FMG 2.02% $25.70 fortescue ltd

Caruso. I don't see the Chinese allowing FMG to fall over. They...

  1. 45,802 Posts.
    Caruso.
    I don't see the Chinese allowing FMG to fall over.

    They will take the company for nothing and take on the debt, which is nothing to them, just to keep the 150-odd million tonnes in the system.

    It makes pure economic sense for them to run the FMG supply chain at a modest loss, like they are doing with their domestic IO production, to keep IO prices low.

    Whether the FIRB would allow a takeover by the Chinese, well that is another matter.

    There is an outside chance that BHP would make a bid for the entire company, because it could use the Herb Ellliot port facilities to expand and optimise their own setup.

    They could probably get the whole company for say 20% above current valuation, let's say 8 billion all up, and the ~8 billion debt would be nothing for this behemoth to absorb.

    Or, they might be playing a game of chicken and waiting to see if the company falls over, then come in like vultures and pick up the pieces.

    They wouldn't get much use out of the mines, but with a bit of capex the rail would be handy and the port facilities, stockyards, and more importantly the berth space would be very valuable to them.

    Much cheaper than the Outer Harbour option.
 
watchlist Created with Sketch. Add FMG (ASX) to my watchlist
(20min delay)
Last
$25.70
Change
0.510(2.02%)
Mkt cap ! $79.12B
Open High Low Value Volume
$25.58 $25.78 $25.39 $142.8M 5.570M

Buyers (Bids)

No. Vol. Price($)
1 1 $25.63
 

Sellers (Offers)

Price($) Vol. No.
$25.75 3050 3
View Market Depth
Last trade - 16.10pm 29/03/2024 (20 minute delay) ?
Last
$25.73
  Change
0.510 ( 2.20 %)
Open High Low Volume
$25.57 $25.78 $25.39 738887
Last updated 15.59pm 29/03/2024 ?
FMG (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.