(7 April 2011 – Global) In a deal that had been in the works for months, United States investment bank Goldman Sachs has made a move to buy out its Australian namesake.At least 75 percent of Goldman Sachs & Partners (GM&P) shareholders would have to accept the deal.
Goldman Sachs already owns 45 percent of GS&P, after buying into Melbourne-based JBWere in 2003, it is said by buying out the company now, Goldman Sachs will be able to profit on a larger piece of Australia’s mining-driven activity.
Chairman and chief executive of Goldman Sachs, Lloyd Blankfein said the investment into Australia and New Zealand represents an important part of the company’s growth strategy.
‘This investment underscores our desire to continue to strengthen our Australasian client franchise,’ Mr Blankfein said.
GS&P did not comment on the price, and shareholders were to be briefed today, however it is understood the deal would have been between one and three times the net tangible assets.
Profit after tax at GS&P fell to A$94.9 million in 2010, compared with A$272.3m in the 13 months ended December 31, 2009, when the business changed its fiscal year, according to Bloomberg, citing an annual report received from the bank yesterday.
Simon Rothery, co-chief executive of GS&P, said the move to full ownership by Goldman Sachs was a ‘natural progression for the business”.