Australia's Brambles in talks with CVC Capital over a potential takeover offer
May 16 (Reuters) - Australia's pallets and container supplier Brambles Ltd is weighing up an unsolicited takeover offer by Europe’s private equity giant CVC Capital Partners, it said on Monday, addressing media reports.
"Brambles notes the engagement is preliminary, incomplete and there has been no formal proposal received from CVC," Brambles responded.
Local media reported https://bit.ly/3MlCHfW the potential bid could be worth A$20 billion ($13.89 billion), making it one of Australia’s biggest ever buyouts.
Brambles, which owns and rents crates and pallets globally to fast-moving consumer goods companies, has been under investor scrutiny for its proposal to build a plastic pool for its customers in the United States, including big-box retailer Costco. The board is expected to make a decision by the end of fiscal 2022.
In its April trading update, the company flagged headwinds from supply chain constraints amid the Russia-Ukraine conflict and rising inflation that will continue to affect its outlook for the next year.
"The board is also considering other strategic options for the company that maximise shareholder value," it added. ($1 = 1.4403 Australian dollars) (Reporting by Savyata Mishra in Bengaluru; editing by Jonathan Oatis)
