Jim H.
Taking advantage of the bad economic climate faced by many Australian businesses, overseas monopolies are moving in to grab what they can.
Private equity (take-over of shares) has suddenly jumped. Currently on the table are deals worth over $1.5 billion.
This is set to grow substantially in the near future.
For example, clothing and homeware wholesaler Pacific Brands soared almost 15% after US-based private equity giant Kohlberg Kravis Roberts moved in with an unsolicited $600 million takeover bid.
Pacific Brands, which owns Bonds, King Gee and Sheridan brands, suffered a $132 million loss in 2011. It has lost about half of its share value over the last 12 months. Kohlberg Kravis Roberts, if successful, will pick up ownership at a bargain basement price.
According to some analysts, David Jones and Qantas are particularly vulnerable to takeover. Last month, Anglo-South African brewer SABMiller moved on Fosters. Arnott’s, Speedo and the Nine Network have also fallen into foreign hands.
These are just a few examples.
Sometimes the takeovers involve companies that are already wholly or partly foreign owned. Whichever the case is, the trend shows that the ownership of the Australian economy is falling into fewer hands. And an increasing proportion of these hands are in Washington primarily and London secondly.
Investigation of the ownership structure of the Australian economy to date has revealed that many of the biggest companies operating in Australia have a decisive portion of their shares already owned by a small group.
The change that is occurring is that this small group is becoming smaller, and those who are left are consolidating their position over the whole Australian economy. Through this Australia is becoming more dependent on foreign investment. A higher portion of the profi ts are heading overseas. The Australian people have less control over Australia’s future development.
From the viewpoint of most people, this is an unsatisfactory situation.
It is imperative that the demand for Australian control over Australia is raised at every opportunity. Certainly, it is important to work together with those who seek to encourage Australians to buy Australian-made products.
But within this, there can and must be a discussion around how to best unite different forces around the struggle for national independence.
There must also be discussion around the nature of an economic and political system that will both uphold Australia’s independence and serve the interests of the majority.
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