E&P analyst Julian Mulcahy says on valuation grounds, the $95 per share bid from Kirin is unlikely to face much resistance from Blackmore shareholders.
A potential ‘wild card’ may emerge on the regulatory front, with China’s State Administration for Market Regulation needing to give the all clear for vitamins sales into China.
Australia’s No.3 vitamins player behind Blackmores and Swisse, PharmaCare, says it will be trumpeting being Australian owned. It sells brands such as Nature’s Way and Bioglan.
Equities analysts say securing Chinese regulatory approval will be the “wild card” in whether the $1.9 billion proposal to acquire Blackmores, lobbed by Japan’s Kirin Corp on Thursday, succeeds.
But the market expects there to be little else to impede the deal – which has the backing of the vitamins group’s board and largest shareholder Marcus Blackmore – with a rival bidder unlikely to emerge.
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Simon Evans writes on business specialising in retail, manufacturing, beverages, mining and M&A. He is based in Adelaide. Connect with Simon on Twitter. Email Simon at simon.evans@afr.com
