Record-low rates spur Australia M&A frenzy in 2021
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 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.
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.
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).
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).
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.
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.
Oaktree Capital Group (OAK_pa.N) is also in the race for Crown.
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).
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.
In July, Seven raised its offer to A$8.75 billion ($6.53 billion), which was rejected.
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.
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.
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.
Oil Search – Santos
Oil Search (OSH.AX) said in August it intended to recommend an improved buyout offer from Santos Ltd (STO.AX), worth A$8.4 billion ($6.2 billion), in a deal that would create a top-20 global oil and gas company. [nL1N2P80ME]
Square Inc (SQ.N) said in August it has agreed to purchase buy now, pay later pioneer Afterpay Ltd (APT.AX) to create a global online payments giant, offering a 30% premium in a share-swap deal that is set to be Australia’s biggest-ever buyout.