Australia's mergers and acquisitions reshaped industries in 2024, with bold moves in technology, pharmaceuticals, finance, construction, and electronics. These transactions showcase innovation, sustainability, and economic growth, setting the stage for a dynamic future.
In this article, we will explore five industries in Australia that saw significant M&As in 2024. By analysing these M&A trends, we aim to provide a comprehensive understanding of the evolving landscape of the Australian economy and how these changes could shape the future of various sectors.
The Year’s Biggest Deal: AirTrunk
In September, Blackstone announced its agreement to acquire AirTrunk, the leading Asia Pacific data centre platform, for an implied enterprise value of AUD $24 billion. This deal will be the biggest merger/acquisition of 2024, and Blackstone's largest investment in the Asia Pacific region.
Five Industry Trends for 2024
1.) Tech
In July 2024, Australian design powerhouse Canva announced its acquisition of Leonardo AI , a leader in generative AI technology. The deal, reportedly worth several hundred million dollars, aims to transform Canva's robust platform into a hub for AI-driven creativity. Leonardo.ai is Canva's eighth acquisition and its second this year, three months after the purchase of U.K. design company Affinity for an estimated $380 million.
Canva co-founder and chief product officer Cameron Adams said, “Leonardo will continue to run independently of Canva with a focus on rapid innovation, research and development, now backed by Canva’s resources.”
Canva's acquisition of Leonardo enables the incorporation of advanced AI tools into its platform, allowing users to create complex and personalised visuals. By integrating Leonardo's capabilities, Canva has strengthened its position as a leader in the creative SaaS market, competing with major players like Adobe.
This change emphasises the growing integration of generative AI and design, enabling businesses and individuals with no design experience to explore creative possibilities while streamlining their workflows.
2.) Construction
In July 2024, Saint-Gobain finalised its acquisition of CSR Limited , a major Australian building materials company, in a strategic move to strengthen its presence in the Asia-Pacific region. CSR, with a revenue of AUD 1.9 billion and an 18% EBITDA margin in its last fiscal year, is a leading player in building materials in Australia, known for its strong portfolio of iconic brands in the building materials sector.
“We are delighted with the timely completion of this major transaction in Australia’s attractive high-growth construction market, which is underpinned by solid macroeconomic fundamentals,” said Benoit Bazin, Chairman and Chief Executive Officer of Saint-Gobain. “We see a tremendous opportunity to build on CSR’s strengths to further accelerate its growth in the region.”
This acquisition allows Saint-Gobain to take advantage of the strong growth potential in Australia’s construction market.
3.) Finance
In October 2024, Experian completed its acquisition of Illion , a prominent consumer and commercial credit bureau in Australia and New Zealand, for AUD $820 million. This deal will strengthen Experian's presence in the Asia-Pacific region and enhance its ability to provide data-driven solutions to customers.
Andrew Black, the CEO of Experian Australia and New Zealand, commented: “One of the big wins here is the combined data assets which will provide more choice for our customers. This is going to supercharge our product and service capabilities, in alignment with Experian’s global strategy, in a way that simply hasn’t been possible before.”
This deal highlights the increasing value placed on data across all markets, and its role in driving new business and customer insight.
4.) Pharmaceuticals
In what will possibly be Australia's biggest upcoming deal, two titans of Australia's pharmacy industry, Chemist Warehouse and Sigma Healthcare , have received the green light from the Australian Competition and Consumer Commission (ACCC) to join forces under an AUD $8.8 billion deal .
Sigma owns the retail pharmacy brands of Amcal, Guardian, PharmaSave and Discount Drug Stores, and has over 1,200 aligned pharmacies , including around 400 branded pharmacies across Australia. With the 600 existing Chemist Warehouse outlets, the merger will make the new entity the largest pharmacy group in Australia.
"We believe that the combined group will continue to drive competition within the industry," said Chemist Warehouse CEO Mario Verrocchi. "By bringing together Sigma's advanced distribution and logistics capabilities with Chemist Warehouse's strengths in retail and marketing, we are creating an opportunity that will benefit both companies' shareholders and customers".
5.) Electronics
Renesas Electronics Corporation , a supplier of advanced semiconductor solutions, completed its acquisition of Australian electronics design software leader Altium Limited in August 2024. The deal, valued at approximately AUD $9.1 billion , was finalised through a Scheme of Arrangement under Australian law, with Renesas paying AUD $68.50 per share.
"This is a historical milestone for both Renesas and Altium as we take another important step forward in bringing enhanced user experience for electronics system designers,” said Hidetoshi Shibata, CEO of Renesas.
The merger leverages Altium’s expertise in PCB design software and cloud-based solutions alongside Renesas’s semiconductor capabilities, enabling an integrated platform for electronics system design. It will make electronics design more accessible across industries and company sizes.
How M&A is Shaping the Australian Economy
The recent mergers and acquisitions in Australia indicate not just vigorous economic activity but also demonstrate Australia's dedication to nurturing innovation, ensuring strategic alignment among businesses, and striving for sustainable growth.
The collaborative potential of these mergers and acquisitions will drive significant advancements, reinforcing Australia’s status as a dynamic hub for global business innovation. As these M&A activities unfold, they are likely to influence industry trends and consumer behaviour.
The merging entities will have the opportunity to leverage each other’s strengths, pool their talent, and share technological advancements. All of which can lead to the development of groundbreaking products and services, shaping the economic landscape and driving growth within various industries in Australia.
