Record-low rates spur Australia M&A frenzy in 2021

Mercury NZ

20/07/2021 05:35

(Adds Oil Search-Santos, removes Altium-Autodesk)
    July 15 (Reuters) - Australia is seeing a flurry of
deal-making so far this year, as record-low interest rates have
given institutional investors and companies a well-funded war
chest to chase higher valuations.
    From potentially one of Australia's biggest-ever buyouts to
a multi-party tussle for a troubled casino giant, here are some
of the major deals Down Under in 2021:
    
    Vocus Group - Macquarie/Aware Super
    Vocus Group  VOC.AX  in March agreed to a A$3.5 billion
($2.61 billion) takeover offer from a consortium of a Macquarie
 MQG.AX  fund and pension fund Aware Super.  urn:newsml:reuters.com:*:nL4N2L70ZZ
    
    Orocobre - Galaxy Resources
    Orocobre Ltd  ORE.AX  in April agreed to buy Galaxy
Resources  GXY.AX  for $1.4 billion to create the world's fifth
most valuable lithium producer.  urn:newsml:reuters.com:*:nL1N2MB0MF
    
    BINGO Industries - Macquarie
    Waste management firm BINGO Industries  BIN.AX  in April
agreed to a A$2.3 billion ($1.72 billion) buyout offer from
funds managed by Macquarie  MQG.AX .  urn:newsml:reuters.com:*:nL4N2MJ4IN
    
    Tilt Renewables - PowAR/Mercury NZ
    New Zealand-listed Tilt Renewables  TLT.NZ  in April agreed
to a NZ$3.07 billion ($2.15 billion) bid from a consortium
including AGL Energy  AGL.AX , Australia's sovereign wealth
fund, and Mercury NZ  MCY.NZ .  urn:newsml:reuters.com:*:nL4N2M927Y
    
    Tabcorp - Entain/Apollo Global/Betmakers
    UK's Entain  ENT.L  in February offered to buy betting firm
Tabcorp Holdings'  TAH.AX  wagering and media business. In
April, it sweetened its offer to A$3.5 billion ($2.61 billion).
    In May, Apollo Global Management  APO.N  matched Entain's
offer, and BetMakers Technology  BET.AX  jumped in with a A$4
billion ($2.98 billion) bid.  urn:newsml:reuters.com:*:nL4N2MT23F  urn:newsml:reuters.com:*:nL3N2NE547
    
    Crown Resorts - Blackstone/Star Entertainment
    Casino giant Crown Resorts  CWN.AX  in March received a A$8
billion ($5.97 billion) buyout proposal from Blackstone  BX.N 
and a A$9 billion ($6.71 billion) all-stock offer from peer Star
Entertainment Group  SGR.AX  in May.  urn:newsml:reuters.com:*:nL1N2LJ0JY  urn:newsml:reuters.com:*:nL1N2MW0KJ
    Oaktree Capital Group  OAK_pa.N  is also in the race for
Crown.  urn:newsml:reuters.com:*:nL1N2MB0NF
        
    Washington H Soul Pattinson - Milton Corp
    Australia's Washington H Soul Pattinson  SOL.AX  said in
June it will buy Milton Corp  MLT.AX  in a deal that values the
target at A$4.05 billion ($3.02 billion).  urn:newsml:reuters.com:*:nL3N2O34H4
    
    Ramsay Health Care - Spire Healthcare
    Hospital operator Ramsay Health Care  RHC.AX  said in May it
would buy British peer Spire Healthcare  SPI.L  for 1 billion
pounds ($1.38 billion).  urn:newsml:reuters.com:*:nL2N2ND0BH
    In July, Ramsay sweetened its bid to 1.04 billion pounds
($1.44 billion).  urn:newsml:reuters.com:*:nL5N2OI1SL
    
    Boral - Seven Group
    In May, diversified investor Seven Group  SVW.AX  offered to
buy shares it does not already own in Boral  BLD.AX , valuing
the building materials supplier at $6.23 billion.  urn:newsml:reuters.com:*:nL4N2MX2GY
    In July, Seven raised its offer to A$8.75 billion ($6.53
billion), which was rejected.  urn:newsml:reuters.com:*:nL3N2OI14I
    
    National Australia Bank - Citigroup
    National Australia Bank  NAB.AX , the country's
third-largest lender, said in July it was in talks with
Citigroup  C.N  to buy the U.S. bank's Australian consumer
business.  urn:newsml:reuters.com:*:nL4N2OP1UM
    
    Sydney Airport - Sydney Aviation Alliance
    A consortium called Sydney Aviation Alliance in July made a
A$22.26 billion ($16.61 billion) play for Sydney Airport
Holdings  SYD.AX . If the deal goes through, it will be one of
the biggest ever in Australia.  urn:newsml:reuters.com:*:nL1N2OQ30M
    
    Spark Infrastructure - KKR/Ontario Teachers' Pension Plan
Board
    In July, Spark Infrastructure  SKI.AX  received a A$4.91
billion ($3.67 billion) takeover bid from a consortium including
KKR  KKR.N  and Canada's Ontario Teachers' Pension Plan Board.
 urn:newsml:reuters.com:*:nL4N2OQ4IK
    
    Oil Search - Santos
    Papua New Guinea-focused oil and gas producer Oil Search
 OSH.AX  in July rejected Santos Ltd's  STO.AX  A$8.80 billion
($6.5 billion) bid, but said it was open to revised offer.
 urn:newsml:reuters.com:*:nL4N2OV3M7

 (Compiled by Shashwat Awasthi; Editing by Arun Koyyur)
 ((Shashwat.Awasthi@tr.com))