
Vegemite tastes better on Australian cheese 19 Jan 2017 Australian dairy company Bega Cheese will buy the national staple as part of Oreo-maker Mondelez's grocery business for $345 mln. Australia's addiction to the yeasty paste gives Bega a patriotic new profit line plus diversification. But the new generation seems sour on Vegemite.
HNA buys SkyBridge to White House 18 Jan 2017 The Chinese conglomerate is taking a stake in newly minted White House adviser Anthony Scaramucci's hedge fund. The business fit is a stretch. But the rationale of deal-hungry HNA hoping to make a friend on Trump's team as it tries to expand in the United States is hard to avoid.
Li Ka-shing Duet bid tests Aussie foreign dislike 16 Jan 2017 The Aussie energy firm's board is backing the tycoon's $5.5 bln takeover bid. Duet's stock is trading close to the offer. That suggests investors think the deal will pass and that Canberra's recent chest-thumping against foreign buyers like CKI on security grounds is nuanced.
ANZ makes welcome progress in slimming down abroad 3 Jan 2017 The Australian lender has sold out of a Chinese bank for a decent $1.3 bln. Newish CEO Shayne Elliott is moving decisively to unload capital-intensive Asian assets. Other holdings could be trickier to shed but any progress will help ANZ narrow the valuation gap with its peers.
Counterbid for Aussie lotteries is a long shot 14 Dec 2016 A quartet including Morgan Stanley, KKR and Macquarie has gatecrashed Tabcorp's near-$5 bln takeover of rival Tatts. The new approach is fiddly and has a questionable valuation. Still, a canny target could use this to wring a bit more out of Tabcorp.
Australian banks can gain from losing insurance 12 Dec 2016 ANZ wants to sell its $3.3 bln life insurance and wealth management unit. Good idea: insurance is a burdensome sideline given today's tough rules on bank capital. Rival NAB has already exited, and Australia's other two big banks would benefit from following suit.
Li Ka-shing risks second Aussie rebuff with Duet 5 Dec 2016 The Hong Kong tycoon is taking another shot at buying Australian energy assets, with a $5.4 bln offer for Duet. For Li's CKI, it is a sensible, if pricey, move. But the state could well block this deal on security grounds, just as it stopped CKI buying a power grid months ago.
Aussie gamblers up the stakes in friendly takeover 25 Nov 2016 Tabcorp has grabbed 10 pct of target Tatts. The share raid is unusual midway through an agreed deal. It warns gatecrashers away from the $5 bln tie-up, and heads off talk of a Tatts breakup. But if competition approval is not forthcoming, Tabcorp will have overplayed its hand.
Aussie bet on U.S. building boom stacks up 21 Nov 2016 Building materials firm Boral is buying peer U.S. Headwaters for $2.6 bln. Savings easily cover the premium paid. The timing could prove savvy if president-elect Trump delivers an anticipated boost in infrastructure spending and a broader lift to the housing market.
Rio Tinto trips into bribery mine shaft in Africa 9 Nov 2016 The $67 bln mining giant has another scandal on its hands in Guinea, despite tightened controls after a similar problem in China. It's unlikely to derail the sale of Rio's remaining stake in the $20 bln Simandou iron-ore project to Chinalco, but collateral damage is unavoidable.
Blockchain for banks will eat its creators 27 Oct 2016 A transaction involving Wells Fargo and a cotton trader has made the payment technology a reality. Meanwhile a consortium-backed platform will soon share its code. Banks act like this is a good thing, but their role as middlemen in markets like corporate bonds and FX is at risk.
China Oceanwide buys GE sloppy insurance seconds 24 Oct 2016 The private conglomerate run by Lu Zhiqiang is paying $2.7 bln for U.S. insurer Genworth Financial, which was spun out of the industrial giant and has since wasted away. It is not clear the Chinese buyer has what it takes to turn around Genworth, but the deal puts it on the map.
Nasser’s exit gives BHP chance to reinvent itself 20 Oct 2016 The Anglo-Australian miner's departing chairman, Jac Nasser, delivered middling returns and a narrow vision for the future during his six-year tenure. BHP wants its workforce to be more diverse. A good place to start would be at the top. New blood and new thinking is long overdue.
Aussie gambling deal faces better odds as takeover 19 Oct 2016 Betting group Tabcorp is buying larger rival Tatts for almost $5 bln in stock and cash. The set-up makes more sense than last year's aborted merger, and the combined group would be better placed to take on foreign bookies. The real gamble is with antitrust regulators.
Dig at BHP heralds taxing times for Aussie miners 17 Oct 2016 The company is under renewed attack over allegations it channelled profits through Singapore to trim its tax bill during the resource boom. A fiery rant by Australia's former treasurer, weak public finances, and a recovery in commodity prices will keep miners in the spotlight.
Crown highlights risks of courting Chinese VIPs 17 Oct 2016 Shares in Crown Resorts crashed after China detained some staff. Investors had cheered moves by Australia's top casino company to distance itself from Macau. But this episode shows Chinese gamblers, and official attitudes, are crucial to gambling groups across the region.
Asian investment banking is a money pit 20 Sep 2016 Fees from underwriting and deals are up 8 pct this year after a poor start. But only a few big foreign houses are profitable. Fierce competition, global and regional, keeps fees down. Meanwhile, big-ticket Chinese business goes to Chinese firms. It creates the conditions for more banks to retreat.