...DRIVEN & EQUITY ARBITRAGE SALES FOR INTERNAL USE ONLY Trades Examined: UK - Netherlands Reed Elsevier NV (REN NA) vs Reed Elsevier Plc (REL LN) Royal Dutch Petroleum (RDA NA) vs Shell Transport & Trading Co Plc (SHEL LN) Unilever NV (UNA NA) vs Unilever Plc (ULVR LN) UK - Australia BHP Billiton Ltd (BHP AU) vs BHP Billiton Plc (BLT LN) Brambles Industries Ltd (BIL AU) vs Brambles Industries Plc (BI/ LN) Rio Tinto Ltd (RIO AU) vs Rio Tinto Plc (RIO LN) Introduction: The purpose of this report is to provide a basic overview of the dual-listing environment, highlighting the nature of company structures involved, why the structures were adopted and how they work. Contents: Page 1. Frequently Asked Questions 2 2. Why do Dual Listed Companies Exist? 4 3. Dual Listing Structures 5 4. Currency Risk 6 5. Terminology 7 6. Factors Affecting Performance 8 Appendix 1: Stock Specific Data A.1 Reed Elsevier NV vs Reed Elsevier Plc 10 A.2 Royal Dutch NV vs Shell T&T Plc 12 A.3 Unilever NV vs Unilever Plc 14 A.4 BHP Billiton Ltd vs BHP Billiton Plc 16 A.5 Brambles Ind. Ltd vs Brambles Ind. Plc 18 A.6 Rio Tinto Ltd vs Rio Tinto Plc 20 Glossary of Terms 22 1. Frequently Asked Questions Q. What is a dual listed structure? Where a company is listed on two exchanges it is referred to as a Dual Listed Company. The two listed organizations have entered...
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...DRAFT Chinese Foreign Direct Investment in Australia: Policy Issues for the Resource Sector Peter Drysdale Crawford School of Economics and Government The Australian National University and Christopher Findlay School of Economics University of Adelaide Abstract The last nine months has seen Chinese foreign direct investment in the Australian resource sector become an issue of policy interest. There are two big questions that the prospects of a significant rise in foreign direct investment (FDI) from China into the Australian resources sector have raised. Is the surge of FDI into Australian mining and energy consistent with achieving the traditional gains from foreign investment? And are there any particular problems associated with investment from foreign state-owned enterprises or state managed sovereign wealth funds? These are among the questions addressed in this paper. The paper argues that there are no issues that cannot be dealt with under the umbrella of the established test of ‗national interest‘ in managing the growth of Chinese FDI into the Australian minerals sector. It argues that a confusion has been introduced into policy over the questions of state-ownership and supplier-buyer relations in respect of Chinese investments and that clarifying these issues is likely to be important to Australia‘s capturing the full benefits from the growth of Chinese resources demand and longer term economic and strategic interests in China. Paper for Presentation to Crawford...
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...Group Assignment: BHP BILLITON International Business Theory & Practice (MGF 5966) Lecturer/Tutor Mr. Sharif Rasel Name & ID Junaidul Haque – 263 512 50 Dalaphone Phengrattanavong – 266 785 94 Girish Balar – 274 718 53 Maike Nan – 263 994 90 Due Date – Week 11 Introduction BHP Billiton, which is Broken Hill Proprietary Billiton, is an Anglo-Australian multinational mining and petroleum company. BHP started its operation in Melbourne in 1885 which is one of Australia’s largest and oldest companies, and it focused on development, discovery, production, and marketing of natural resources. In value-added flat steel products, BHP was also a market leader. In 1860, Billiton was established in The Hague, Netherlands. Billiton developed a growing and substantial copper portfolio. It was also a global leader in the metals and mining sector, and a major producer of aluminum and alumina, steaming coal, nickel, and titanium, chrome and manganese ores and alloys. BHP Ltd of Australia and Billion Plc of UK established merger in 2001, and the result was the dual listed company (DLC). BHP Billion becomes one of the world’s largest mining and Petroleum Company. It expands its business in twenty countries, and its major commodities are iron ore, metallurgical coal, energy coal, conventional and unconventional oil and gas, copper, aluminum, manganese, uranium, nickel, and silver. This essay will deeply analysis the effects of BHP Billiton’s sustainability practice...
