The flurry of activity in the Australian equity capital markets during 2009 has set the scene for a surge in mergers and acquisitions (M&A) action this year.
Freehills corporate M&A partner Rebecca Maslen-Stannage said, ‘Heightened momentum in takeovers and schemes is the next logical move following the hectic capital markets agenda that dominated 2009. Australia is well positioned for an increase in M&A activity in 2010.’
‘We expect M&A deal flow to pick-up significantly in comparison to last years lower levels, as strong companies which have raised capital have positioned themselves for future growth. Now that confidence has returned, the focus of corporates is returning from survival to growth.’
Interest from foreign investors will remain strong in strategic, high quality resources, financial services and property assets.
‘In a relative global sense, Australia appeared resilient in the global financial crisis. That has not escaped foreign investors’ attention, and foreign capital will continue to be attracted to Australian companies for quality and safe investments.
‘Strategic international players will look to strengthen or extend their foothold, with foreign buyers looking for key infrastructure assets. This trend commenced with the Canadian Pension Board’s interest in Macquarie Communications Infrastructure Group and Transurban. We expect to see a high demand for safe and quality investments and we anticipate renewed activity and consolidation in the REITs, technology, insurance and property markets.
‘Another driving factor behind the surge in M&A is that key cornerstone investors who came to market in 2009 – including Warburg Pincus, China Investment Corporation and Brookfield – will be looking for their investee companies and entities to be active.’
Top-tier Australian based international law firm Freehills has a strong history leading the market as the busiest firm in M&A. The firm is again recognised in the full-year 2009 Bloomberg M&A Legal Advisor League Tables for Australia & New Zealand and the Thomson Reuters M&A Review Australia & New Zealand Rankings as advising on the most number of deals of any Australian law firm.
‘Freehills is still clearly the most active legal advisor in Australasia by a significant margin, advising clients on more deals than any other firm in the region. We are well positioned to meet the challenge of a more active market and are looking forward to another great year.’
Freehills’ M&A team has acted on some of the market’s most complex, innovative and strategic deals in 2009, illustrating the strength, flexibility and diversity of Freehills’ capabilities. Recent deals include advising:
- Macquarie Communications Infrastructure Group on its scheme sale to Canada Pension Plan Investment Board
- Eldorado Gold Corporation’s acquisition of Sino Gold Mining Ltd, the largest scrip deal of the year
- Prime Infrastructure on its recapitalisation
- Woodside Energy on its Otway Gas Project divestment to Origin Energy Ltd
- OZ Minerals on its sale of key assets to China Minmetals, and
- Viterra Inc. on its acquisition of ABB Grain Ltd
ENDS.
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