Westfield merger increases M&A activity

GREG ROBERTS
Last updated 10:18 16/01/2014

Relevant offers

World

Drop the Big Mac, pick up the iPhone if you want to gauge the dollar Australian worker unfairly sacked for looking at women in bikinis What high heels say about the yawning gap between rich and poor Here's why the Land Rover rip off might succeed Tesla driver speeding in fatal Autopilot crash Jamie's Italian, Cargo Bar up for grabs as Keystone assets hit market Topshop owner Philip Green blamed for collapse of BHS department store chain in UK Canada tax targets foreign house buyers Money laundering bankrupt beat planning rules by disguising mansion as shed Just pay it: Nike boss' pay almost triples

The value of merger and takeover activity in Australia shot up by two-thirds in 2013, led by real estate group Westfield's merging of its Australian and New Zealand assets.

Billionaire co-founder Frank Lowy announced the year's largest deal last month: the A$11.9 billion ($12.7 billion) merger of assets including shopping centres to create the new Scentre Group while splitting it from the Westfield Group and its faster growing international business.

The $A73.1b in M&A (merger and acquisition) activity in 2013 increased by 66.5 per cent on the A$43.9b in deals in 2012, according to a report from Mergemarket based on announced deals worth more than A$5m.

The 445 deals completed last year was an increase of 22.

The resources sector's share of M&A activity fell sharply but it still dominates the market, with deals in energy, mining and utilities down to 28.8 per cent from a market share of 44.2 per cent.

The value of those deals increased 8.5 per cent to A$21b.

The largest deal was APA Group's planned A$3.49b deal to take over rival gas distribution group Envestra.

A big improver was the financial services sector, where 34 deals completed accumulated A$10b and a 13.7 per cent market, more than 10 times the value of 2012's A$700m in deals.

Private equity buyouts grew for a fourth year in a row, with a 16.9 per cent share and A$12.4b value, the highest level since 2007.

The biggest private equity deal and second-biggest deal of the year behind Westfield's was the A$4.3b privatisation and buyout of Sydney's Port Botany by the NSW Ports consortium.

Ad Feedback

- AAP

Special offers

Featured Promotions

Sponsored Content