Wesfarmers purchase of Coles “reassuringly old-fashioned”

I mentioned this below, but in passing. The Coles Group – supermarkets, liquor, general retail (2nd largest in Australia), was purchased for AUD22bn by another Australian group Wesfarmers (nothing much of interest in those links – trading has halted on both companies’ shares)

This is from the Financial Times:

There is something reassuringly old-fashioned about Australia’s biggest buy-out ever. The proposed purchase by Wesfarmers, the financial services and industrial conglomerate, of Coles Group, the country’s second-largest retailer, marks the marriage of two wholesome Australian names. There is no private equity involvement and most of the purchase price is being offered in scrip.

I love that expressiong because that was exactly my reaction. Wesfarmers is offering cash, that it has on-hand and that it will raise through a share issue. No private equity take-over (as I said, two groups, Blackstone and the Carlyle Group, hadn’t been able to raise the debt for their bids), no leveraging. Just an honest takeover between folks.


No comments yet

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: