Latest news with #FIRB
Yahoo
4 days ago
- Business
- Yahoo
Sumitomo receives FIRB nod for investment in Tivan's Speewah Fluorite Project
Sumitomo has announced that its joint venture (JV) partner, Tivan, has received the Australian Government's Foreign Investment Review Board (FIRB) approval for its initial investment in the Speewah Fluorite Project through Sumitomo's subsidiary Japan Fluorite. The Speewah Fluorite Project in Western Australia's Kimberley region aims to establish a new mining and processing operation. In May 2025, Tivan disclosed binding agreements with Sumitomo and Japan Fluorite to form an incorporated JV for the Speewah Fluorite Project. Japan Fluorite may invest up to A$60.3m ($39.2m) in three tranches for a 22.5% equity interest in the JV. The initial investment of $5.3m (Y767.55m) from Japan Fluorite will secure a 7.5% equity interest and fund a feasibility study for the project. This study will focus on mining and processing operations to produce acid-grade fluorspar, which is essential for semiconductor and electric vehicle battery manufacturing. The investment was contingent upon several conditions including the FIRB approval, which has now been met. Tivan executive chairman Grant Wilson said: 'We are very pleased that FIRB Approval has been provided for our joint venture with Sumitomo Corporation. At a complex moment for the global critical minerals sector, this timely approval reflects the abiding strength of the bilateral relationship between Australia and Japan.' Additionally, Tivan is required to apply for the novation of a grant from the Australian Government's International Partnerships in Critical Minerals Programme and complete the project restructuring, which involves transferring project tenements to the JV company. With FIRB approval secured and the application for grant novation under way, Tivan is finalising the project restructuring. The formal establishment of the JV and the initial investment from Japan Fluorite Corporation are set to occur in the first half of July. In December 2024, Tivan was awarded a A$7.4m cash grant from the Australian Government to support the Speewah Fluorite Project, part of a broader effort to bolster international supply chain partnerships for critical minerals. "Sumitomo receives FIRB nod for investment in Tivan's Speewah Fluorite Project" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Zawya
5 days ago
- Business
- Zawya
'Deep pockets' could help Abu Dhabi win regulatory approval for Santos bid, analysts say
SYDNEY: Abu Dhabi National Oil Company, preparing an $18.7 billion bid for Santos, is likely to face close scrutiny from Australian regulators worried about local gas supply, but could win them over with pledges to speed up new projects, analysts say. Santos shares closed at A$7.73 on Tuesday, well below the $5.76 (A$8.89) per share proposed takeover offer for Australia's second largest gas producer announced on Monday, which analysts said indicated investors believe the deal will face trouble with regulators. "It's not going to be smooth sailing yet," said Jamie Hannah, Deputy Head of Investments and Capital Markets at VanEck Australia, which owns shares in Santos. However, he added that the offer price "is very attractive and it's straight cash". The bid, which would be the largest ever all-cash takeover in Australia, according to FactSet data, has landed at a time when Australia's Labor government is debating how to deal with a looming gas shortage on the country's east coast from 2027. "We would expect the Foreign Investment Review Board (FIRB) to focus on Santos's key gas infrastructure as it relates to domestic gas supply," said Jarden analyst Nik Burns. Santos' market share in eastern Australia is around 5%, with most of its gas output on that side of the country going to its Gladstone LNG export plant, analysts said. In Western Australia, where it runs two domestic gas plants and has a stake in a third one, it has a 24% market share. The infrastructure assets were not major income-generating assets, so would be very hard to spin off to satisfy any regulatory concerns, said Hannah. "This infrastructure is important for domestic gas supply in both markets. The government needs to decide if they are happy for this to sit in the hands of a foreign government," said MST Marquee analyst Saul Kavonic. ADNOC BRINGS CAPITAL TO THE TABLE On the positive side, Santos holds undeveloped resources, including the Narrabri project and Beetaloo shale gas, that could help fill the expected gas supply gap on the east coast. The bidding consortium, headed by ADNOC's investment arm XRG, could argue it would develop those projects faster than Santos could under its plans to boost capital returns to shareholders, and reduce the risk of an east coast gas shortage. "XRG might point to regulators that its larger balance sheet and funding capacity provides an opportunity to accelerate Santos' undeveloped growth assets," UBS analyst Tom Allen said in a research note. Romano Sala Tenna, portfolio manager at Katana Asset Management, which owns Santos shares, said the market was being too pessimistic about regulatory hurdles. "A large sovereign wealth fund effectively coming in with deep pockets" could pour money into Santos' undeveloped assets, he said. "So I think that is a card that will be appealing to the Australian government." XRG said on Monday that if the deal goes ahead, the consortium aims to build on Santos' legacy as a reliable energy producer "unlocking additional gas supply" and intends to "work closely with the existing management team to accelerate growth". Another factor that could work in favour of the ADNOC-led consortium, which includes the Abu Dhabi Development Holding Company (ADQ) and U.S.