☕️ Selling out

MCB has thrown in the towel on Tyro Payments

July 14, 2023

Good morning.

If you thought former ACCC boss Rod Sims had it in for big tech, then its worth casting your gaze across the Pacific to America. Lina Khan, the head of the US equivalent agency to the ACCC, the FTC, has been raising eyebrows in the dealmaking and tech communities with her strident anti-big tech stance.

Just days after the FTC lost a crucial court case attempting to block Microsoft’s US$75bn purchase of Activision Blizzard, the agency has found a new tech target. It opened a sweeping investigation into ChatGPT overnight, looking to examine whether the platform is harming consumers by harvesting data and publishing false information about people.

It joins a growing list of regulators concerned about AI. Whether they can rein in the technology is another question altogether.

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MARKET MOVERS

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

Market News: Mike Cannon-Brookes has thrown in the towel on Tyro. The Atlassian founder’s private vehicle Grok Ventures reportedly cashed in its 12.5% stake in the payment terminals business for $77 million.

The shares were sold in a block trade at $1.20 a pop, a slight discount to the market price of $1.25 but well below the $1.60 per share figure private equity suitor Potentia Capital offered for the business last year.

That deal ultimately failed despite Grok’s support for it. But the exit from the position probably has more to do with the fact that Grok has been winding down its listed equity exposures in favour investing in startups and decarbonsation projects.

THE QUICK SYNC

  • The US FTC is investigating whether ChatGPT is harming consumers by collecting data and publishing false information about individuals. (Washington Post)

  • BCG and McKinsey may be forced to appear before a Senate inquiry into conflicts of interest following the PwC scandal. (AFR)

  • Hollywood actors are set to join writers on strike, grinding the global entertainment industry to a halt. (Wall Street Journal | CNBC)

  • James Bullard, one of the US Fed’s top ‘hawks’ is stepping down. (CNBC)

TRADING FLOOR

M&A:

  • Grok Ventures has offloaded its 12.5% stake in Tyro Payments in a $77m block trade. (AFR | The Australian)

  • The ACCC decision on ACL’s Healius buyout could be out within a month. (The Australian)

  • Brookfield Asset Management has locked in a $1.45bn refinancing for Aveo. (AFR)

  • Enel is expected to sign terms to sell 50% of Enel Green Power Australia to Japan’s INPEX. (AFR | AFR)

  • Yancoal and Whitehaven Coal are leading the contest to buy BHP’s Queensland coal mines. (The Australian)

  • Aware Super tips in $746m to buy a stake in Switch. (AFR)

  • Potentia Capital’s $900m deal to sell Micromine still hadn’t settled. (AFR)

  • Macquarie’s refusal to tip in about $50m wipes out Murray & Roberts’ attempts to buy RUC. (AFR)

  • Adamantem may be gearing up to sell Hygain. (The Australian)

Capital Markets:

  • Silence around the IPO deal following the Redox listing raises questions over Mondiale VGL. (The Australian)

VC:

  • Secure Code Warrior, a cybersecurity start-up, has secured $73m in one of the biggest raises of the year led by Paladin Capital. (AFR)

Others:

  • Bae Juice has struck an agreement with Gold Coast Distributors to supply Bae Juice in the New York Tri-state area. (BNA)

THE WATERCOOLER