In today’s briefing:
- Costa Group (CGC AU): Paine Schwartz’s Indicative Proposal
- Suncorp – Decision on ANZ Takeover In Weeks, Competition Can Worsen If Allowed
Costa Group (CGC AU): Paine Schwartz’s Indicative Proposal
- Costa Group Holdings (CGC AU) has disclosed an indicative non-binding proposal from Paine Schwartz Partners at A$3.50 per share (A$3.54 including potential interim dividend).
- The Board has granted eight weeks of non-exclusive due diligence. The due diligence, which started on 6 June, ends on 1 August.
- The offer price is attractive compared to peer multiples and historical trading ranges. At the current price of A$3.35, the gross spread is 4.5% (5.7% including dividend).
Suncorp – Decision on ANZ Takeover In Weeks, Competition Can Worsen If Allowed
- One of main criteria for ACCC to allow ANZ’s takeover of Suncorp centers around competition, will it worsen as a result
- There are 8 banks in Australia with over 100 branches, if the takeover is allowed, this puts the 127 Suncorp branches into the 668 branch stable of ANZ
- There is plenty of expert and public testimony that such a merger would see less competition especially in SME and agribusiness loans, and possibly limit physical access to banking
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