☕️ Boomerang M&A

It’s relatively rare to see a private equity firm re-acquire a business it previously offloaded.

Good morning.

It’s relatively rare to see a company or private equity firm re-acquire a business they previously sold, but that is exactly what we’ve got unfolding on the ASX right now.

Call it a Boomerang M&A deal. And the company in question is Costa Group.

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MARKET MOVERS

*Stock data as of the market close. Commodities and crypto data in USD.

Market News: Shares of Geelong-based fruit producer Costa Group surged yesterday off the back of a $1.6 billion takeover bid from New York buyout shop Paine Schwartz Partners. That’s the the same shop that floated Costa on the ASX back in 2015.

Paine has clearly had its eyes on Costa for a while, emerging with a 14% stake in the company last October, just after another weather related earnings downgrade hit the stock. The takeover bid has been pitched at $3.50 per share. The stock was floated back in 2015 at $2.25/sh. An interesting one to watch.

THE QUICK SYNC

  • The Biden administration could restrict Chinese companies’ access to US cloud computing services in yet another escalation of the tech trade war. (Wall Street Journal)

  • Meta Platforms lost a crucial court appeal over a German data curb order that could undermine its business model. (CNBC)

    • Meta’s Instagram is set to launch its Twitter clone, Threads, this Tuesday. (Fortune)

  • Meme stocks are back - with bankrupt retailer Bed Bath and Beyond the latest name to be swept up in the craze. (Financial Times)

  • Australia has been accused of significantly underreporting methane emissions. (SMH | Bloomberg)

TRADING FLOOR

M&A:

  • Costa Group received a buyout bid from Paine Schwartz Partners, which values the business at more than $1.6bn. (BNA | SMH | The Australian)

  • Lion has bought the remaining 50% stake in Four Pillars. (BNA)

  • Kirin has passed two major regulatory hurdles for its $1.88bn takeover of Blackmores. (BNA)

  • Evolution Mining has been scouting the market for takeover targets. (The Australian)

  • Allied Health Australia is up for sale via Greenstone Partners. (AFR)

  • Auckland Council appoints UBS as an adviser to sell 7% of its 18% Auckland International Airport holding. (AFR)

  • Kami is looking for an adviser as it heads towards the dealmaking circuit. (AFR)

  • Pacific Equity Partners is considering making a play for NZ-listed Scott Technology. (AFR)

  • Junior renewables and battery developer Syncline Energy has hit out at Brookfield’s proposed acquisition of Origin Energy. (AFR)

  • Bids are due for 7-Eleven, which is up for sale through Azure Capital. (The Australian)

Capital Markets:

  • Dragonfly Biosciences is ready for an IPO and ASX listing next month. data. (AFR)

VC:

  • Inspace banks $6m in a funding round featuring money from B Capital and Our Innovation Fund. (AFR)

Others:

  • Instagram gears up to launch Twitter rival this week. (SMH)

  • PwC Australia’s government business will become a new company called Scyne Advisory. (SMH)

    • Allegro Funds-backed Scyne tries to convince professionals at the big four firms to join its new government consulting outfit. (AFR)

    • PwC Australia partners and staff in the government consulting arm are expected to shop their credentials hard to competitors. (The Australian)

  • ACCZ’s Adrian Scott jumps to Blue Ocean Equities. (AFR)

  • Jarden’s Australian operations recorded a $13.3m loss. (AFR)

THE WATERCOOLER