Asian bidders tipped to return to down under: M&A report
Get ready for the return of mystery Chinese bidders. Herbert Smith Freehills is forecasting a pickup of Asian interest in Australia’s public companies after the region’s bidders deserted the local deals landscape in the last 12 months.
The law firm’s latest M&A report shows Asian bidders represented less than 5 per cent of deals by volume and value last financial year, bucking the trend of overseas bidders returning after the COVID-19 years. But report co-author and M&A partner Nicole Pedler believes bidders from Asia – primarily China, Japan, South Korea and private equity out of Singapore – are set to return, saying it’s a question of when, not if.
Marcus Blackmore walked away with $334 million after selling his 18 per cent stake in Blackmores into a $1.9 billion takeover by beverages giant Kirin Corporation in August. Louie Douvis
“We are seeing an increase in Asian interest, it’s just yet to break cover,” she told Street Talk. “The pool of money is there – these are long-term decisions made by disciplined investors… they’re looking for a break in volatility.”
Just two Asia-based offers were recorded by HSF in FY23 – Japanese giant Kirin’s $1.88 billion bid for vitamins group Blackmores and Tianqi Lithium Energy Australia’s $133.5 million run at Essential Metals.
The elephant in the room is Australia’s Foreign Investment Review Board, which has shut buyers out of key sectors like defence and critical minerals. Tense diplomatic relations have also spilt over into M&A activity and disrupted trade in commodities such as barley, beef and wine. However, a thawing of Australia-China relations could spur heightened M&A interest from Beijing, the new FIRB chairman said late last year.
HSF is also predicting an increase in
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