Macquarie takes full control of US terminals business
Australian group buys rest of firm it does not already own as it eyes commodities expansion
Macquarie agreed to take full control of a US bulk liquid terminals operation as Australia's largest investment bank expands its commodities and North American businesses.
Macquarie Infrastructure, which owns storage terminals for oil products and chemicals in the US, agreed to buy the 50 per cent of International-Matex Tank Terminals it does not already own for US$1.03 billion in cash and stock, it said in a statement.
The acquisition is the latest transaction in the terminals business for Macquarie. The bank agreed in August to buy 45 per cent of Singapore's Helios Terminal from Oiltanking for an undisclosed sum. It also bought ANZ Terminals for A$525 million (HK$3.8 billion), the Australian Financial Review reported.
"There has been an emphasis on the commodities business as Macquarie sees it as a stable business in the long run," said David Ellis, a Sydney-based analyst at Morningstar. "It plays into their strategy to boost steady revenue streams to offset the cyclical nature of their advisory and equity trading businesses."
The accord comes after years of disagreement and arbitration between Macquarie and other investors, including members of the Coleman family, according to US regulatory filings. Macquarie Infrastructure bought its initial 50 per cent stake in the company in May 2006.
Commodities trading contributed A$1.13 billion to Macquarie's operating income in the year ended March 31, boosting its fixed income, currencies and commodities business revenue by 29 per cent, it said in a filing. The business was the second- largest revenue earner behind the funds management unit. Income from its business in the Americas, largely in the US, overtook its home market of Australia for the first time and contributed 35 per cent of total income, according to the filings.