from thinking there was a less than 50% chance to the HTM acquisition being approved by the ACCC to now a big chance.
Why MTS as of yesterday made a proactive move
"Former proposed decision date of 30 June 2016 delayed to allow the ACCC to consider an undertaking submitted by Metcash and whether the undertaking is suitable to proceed to consultation. The ACCC will announce a new decision date in due course (as outlined in the Merger Review Process Guidelines, this may be a final decision or release of a Statement of Issues)."
Metcash in my opinion might have gave an undertaking to not raise prices for independents, which they where never going to do anyway but perhaps was a big sticking point for the ACCC.
Should this go ahead it will most likely be debt funded and with interest rates so low I expect hugely EPS accretive putting EPS above 20c per share.
MTS Price at posting:
$1.87 Sentiment: Hold Disclosure: Held
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