Carlyle turns wrench on Aussie financial plumber 8 Nov 2021 The buyout shop is back with a solo $2.1 bln bid for Link, 13 months after a joint effort. The shareholder registry and pension services provider has dodged multiple entreaties for all or parts of the company, but failed so far to deliver much value. It’s time to let others try.
Aussie bank overhaul gets fat reality check 1 Nov 2021 Shareholders took $4.6 bln off Westpac’s market value after high costs and income pressure hurt its earnings. A stock buyback did little to soften the blow. The reaction is a warning to boss Peter King to up his turnaround game and prioritise profitability over market share.
Macquarie’s green gloss will struggle to shine 29 Oct 2021 The Australian financial powerhouse has cut its dividend and is raising A$1.5 bln in equity. Such steps often signal caution, but in this case the sensible idea is to invest, not least in renewables. With a valuation sitting at 3 times book value, however, expectations are high.
Australia’s climate plans amount to giant COP-out 26 Oct 2021 Prime Minister Scott Morrison has abrogated responsibility to states for an underwhelming 2030 emissions target. His 2050 net-zero goal also sees a long future for fossil fuels and relies on untested technology. It’s reasonable to expect more from a country on the front lines.
Crown deserves the Jamie Dimon approach to failure 26 Oct 2021 The Australian casino operator can keep its local licence despite investigators labelling its breaches “illegal”. It smacks of too big to fail. Penalising investors, selling assets and burying the name, as JPMorgan’s boss suggested for bad banks, would be a better outcome.
Aussie telecom deal borrows from Beijing playbook 26 Oct 2021 Telstra is buying Digicel’s South Pacific arm in a deal designed to keep the business out of Chinese hands. Taxpayers Down Under will cover most of the $1.6 bln price tag. That helps protect shareholders, but it’s also a disconcerting mix of politics and private capital.
Lockdown scars will linger Down Under 22 Oct 2021 With a 70% vaccination rate, Melbourne is ending its record run of strictly confining a fifth of Australia’s population. A burst of consumer spending should help the economy bounce back. The tab for mental health strains, closed borders and related issues keeps growing, however.
Viewsroom: Oz goes green-ish; “Squid Game” 21 Oct 2021 Australian climate policy is a work in progress, and Antony Currie fears the country’s net-zero plans may yet prove to be a damp squib. On the other hand, the South Korean drama is anything but: Jennifer Saba explains why the show is a major victory for Netflix and its investors.
Online jackpot tempts ambitious $2.9 bln bet 18 Oct 2021 Australia-based Aristocrat is paying a chunky 58% premium to buy UK gambling software maker Playtech. The tech-related stakes are big, but plans to close in some areas will come at a cost. Backlash against giddy growth in online wagering also lowers the odds of financial success.
Glencore CEO’s top M&A pick is Glencore 15 Oct 2021 With a strategy set under predecessor Ivan Glasenberg, new boss Gary Nagle has few ways to make his mark. Record coal and copper prices and unique cobalt assets mean his own shares look cheap. He could buy them back, but a more striking gambit would be a full sale to Rio or BHP.
Green clouds blow forcefully into Canberra 15 Oct 2021 Miner South32 is the latest Aussie company to bow to climate-conscious shareholders. Its carbon-friendly deal coincides with central banker Guy Debelle warning that overseas investors may dump assets over the country’s net-zero dithering. Financiers may cast the deciding vote.
Investors emit hot air in Aussie bank climate row 13 Oct 2021 Commonwealth Bank shareholders rejected a push for more stringent net-zero action. The lender at least is open to adjusting targets to new data. But a win would have sent a signal to fossil-fuel firms trying to force banks to keep cash flowing, and to the dithering government.
Star steeled for its own Crown duel with watchdogs 13 Oct 2021 The market knocked 25% off the Aussie casino operator’s market value after a media exposé suggested it may yet face a corporate governance crisis akin to James Packer’s. But Star is better prepared, and a pandemic proved it can weather a crisis. Investors could roll the dice.
Aussie fiscal bazooka could use a safety feature 13 Oct 2021 The country’s flagship pandemic support programme distributed some A$70 bln in six months to save jobs. At least 20% of funds, however, wound up in businesses whose sales actually grew, a new Treasury report says. A clawback provision would make good policy even better.
Mining magnate is Greta’s unlikely kindred spirit 6 Oct 2021 Fortescue boss Andrew Forrest goes beyond the climate activist’s “blah blah blah” net-zero dismissal by calling such targets “a lie”. He’s basically right, but his own company clings to the carbon trope. The ambition on green hydrogen and Scope 3 targets, however, is welcome.
Breakdown: Beware Aussie net-zero greenwashing 27 Sep 2021 Prime Minister Scott Morrison’s government may soon unveil a long-overdue carbon-reduction plan. Early signals play loose with statistics and flag a “gas-fired” pandemic recovery. Absent a detailed path to slash emissions across the economy, it could just be a giant PR stunt.
New light emerges from China’s shadowy shoppers 24 Sep 2021 Cross-border traders known as daigou have been hurt by the pandemic, curbing sales of everything from A2 milk powder to Gucci handbags. Shrinking this once-thriving grey market will come at a cost, as evidenced by one Aussie company. Lower risks and clearer pictures are worth it.
Wanted: Exxon-like activism at top Aussie polluter 23 Sep 2021 AGL’s investors have warned the $2.6 bln energy giant to up its game on climate change. Poor strategy, including a bungled coal spinoff, has halved its market value in 2021. An activist-led shakeup of its underwhelming board, as at the U.S. driller, would bring needed change.
Big miners are steeled against falling iron ore 21 Sep 2021 The mineral’s price has collapsed in two months, bucking inflationary trends. Rising supply, China’s cooling economy and changing consumer spending habits portend a further decline. Capital discipline and diversification will cushion the blow for BHP, Rio and Fortescue.
Aussie subs are lightning rod for global tensions 20 Sep 2021 French ire at losing a $40 bln defence contract to America and the UK may jeopardise an EU trade pact with Canberra. Frictions between allies make it harder to form a united front against China on commerce. And the new security pact hinders attempts to thaw Sino-U.S. relations.