The Brambles Limited (ASX: BXB) share price is in focus after the company confirmed it’s in talks that could lead to a takeover bid.
The S&P/ASX 200 Index (ASX: XJO) pallets and containers manufacturer was recently rumoured to be gearing up to receive an acquisition offer valued at more than $20 billion.
For context, Brambles has a market capitalisation of around $15 billion.
The Brambles share price is $10.43 as of Friday’s close.
Here are all the details on the multi-billion dollar takeover talks.
Brambles confirms takeover talks
The Brambles share price could be in for a big day on the ASX after the company responded to rumours claiming it’s on the radar of private equity juggernaut CVC Partners.
The ASX 200 company confirmed it’s been approached by the firm over a potential takeover bid this morning. The ASX 200 pallet maker hasn’t received any proposal yet.
Brambles also noted there’s still no guarantee an offer will be tabled.
Discussions between the pair are focused on securing a bid that would convince Brambles to allow CVC due diligence, the Australian Financial Review reports.
That could reportedly result in an offer valuing Brambles at more than $20 billion, including debt.
Brambles said it’s still working towards its ‘Shaping our Future’ plan, as well as other strategies to bolster shareholder value amid the takeover talks.
Its latest quarterly results saw the company reporting a 7% increase in sales revenues – coming in at around US$4 billion.
It also upped its financial year 2022 guidance. Brambles is expecting to report sales growth of between 8% and 9% for the 12 months ended 30 June 2022.
Brambles share price snapshot
The Brambles share price is outperforming the ASX 200 in 2022.
The company’s shares have slipped nearly 2% year to date while the index has tumbled close to 7%.
Over the last 12 months, Brambles’ stock has slumped around 2.6% while the ASX 200 has traded relatively flat.
The post Brambles share price on watch as takeover talks confirmed appeared first on The Motley Fool Australia.
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More reading
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- Here’s why the Brambles share price is soaring 7% today
Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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