-based private equity firm Carlyle, is a trade deal Australia signed last year with the United Arab Emirates, analysts said. Australian Treasurer Jim Chalmers, who has the final say on approving major foreign transactions, said he would listen to the advice of the Foreign Investment Review Board on the deal. Santos Chief Executive Kevin Gallagher declined to comment on the deal and regulatory concerns on the sidelines of a gas conference in Malaysia on Tuesday, other than to say he would "let the process take its course". (Reporting by Scott Murdoch and Christine Chen in Sydney; Additional reporting by Sudarshan Varadhan in Kuala Lumpur; Editing by Sonali Paul)
Reuters
5 days ago
- Business
- Reuters
'Deep pockets' could help Abu Dhabi win regulatory approval for Santos bid, analysts say
SYDNEY, June 17 (Reuters) - Abu Dhabi National Oil Company, preparing an $18.7 billion bid for Santos ( opens new tab, is likely to face close scrutiny from Australian regulators worried about local gas supply, but could win them over with pledges to speed up new projects, analysts say. Santos shares closed at A$7.73 on Tuesday, well below the $5.76 (A$8.89) per share proposed takeover offer for Australia's second largest gas producer announced on Monday, which analysts said indicated investors believe the deal will face trouble with regulators. "It's not going to be smooth sailing yet," said Jamie Hannah, Deputy Head of Investments and Capital Markets at VanEck Australia, which owns shares in Santos. However, he added that the offer price "is very attractive and it's straight cash". The bid, which would be the largest ever all-cash takeover in Australia, according to FactSet data, has landed at a time when Australia's Labor government is debating how to deal with a looming gas shortage on the country's east coast from 2027. "We would expect the Foreign Investment Review Board (FIRB) to focus on Santos's key gas infrastructure as it relates to domestic gas supply," said Jarden analyst Nik Burns. Santos' market share in eastern Australia is around 5%, with most of its gas output on that side of the country going to its Gladstone LNG export plant, analysts said. In Western Australia, where it runs two domestic gas plants and has a stake in a third one, it has a 24% market share. The infrastructure assets were not major income-generating assets, so would be very hard to spin off to satisfy any regulatory concerns, said Hannah. "This infrastructure is important for domestic gas supply in both markets. The government needs to decide if they are happy for this to sit in the hands of a foreign government," said MST Marquee analyst Saul Kavonic. On the positive side, Santos holds undeveloped resources, including the Narrabri project and Beetaloo shale gas, that could help fill the expected gas supply gap on the east coast. The bidding consortium, headed by ADNOC's investment arm XRG, could argue it would develop those projects faster than Santos could under its plans to boost capital returns to shareholders, and reduce the risk of an east coast gas shortage. "XRG might point to regulators that its larger balance sheet and funding capacity provides an opportunity to accelerate Santos' undeveloped growth assets," UBS analyst Tom Allen said in a research note. Romano Sala Tenna, portfolio manager at Katana Asset Management, which owns Santos shares, said the market was being too pessimistic about regulatory hurdles. "A large sovereign wealth fund effectively coming in with deep pockets" could pour money into Santos' undeveloped assets, he said. "So I think that is a card that will be appealing to the Australian government." XRG said on Monday that if the deal goes ahead, the consortium aims to build on Santos' legacy as a reliable energy producer "unlocking additional gas supply" and intends to "work closely with the existing management team to accelerate growth". Another factor that could work in favour of the ADNOC-led consortium, which includes the Abu Dhabi Development Holding Company (ADQ) and U.S.-based private equity firm Carlyle, is a trade deal Australia signed last year with the United Arab Emirates, analysts said. Australian Treasurer Jim Chalmers, who has the final say on approving major foreign transactions, said he would listen to the advice of the Foreign Investment Review Board on the deal. Santos Chief Executive Kevin Gallagher declined to comment on the deal and regulatory concerns on the sidelines of a gas conference in Malaysia on Tuesday, other than to say he would "let the process take its course".
