7-Eleven gone for $1.71b

December 04, 2023

Good Morning,

Inflation has cooled down in the U.S. and Europe, 7-Eleven Australia’s family owners sell for $1.71b, Wellington mayor confronts drinking problem following videos posted online, Berkshire Hathaway’s Charlie Munger has passed at 99.

Let's jump in!

Before The Bell

Markets

  • This week, the Commerce Department reported a 0.2% increase in the core PCE price index for October, a slowdown from September. The year-over-year rise is 3.5%, still above the Fed's 2% target but the lowest since April 2021. Over the last six months, the annualized rate is 2.5%. (TRP)

  • In November, Germany's jobless rate rose to 5.9% from October's 5.8%, with stable employment and a 0.6% annual increase. Job vacancies declined, but retail sales in October exceeded expectations, growing by 1.1%, likely due to lower inflation and increased consumer confidence. (TRP)

  • Chinese stocks faced a setback as official indicators raised worries about the country's delicate economic recovery. The Shanghai Composite Index declined by 0.31%, and the blue-chip CSI 300 saw a loss of 1.56%. In Hong Kong, the benchmark Hang Seng Index dropped significantly by 4.15%, as reported by FactSet. (TRP)

Earnings & Data

  • The Australian retail sector climbed 0.5 per cent, led by homewares seller Adairs, which gained 3.9 per cent to $1.60 AUD, alongside electronics retailer JB Hi-Fi, which added 1.1 per cent to $46.51 AUD, while online retailer Kogan gained 0.6 per cent to $4.80 AUD. (AFR)

  • Shares in Temple & Webster soared more than 14 per cent on Wednesday after the online-only furniture retailer said it was bucking a difficult environment and posted a massive increase in sales for the last five months. (AFR)

  • Dell Technologies reported third-quarter revenue below estimates due to a slower-than-expected recovery in the hardware and software market. (RT)

News Summary

Monday

  • Christopher Luxon takes aim at public service, pledges to tackle cost of living, restore law and order (Stuff)

  • Few clues how sweeping changes to Reserve Bank of Australia will impact interest rates (9 News)

  • Hamas releases third group of hostages as part of truce and says it will seek to extend the deal (CNBC)

Tuesday

  • Staff at The Warehouse are unhappy about a promotion in which they were asked to offer some customers their purchases free of charge, their union says. (Stuff)

  • A cruise headed for New Zealand from Sydney was forced to turn back after a medical emergency, but upon making it to Aotearoa has cancelled another stop, leaving passengers fuming. (Stuff)

  • Qatar’s foreign ministry has said on X an agreement has been reached to extend the Israel-Hamas truce in Gaza by two additional days. (NBR)

Wednesday

  • Wellington mayor Tory Whanau has admitted she has a drinking problem, says she is getting “professional help” and hinted that video of another incident of drunken behaviour may be circulating in the public domain. (Herald)

  • The man who used an axe to attack people at Chinese restaurants on Auckland's North Shore has been acquitted on all charges due to insanity. (Stuff)

  • Billionaire Charlie Munger, the investing sage who made a fortune even before he became Warren Buffett’s right-hand man at Berkshire Hathaway, has died at age 99. (CNBC)

Thursday

  • Consumer NZ takes legal action over Z Energy claims (Stuff)

  • Gambling stocks up 300pc pose dilemma for super funds (AFR)

  • Alibaba’s Value Dips Below Upstart PDD’s in Landmark for China (BBG)

Friday

  • Almost 20,000 home loan accounts are now past due, credit bureau Centrix says. (Stuff)

  • An alleged organised crime syndicate has been busted in Auckland with police dismantling drug and money laundering operations and seizing $25 million worth of cannabis. (Stuff)

  • War resumes in Gaza after truce collapses. (RT)

Weekend

  • From good to great: A Kiwi’s guide for CEOs (NBR)

  • Behind the $2b bet against the ASX’s favourite lithium stock (AFR)

  • ‘We now just wish to be killed’: the Palestinians under fire in southern Gaza (Guardian)

Deal Flow

Investments / M&A

Australia & New Zealand

  • Brookfield has flagged it could walk away from its pursuit of Origin Energy, citing changes in government climate policy, ahead of a shareholder vote on its A$16 billion takeover offer lobbed with private equity partner EIG. (AFR)

  • 7-Eleven Australia’s family owners sell for $1.71b (AFR)

  • Conscious Investment Management has ruled off a first close for its AUD $200 million social housing fund (AFR)

  • AustralianSuper-backed Federation Mining sells out of OreCorp (AFR)

