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Canada's Brookfield wants to buy Australia's Asciano for $6.8 billion

Staff writer ▼ | July 1, 2015
Canada's Brookfield Asset Management has approached Australia's Asciano with a $6.8 billion takeover bid.
Acquisition   The seventh-largest inbound takeover of an Australian company
If successful, the deal would be the seventh-largest inbound takeover of an Australian company, and would follow the A$6.5 billion ($5 billion) purchase of Asciano's former parent company, Toll Holdings, by Japan Post this year.

Asciano said it was now in exclusive talks with Brookfield, Canada's largest alternative asset management company, over its indicative cash and scrip bid of A$9.05 per share that values the company at A$8.8 billion, but cautioned that the discussions were at an early stage. The offer price represents a 36 percent premium to the stock's Tuesday close.

Asciano's A$3 billion equipment overhaul has positioned it well for growth and the company increased its interim dividend by 44 percent in February.

Brookfield's proposal was made through its listed fund Brookfield Infrastructure Partners what said talks with Asciano were ongoing and that it did not intend to provide further updates until appropriate.

Brookfield has a 3,420 miles rail network in the state of Western Australia. This year, it was part of a consortium that bought oil and gas firm Apache Corp's exploration and production businesses in Australia.