US investment giant Oaktree Capital Management is taking on the strategic buyers at up-for-sale Western Australian building products business BGC Group.
Street Talk understands Oaktree’s dealmakers lobbed an indicative bid in the auction’s first round last week, putting it on a direct collision course with a bunch of Australian and offshore trade players.
Howard Marks-run Oaktree will go head-to-head with powerful offshore trade in the second round of BGC Group’s auction.BGC Group’s location - Western Australia - also sets it apart. Building materials, and particularly cement, typically have one dominant player in each major market, restricting potential synergies for anyone looking to add BGC’s WA stronghold to its east coast operations.
Oaktree - best known for investing in WA driller DDH1, Nine Entertainment Co and Blue Sky locally - is up against Holcim and HeidelbergCement subsidiary Hanson’s Cement Australia, and Dublin-headquartered CRH in the second round. CRH has been seeking a large Australian building materials buy for at least the past five years.
Up for grabs is the late Len Buckeridge’s BGC Group, which was pitched with about $1 billion revenue and $100 million in earnings before interest, tax, depreciation and amortisation, in a flyer sent to interested parties in April.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
'Making history today': Fatima Payman becomes parliament's first hijab-wearing Muslim womanFatima Payman has won Western Australia's sixth and final Senate seat, becoming the first Afghan Australian and the first hijab-wearing Muslim woman in parliament. Read more here:
Read more »
One is not enough: the growth in football’s multi-club ownership modelAn idea taken to new levels by City Football Group is mushrooming in popularity but with mixed success
Read more »
Pilbara stalwart remembers famous furry friend Red DogDecades since he last roamed the red dirt tracks of outback WA, Australia's favourite kelpie, Red Dog, is still alive in the hearts of Pilbara locals.
Read more »
Big ticket events return but Perth's local industry remains battered and bruised by COVIDAfter nearly two years of cancellations and strict COVID restrictions, major events trickle back to WA, but the industry says not enough is being done to help local operators.
Read more »
Australia helps net deal on fishing handoutsTrade Minister Don Farrell says agreement on fishing subsidies shows the World Trade Organisation can still deliver.
Read more »