How long does it take for a takeover after a demerger?

Less than one year

Foster's: demerged its wine business Treasury Wine Estates in May 2011 and then was taken over by SAB Miller in December 2011.

Sydney Roads: Was spun out of Macquarie Infrastructure Group in July 2006 and then Transurban launched its friendly takeover bid in December 2006 and it was completed in April 2007 so the business was listed for less than a year.

One to three years

ALH: was spun out of Foster's in November 2003, Woolworths and Bruce Mathieson snapped up a strategic 16% stake in July 2004 and then, after a takeover battle with Coles, ALH was swallowed up by Woolworths and Mathieson and moved to compulsory acquisition in March 2005. Was listed for less than 18 months.

Fairfax: spun off its Domain business in November 2017 and received a takeover bid from Nine in July 2018 which was completed in December 2018, so it was all done in a year.

Recall: demerged out of Brambles in December 2013 and then received an initial takeover offer from Iron Mountain in December 2014 but the deal wasn't completed until mid 2016.

WMC: demerged Alumina in December 2002 and was then snapped up by BHP for $7 billion in June 2005. Alcoa later finally bought Alumina for shares in 2024 so neither entity exists although Alcoa now trades on the ASX.

Azon: boral floated off its Victorian manufacturing operations for $300 million in 1993 and they were bought by Illinois Tool Works in 1996.

Three to five years

Consolidated Media Holdings: spun out of Crown in November 2007 and then taken over by News Corp in October 2012. Crown itself was taken by Blackstone in 2022.

Rinker: was demerged out of CSR in April 2003 and Mexican company Cemex completed its takeover in July 2007.

Five to 10 years

Dulux: was demerged by Orica in July 2010 and then 9 years later was acquired by Nippon Paint for $4.2 billion in 2019.

Trade Me: floated off by Fairfax in December 2011 at $NZ2.70 a share and then acquired by Apax Partners for $NZ6.45 a share in early 2019.

Asciano: spun out of Toll Holdings in June 2007 and then, after almost going broke, was bought by a consortium of bidders in August 2016. Toll itself was taken over by Japan Post in mid-2015.

CYGB: NAB demerged its UK banking business in 2016, which then merged into Virgin Money and was then takeover over by Nationwide in a $5.8 billion cash offer which settled in October 2024.

10 to 20 years

BT/Pendal: Westpac demerged its funds management business BT, now known as Pendal, in late 2007 and it was taken over by Perpetual 16 years later in early 2023.

Onesteel: demerged from BHP in October 2000 and went broke as the renamed Arrium in April 2016, almost 16 years later.

More than 20 years

Boral: demerged Origin Energy in February 2000 and then Origin was almost taken over in 2023 and Boral was taken over by Seven Group in 2024, meaning both demerged entities survived 24 years as independent companies.

DEMERGERS WHICH ARE YET TO CAUSE A TAKEOVER

More than 20 years

Pacific Dunlop (now Ansell): floated off Cochlear in 1994 and both entities remain listed 30 years later, although this was strictly a float rather than a demerger.

Bluescope Steel: demerged from BHP in July 2002 and both remain listed today.

15 to 20 years

Janus Henderson: AMP demerged its UK business Henderson in 2005 and both businesses are still listed, although the UK arm trades as Janus Henderson.

10 to 15 years

Star Entertainment: Tabcorp demerged its casino division in 2011 and 13 years later both entities are still listed, although Star is close to being broke.

Orora: demerged by Amcor in December 2013 and both businesses remain listed although Amcor subsequently did a big merger with US firm Bemis and moved its primary listing to London.

5 to 10 years

South32: demerged by BHP in May 2015 and both business remain listed.

Coles: demerged by Wesfarmers in November 2018 and both entities remain listed.

IDP Education: was strictly a float by Seek in 2015 but both now have an open register and remain listed on the ASX.

Less than 5 years

Lottery Corp: demerged out of Tabcorp in 2021 and both entities remain listed.

Webjet: spilt itself in two in September 2024 and both remain listed.

Endeavour Group: the liquor and pokies giant was spun off by Woolworths in 2021 and both remain listed.

Copyright © 2024 The Mayne Report. All rights reserved

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