☕️ Dangerous game

Does Cettire risk becoming a victim of its own success?

Good morning.

Cettire’s impressive sales growth has been a key pillar of its success on the ASX. But what if that same growth was imperilling its business model?

Industry insiders have told Capital Brief that the billion-dollar ecommerce platform is quickly becoming too big for brands to ignore as it begins to distort the luxury fashion market.

“If a luxury brand sells something at 10 times the price and Cettire is consistently selling the exact same item at seven times, then they’re fucked and they’ll have to take corrective action,” one ecommerce veteran said.

ASX as at market close. Commodities and crypto in USD.

🏆 LOI Subscriber #TBD

Market movers

Shares in BHP dropped on Friday after it lobbed a $60 billion takeover bid for Anglo American the day prior. Just after the Australia market closed, the takeover bid was rejected on the grounds that it “significantly undervalues” its target at the same time copper is hitting a two-year high.

It leaves shareholders split on whether the Big Australian should come back with a juicier offer, or whether it’s time to walk away. Others are asking whether this could draw out a rival bid.

Either way, there’s plenty to watch for, including how BHP might manage a deal stacked with ESG issues.

The quick sync

  • TikTok won’t plug its leadership vacuum in Australia despite growing political pressure (Capital Brief)

  • Tesla’s Autopilot linked to hundreds of crashes and dozens of fatalities (WSJ)

  • Regulators warn against a Silicon Valley Bank-style meltdown in China (Financial Times)

  • CBA will drop royal commission caps on bonuses in mortgage fight with Macquarie (AFR)

  • Spotify CEO Daniel Ek has launched a new full-body scan startup (NY Times)

Trading floor

M&A

  • Perpetual nears sale of Wealth and Corporate Trust businesses to Kohlberg Kravis Roberts & Co, pending final negotiations. (AFR)

  • The ACCC approved Metcash's acquisition of Superior Food Group, finding it won't significantly reduce competition. (Capital Brief)

  • US private equity firms are targeting Australian companies like Education Horizons Group, owned by Potentia Capital. (AFR)

  • Thoma Bravo is eyeing a takeover of PEXA among its interests in Australian opportunities, including targets like Iress. (The Australian)

  • Benson Radiology, a long-standing takeover target in South Australia, is seeking new owners, aiming for about $360m. (AFR)

  • Anglo American shareholders plan to push for a higher bid from BHP, which recently made a $60bn offer. (AFR)

Capital Markets

  • BGH Capital plans to list its primary healthcare business, ForHealth, expecting a valuation surpassing $1bn. (The Australian)

VC

  • Deeligence, co-founded by Elena Tsalanidis and Justin Hansky, raised $1m in pre-Seed funding with support from LaunchVic's Alice Anderson fund. (Startup Daily)

People moves

  • Scott Farquhar, co-CEO of Atlassian, is stepping down after 23 years to focus on family, philanthropy, and advancing the tech industry. (BNA)

☝️ Know about a deal or people move we don’t? Hit reply.

Together with Silversea

Suite upgrades on worldwide ultra-luxury Silversea voyages

Whether you’re seeking a Mediterranean summer in the sapphire waters of the Greek Islands or an immersive expedition through the British Isles and stunning fjords of northern Europe, indulge your wanderlust with Silversea’s suite upgrades– plus a $1,000 shipboard credit per suite and 15% reduced deposit on voyages departing May 2024 through 2026. Learn more at silversea.com.

The watercooler

If you like LOI, try The Edition

The Edition is a free afternoon newsletter that goes beneath the surface of the biggest stories in Australian business.