Spare a thought for Wesfarmers’ boss Robb Scott. To the surprise of no one, shareholders in Scott’s $776 million lithium takeover target, Kidman Resources, voted overwhelming yesterday to accept the $1.90-a-share bid Scott lobbed back on May 2.
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Investors gave Wesfarmers 2018-19 result a modest reception yesterday even though the company and some media reports tried to paint it as solid.
Read MoreMorgans expects a mixed result when the company reports on August 27. FY19 earnings (EBIT) is forecast to be down -34%, largely because of the Coles ((COL)) de-merger.
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The competition regulator has greenlit Wesfarmers’ acquisition of online retailer Catch Group for $230 million as the company attempts to improve its online performance in the face of growing competition from the likes of Amazon.
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It was a tough day for retailers associated with Wesfarmers yesterday. The company revealed up to yet another downgrade for its Kmart-Target mid-level department store chain.
Read MoreWesfarmers has lifted the value of its current spending spree to more than $1 billion with the news yesterday that it was paying $230 million for the Australian online retailer Catch Group Holdings Limited.
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Wesfarmers big lithium play seems to have been stitched up, but its ambitions for rare earths group, Lynas Corp remains up in the air.
Read MoreFirst, it tried to grab Lynas, now Wesfarmers has launched a $776 million takeover bid for the lithium miner Kidman Resources, in a deal that may have more chance of taking the owner of Bunnings and Kmart into the future of electric vehicles.
Read MoreThe Australian residential market appears to be stabilising and Macquarie believes Bunnings can continue to outperform as it expands its ranges, rolls out stores and increases the trade component.
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Another episode in the soap opera that is the immediate future of Lynas Corporation, its Malaysian rare earths processing plant and possibly the company’s independence.
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Has Wesfarmers been ’saved’ from an unfortunate and possibly expensive diversification and a waste of cash in its $1.5 billion eyeing of troubled rare earths miner, Lynas Corp?
Read MoreWesfarmers’ result was not as strong as it appeared on the headline, given various one-offs, and underlying earnings only exceeded UBS’ forecast slightly. Bunnings missed the mark and Kmart and industrials earnings declined.
Read MoreAs forecast shareholders in shrunken retail group, Wesfarmers’ are to be showered with cash after the company completed a series of restructurings that culminated with the spin-off of the Coles supermarket chain late last year.
Read MoreAfter the de-merger of Coles ((COL)) more than 50% of the company’s operating earnings (EBIT) will come from Bunnings. Macquarie’s survey indicates a slowing residential market may ultimately lead to slower sales for Bunnings and weak seasonal conditions in NSW also impinge.
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Coles and Wesfarmers separated yesterday without too much fuss on a day when the volatility could have done anything to the shares with Coles shares returning to the ASX at $12.41 after an 11-year absence.
Read MoreAs expected the Little Shop toy giveaway boosted Coles Supermarkets in the first quarter in what will be its last update owned by Wesfarmers.
Read MoreFollowing yesterday’s update from Wesfarmers, the broker declares itself incrementally negative on Coles post-demerger due to reduced cash flows.
Read MoreAnalysts are expecting Coles to reveal a solid rebound when it reports on its first-quarter sales a week today.
Read MoreWesfarmers’ disastrous hardware adventure into Britain and hefty write-downs in on the value of its still struggling Target department store chain have cost Perth-based group’s executives $17 million in lost share awards in 2017-18 financial year, according to the company’s annual report which was issued on Monday.
Read MoreWesfarmers shares hit all time highs in trading yesterday as the company reported its last financial year sales, earnings and financial details ahead of the company changing spin-off of Coles later this year.
Read MoreThe retirement of Kmart and Target boss, Guy Russo might just have been the most important story from yesterday’s releases from Wesfarmers and not the profit or the fact that Wesfarmers’ shares hit record highs in trading yesterday.
Read MoreAhead of its 2017-18 annual results, due out tomorrow, Wesfarmers has revealed plans to sell its Kmart Tyre and Auto Service (KTAS) business to Germany’s Continental for $350 million.
Read MoreThe company will sell its 40% stake in the Bengalla JV to New Hope ((NHC)) for $860m. Morgan Stanley estimates after-tax proceeds of $658m versus a valuation of $843m, meaning the transaction would be around -2% dilutive to FY20 EPS.
Read MoreIn this video insight Tim Kelley discusses Wesfarmers, with additional details being recently released on the Coles demerger capital structure and directors, the market appears to be largely positive on the transaction. Is Wesfarmers planning more acquisitions?
Read MoreNormally an update on a desired move like Wesfarmers spin off of its Coles supermarket business should have helped boost the share price yesterday.
Read MoreNo, no, no no more takeovers for Wesfarmers. The very clear message at yesterday’s investor day briefing from CEO, Rob Scott couldn’t have been any clearer.
Read MoreIn 2016, Wesfarmers (ASX:WES) raised the eyebrows of many investors when it expanded into the UK and Ireland hardware business. Two years later and $1.7 billion down on its investment, WES has decided to pull out. It shows yet again why growth through acquisition can be a risky strategy.
Read MoreWesfarmers ((WES)) has bitten the bullet, deciding to withdraw from its Bunnings experiment in the UK and Ireland. The company had witnessed some encouraging signs in recent trading as the weather improved but the opportunity, albeit material, did not justify additional capital or management’s time.
Wesfarmers has announced the sale of Bunnings UK & Ireland. The 24 Bunnings pilot stores will revert back to the Homebase brand following completion of the transaction.
Read MoreMedia articles signal Alteri Investors and Hilco have made offers for Homebase to Wesfarmers. Endless, a UK PE investor, is no longer in the running according to the speculation.
Read MoreThe company’s update provided insights into the operating conditions for Bunnings UK. Life-for-like sales growth was 3.0% and strong trade in plumbing and heating offset weakness in consumer segments, which was attributed to a "fragile UK consumer environment".
Read MoreWesfarmers shares yesterday edged up after the company delivered a mixed third quarter sales report that confirmed once and for all the adventure in the UK home handyman market through the billion dollar plus purchase of Homebase has been an absolute disaster.
Read MoreMarch quarter retail sales revealed a pick up in growth across key businesses, Macquarie observes. Sales at Coles were up 0.3% and Bunnings Australasia up 9.1%. Bunnings UK remains problematic with declining comparable sales of -15.4%.
Read MoreHere’s news that will worry some investors.
Read MoreWesfarmers shares fell 6.4% in the March quarter (and 6.7% from its peak in the quarter of $44.56) as the new management started hacking and slashing at the mistakes of the long reign of former CEO, Richard Goyder.
Read MoreMoody’s credit rating group has given investors in some of the biggest names in shopping centres a timely head up about a possible pitfall from the mooted spin off of Coles by Wesfarmers.
Read MoreRatings agency Moody’s has joined Standard & Poor’s in Wesfarmers’ short and long term credit ratings a tick, even though the $18 billion spin-off of Coles weakens the conglomerate’s credit metrics.
Read MoreWesfarmers will de-merge Coles in FY19, retaining up to 20% of the listed entity. UBS believes the de-merger is a positive for the grocery industry and Wesfarmers should become a higher-returning, higher-growth business.
Read MoreThe company’s intention to de-merge Coles is a sign it wishes to re-shape the portfolio towards higher-growth non-retail businesses, Morgan Stanley believes. This is also a sign, in the broker’s opinion, that the turnaround of Coles is finished.
Read MoreRatings agency S&P likes Wesfarmers news that it plans the spin off of 80% of its Coles supermarkets and liquor businesses to shareholders in the next year.
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