Article by John Stensholt courtesy of The Herald Sun.
Australia’s well-known billionaires are back making big deals, and expect plenty more in the next 12 months as merger and acquisition activity heats up in mining, retail and health.
A spate of deals in December by Australia’s billionaires is likely only the beginning of what should be plenty of corporate activity in 2024.
Hit by falling profits and interest rate rises in 2023, their ability to charter some choppy waters was tested.
Many have suffered falling wealth as a result, but some have enjoyed buoyant times as commodity prices increased and property valuations held up.
Billionaires are at the helm of the country’s biggest miners, property firms, retail behemoths and technology giants and dominate the top ranks of The List – Australia’s Richest 250.
They are also the biggest deal makers in the country.
Here are the billionaires to watch in Australia in 2024.
GINA RINEHART
The mining magnate has $20bn in cash burning a hole in her pocket – well, that’s the amount of cash on the balance sheet of Hancock Prospecting – and at least a decent chunk of it will need to go somewhere. Hancock has already started spending big on lithium, the latest being a $1.7bn bid with Chile’s SQM for Azure Minerals in December. That came after a string of other acquisitions during 2023, including office blocks, cattle and other mining assets. Expect Rinehart to keep spending in 2024, as a hoped-for clearer time frame for approval of Hancock Prospecting’s Mulga Downs project in WA inches closer. She could also buy more Australian fashion and apparel assets, adding to a collection that includes Driza-Bone and Rossi Boots.
SOLOMON LEW
The market awaits the findings of Lew’s strategic review of the retail assets held by his Premier Investments group. The review started in August and focused on strong performers like Smiggle and Peter Alexander, and whether they would perform better as separately-listed entities rather than as part of Premier’s conglomerate. It will be fascinating to see if Lew keeps everything together or spins out some of his best brands. And who knows, maybe 2024 is the year he finally makes a takeover move for Myer.
