$12.6b gold deal; China launches missile in the Pacific; SBS wins at FIFA World Cup

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FEAR & GREED | Business News 3 speakers 8 chapters transcribed 2 months ago
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What is the main topic discussed in this episode?

Michael Thompson 0:06
Welcome to Fear and Greed, business news you can use today.

What is the significance of the $12.6 billion gold merger proposal?

Michael Thompson 0:09
The gold sector is set for a shake-up with a $12.6 billion merger under consideration. The Commonwealth Bank warns that the slumping housing sector could replace the Middle East war as the main obstacle for the local economy. And why SBS is the winner at the FIFA World Cup. Plus, Australia does a deal with Fiji as China tests a nuclear-capable long-range missile, and Meta defends its business model that allows racist and sexist commentary on its platform. It is Tuesday, the 7th of July, 2026. I'm Michael Thompson, and good morning, Sean Aylmer. Good morning, Michael. Sure, on the main story this morning, the gold sector in Australia is in for a shake-up after Genesis Minerals yesterday pitched a $12.6 billion merger proposal to Volt Minerals.
Michael Thompson 0:58
It comes after another gold company, Regus Resources, proposed a $10.7 billion tie-up with Volt Minerals. I mean, this is definitely a shakeup, right? Genesis wants to create Australia's third largest gold company and become the dominant player in Western Australia's Leonara Goldfields, which are north of Kalgoorlie. There is a lot in this.
Sean Aylmer 1:22
Yes. So a combined Genesis vault would produce between 600 and 700,000 ounces of gold annually. have about 9.4 million ounces of gold in reserves. It would be a top 50 ASX company. The new company would be 60% owned by current Genesis shareholders, 40% by Volt. The offer sent Volt's share price up 12% yesterday, while Genesis was down 4%. Now, the third player in all of this, Regus, now has five days to improve its offer, and analysts think that it will. If something eventuates, and it looks like it's all in play now, and from yesterday it seems that Volk Minerals was quite open to Genesis Minerals' proposal, the board of it was, it would be the biggest deal in the local gold mining sector. since late 2023 when Canadian-based Newmont acquired Newcrest.
Sean Aylmer 2:15
Now gold, as we found out yesterday, Michael, was Australia's second largest export earner last year, only behind iron ore, ahead of coal and LNG. That's expected to continue. So when prices are so high, that often gets things moving within a sector.
Michael Thompson 2:34
All right. Now, I think I might have misspoken before. I might have called it the Leonora Goldfields. It's the Leonora Goldfields. And I remember that because Leonora is just right out in the middle of nowhere. And there used to be an immigration detention centre. Is that right?

How is the housing market impacting the Australian economy?

Michael Thompson 2:51
Yeah, basically just in the middle of nowhere, using some of this infrastructure that a lot of the mining companies use, the airstrip, et cetera, and just there in the middle of the regional kind of rural WA. Anyway, there have been a few deals, Sean, announced this year. It hasn't been a great time for M&A activity until now, right? All of a sudden, deal frenzy, dare we say. South32 wants to sell its aluminium and alumina assets to Alcoa. There's the IFM investors' hostile bid for Atlas Arteria. Macquarie Asset Management's takeover of logistics group Cube Holdings. Then in the insurance sector, a North American group has made a $4.7 billion bid for broker Steadfast Group. So much activity now.
Sean Aylmer 3:41
Yeah, and a bunch of smaller deals like Barron Joey picking up Magellan Financial Group, EQT, the Swiss-based private equity company bidding for Perpetual. I suppose the question is why we're seeing so much more of it. I mean, it's a little bit surprising given all the geopolitical tensions, but corporate confidence appears to be picking up.

What recent agreements have Australia and Fiji signed?

Sean Aylmer 4:00
There's also a stack of private money looking for assets. So Atlas, Arteria, Cube, Steadfast, all going to the private sector, not to other listed entities. The Aussie dollar is relatively weak. That makes local assets more attractive to foreign predators. China's been a bit on the nose too. So if you want to invest in Asia, China is easily the most popular place to invest in. And it's an emerging market, obviously. But the fact if money's not going there, more likely to come to Australia. Also a push by CEOs and boards to gain scale.

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