Financial Market

Market volatility kills $20 billion Brambles bid

Financial market volatility was blamed for private equity giant CVC walking away from a potential $20 billion bid for Brambles just 24 hours after the pallet supplier confirmed the two parties were in early-stage talks.

“Brambles informs the market that CVC has today advised that it will not be putting forward a proposal nor seeking to conduct detailed due diligence at this time due to the current external market volatility.

“The engagement has therefore concluded earlier today,” the company told the ASX this morning.

Brambles says early-stage takeover talks with CVC ended this morning.

Brambles says early-stage takeover talks with CVC ended this morning.Credit:Bloomberg

Brambles shares dropped as much as 7.4 per cent to a low of $10.74 after the announcement, with investors saying a bid would’ve had to have been around the $14 mark to warrant giving CVC access to due diligence to firm up its offer.

Sources close to the deal, who are not authorised to talk about the negotiations, insist it was not the public outing of the detail that sent CVC packing so quickly.

According to sources, the two parties have been in talks for six weeks and have become engulfed by the recent market volatility triggered by rising inflation – which has sent interest rates higher around the globe – and sent sharemarkets spiralling lower.

More to come

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