The bid (which has been rejected by AXA Asia Pacific's board, at this stage) comes just a few days after a Canadian pension fund launched a $6 billion bid for toll road operator Transurban and, of course, Warren Buffett's $US44 billion acquisition of railway company Burlington National.
And the action isn't just at the top end of the market - last week we saw another chapter in the story of the consolidation of Australia's IT sector, with Dave Stevens' Brennan buying Peter Mavridis' S Central.
So what's behind the rash of deals? In the end, it all comes down to timing.
Having managed their way through the downturn, well-placed, cashed-up companies are looking to take out competitors before the economic recovery gets into full swing and asset prices take off.
There's a small window, and everybody is trying to get through it at the same time.
Entrepreneurs have three ways to take advantage of this period of deal making - as a buyer, as a seller and as a watcher.
Buyers (those who are hunting for acquisitions) need to move pretty quickly, as it appears asset prices have firmed considerably as compared to this time 12 months ago. There are still bargains out there, but good due diligence and careful negotiating are crucial.
For the sellers, this may well be the perfect time to bring forward exit plans and get a good return on your business. You'll also need to move quickly to get your company looking sale-ready - make sure the books are sorted, your policies and procedures are well documented and any skeletons are well and truly dealt with.
The watchers will be content to stay on the sidelines and see how it all pans out. But there are potential opportunities in this strategy too. Acquisitions are never easy to integrate and there's a chance that your competitor could lose focus. If so, you need to be ready to step up and take market share while they are distracted.
But if you're just pricking your ears up now, you've missed this window, and for the last few years the market has bee twisting and turning more rapidly than participants can track, let alone time their run for. Unfortunately, watching the changes in the market and accomodating your plans to the ongoing changes out there can consume an inordiante amount of time and distract you from running your business - leaving you with nothing to sell or buy, when the time comes.
The trick is to understand what you want (strategic growth 'merger,' exit, or targeted acquisition) and work with a specialist corporate advisor to prepare for it, then bide your time until the market conditions are 'right enough' to dive in and pro-actively make it happen. Initially commit only the resources you need to in order to be ready, and then jump in with both feet - to avoid the twin perils of wasting lots of your time watching, and then not looking at all your options when you really do want to move.
While this may sound self-serving since it's what we do, we operate this way because it works and it's the best way to help our clients get together the transactions they want. And with a sensible strategy for managing the process, many companies can access an inorganic growth strategy once they have achieved only a few A$M in revenue which matches or exceeds their organic growth outcomes.
It's all good.
Cheers,
Paul.Hauck@ICTStrategicServices
Principal