Yesterday, King & Wood Mallesons’ M&A teams successfully completed two of the three largest M&A deals in 2024 so far, reflecting strength in technology and cross-border dealmaking.
Altium
The $9.1bn acquisition of our long-standing client Altium, a leading developer of computer-assisted design products for printed circuit boards, is the largest M&A transaction involving an Australian-listed entity in 2024.
Altium’s sale to Japanese firm and business partner Renesas Electronics is also the leading recent example of renewed Japanese outbound activity, and noteworthy for its validation of the company’s strategy.
The deal itself includes a 4.5% reverse break fee, a record for a recent Australian public M&A.
Partner Dan Natale:
“The deal was successfully completed and the break fee was not needed. However, it represents the cutting-edge of target company shareholder protection and we’re really proud to have negotiated those terms for a client in Altium.”
The transaction is the culmination of an enduring relationship for our KWM team, led by Chairman & Partner David Friedlander:
“It is all the more rewarding to see this deal through having helped a fledging Altium go public in 1999 – exactly 25 years ago – and watching the company soar.”
Alumina
The realisation of the $4 billion[1] acquisition of our client, Alumina - by its global joint venture partner, Alcoa - is the third-biggest Australian public M&A deal for 2024. The transaction follows the earlier major cross-border scrip-for-scrip deals involving Square/Afterpay and Newmont/Newcrest. KWM has played a key advisory role in all those transactions, acting for acquirer or target in each case.
The Alcoa/Alumina transaction creates a leading global pure play bauxite/alumina/aluminium company which offers increased exposure to aluminium, a key product for energy transition and decarbonisation.
KWM resources M&A Partner Scott Langford explains that the deal represents the culmination of a long and close working relationship with Alumina and its management team:
“We have advised Alumina for many years, in particular on its Alcoa World Alumina and Chemicals (AWAC) joint venture with Alcoa, which represents one of the world’s largest bauxite and alumina production businesses. We are proud to have assisted the Alumina team on this landmark transaction, to deliver real value for the benefit of Alumina’s shareholders.”
KWM M&A Partner Will Heath said the successful closing of the transaction highlighted KWM’s unmatched public M&A capability in complex cross-border scrip-for-scrip transactions:
“This is three in a row for team KWM. Cross-border scrip-for-scrip transactions require careful judgement by foreign bidders and Australian-listed entities. We have been delighted to work with Alumina this year after a very busy year with Newmont last year and Square a year before that.”
Both the Altium and Alumina deals achieved financial close on 1 August 2024.