  • No banker wants a live deal to stretch over the Christmas break, but that’s precisely where Jarden’s dealmakers have found themselves with their Kiwi gold mine. (AFR)

  • Euroz corrals OreCorp sellers, Perseus buys 15pc stake (AFR)

  • Adore Beauty knocks back takeover approach, shares jump 20pc (AFR)

  • A failed holding company linked to David Henry’s now-defunct NZ Future Forest Products, owes creditors more than $1.5m NZD, according to the first liquidators report. (NBR)

  • Mineral Resources’ acquisition of the Bald Hill lithium mine is the talk of Western Australia’s lithium corridor of power. (AFR)

  • Iconic swimwear brand Tigerlily has plenty of US growth, buyers told. (AFR)

  • Cigna, Humana Are Discussing Combination of Insurance Giants (BBG)

Key Global

  • AbbVie will buy ImmunoGen for US$10.1 billion. (RT)

  • Automotive company, Schaeffler AG increased its offer to buy Automotive supplier, Vitesco Technologies Group AG in a €3.8 billion deal (BBG)

  • KKR to Pay $2.7 Billion for Rest of Insurer Global Atlantic (BBG)

  • Rover agrees to $2.3 billion go-private deal with Blackstone (RT)

Other Global

  • Brazil's Eneva proposes merger with Vibra to create energy giant (RT)

  • Tietto Minerals worth well north of what West African gold miner by Hong Kong’s Zhaojin Mining bid (AFR)

  • London hedge fund Acheron Capital is in pole position to secure control of Ballarat’s last gold mine after a tense creditors’ meeting in the famous Victorian gold town on Tuesday, Street Talk understands. (AFR)

  • Partners Group is bringing in the big guns as the battle for Fresenius’ Cura Day Hospitals heats up. Street Talk understands the Swiss private equity firm is working with newly elected Integral Diagnostics chairman Toby Hall. (AFR)

  • Kingdom Holding Co., the investment company of Prince Alwaleed Bin Talal, has raised its stake in Citigroup Inc. to 2.2% after buying a $450 million stake from the Saudi billionaire. (BBG)

  • British investment firm Digital 9 Infrastructure (D9) (DGI9.L) initiated a strategic review of its portfolio on Monday and said it had agreed to sell its stake in data group Verne Global for $575 million as it seeks to cut debt and boost its finances. (RT)

  • Singapore's BW LPG to invest $30 mln in JV with Confidence Petroleum India (RT)

  • India's UltraTech Cementsays it will buy the cement business of Kesoram Industries in an all-stock deal valued at US$645.41 million, in a move to add heft to its hold in the southern part of the country. (RT)

VC & Fundraising

  • Syrup Tech Inc., a startup that makes artificial intelligence tools to help fashion retailers plan and manage their inventory, has raised US$17.5 million in a funding round led by Accel. (BBG)

  • Nexl, which makes software for lawyers to manage their clients, has raised A$6 million from investors, in a deal that values the company at $31 million, after doubling its annual recurring revenue. (AFR)

Equity Raises

Australia & New Zealand

  • Activ8 Ventures, a division of boutique investment and advisory business Activ8 Capital, co-founded and backed Snowtunnel in mid-2022 and is now looking for $1 million to build the first commercial tunnel in Australia. (AFR)

  • Electrical products distributor IPD Group launched a $65 million equity raising on Tuesday morning to fund the acquisition of CMI Operations, Street Talk understands. (AFR)

  • Melbourne’s Jet Charge, an EV charging services provider founded nearly a decade ago, is ready to head out with its biggest funding round yet. (AFR)

  • Biotech Mesoblast had its broker Bell Potter launch a A$97.7 million equity raising on Friday morning to fund trials. (AFR)

  • Barrenjoey’s equities desk crossed 2.46 million shares in Dusk Ltd, representing 4% of the company shortly after market open on Friday. (AFR)

Key Global

  • Lineage Logistics LLC is targeting a valuation of more than $30 billion in an initial public offering, people familiar with the matter said, in what could be one of next year’s largest listings. (BBG)

Other Global

  • A mystery buyer bought a parcel of shares in the Hearts and Minds Investments LIC after market close on Tuesday, taking advantage of the discount between the closed-ended fund’s trading price and underlying value. (AFR)

  • Partners Group is bringing in the big guns as the battle for Fresenius’ Cura Day Hospitals heats up. Street Talk understands the Swiss private equity firm is working with newly elected Integral Diagnostics chairman Toby Hall. (AFR)

The Daily Deck is sponsored by Industrial Equity, LLC

Reply

or to participate.