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18/03/18
22:56
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Originally posted by madamswer
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Funny how suddenly speculation starts to run rampant as to what WES will no be looking to buy once Coles is spun out.
This is the same company, for all intents and purposes, and the scope and latitude for making a major acquisition will no different after the de-merger, than it was before it.
(Actually, that's not quite right, because most of the current group debt will reside with the WES-ex Coles entity, I expect, which means that while it will still not be heavily indebted, it will have less acquisition firepower than WES currently had before this de-merger announcement. So, if anything, the capacity to acquire will be moderately less, post de-merger, than it was before it.)
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Well in that case maybe New Coles can go on a debt fuelled acquisition spree. Then they can re-acquire all that goodwill that will be lost.