Tycoon-burned Sun Cable would shine with new owner 1 Feb 2023 Top backers Andrew Forrest and Mike Cannon-Brookes may compete to buy the insolvent solar power export firm. They are pursuing risky plans. Keeping the energy in Australia should allow rival mooted bidders like Macquarie and Iberdrola to pay more and generate better returns.
Surging big-city rents reveal real estate puzzle 27 Jan 2023 The cost of renting apartments in New York, London and Sydney soared last year even as higher interest rates pressured property values. Professionals want more home-working space while students are returning to cities. Yet rents and house prices cannot diverge forever.
Virgin Australia IPO relies on Qantas flight path 20 Jan 2023 Bain Capital may relist the carrier it bought in 2020 as travel revives and rivals’ shares rally. Virgin could be worth $800 mln if it replicates the projected juicy margins and growth rates of its larger rival. If not, the private equity firm might wait in the departure lounge.
AGL’s new boss has a $14 bln target on his back 19 Jan 2023 That’s how much Damien Nicks needs to turn Australia’s top carbon emitter into a renewables giant. Unlike predecessors, he has a proactive board, improving earnings and a half-placated billionaire agitator. He’ll still get hauled over the coals if he can’t find funds quickly.
Rio Tinto plays chancy round of Mongolian roulette 7 Dec 2022 After years of wrangling, the fate of a $3 bln offer for the rest of the Oyu Tolgoi copper mine’s partner heads to a vote. A win would make a key piece of growth easier to manage. If the bid fails, minority shareholders face stake dilution and Rio managers may merit the boot.
Fortescue boss sets himself up for climate bonanza 7 Dec 2022 Twiggy Forrest has bought wind-farm firm CWP for some $2.7 bln via his personal fund. Being the largest owner of Aussie renewables is a great hedge for his miner’s punt on green hydrogen. And if the gas takes off, he’ll earn even more selling the clean energy needed to make it.
Aussie energy woes put miners in windfall hole 5 Dec 2022 Canberra may cap the soaring price of coal or tax profits to reduce electricity costs. That’s a potentially explosive new risk for producers like Whitehaven, which is buying back up to a third of its stock at near record highs. Such short-term largesse could come back to burn.
Blockchain hype gets useful Aussie wake-up call 17 Nov 2022 Bourse ASX is pausing its much-delayed distributed-ledger clearing system and taking a $170 mln hit. The troubled project was beset by old-school problems like poor communication and planning. Such human flaws, though, bleed into how the technology gets developed.
Brookfield crafts compelling Plan B climate deal 10 Nov 2022 The Canadian investor is leading a $12 bln bid to break up Origin and will spend a similar amount itself to speed up the Australian target’s energy transition. It’s a trickier buy than a failed move on rival AGL. If it succeeds, it will offer a model for other consortiums.
Money manager M&A mess is dismal industry advert 3 Nov 2022 A consortium including newly enlarged EQT is offering $1.1 bln to dismember Australia’s Perpetual. It’s a promising starting bid. But it comes months after the target agreed to buy a rival. The convoluted affair belies everyone's pitch of being good stewards of capital.
Fear makes Macquarie shareholders reasonable 28 Oct 2022 The $42 bln Aussie financial powerhouse’s value has finally dropped to a level justified by its profitability. That’s mostly thanks to boss Shemara Wikramanayake’s warnings that earnings might slow. If skies clear, irrational investor exuberance could revive in a flash.
Australia has bulwark against China slowdown 26 Oct 2022 Demand from Down Under’s top trading partner is cooling. But Treasurer Jim Chalmers' first budget assumes the price of exports like iron ore will fall while also keeping a tight lid on spending. The fiscal discipline will be a shock absorber if China’s growth disappoints.
Aussie budget could do with a spot of dam-busting 24 Oct 2022 Rising inflation and expectations of lower growth put Treasurer Jim Chalmers in a tight spot as he prepares his first comprehensive fiscal policy. Cancelling up to $4.7 bln worth of the previous government’s plans for unnecessary water infrastructure would relieve some pressure.
Trussonomics lights slow-burning Aussie fuse 14 Oct 2022 The disastrous UK mini-budget has sparked a debate Down Under about income tax cuts due in 2024. Prime Minister Anthony Albanese risks a political backlash if he pulls a U-turn, and the treasury does have some wiggle room. But pressure to change course will be hard to extinguish.
Green hydrogen revolution risks dying of thirst 5 Oct 2022 Backers make three miscalculations about the gas’ key input, water: that they won’t need much, that it’s cheap, and that desalination is a breeze. Some $700 bln is needed for projects from Australia to Saudi to Europe, but water scarcity means many will be left high and dry.
CVC’s burial business bets on lively market growth 27 Sep 2022 The buyout shop is mulling offers for Nirvana, a Southeast Asian funeral services outfit offering family plots. A sale for up to $2 bln, almost double what it paid, would imply robust demand for financial planning. Asia’s booming life insurers underscore the opportunity in death.
Musk can only wish Twitter was an Aussie company 19 Sep 2022 The Tesla CEO has to go to court to try and worm his way out of buying the microblogging site. Acquirers Down Under are allowed to revise their agreed price even after the target’s board approves a sale. Link Administration’s troubled $1.3 bln takeover saga is a case in point.
Disney’s big ESPN choice, Rio Tinto Mongolia drama 15 Sep 2022 Activist Dan Loeb backed away from his demand that the $203 bln media firm sell its sports network. In this Viewsroom podcast, Breakingviews columnists debate whether it’s the right move. And the $94 bln mining giant’s attempt to secure copper supply may need heavier machinery.
Aussie dealmakers face embarrassment of ditches 13 Sep 2022 KKR’s $14 bln Ramsay pursuit is on life support. Toll-road owner Atlas Arteria’s top investor may go activist over its $2 bln purchase of Chicago Skyway. And a UK watchdog may scupper Link’s takeover saga. Fears of value destruction are jeopardising deals once seen as sure bets.
KKR’s $14 bln Aussie deal is not quite deceased 26 Aug 2022 A consortium led by the U.S. private equity firm has made two offers for Ramsey Health Care. One has been rescinded by the buyers, the other rejected by the target, putting any deal in limbo. Yet both sides can still reach an agreement, provided KKR further opens its wallet.