The Guardian
5 days ago
- Business
- The Guardian
Jim Chalmers faces ‘captain's call' over Abu Dhabi bid for Australian oil and gas giant Santos
Jim Chalmers may need to make a 'captain's call' on whether to approve the takeover of Australian oil and gas giant Santos by the investment arm of an Abu Dhabi state-owned entity, according to analysts, amid questions over whether the proposal will boost domestic supplies. The board of the Adelaide-headquartered oil and gas company has expressed support for the $30bn bid that, if successful, would place a series of strategic assets into foreign-owned hands. Santos has a portfolio of overseas and domestic oil and gas assets that includes large operations in Western Australia and the Cooper Basin, as well as critical energy infrastructure in the eastern states. The proposal requires various regulatory approvals, and will be tested by the Foreign Investment Review Board (FIRB), which provides advice to the treasurer. The takeover proposal marks the first major foreign investment test for the Labor government since re-election, and raises questions over whether such a deal would help or hinder Australia's energy needs. 'I welcome people expressing their view, I am unable to because I may have to make a decision on this at some stage. It would be a big decision. And I do intend to take the advice seriously and I don't intend to pre-empt it,' Chalmers told the ABC on Monday. Matthew Haupt, a lead portfolio manager at Wilson Asset Management, said FIRB would focus on issues around domestic gas supply and infrastructure security. 'Ultimately it can be a captain's call from the treasurer,' Haupt said. Analysts told Guardian Australia that FIRB will also consider Australia's robust trading relationship with the United Arab Emirates, which includes a bilateral free trade agreement, when assessing the deal. However, the lack of an Australian partner in the consortium, such as a superannuation fund, will be a drawback. The South Australian government has said it would deal itself into the approval process through its oversight of assets. 'There are levers available to the state government to ensure that the state has a say in this potential takeover, and our main objective will be to safeguard Santos jobs and retain its headquarters in SA,' the South Australian energy minister, Tom Koutsantonis, said. 'Legislation passed by this government ensures that ministerial approval is required for a change in the controlling interest of a licence holder.' The consortium, led by a subsidiary of the Abu Dhabi National Oil Company, has sought to allay some fears by promising to maintain Santos' headquarters in Adelaide, and invest in operations to ensure domestic supplies. 'This will reinforce Australia's position as a responsible energy partner and contributor to domestic and regional energy security,' the consortium said in a statement. The Labor government has supported a string of fossil fuel approvals early in its second term, headlined by its decision to give the green light to Woodside Energy's extension of the North West Shelf gas processing plant to 2070. Shares in Santos surged on Monday by 11% on the takeover proposal to trade just under the $8 mark. Its shares were flat on Tuesday, but remain at elevated levels. The share prices of most energy companies have lifted over the last few trading sessions amid fears the conflict between Israel and Iran could disrupt global supplies.
Reuters
09-05-2025
- Business
- Reuters
US real estate firm CoStar to buy Australia's Domain in a $1.9 billion deal
May 9 (Reuters) - Australia's Domain Holdings ( opens new tab said on Friday U.S. online real estate firm CoStar (CSGP.O), opens new tab would acquire the property classifieds company for an implied enterprise value of A$3 billion ($1.92 billion). Under the deal, CoStar and its unit, which already owns a 16.9% stake in Domain, will acquire the remaining shares in the company at A$4.43 apiece, a 4.2% premium to the stock's last closing price on Thursday. Domain may also decide to declare a special dividend of up to A$0.10 per share, which will reduce the deal value by that amount, it said. The deal marks CoStar's first foray into the Australian market and could transform the landscape in a sector where listing volumes have sagged as high living costs slowed the country's hot housing sector but are improving with interest rates coming down. Domain's board has unanimously recommended that shareholders vote in favour of the proposed deal, which is also subject to Foreign Investment Review Board (FIRB) approval. Domain's 60% owner, Nine Entertainment ( opens new tab, said in a separate statement that the deal "appropriately reflects the strategic value" of its interest in Domain and it intends to vote in favour of the deal in absence of a superior offer. ($1 = 1.5640 Australian dollars)
