Tax » Mergers & Acquisitions

Merger & Acquisition activity in Australia remains strong, fuelled by the energy and resources boom, foreign investment and corporate restructuring. Demergers are also increasingly common, particularly where a company decides to focus on a core business to maximise shareholder value.

When it comes to a strategically important deal, being a technical expert is not enough. Clients need to understand the revenue authorities’ perspective and how to respond tactically to get the deal over the finish line – this is how Corrs can make a difference.

Our Experts

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Gary Chiert

Partner Location Sydney Profile
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Heran Kim

Special Counsel Location Sydney Profile
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Rhys Jewell

Partner Location Melbourne Profile

Our Experience

Foster's Group

When Foster’s Group embarked on the demerger of its beer and wine businesses, the process was complicated by some unexpected challenges. Corrs has developed innovative solutions to address tax issues associated with the treatment of partly paid shares, a complex holding company structure and uncertainty caused by changes to the dividend provisions of the Corporations Act. This required working closely with the ATO. Corrs advised on all tax aspects of the demerger, including obtaining the tax ruling and providing the tax opinion for the scheme booklet.

Shell

When Shell sold a 10% stake in Woodside in a block trade to institutional investors through UBS, they turned to Corrs to act as tax counsel. The A$3.3 billion sale price made it the largest block trade conducted in Australia to date. Complex cross-border capital gains tax and financing issues were analysed in the lead up to this transaction which was then executed rapidly due to its market sensitivity. Corrs worked closely with Shell and UBS to deliver the outcome. Corrs has been a major provider of tax advice to Shell over the last four years.

Southern Cross

Southern Cross Media’s acquisition of the Austereo Group enables it to dramatically expand its reach in the metropolitan radio markets. Tax issues addressed as part of this transaction included the availability of the scrip for scrip capital gains tax relief.

Our Thinking

Thinking about a break up? Five lessons to make your demerger a success

What does it take to make a demerger successful? Our five key lessons will help you navigate the path to a successful break up.

More

Australia's Tax Treaty Negotiation Program needs an Asian pivot

Refocusing Australia’s bilateral tax treaty network towards Asia should be a priority for the Abbott government.

More

Federal Budget 2014-15: The Government delivers on austerity but not genuine tax reform

Federal Treasurer, the Hon. Joe Hockey MP, has delivered his keenly anticipated first budget. So what are the most significant measures that will impact the business bottom line?

More

What does real tax reform look like?

Australia faces tough decisions it can’t keep putting off.

More

Infrastructure early stage tax losses - Welcome reform but issues remain

The draft legislation on tax loss incentives for infrastructure projects is welcome, but gaps remain.

More

Federal Budget 2013-14: A tough one for business, especially multinational business

What are the most significant tax measures that will impact the business bottom line?

More

Australia turns up the heat on large and multinational taxpayers

The government’s announcement that it wants greater transparency around the tax activities of large businesses and multinationals reveals a suspicion that it’s missing out on tax revenue it ought to be getting.

More

Transfer pricing and Part IVA: Taxpayers are winning the battles but losing the war

The Commissioner of Taxation has successfully lobbied for reforms to the transfer pricing regime and Part IVA. Can taxpayers fight back?

More

The good, the bad and the ugly: Reflecting on transfer pricing developments in 2012

Australia’s transfer pricing landscape has been transformed. While some changes are positive, other aspects are positively alarming.

More

A refocused tax treaty network is key to achieving the Asian Century vision

Australia must urgently refocus its tax treaty network towards Asia if it is to compete with Hong Kong and Singapore as a regional investment hub.

More

Are the retrospective transfer pricing measures unconstitutional?

The Government’s willingness to introduce tax laws with retrospective effect creates fertile ground for a constitutional challenge.

More

A lower company tax rate. At what cost?

The Government wants to cut the corporate tax rate. But tough decisions must be made and not everyone will win.

More

Federal Budget 2012-13: The major business tax measures

Business won’t be thrilled with the 2012-13 Budget, but should be relieved that other changes floated in the lead up ended up on the cutting room floor.

