☕ Saved by the Bell

We finally have an M&A angle to the PwC tax leaks scandal.

June 26, 2023

Good morning.

And there it is. We finally have an M&A angle to the PwC tax leaks scandal!

The stricken accounting firm is selling its government consulting business to private equity firm Allegro Funds for $1. The new company, which would employ about 130 partners, has been codenamed ‘Bell’.

In non-PwC news (and there’s no shame if you are getting fatigue with that story), it really looks like the Zuckerberg v Musk cage match might happen. And if it does, it will apparently be the most lucrative fight in the history of fighting.

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MARKET MOVERS

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

Market News: Cochlear was the standout large-cap decliner in a weak session for the broader ASX on Friday.

The Aussie biotech’s slide to near 3-month lows came after the UK competition regulator blocked a key part of its $170m acquisition of Oticon Medical, a Danish firm that makes cochlear and bone implant hearing devices.

THE QUICK SYNC

  • PwC Australia is selling its government consulting business for $1 to Allegro Funds. (AFR | The Australian | SMH) 

    • PwC’s global head office has taken charge of its Australian operations. (The Australian | AFR)

    • Inside ‘Project Bell’, PwC’s plan to save itself. (AFR)

    • Allegro Funds is unlikely to merge the government consulting unit of PwC with its law firm Slater and Gordon. (The Australian)

  • Russia turmoil could trigger volatility and a flight to safety on markets. (Reuters)

    • Making sense of an extraordinary 24 hours for Putin and Russia. (Bloomberg)

  • Bitcoin hit its highest level in a year on Friday. (CNN)

  • The Musk v Zuckerberg cage match could be the “biggest fight ever in the history of the world”, according to UFC boss Dana White. (CNBC)

TRADING FLOOR

M&A:

  • The UK’s CMA approved Cochlear's $170m Oticon acquisition, but there is a catch: Cochlear will be unable to acquire the target's bone conduction implants division. (BNA)

  • Vitex has directed bankers at Macquarie Capital to resume discussions with potential private equity backers. (AFR)

  • TA Associates lobbed a bid of just under $600m for accounting and financial advice firm AZ NGA, but the offer was rejected (AFR)

  • Lendlease has sold two more tranches of cash flows at one of its major projects in Sydney for $600 million. (AFR)

  • Patriot Battery Metals has tapped Macquarie Capital to sound out potential buyers. (The Australian)

  • BGH Capital is moving forward on a buyout of Pepper Money. (The Australian)

  • Redox is to pursue "multiple" prospective acquisition targets as it seeks to accelerate its expansion after its share market debut. (AFR)

Capital Markets:

  • Dexus raised nearly $200m for the Wholesale Property Fund. (AFR)

VC:

  • Airtree Ventures has opened applications for its Explorer angel investing program. (SmartCompany)

Others:

  • BP and Shell may buy shale gas from the Beetaloo Basin within the next ten years if a new large scale export project is approved. (SMH)

  • ASIC is calling on all general insurers to ditch unnecessary pricing complexity. (BNA)

  • Koda Capital’s Jason Coggins is leaving the private wealth advisory business. (AFR)

  • Tyro Payments shareholders are urging the company to give up its banking license. (The Australian)

  • Four key former employees of Jarden Australia are launching their own asset management company. (AFR | The Australian)

THE WATERCOOLER