☕️ Big deal

Good morning.

While the Australian market rested yesterday, its single largest listing BHP lodged an almost $60 billion takeover bid for Anglo American.

If successful the deal stands to be the biggest in BHP’s storied history, and given the mining behemoth’s spot on the ASX, will have big ramifications for Australian portfolios.

The takeover would make BHP a genuine copper powerhouse, placing two of the world’s largest assets under one roof at a time when demand is only rising on the back of the energy transition.

But first it needs to win over its target and then convince its own shareholders who have been burned on big deals in the past. No small task.

🏆 LOI Subscriber #TBD

Market movers

Pointsbet shares surged on Wednesday after it announced a 7% jump in revenue and details of its next capital return.

The betting company will return $127 million to shareholders following the sale of its US business to Fanatics, with it trading ex-capital return on 30 April.

The quick sync

• Scott Farquhar to stand down as Atlassian co-CEO (Capital Brief)

• Shares plummet as Meta talks up its cash-burning investments in AI and the metaverse. (CNBC)

• The market guesses what TikTok might be worth (WSJ)

• Alphabet issues its first dividend on the back of bumper revenue (The Guardian)

• Microsoft earnings show its AI investment is bearing fruit (WSJ)

• Jamie Dimon urges caution over US soft landing (FT)

• Canberra doesn’t know if the $15 billion National Reconstruction Fund should be picking winners (Capital Brief)

• McKinsey is under criminal investigation in the US over its opioid work (New York Times)

Trading floor

M&A

• Island Green Power and Overland Sun Farming have enlisted Acton Advisory to sell their Hay Sun Farm solar project in NSW. (AFR)

• Qube eyes potential acquisition in New Zealand, focusing on Port of Tauranga and Auckland port. (The Australian)

• Nick Scali Limited is acquiring Fabb Furniture in the UK and will raise funds through placements. (AFR)

• ADQ is buying a 49% stake in Plenary for $1bn, enabling Middle East development. (The Australian)

• BHP Group is exploring acquiring Anglo American with the help of UBS and Barclays, though talks are preliminary. (AFR)

• Chalice Mining's actions regarding its Gonneville asset brought attention to Encounter Resources, a WA explorer. (AFR)

• Quadrant Private Equity raised its MediaWorks stake to 55%, facing pressure from lenders. (The Australian)

• Mineral Resources aims to sell its Onslow Iron haul road for $1bn, but doubts linger about their commitment. (The Australian)

Capital Markets

• Remitter plans a Nasdaq listing to enter the US debt market. (AFR)

• Mighty Kingdom, a game developer, raised its capital from $6.2m to $8.2m as sophisticated investors join amid a leadership reset. (BNA)

VC

• None

People moves

• James Love, co-head of Australia M&A at Bank of America, has departed after 14 years, leaving Chris Gronow to lead the role solo. (AFR)

• Morningstar downgrades Platinum Asset Management's Asia fund after CIO Andrew Clifford's departure from the $2.2bn strategy. (AFR)

• Woodside shareholders re-elected Richard Goyder as chair for a third term at the AGM. (Capital Brief)

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