☕️Mayne Event

Good morning.

Australia’s dealmaking community is on tenterhooks awaiting confirmation on the ultimate fate of US-based Cosette Pharmaceuticals' unprecedented efforts to walk from an acquisition of Mayne Pharma. But the one man who can make the call, Treasurer Jim Chalmers, has been uncharacteristically evasive.

Chalmers’ preliminary decision to block the deal on sovereign capability grounds after Cosette said it would close Mayne’s SA manufacturing facility shocked the market. His subsequent preliminary view that the deal "would be contrary to national interest" has poured ice cold water over hopes the deal will go through.

King & Wood Mallesons partner Mark Vanderneut told Capital Brief the preliminary decision means the deal is "effectively dead".

🏆 LOI Subscriber #TBD

Market movers

DroneShield shares fell over 7% on Wednesday, reversing previous day gains after it vested nearly 45 million performance options to employees. The stock was also caught in a broader risk-off move away from defence names, following overseas market declines, according to Bell Potter analyst Baxter Kirk.

The quick sync

• Qantas investors weigh pay, cyber governance and board focus ahead of Project Sunrise. (Capital Brief)

• Sustained critical minerals demand is making mining viable for venture capital through tech and new funding models, writes Jun Qu. (Capital Brief)

• James Packer pockets part of a $110m dividend after Nvidia and Flutter lift revenue to $5.9 billion. (Capital Brief)

• Private credit funds support ASIC’s crackdown and call for stronger rules after troubling findings. (Capital Brief)

• Tenmile reinvests profits into new Australian biotech and medtech ventures, not investor payouts. (Capital Brief)

Trading floor

M&A

• Medibank buys Better Medical’s 61 clinics for $159m, boosting its primary care network and health segment growth. (Capital Brief)

• Seven West Media execs show interest in $300m Perth medtech Orthocell. (AFR)

• Pfizer and Novo Nordisk are battling to buy weight-loss biotech Metsera for $15b. (AFR)

• Perpetual signs an exclusivity deal with Bain Capital to discuss selling its wealth management arm; no guarantee of a deal. (Capital Brief)

• AustralianSuper bought $50m in MinRes shares, taking a 5.5% stake after prior exit. (AFR)

• Crescent Capital is reportedly nearing a $400m takeover of Benson Radiology as private equity interest in diagnostic imaging intensifies. (The Australian)

• Capilano Honey owner halted its sale after receiving undervalued offers. (AFR)

• Dealmakers are anxiously awaiting Treasurer Jim Chalmers’ final decision on the Mayne Pharma takeover after his preliminary move to block the deal shocked the market. (Capital Brief)

Capital Markets

• Critical minerals are attracting VC as new models and surging demand make mining ventures more investable. (Capital Brief)

• Goodman Group reaffirms 9% FY26 earnings growth on strong data centre and logistics demand. (Capital Brief)

• Mint Innovation plans a $299m ASX float to fund its Texas e-waste metals plant. (AFR)

• Colonial First State and AIA Australia settle class action for $140m over super insurance overcharges, without admitting liability. (Capital Brief)

• CBA cut CommSec interest for wealthy clients but raised rates for most traders. (AFR)

• PEXA hits 26% UK remortgage share; Australian penetration steady at 90% with 6% transaction growth. (Capital Brief)

• EQT refinances $1.3b loan for Icon amid lower rates and stronger lender demand. (AFR)

• ASIC’s Joe Longo warned of a “Minsky moment” if private credit standards don’t improve, unveiling plans to relaunch the regulator’s Innovation Hub. (Capital Brief)

• Carma’s stock dropped 7.4% on ASX debut after a $100m IPO valuing the online used car dealer at $370m. (Capital Brief)

• Firmus to triple valuation to $6b after Nvidia investment and CDC deal. (AFR)

• Defence tech stocks slumped on the ASX, with DroneShield leading losses amid global weakness in the sector. (Capital Brief)

• Fitness and Lifestyle Group secured refinancing to ease $2.2b debt after $161m loss, betting on growth to recover. (The Australian)

• Private credit funds have welcomed ASIC’s call for greater transparency, with several major players even suggesting the regulator’s reforms could go further. (Capital Brief)

• Akaysha Energy got $460m funding from eight banks for its Victorian battery project. (AFR)

• James Packer’s firm made $323.9m profit and will pay a $110m dividend, driven by Nvidia and Flutter gains. (Capital Brief)

• BYD overtook Tesla in UK sales, with nearly seven times more cars sold in October. (Capital Brief)

• PwC spin-off Scyne lost $74.5m in its first year, with Allegro adding $50m support. (AFR)(Capital Brief)

• EU set a 90% emission cut by 2040 after easing rules and allowing more carbon credits. (Capital Brief)

• Light & Wonder will delist from Nasdaq to relist solely in Australia, seeking higher valuations and stronger investor support despite an ongoing legal dispute with Aristocrat. (The Australian)

• US private payrolls rose by 42,000 in October, showing modest hiring recovery. (Capital Brief)

• Woodside fast-tracks $15b US LNG project, citing AI-driven fossil fuel demand. (AFR)

• Ripple hit a USD40b valuation after a USD500m Fortress- and Citadel-led investment. (Capital Brief)

• $31m in government funding backed Quantum Brilliance’s new Melbourne quantum diamond foundry. (Startup Daily)

• Qantas chair John Mullen faces backlash over workload and cyber breach ahead of AGM. (Capital Brief)

• Wall Street bonuses are projected to jump for the second year in a row. (Bloomberg)

• World Economic Forum chief warns of three possible 'bubbles' in global economy. (Reuters)

• Apple to use Google's AI model to run new Siri. (Bloomberg)

VC 

• Melbourne defence tech startup Arkeus secures Australian Army contract for its advanced hyperspectral radar, already used by the US military. (Capital Brief)

• Tenmile evergreen life sciences fund returns to back new Australian life sciences startups, using an evergreen fund structure rather than paying out investors. (Capital Brief)

People moves

• Tyro Payments names Nigel Lee as CEO, effective January 2026, following Jon Davey’s resignation. (Capital Brief)

• Challenger appoints Aware Super’s Damian Graham as group CIO to integrate its investment teams starting January 2026. (Capital Brief)

• Schroders Australia names UBS exec Alison Telfer as next CEO, replacing Simon Doyle in early 2026. (Capital Brief)

The watercooler