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...GROUP 9 CHAPTER 16 CASE STUDY DELAYERING AS A DEFENSE MECHANISM Executive Summary In October 2009, Anglo American PLC, the world’s fourth largest diversified mining company announced that it was delayering – eliminating a layer of organizational structure. The major criteria for this reorganization were geography and asset status. Then in June 2009, the Swiss-British mining company Xatrata proposed a merger with Anglo- a move that would create a $68 billion frim to compete with industry giants like BHP Billiton, Vale and Rio Trinto. But in October, Xatrata withdrew its offer in the face of resistance from the Anglo board Carroll announces her “simplification and delayering strategy”. In making the announcement she asked shareholders for more time to develop the company’s assets and prove its value as an independent company. Introduction An organization changing its structure is not unusual among business these days as they struggle to remain competitive in a rapidly changing world. The structure of an organization is most often described in terms of its organization chart. A complete organization chart shows all people, positions, reporting relationship, and lines of formal communication in the organization. For large organizations, several charts may be necessary to show all positions. Literature Review Responsibility and authority are related to both configurational and operational aspects of organization structure...
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...suggestion of which accounting technique should to be integrated into BHP Billiton’s contemporary management accounting system. Through in depth research this technique has been identified as the environmental management accounting technique. This result was achieved through the research of the strengths, weaknesses, opportunities and threats (SWOT) analysis and the identification of the critical success factors. A balanced score card was then created using the information gathered to be used in identifying the most relevant technique. EMA was the technique decided upon as compared to the other techniques as it is the most relevant to BHP Billiton as their industry deals day to day with the environment and society. It will create awareness for the harm that is being done to the environment and will encourage them to create the minimum damage to the earth. It will also assess any repercussions of their actions that may affect society and bring harm to people. By integrating the EMA technique, it will help the organisation to collect the most relevant information to their situation and will assist in the planning, controlling and decision making within that organisation. This will improve the organisations strategy in which to help preserve the environment and also affect their financial state positively. TABLE OF CONTENTS EXECUTIVE SUMMARY 3 TABLE OF CONTENTS 3 1. INTRODUCTION 5 2. BHP BILLITON LTD 5 2.1 SWOT ANALYSIS 5 2.2 CRITICAL...
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...of Submission: April 2, 2015 BHP Billiton Limited Introduction: BHP Billiton is world’s largest diversified natural resources company. The company was created by the merger of two companies, BHP Ltd (An Australian mining company) and Billiton PLC (An UK based Company). BHP Billiton has created long time share holder value through the discovery, acquisition and development of natural resources. In the last few years, BHP Billiton has faced some governance challenges in conducting their business around the world. For overcoming those challenges several strategic drivers has been taken by BHP Billiton. This report mainly focused on external and internal environment, strength and weakness, Governance challenges and strategic drivers of BHP Billiton. Overview of BHP Billiton: BHP Billiton is a Dual Listed Company (DLC) comprising BHP Billiton Limited and BHP Billiton Plc. BHP Billiton was created through the DLC merger of BHP Limited (now BHP Billiton Limited) and Billiton Plc (now BHP Billiton Plc), which was concluded on 29 June 2001. BHP Billiton is a leading global resources company. The purpose is to create long-term shareholder value through the discovery, acquisition, development and marketing of natural resources. BHP Billiton are among the world’s largest producers of major commodities, including aluminum, coal, copper, iron ore, manganese, nickel, silver and uranium, and have substantial interests in oil and gas. The headquarters of BHP Billiton Limited, and the global...
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...for Las Bambas is found by September 2014, Glencore will have to auction off one of its other copper assets of MOFCOM’s choosing. To clinch MOFCOM’s blessing of the deal Glencore also committed to continue offering longterm supply arrangements to sell copper concentrate to Chinese customers, as well as somewhat less stringent supply commitments on zinc and lead concentrates. It has been a long road for Glencore and Xstrata who announced their plan to combine in February last year. They have had to navigate the merger review processes in several major jurisdictions, which can frustrate the most patient of company executives. Glencore’s acquisition of Xstrata will unite one of the world’s largest producers and traders of commodities and one of the largest mining companies globally – but at what price? It was no surprise that competition authorities in those countries and regions most affected would closely scrutinize the deal. The transaction had to be approved by merger control authorities in Australia, China, the EU, South Africa and the US before the parties could close the deal. Australia was the first to give the green light. Having begun its review in April 2012, the Australian Competition and Consumer Commission (ACCC) approved the transaction in early July 2012. The ACCC cited the merged company’s “relatively low share of global production” and the existence of several...
