Cochlear rejects ACCC’s concerns over Oticon Medical acquisition, Santos loses Barossa offshore drilling appeal and Beach Energy submits counterproposal

Australia’s competition watchdog, the Australian Competition and Consumer Commission (ACCC) declared it has “significant preliminary competition concerns” regarding Cochlear’s (ASX: COH) proposed $170 million acquisition of Oticon Medical.

Cochlear and Oticon Medical manufacture and distribute non-surgical bone conduction devices, surgical bone anchored devices, and cochlear implant hearing devices.

The ACCC released a statement fearing the deal would affect competition, given the few global manufacturers of non-surgical bone conductive hearing devices.

“There are few suppliers of these devices globally. In Australia, Cochlear and Oticon Medical are two of only three suppliers of non-surgical bone conduction and bone anchored devices, and two of only four suppliers of cochlear implants,” it said.

“The ACCC is concerned the proposed acquisition would substantially lessen competition in already highly concentrated markets, which may lead to higher prices, reduced service levels and reduced innovation.”

ACCC chair Gina Cass Gottlieb said although Cochlear is “by far the largest supplier of surgical bone anchored devices and cochlear implants in Australia”, the proposed acquisition would still remove a fellow competitor in Oticon Medical.

Cochlear released a statement rejecting the ACCC’s concerns, as it continues to work through with the watchdog to get the deal over the line.

“Cochlear does not believe the proposed acquisition will reduce competition and will continue to work with the ACCC to address matters raised as part of the public consultation process,” the company stated.

Rio Tinto

Mining giant Rio Tinto (ASX: RIO) has announced plans to invest a further $600 million into renewable energy assets in Western Australia’s Pilbara region, contributing towards its existing decarbonisation efforts.

The giant confirmed on Tuesday it will fund the construction of two 100-megawatt solar farms, as well as 200 MWh of on-grid battery storage in the Pilbara before 2026.

The new solar and storage will add to Rio Tinto’s existing 34MW of solar power installed at the Gudai-Darri iron ore mine, and a 34MW/10MWh battery at Tom Price.

In addition, Rio has received approval for its first major standalone solar farm on the Pilbara coast.

The 100MW solar photovoltaic (PV) project will consist of around 225,000 solar panels and be built to withstand the Pilbara’s cyclonic weather conditions.

Construction will commence next year, with project commissioning planned for 2025.

Rio Tinto chief executive of iron ore Simon Trott said the location is ideal for accelerating the giant’s decarbonisation efforts.

“The Pilbara is extremely well-positioned to take advantage of renewable power with land, access to people, and abundant wind and solar resources,” he said.

The latest $600 million investment forms part of Rio Tinto’s previously announced efforts to install 1-gigawatt of renewable energy in the Pilbara, as well as the company’s global commitment to invest approximately $7.5 billion to halve its emissions by 2030.

Beach Energy

Beach Energy (ASX: BPT) has announced it has submitted a counterproposal in its efforts to acquire Warrego Energy (ASX: WGO), after Gina Rinehart’s Hancock Energy put forth what was deemed to be a “superior proposal”.

Beach announced on 14 November 2022 it entered a scheme implementation deed (SID) with Warrego Energy, offering to acquire all the issued shares in Warrego for $0.20 cash per share, plus any net proceeds received from the sale of Warrego’s Spanish assets.

As Beach looked to be in the box seat, Warrego’s board announced on 1 December it received an off-market takeover offer from Hancock Energy to acquire all the fully paid ordinary shares in Warrego at an offer price of $0.23 per share, a “superior proposal” to Beach’s offer.

Beach hurriedly submitted a counterproposal to acquire all the issued shares in Warrego at an improved offer of $0.25 per share cash consideration, plus any net proceeds received from the sale of Warrego’s Spanish assets.

Beach believes the counterproposal will see the deal go through amid Hancock’s attempts to hijack the deal.

Dominos

Domino’s Pizza Enterprises (ASX: DMP) has announced it will raise $165 million to fund the acquisition of the company’s business partner in Germany, in an effort to expand the group’s global footprint.

The $165 million raise includes a $150 million fully underwritten institutional offer and a $15 million share purchase plan for existing eligible shareholders.

The fast food group confirmed its intentions to acquire the Germany business from Domino’s Pizza Group (DPG) in November.

Domino’s Pizza Enterprises has operated its German stores in a joint venture with DPG since 2015, while the Brisbane-based group has held an option to assume full control of the business.

Domino’s chief executive officer Don Meij said the opportunity to expand the company’s footprint is exciting.

“We are excited about increasing our ownership in Domino’s Pizza Germany, which has been an objective of ours since entering the market,” he said.

“Germany offers strong long-term growth prospects for our business.”

Domino’s has a strong consumer base in Germany, opening its 400th store in FY22, adding to its 1,400 stores in Europe and the 3,387 stores it operates globally.

Atlas Arteira

Atlas Arteria (ASX: ALX) has announced it has completed the acquisition of a 66.67% majority interest in the Chicago Skyway, leaving Ontario Teachers’ Pension Plan to continue holding the remaining 33.33% interest.

The deal, announced in September, was met with scepticism when Atlas’ biggest shareholder IFM Investors urged the company not to go through with the acquisition.

Atlas funded the acquisition through proceeds from the accelerated non-renounceable entitlement offer announced on 14 September, raising around $3 million.

Atlas chief executive officer Graeme Bevans said the deal would accelerate the company’s growth opportunities moving forward.

“This acquisition is transformative for Atlas Arteria and is value accretive for our security holders,” he said.

“It delivers on our strategy by increasing the average concession life of our business and providing for long term sustainable distributions.”

“While continuing to focus on delivering the internal growth opportunities we see at APRR and Dulles Greenway, our team has a clear business plan for Chicago Skyway and is focused on its implementation over coming months.”

Atlas remains one of the world’s largest developers and operators of private toll roads, priding its brand on creating value for its investors over the long-term through considered and disciplined management.

Santos

Santos (ASX: STO) has announced it was unsuccessful in its attempt to restart drilling at its multi-billion-dollar gas project in the Barossa gas field, 265 kilometres northwest of Darwin, off the Tiwi Islands.

The full Federal Court dismissed Santos’ appeal on Friday, as the gas giant appealed against an earlier decision that found the project’s environmental approval was invalid.

Back in June, Tiwi Islander Dennis Tipakalippa launched legal action against Santos, claiming he was not consulted over the company’s environmental plan for the Barossa gas field.

The Munupi elder raised his concerns that the project would potentially damage his people’s sea country.

In September, Federal Court judge Mordecai Bromberg ruled in Mr Tipakalippa’s favour, finding the regulator should not have approved the environmental plan.

Judge Bromberg ordered for the approval to be set aside and drilling halted, but Santos appealed against the decision.

Santos has fired back, expecting the project to still go ahead, hinting at plans to submit a fresh application in the aftermath of the court’s decision.

NT Environment Centre director Dr Kirsty Howey said the decision put gas companies on notice, suggesting “they cannot sideline First Nations peoples”.

“Gas companies are not above the law,” she said.

“This case was only ever about making sure Dennis and his clan had their say as the law requires.”