☕️ PEXA cornered

Good morning.

PEXA's monopoly is both its greatest asset and its greatest liability. Escaping a decade-long push for competition only cemented the case for tighter price regulation.

And now, the company faces a pricing crackdown it cannot ignore (shares fell almost 15%). The bitter irony is that the regulators have no real way to enforce it, Convey Property Settlement owner Angie Nguyen tells Capital Brief’s Brandon How.

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Market movers

Shares in Eagers Automotive surged on Wednesday after the company entered agreements to acquire two Audi dealers in Melbourne along with a 49% interest in Grand Motors Group.

The quick sync

• Xero’s partnership with Anthropic has investors watching what comes next. (Capital Brief)

• Australia has the deep tech talent but keeps exporting its winners, writes Liza Noonan. (Capital Brief)

• Anthropic’s Canberra roadshow was mostly about selling trust to the Australian government. (Capital Brief)

• Anthropic's Amodei told Australian politicians democracies have a narrowing window to lead AI before authoritarian states do. (Capital Brief)

• Even Canva’s staff aren't immune to AI layoff fears, that tells you everything you need to know. (Capital Brief)

Trading floor

M&A

• The Star Entertainment Group has completed the first stage of exiting its Brisbane Queen’s Wharf assets by selling its stake in the joint venture. (Capital Brief)

• Private operators, including Calvary Health Care and Pacific Equity Partners, bid $400m for Healthscope, opposing its not-for-profit plan. (AFR)

• Xero teams up with Anthropic, using AI partnership to counter SaaS disruption fears. (Capital Brief)

• Nelson Peltz buys Janus Henderson for USD8b, aims to boost performance with AI. (AFR)

• Warner Music Group to buy Revelator, boosting digital music services for artists. (Warner)

• Quadrant launches $500m sale of TSA Riley, drawing global bidder interest. (The Australian)

• Made Group sale attracts Danone and Chinese bidders, valued over $1.5b.(The Australian)

Capital Markets

• OpenAI raises record USD122b funding round. (Capital Brief)

• Australia backs Arafura Rare Earths with $1.2B to fund Nolans project. (AFR)

• Anthropic signed an MoU with the Australian government to collaborate on AI development and safety. (Capital Brief) (Capital Brief)

• TPG NewQuest funds Pemba’s Vets Central continuation vehicle, keeping Pemba invested and bringing in new capital. (AFR)

• ING Australia profit rises on mortgage growth. (Capital Brief)

• Atlassian faces claims of denying shares to laid-off staff. (AFR)

• Canva Slack post triggers layoff fears amid tech anxiety. (Capital Brief)

• Former Toll exec backs Graphite Energy, which raised $15M to expand electric boiler production. (AFR)

• Anthropic CEO Dario Amodei warned Australian leaders that AI is advancing rapidly with serious risks. (Capital Brief)

• Optus hikes mobile plans $5, second increase in a year, raising watchdog concerns. (AFR)

• Sharon AI Holdings stock jumps on major GPU deal and Canva partnership. (Capital Brief)

• SpaceX targets record-breaking IPO worth up to USD75b.

• Australia’s missing deep tech “middle” is stalling productivity and global competitiveness. (Capital Brief)

• PEXA beats Sympli challenge but faces regulatory price pressure, sending shares down. (Capital Brief)

• Nike shares plunge 15% as CEO urges focus on growth amid weak forecast. (Bloomberg)

• Treasury Wine shares jump as brokers flag value below break-up price. (The Australian)

VC 

• None

People moves

• Perenti appoints Vanessa Torres as CEO. (Capital Brief)

• Village Roadshow suspends executives for $1m in fund misuse and cover-up. (AFR)

• Airwallex forms oversight board with Elana Rubin and Bill English to boost governance. (AFR)

The watercooler