PwC Aussie mess is classic do as I say not as I do 29 Sep 2023 An independent review sparked by a tax-leak scandal lays bare governance failures at the advisory firm including an overly powerful CEO, a supine board, poor risk processes and, ironically, an aversion to external help. Fixing those is just the start of the company's turnaround.
Lithium merger is charged up by tycoon fever 27 Sep 2023 Gina Rinehart, Australia’s richest person, has bought 11% of Liontown, which is sizing up a $4 bln takeover by Albemarle. Whether she makes a full bid or not, she’s only the latest mining billionaire forcing a strategic buyer to dig deeper for an energy transition commodity.
Aussies may let $20 bln burn Brookfield’s pocket 19 Sep 2023 It’s what the Canadian investor wants to plough into renewables once it co-buys Origin Energy for $12 bln. But a big shareholder in the power company wants a higher offer. And the country’s antitrust watchdog may nix the deal, capping CEO Bruce Flatt’s climate options Down Under.
Brookfield’s climate promise faces a dirty test 8 Sep 2023 The investor’s pending $12 bln co-purchase of Origin includes Australia’s largest coal plant. Fear of blackouts may keep it running past an expected 2025. Even with deep pockets and oodles of renewables expertise, it may be hard to avert such an epic energy transition fail.
Qantas CEO’s exit will barely reduce turbulence 5 Sep 2023 Alan Joyce hopes retiring early from the airline will “accelerate its renewal” after months of scrutiny culminating in a watchdog accusing it of bad conduct. But real change won’t come cheap for his successor. And more sacrifices from the board's long haulers are likely.
Fortescue founder toys with reverse greenwashing 1 Sep 2023 Andrew Forrest has lost a CEO, a CFO and a top adviser this week. The tycoon says people only quit his $43 bln miner if they disagree with its zero emissions goal. Change and the energy transition can be disruptive. But his absolutist twist to climate spin homes in on a new risk.
Fortescue’s biggest problem sits at the top 28 Aug 2023 The $41 bln Australian iron ore miner is parting ways with CEO Fiona Hick after six months. Hers is the latest in a slew of senior departures that reflect poorly on founder and chair Andrew Forrest. Shareholders can accept he’s becoming a liability, push for his removal, or sell.
Aussie gas strike risk has market fighting old war 24 Aug 2023 Possible industrial action on key rigs added 41% to the fossil fuel’s European price. Yet with storage nearly full, it trades at a fraction of last year’s peak. Real fear of a new supply crunch would lift it far more. No wonder Woodside and Chevron are taking talks to the wire.
BHP’s dividend cut is canary in ore mine 22 Aug 2023 Boss Mike Henry is talking up the $140 bln miner’s ability to withstand everything from lower commodities prices to China risks. He has a point. But shareholder payouts have fallen to 64% of earnings from last year’s 77%. It suggests some steeling for short-term global shocks.
China woes put global miners’ optimism to the test 21 Aug 2023 BHP boss Mike Henry and Fortescue peer Fiona Hick have remained bullish on the People’s Republic even as the country’s economy, and their own shareholders, waver. Absent Beijing unveiling a big stimulus package, the CEOs are likely to have to revise their enthusiasm.
Aussie trustbuster rebuff does ANZ a favour 4 Aug 2023 The watchdog nixed the lender’s $3.2 bln deal for Suncorp’s bank arguing it’d reduce competition. That’s debatable. But the tie-up was full of promises on jobs and loans that would push benefits for the buyer out years. ANZ is appealing the ruling; accepting it would be smarter.
Macquarie and KPMG fall down M&A mine shaft 21 Jul 2023 The two were advisers in Aussie nickel extractor IGO’s near-$1 bln takeover of rival Western Areas. The buyer has now written down most of the asset’s value. Clawing back IGO bosses’ bonuses and the counsellors’ fees wouldn’t repair the damage, but it would be a good start.
New Aussie central bank boss faces two-front war 14 Jul 2023 Deputy Governor Michele Bullock is replacing Philip Lowe. She’ll wield less power in a more independent institution than her gaffe-prone predecessor. The inside pick offers stability as the Reserve Bank battles an economic slowdown and the prospect of El Nino-driven inflation.
Private equity gears up for a deal fest Down Under 11 Jul 2023 Blackstone, EQT, CVC and peers are shifting resources to Australia, partly due to geopolitical tension. The country’s stumbling economy will also leave property, consumer and other firms ripe for buyouts. That means M&A battles – once inflation, rates and debt markets settle.
El Nino will brew up potent new economic storm 4 Jul 2023 The Pacific Ocean phenomenon is back. Resultant floods, heatwaves, water scarcity and fires will damage crops and infrastructure, may cost trillions, and augur inflation and rate hikes. Worse, climate change makes such events stronger and more frequent, embedding supply shocks.
PwC cauterisation Down Under leaves infection risk 26 Jun 2023 The accounting firm’s Australia outfit hopes a new CEO and the sale of its government advisory unit for less than one dollar will stem a conflicts of interest scandal. With a tainted brand and probes continuing it’s unlikely. Keeping the fallout in-country would be a victory.
Windfall taxes get a breezy airing Down Under 14 Jun 2023 New levies on high coal prices accounted for a third of the $10 bln in resources royalties Queensland raked in over the past year. It helps the state invest in renewables, hospitals and childcare without trashing fossil-fuel firms’ margins. It’s how such tariffs should work.
Lithium miners unearth shovel-ready $11 bln deal 10 May 2023 Australia’s Allkem and US peer Livent are uniting to create an energy-transition titan. EV makers scrambling for battery materials should like a combined explorer and processor with no Chilean exposure. Bigger is strategically better, and helps the merger stack up financially.
Canberra lets energy windfall slip through fingers 10 May 2023 Tweaking an arcane resources tax will bag Australia’s Treasury just $400 mln extra a year. It’s barely a drop of the bumper earnings oil and gas companies drilled from war-stoked commodity prices. A direct levy on outsized profits can better channel cash to the energy transition.
Macquarie energy boost reignites valuation dilemma 5 May 2023 The $46 bln financial powerhouse posted record earnings thanks to market ructions supercharging commodities. Strip that out and it’s hard to justify the bank’s book-value premium. Yet Macquarie has a track record of having at least one such lumpy business a year outperform.