More

Beware stamp duty on your M&A deal

The stamp duty base across Australia has expanded significantly for M&A transactions and acquirers will bear the cost.

More

Our Experience

Foster's Group

When Foster’s Group embarked on the demerger of its beer and wine businesses, the process was complicated by some unexpected challenges. Corrs has developed innovative solutions to address tax issues associated with the treatment of partly paid shares, a complex holding company structure and uncertainty caused by changes to the dividend provisions of the Corporations Act. This required working closely with the ATO. Corrs advised on all tax aspects of the demerger, including obtaining the tax ruling and providing the tax opinion for the scheme booklet.

Shell

When Shell sold a 10% stake in Woodside in a block trade to institutional investors through UBS, they turned to Corrs to act as tax counsel. The A$3.3 billion sale price made it the largest block trade conducted in Australia to date. Complex cross-border capital gains tax and financing issues were analysed in the lead up to this transaction which was then executed rapidly due to its market sensitivity. Corrs worked closely with Shell and UBS to deliver the outcome. Corrs has been a major provider of tax advice to Shell over the last four years.

Southern Cross

Southern Cross Media’s acquisition of the Austereo Group enables it to dramatically expand its reach in the metropolitan radio markets. Tax issues addressed as part of this transaction included the availability of the scrip for scrip capital gains tax relief.

Our Thinking

A refocused tax treaty network is key to achieving the Asian Century vision

Australia must urgently refocus its tax treaty network towards Asia if it is to compete with Hong Kong and Singapore as a regional investment hub.

Beware stamp duty on your M&A deal

The stamp duty base across Australia has expanded significantly for M&A transactions and acquirers will bear the cost.

Federal Budget 2012-13: The major business tax measures

Business won’t be thrilled with the 2012-13 Budget, but should be relieved that other changes floated in the lead up ended up on the cutting room floor.

A lower company tax rate. At what cost?

The Government wants to cut the corporate tax rate. But tough decisions must be made and not everyone will win.

Are the retrospective transfer pricing measures unconstitutional?

The Government’s willingness to introduce tax laws with retrospective effect creates fertile ground for a constitutional challenge.

The good, the bad and the ugly: Reflecting on transfer pricing developments in 2012

Australia’s transfer pricing landscape has been transformed. While some changes are positive, other aspects are positively alarming.

Transfer pricing and Part IVA: Taxpayers are winning the battles but losing the war

The Commissioner of Taxation has successfully lobbied for reforms to the transfer pricing regime and Part IVA. Can taxpayers fight back?

Australia turns up the heat on large and multinational taxpayers

The government’s announcement that it wants greater transparency around the tax activities of large businesses and multinationals reveals a suspicion that it’s missing out on tax revenue it ought to be getting.

Federal Budget 2013-14: A tough one for business, especially multinational business

What are the most significant tax measures that will impact the business bottom line?

Infrastructure early stage tax losses - Welcome reform but issues remain

The draft legislation on tax loss incentives for infrastructure projects is welcome, but gaps remain.

What does real tax reform look like?

Australia faces tough decisions it can’t keep putting off.

Federal Budget 2014-15: The Government delivers on austerity but not genuine tax reform

Federal Treasurer, the Hon. Joe Hockey MP, has delivered his keenly anticipated first budget. So what are the most significant measures that will impact the business bottom line?

Australia's Tax Treaty Negotiation Program needs an Asian pivot

Refocusing Australia’s bilateral tax treaty network towards Asia should be a priority for the Abbott government.

Thinking about a break up? Five lessons to make your demerger a success

What does it take to make a demerger successful? Our five key lessons will help you navigate the path to a successful break up.

Our Experts

CHIERTGary.jpg

Gary Chiert

Partner Sydney +61 2 9210 6155
KIMHeranwebsitegreySIZEDTH.jpg

Heran Kim

Special Counsel Sydney +61 2 9210 6200
Rhys Jewell.jpg

Rhys Jewell

Partner Melbourne +61 3 9672 3455