Activist sets up Australia’s AGL for a sick burn 28 Feb 2022 Snowcap wants the power company to shelve its demerger, fend off any more lowball offers from Brookfield and adopt the latter’s plan to ditch coal. That will ultimately add pressure on AGL’s underperforming board to sell and might even result in a higher price from its suitor.
Brookfield Aussie coal bid hits toxic smokescreens 23 Feb 2022 The asset manager and its Atlassian CEO partner’s $3.6 bln offer for AGL deserves some pushback for its scant premium and competition issues. But government scaremongering that a deal could raise energy prices throws ugly light on official resistance to the energy transition.
Brookfield drafts inspired climate-deal blueprint 21 Feb 2022 The Canadian investor and Atlassian co-CEO Mike Cannon-Brookes want to buy AGL for A$5 bln and spend up to A$20 bln more to make the coal-heavy company a renewable-energy powerhouse. It’s a potent idea that others could emulate. The price to get started will be higher, however.
Aussie coal exits put dithering government on spot 17 Feb 2022 Origin wants to shut the country’s largest plant powered by the fossil fuel seven years early, following rivals’ lead. It drew ire from the ruling coalition, whose green-transition plan is lacklustre. Renewables have won the economic fight; the political battle is a slower burn.
Aussie climate M&A deal offers best of both worlds 16 Feb 2022 ANZ is taking a small stake in climate-change advisory and investing startup Pollination for $50 mln. The bank gets business acumen in a hot sector and its partner can offer clients access to a big balance sheet. The price reflects the scarcity value of green talent.
Rio’s culture rot puts investors on the spot, too 14 Feb 2022 The miner’s endemic racism, sexism and bullying is a wider wake-up call. Shareholders tend only to push firms for board diversity and equal pay. Yet a dysfunctional workplace runs deeper, affecting earnings and even M&A. It’s time social failings got some climate-style activism.
Aussie conglomerate daringly bucks breakup trend 14 Feb 2022 As GE and J&J dismantle their empires, Wesfarmers is expanding its stationery-to-lithium sprawl by acquiring drugstores and maybe a veterinary service. Its Home Depot-like Bunnings chain helps the disparate parts equal the A$60 bln sum, but one bad deal risks debunking the model.
Busted bank cartel case leaves pieces to pick up 11 Feb 2022 Australian prosecutors dropped criminal charges against Citi and Deutsche Bank over a 2015 share sale for lender ANZ. The lawsuit smacked of overreach and was dragging on too long. It also bared unsavoury investment-banking practices. There are lessons to learn for all involved.
Top Aussie polluter sets up new investing quandary 10 Feb 2022 Poor earnings and market reluctance to finance fossil fuels left AGL Energy scrambling to fund the coal-heavy unit it is demerging. The company’s latest idea is a separate fund for renewables, but it also seems to be repeating a pitch for state aid. It’s a hard mix to swallow.
Aussie lenders offer risky bet on rising rates 9 Feb 2022 The big four, including Commonwealth and ANZ, rely more on interest income than U.S. peers, so should benefit when central banks tighten. But a rate hike Down Under might be slower than expected, while fixed-rate loans and rivalry for deposits and borrowers will eat into gains.
Macquarie boss channels Goldman’s Gus Levy 8 Feb 2022 Alongside a “record” quarter, Shemara Wikramanayake touts her $53 bln bank’s “cautious” approach. At the same time, she is aggressively positioning it for the energy transition, evoking the former Wall Street CEO’s long-term greedy mantra. Volatility demands resolve and balance.
Wall St can have $47 trln field day in wetlands 2 Feb 2022 Swamps, mangroves and reefs store surprising value. Some is tied to services like tourism but much comes from these ecosystems’ ability to suck up carbon and reduce flood risk. The headline number may be heady but creative financiers ready to dive in will find a deep opportunity.
Rio Tinto’s cultural fix will be an uphill dig 2 Feb 2022 The $117 bln mining giant is rife with bullying and racial and sexual abuse, according to a damning report. Miners’ improved safety records show reform is possible, if hard. Investors’ apparent indifference, though, makes prioritising workplace respect even tougher.
New backer would fuel Aussie hydrogen hype machine 25 Jan 2022 Fortescue’s ambitious plans to use the gas for renewable energy help it trade at a premium to mining peers. Scant detail raises concerns, however. Chair Andrew Forrest could ease them by selling a stake in the FFI green unit, as GM and Ford did with their self-driving outfits.
Serbia’s Rio smash dents EU electric-car dream 21 Jan 2022 The Balkan state nixed the $120 bln miner’s lithium project on environmental grounds. A looming election and spat over tennis ace Novak Djokovic didn’t help. Belgrade’s status as an investment destination is at stake. So are European hopes for reliable local battery ingredients.
Crown plays its cards well with Blackstone 13 Jan 2022 The embattled Aussie casino empire is ready to drop its poker face and back the buyout firm’s fourth bid, sweetened to $6.4 bln. Blackstone’s impressive turnaround track record in hospitality deals leaves it well-placed to maximise returns, even after the multiple price hikes.
Aussie proxy reform is wolf in sheep’s clothing 7 Jan 2022 The government is foisting new rules on firms like Glass Lewis and ACSI that offer voting advice for shareholder meetings. Some changes make sense, and one bad idea has been dumped. But on balance they go too far in some areas and not far enough in others.
The Aussies are coming! The Aussies are coming! 5 Jan 2022 Two pension fund managers Down Under are buying a New Zealand hospital chain for $500 mln. It’s a small sign of things to come. As the country’s $2.4 trln superannuation sector grows, consolidates and invests more directly, it will sail beyond the Tasman Sea for takeover targets.
Climate M&A will shift from risk to opportunity 29 Dec 2021 Defensive and green-signalling plays dominate ESG-touted deals, like BHP’s coal sales and Santos’ Oil Search swoop. SPACs are active, too. Next will be more ambitious, impactful tie-ups, from banks upping their skills to firms like Autodesk and Ecolab being predator or prey.
Capital Calls: Enel’s payments punt 24 Dec 2021 Concise views on global finance: The 70 bln euro utility is paying up to 361 mln euros for a relatively pricey punt on fellow Italian payments firm Mooney.