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...Glencore, Xstrata and the Restructuring of the Global Copper Mining Industry in 2012 Diana Alvarez Valencia (1310200) University Canada West Dr. Paul Rome MGMT 661 Strategic Management Tuesday, May 12, 2015 Introduction and Problem Identification In this case study we will identify the problems that can be issued in the process of the merger between two of the largest commodities traders in the world, Glencore and Xstrata. It will provide the background of both companies, the situation analysis, identification of alternatives Companies Background. Glencore had been a trading company since their early years with the name of Marc Rich & Co. Glencore, was founded by March Rich; Rich was a consummate dealmaker, doing business with the entire world no matter their country background (fascist or communists). Moreover, Marc Rich always tried to get the cheapest price with his Middle Eastern contacts. His most important clients were embargoed nations like Israel and South Africa. In 1983, the US government indicted Rich on charges of illegal trading and tax evasion. After different issues and in the sake of create a better reputation the company – Marc Rich & Co. - rebranded itself as Glencore. (Hitt, Ireland & Hoskisson, 2013). Furthermore, one of the Glencore’s practices, is to get cheap tier 2 assets from doing business in developing countries considered high-risk by others rather than developing on its own. In 2002, Glasenberg become the CEO of the company.(Hitt, Ireland...
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...fourth largest global mining company Reference Code: ML00007-065 Publication Date: January 2013 WWW.MARKETLINE.COM MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED GLENCORE & XSTRATA: CREATING THE FOURTH LARGEST GLOBAL MINING COMPANY © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED ML00007-065 /Published 01/2013 Page | 1 OVERVIEW Catalyst Glencore International, a commodity trading giant, is seeking to merge with diversified mining company Xstrata. The move was announced in February 2012 with the proposal accepted by shareholders in November 2012. The deal is worth $31bn and would create the fourth largest mining company in the world behind the top three of BHP Billiton, Vale, and Rio Tinto. The company would also possess leading positions in other commodities in power generation and agricultural products. Summary Glencore is a company which operates in commodity markets, including mining. The company engages in both industrial activity and marketing, which allows it to safeguard against volatilities in an individual market. Further, by engaging in marketing, the company is able to adapt more effectively to adverse conditions. Glencore has demonstrated value creation in its acquisitions, with notable acquisitions including Kazzinc and Viterra. The company’s size also now allows it to negotiate big contracts, as it did with Rusal. Glencore was fast tracked into the London FTSE stock exchange during its...
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...Business risks facing mining and metals 2012–2013 Organizations that succeed do so because they are best able to optimize the risk and reward equation for both strategic and operational issues. Contents The Ernst & Young business risk radar for mining and metals Executive summary The top 10 business risks 1. Resource nationalism 2. Skills shortage 3. Infrastructure access 4. Cost inflation 5. Capital project execution 6. Social license to operate Editorial — Prospects and perils: facing up to political risks in mining and metals 7. Price and currency volatility 8. Capital management and access 9. Sharing the benefits 10. Fraud and corruption 3 4 10 11 14 17 20 23 26 28 32 35 38 40 Under the radar Getting prepared 42 46 The Ernst & Young business risk radar for mining and metals Up from 2011 Down from 2011 Same as 2011 New entry The risks closest to the center of the radar are those that pose the greatest challenges to the mining and metals sector in 2012 and into 2013. The business risk report Mining and metals 2012–2013 3 Executive summary 4 The business risk report Mining and metals 2012–2013 A more complex and extreme risk environment “The bottom line is that if returns start to wane, then there is a greater imperative for organizations to tightly and more effectively manage their risks to maintain an adequate risk/reward balance.” Mike Elliott Global Mining and Metals Leader, Ernst & Young On the surface, the top...
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...Mining for controversy Date January 29, 2013 * http://www.smh.com.au/business/mining-for-controversy-20130128-2dgul.html * Farmer Phil Laird at the Maules Creek mine near Boggabri in New South Wales. Photo: Dallas Kilponen HAVING battled an environmental activist, a volatile coal baron and soft coal markets, Whitehaven Coal is more determined than ever to build its controversial Maules Creek mine near Boggabri. If finally approved, as expected imminently, the project will double annual production for Whitehaven, the largest coalminer in the New South Wales Gunnedah Basin. The Maules Creek project, within the Leard State Forest, has been on and off the agenda for decades. Rio Tinto forerunner CRA got state approval for a combination of underground and open-cut mining in 1990, and Coal and Allied started work on a dam in 1995. The project, along with two other mines in the same forest, has been approved by the NSW Planning Assessment Commission and is waiting only for approval from federal Environment Minister Tony Burke, based partly on his assessment of the impact on threatened species and partly on advice from the new Independent Expert Scientific Committee established at the behest of the independent Tony Windsor, to consider the cumulative effects of large coal and coal seam gas projects, particularly on water. Anti-coalmine protester Jonathan Moylan. Photo: Peter Lorimer An announcement on all three coal projects - the other two being expansions of Whitehaven's...
