MinterEllison publishes Australian M&A report
Companies seeking to buy growth in mature industries were among the key drivers of Australian M&A activity in 2016/17 according to a report from MinterEllison.
The firm’s Directions in Public M&A report shows that private equity also saw a rebound in a financial year with 39 deals announced above AU$50 million, 29 of which were in the mid-range of $50-$400 million.
The total deal value was $24.4 billion and the average value was $635.8 million. There were 4 mega deals of $1 billion or more.
"Overall, FY2017 was a dynamic year shaped by heightened volatility on the global stage and an increasingly complex regulatory landscape domestically," said MinterEllison partner and public M&A specialist Alberto Colla.
"Pleasingly, this didn't deter strategically driven acquirers, who were prepared to look past external market shocks and execute transformational deals. There was strong appetite to offer healthy premiums to acquire targets that can deliver immediate access to new geographic regions, complementary products or know-how,” he added.
Most of the deals (85%) were friendly and but hostile deals were back in vogue.
"Some bidders conclude that trying to engage with the target board to strike a friendly, recommended deal can be too protracted and potentially futile because the board might insist on a disproportionately high premium," MinterEllison M&A partner Ron Forster.
The report also reveals that cash was dominant with 72% of the deals offered as “all cash”.
Looking ahead, MinterEllison forecasts five key sectors set to be hot in FY2018: Health & Aged Care; IT & Software Services; Food agribusiness; Financial Services; and Infrastructure.
"Opportunism will remain a key driver; and private equity players will continue to bid for ASX-listed companies," added Forster.
International firm bolsters Asia Pacific shipping team
Two partners start work in the Singapore office of HFW on Tuesday (1st August) as the firm bolsters its shipping practice in Asia Pacific.
Toby Stephens and John Forrester join the office from London bringing significant experience to the international firm’s capabilities in the region. Their move coincides with the hiring of Manik Verma, who will be joining HFW Singapore’s ship finance team from WFW Singapore.
HFW now offers one of the largest asset finance teams in Asia Pacific with teams in Singapore, Hong Kong, Shanghai and Sydney.
High Court rejects civil suit against former prime minister
The High Court in England will not allow a civil case to be brought against former UK prime minister Tony Blair over the Iraq War by Saddam Hussain’s former chief of staff.
The case had been filed at the Magistrate’s Court last year accusing Mr Blair of a ‘crime of aggression’ which a court ruled in 2006 does not exist under English law.
The Law Society Gazette reports that Abdel Waheed Shannan Al Rabbat, represented by Michael Mansfield QC, wanted a judicial review with the prospect of the Supreme Court over-ruling the previous ruling.
However, the High Court said that it was for parliament to decide what constitutes criminal behaviour in domestic law.
