☕️ Hydrogen Hiccup

Good morning.

Fortescue's hydrogen dreams have hit a major speed bump, and the Albanese government’s hydrogen superpower ambitions might be collateral damage. Slashing 700 jobs, 4.5% of its global workforce, Fortescue yesterday revealed it scrapped a self-imposed 2030 deadline to produce 15 million tonnes of green hydrogen.

Chairman Andrew Forrest told the AFR that Fortescue is still working on it, but rising energy costs and market volatility courtesy of geopolitical conflicts, have derailed plans. Forrest simply doesn’t want to swim against the tide anymore. Instead, he said Fortescue is steering toward more reliable shores, ensuring the supply chain is ironclad before re-prioritising hydrogen.

🏆 LOI Subscriber #TBD

Market movers

Australia’s financial giants are reaching for the skies, but analysts are still not buying the hype. CBA, our largest listed company, hit a new record $134.25 per share on Tuesday before settling a bit to end the day up 0.8%. NAB shares meanwhile, nudged up 1.04%. With a 16x price to earnings, NAB is not as expensive as CBA's lofty 22.5x multiple, but given the challenges ahead for the Melbourne-based lender, whispers of overvaluation remain.

NAB's new CEO, Andrew Irvine, is accelerating a strategic review to regain momentum and address the tech lag. Irvine's mission is to remain competitive and optimise the bank’s tech but has not let anyone in on any major strategy shift yet.

The quick sync

• As AI changes the global economy, the role for Canberra is looking murky. (Capital Brief)

• Commonwealth Bank, Westpac and Telstra are among 19 big companies cutting office needs by almost 200,000 square metres in the Sydney CBD since the pandemic. (AFR).

• Company run by brothers known to police and championed by the CFMEU has ballooned into one of NSW’s biggest construction labour-hire operators securing tax-funded contracts. (SMH)

• ANZ board “acutely focused” on its markets division scandal, bosses Mark Whelanand Kevin Corbally tell staff. (AFR)

• French giant Pernod Ricard is selling its portfolio of local brands to a Bain Capital-led consortium to merge it with Accolade Wines, the country’s second largest winemaker. (AFR)

Trading floor

M&A

• Accolade Wines is acquiring Pernod Ricard’s businesses in Australia, New Zealand, and Spain, pending approval from the ACCC. (AFR)

• Bindaree Food Group, a NSW beef processor, is close to acquiring Kimberley Meat Company, which went into administration earlier this year. (The Australian)

• TPG Capital and Affinity Private Equity submit bids for Healius' $700m Lumus Imaging, as new CEO Paul Anderson seeks to placate shareholders. (AFR)

• Minority shareholders of Five Good Friends are selling a 45% stake, valued at over $100m, as EQT Partners prepares to co-invest. (AFR)

• DroneShield's share price continued to drop despite no new information, following a 28% fall on Tuesday and scrutiny over its potential overvaluation. (Capital Brief)

• ART is acquiring Qantas’ $9bn super fund, increasing its assets and nearing AustralianSuper's leading position. (AFR)

• Iress, an Australian tech firm valued at $1.7bn, is drawing attention from private equity, including Blackstone. (The Australian)

• Brookfield-owned X-Elio is selling its stake in the $215m Blue Grass solar and battery project in Queensland. (AFR)

• Next Capital promotes Adam Dicembre to partner and sells Noisette bakery. (AFR)

Capital Markets

• Synlait has withdrawn its full-year earnings guidance due to uncertainties from higher costs and timing differences in manufacturing and shipping. (Capital Brief)

• An independent administrator has been appointed to run the CFMEU amid allegations of bikie gang infiltration and links to organized crime. (Capital Brief)

• Imricor Medical Systems is raising $35m to obtain FDA approval for its heart rhythm treatment product. (AFR)

• Zip announced a $267m capital raise to repay debt and support growth, following a strong 2024 start and a 'buy' upgrade from Citi analysts. (Capital Brief)

• Global investment banks are focusing on riskier, smaller Australian companies, eyeing opportunities for significant returns through IPOs or private equity acquisitions. (AFR)

VC

• None

People moves

• Dexus's funds management CEO Deborah Coakley stepped down, and Nik Kemp was appointed as executive general manager of growth markets. (Capital Brief)

• HSBC appoints CFO Georges Elhedery as new CEO, effective 2 September, replacing Noel Quinn. (Capital Brief)

• Fortescue is cutting 700 jobs globally to simplify its structure and improve cost efficiencies. (Capital Brief)

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