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...Write a 3-4 page paper in which you: 1.Describe the role of business in the economy. 2.Compare and contrast the roles of for-profit and nonprofit organizations in the economy. 3.Discuss the impact of current fiscal and monetary policy on the economy. 4. Select a product or service with which you are familiar and outline a strategy for accessing global markets. 5.Select an organization with which you are familiar and discuss the impact of that organization ’s level of social responsibility on a stakeholder group of your choice. My assignment must: •Be typed, double-spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions. The specific course learning outcomes associated with this assignment are: •Distinguish between the major forms of business ownership and compare the advantages and disadvantages of each. •Define entrepreneurship and the nature and importance in the U.S. economy of small businesses. •Describe the basic accounting process and the financial statements used in business. •Explain the role of financial management, human resource management, and information management in a business. •Identify the basic components of the marketing process (product, promotion, pricing, and distribution). •Use technology and information resources to research issues in business. •Write clearly and concisely about business issues using proper writing...
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...Corporate Financial Analysis 25743 Autumn Semester 2012 Assignment 1 ON Done By: Student Name Ai Ling HONG Wendy LUONG David PARK Peichao WANG Ying ZHU Student Number 11261308 11159249 11174354 11282047 10679140 Page 1 Table of Contents: 1. Business Description 2. Whitehaven Coal Ltd’s Performance Vs ASX200 Energy Index 2.1 Profitability Ratios 2.2 Asset Utilization Ratios 2.3 Capitalisation Ratios 2.4 Market Ratios 3. Quality of Financial Data 4. Revenue & Profitability Growth Forecast 4.1 Industry Life Cycle 4.2 Sustainable Growth Rate 4.3 Macroeconomic and Technological Factors Affecting Growth Rate 5. Business Risks: Porter’s 5 Forces 5.1 Threat of New Entrants 5.2 Bargaining Power of Suppliers 5.3 Bargaining Power of Buyers 5.4 Threat of Substitutes 5.5 Rivalry Among Existing Competitors 6. Recommendation Pg 3 Pg 3 − 5 Pg 5 Pg 6 Pg 7 − 8 Pg 9 Page 2 1. Business Description ASX Ticker: WHC Current Share Price (5th April 2012) Market Capitalisation Shares Outstanding Revenue from Ordinary Activities FY11 NPAT FY11 Diluted EPS (cents) Whitehaven Coal Ltd is an Australian listed company whose main $5.67 operations involve developing and operating coalmines in NSW. $2, 814m 496m and the development of the Narrabi underground mine. Initial Currently, its focus is on coal production in the Gunnedah Basin resource assessment by WHC projected that the Gunnedah Basin is $622.19m able to support at least 1.5 million tonne per annum (Mtpa)...
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...FT SPECIAL REPORT New Trade Routes Brazil Wednesday December 3 2014 www.ft.com/reports | @ftreports Struggling with the transition The end of the commodity supercycle is bringing challenges, reports Joe Leahy Inside Mercosur fails to open doors The country’s approach to trade policy could see it left behind Page 2 E arly in October, an event took place that showed that foreign investor interest in Brazil remains resilient, even as the economy has slowed in recent years. BMW, the German carmaker, opened its factory in the southern state of Santa Catarina to begin producing its Series 3 sedan in an investment that is projected to cost R$600m ($240m) and generate 1,300 jobs. “Whether or not to export will depend on the economy and the speed with which we manage to nationalise production of our cars,” Arturo Piñeiro, president of the carmaker in Brazil, said at the opening ceremony. BMW is not the only company investing in an economy that is undergoing a deep shift in trade flows with the end of the commodity supercycle and the slowdown in China. In the 10 months to the end of October, Brazil attracted $52bn of foreign direct investment inflows, putting it on track to reach about $60bn by the end of 2014, roughly in line with previous years. “This will be another positive year,” says Alexandre Petry, executive manager of investments at Apex-Brasil, the export promotion agency of Brazil. “The principal driver for investors is our market: 200m people with a lower...
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...Foreign 99 Chapter III Direct investment by China in Latin America and the Caribbean A. Introduction Since 2008, China has become one of the world’s largest sources of direct investment. These flows first reached significant levels in Latin America in 2010, when it is estimated they surpassed US$ 15 billion. Chinese companies have in fact burst on the scene in the region so recently that several of the biggest projects were still being finalized in early 2011, or had only just been put into operation. Most investments have been made in natural resource extraction, but over the medium term this is expected to diversify into other sectors such as manufacturing and infrastructure construction. Paradoxically, there is a lack of data on this extremely important phenomenon, which poses a constant problem for policymakers and analysts studying Chinese foreign direct investment (FDI). Appraisals of the possible opportunities and challenges presented by this increased investment flow therefore tend to lack supporting empirical evidence. The aim of this chapter is to make some progress on this issue, at least as far as investment in the region is concerned. A variety of sources have been consulted, including investment announcements in the media and interviews with Chinese company managers and Latin American and Caribbean government authorities. Despite the evident limitations of this kind of material in terms of data quality and reliability, this course of action does provide...
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