Super funds factor in M&As

superannuation gilbert + tobin Neil Pathak Mergers super fund mergers Acquisitions mergers and acquisitions ASIC ACCC australian securities and investments commission Australian Competition and Consumer Commission

24 April 2019
| By Mike |
image
image
expand image

Superannuation funds played a greater role in public merger and acquisition activity last year, according to an analysis conducted by law firm, Gilbert + Tobin.

In a review of takeovers and other forms of mergers and acquisition last year, the law firm pointed to the level of activity of superannuation funds predicted it was likely to increase in line with the growing scale of Australian superannuation funds.

Commenting on the company’s review, Gilbert + Tobin partner, Neil Pathak said that despite regulatory headwinds, 2018 had seen a distinct increase in activity for public M&A in Australia, with transaction activity at a seven year high resulting in over 49 transactions being announced with an aggregate transaction value of $48.7 billion.

“There was a significant improvement in success rates, perhaps due to the sharp uptick in premiums paid,” he said. “Cashed up private equity firms were highly acquisitive, willing to deploy approximately $13.6 billion on targets in a range of sectors.”

The analysis said that interest from foreign bidders (especially from North America and Asia) was robust, with foreign transactions being substantially larger than domestic transactions.

It said the Financial Services Royal Commission had galvanised public scrutiny of large corporates and would embolden regulators including the Australian Securities and Investments Commission (ASIC) and the Australian Competition and Consumer Commission (ACCC) to more proactively and aggressively scrutinise corporate activity in coming years.

Read more about:

AUTHOR

 

Recommended for you

 

MARKET INSIGHTS

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

JOHN GILLIES

Amazing ! Between the beginning of licencing Feb 2002 and 2008 this was a very good stable industry.Then the do-gooders...

1 hour ago
So happy to hear this

It couldn't happen to a more worthy organisation - good luck to the heroes coming to clean the place up!...

2 hours ago
Toni Watson

Yes used the money that should have been invested as if it was his own. Thought he was invincible but the house of cards...

2 hours 35 minutes ago

AustralianSuper and Australian Retirement Trust have posted the financial results for the 2022–23 financial year for their combined 5.3 million members....

10 months 1 week ago

A $34 billion fund has come out on top with a 13.3 per cent return in the last 12 months, beating out mega funds like Australian Retirement Trust and Aware Super. ...

9 months 4 weeks ago

The verdict in the class action case against AMP Financial Planning has been delivered in the Federal Court by Justice Moshinsky....

10 months 1 week ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND