ECM activity buoys the M&A market
14 October 2016
Strong support from equity market investors has buoyed the Australian M&A market in the third quarter of 2016 , with Allens' market leading M&A team prominent again in this activity, ranking:
- First for deals by value to 30 September 2016 in Australia and New Zealand (Mergermarket);
- First for completed deals by value to 30 September 2016 in Australia and New Zealand (Thomson Reuters); and
- Second for announced deals by value to 30 September 2016 in Australia and New Zealand (Thomson Reuters and Bloomberg).
Commenting on the market, Allens' M&A partner Rob Pick said the real positive coming out of recent activity has been the strong support provided by equity market investors for M&A plans being executed by ASX-listed companies.
'In the past quarter, it was particularly pleasing to assist clients such as Evolution Mining and Bapcor in raising equity from shareholders for strategic M&A opportunities. Our role for the vendors of The Good Guys also provided a perspective on the successful raising undertaken by JB Hi-Fi to fund that acquisition.
'This bodes well for a strong finish to 2016.'
Some of the more significant deals announced in the third quarter in which Allens was involved included:
- the long term lease of the Port of Melbourne for $9.7bn;
- JB Hi-Fi's $870m acquisition of The Good Guys; and
- Evolution Mining's acquisition of an economic interest in the Ernest Henry Mine in Queensland from Glencore.
According to M&A partner Tom Story, ongoing transactions in the infrastructure sector will also continue to benefit the M&A market.
'The continued strong interest in Australian infrastructure assets from both domestic and offshore investors is set to continue, which should underpin M&A volumes for the remainder of 2016,' Tom said.
- Germaine GrahamSenior Corporate Communications Manager,
Ph: +61 2 9230 4639
Notes for editors.
Allens is a commercial law firm working throughout Australia and Asia. Through its integrated alliance with Linklaters it provides clients access to 39 offices in 28 countries around the world.