Found this dated 2015 about the overall contention regarding Wesfarmers after Coles. Always thought and am increasingly convinced that corporate action will be the future as far as CVN is concerned.
Hydrocarbons are not finished, we won't be flooded with electric vehicles any time soon, hydrocarbons are both economical and political weapons worldwide, therefore IMO CVN sits slap bang in the right place at the right time as cashed up corporations ponder their next moves.
Hopefully article will paste correctly:
Perth conglomerate Wesfarmers has made its first acquisition in oil and gas production, snaring a chunk of Quadrant Energy for $US100 million ($129 million).
Quadrant owns Apache Corporation's former Western Australian oil and gas assets, which account for about 40 per cent of the state's domestic gas supply.
Wesfarmers chief executive Richard Goyder says it is an attractive investment opportunity that exposes the conglomerate to profit and appreciation from the assets.
Photo: Louie Douvis
The cashed-up conglomerate, known more these days for its suite of retail assets including Coles and Kmart, has been looking for acquisitions to expand its operations for more than a year.
Wesfarmers will own a 13.7 per cent stake in Quadrant by acquiring a 27.4 per cent interest in a special-purpose vehicle that houses interests in the oil and gas group held by Macquarie Capital and mining heiress Angela Bennett, who is understood to have a holding similar in size to Wesfarmers' interest.
Wesfarmers managing director Richard Goyder said it was an attractive investment opportunity that exposed the conglomerate to profit and appreciation from the assets.
The asset will form part of Wesfarmers' chemicals, energy and fertilisers division, which includes energy-intensive assets such as CSBP.
But Mr Goyder said the deal did not provide its operations access to cheaper gas or supply – rather it was a stand-alone investment opportunity.
"We look at sectors where we think there is growth and different investment opportunities," Mr Goyder said.
"This is a sector we like."
But he said the deal did not signal a broader intent by Wesfarmers to expand and become an oil-and-gas operator.
As part of the deal, which was expected to be completed on Wednesday, Wesfarmers will have the right to appoint a director to the Quadrant board. Wesfarmers executive general manager business development Tim Bult will join the board.
Quadrant, the former Apache Australia business, was snapped up for $US2.1 billion by Canada's Brookfield Asset Management and Macquarie Capital and came into being under its new name only earlier in June, under a new Australian board led by Macquarie executive director Kate Vidgen.
Brookfield is retaining its 50 per cent interest.
Macquarie was known to be looking to sell down further its stake in Quadrant, after already selling a minority interest to Ms Bennett's company AMB.
Quadrant vies with the North West shelf venture as Western Australia's biggest gas supplier, and managing director Brett Darley has declared he expects to add further assets as the company refocuses on WA gas, an area management believes has been overlooked by other players as they chase LNG export business.
The acquisition marked the biggest investment by private equity in the Australian oil-and-gas sector, although other new players have been entering the sector, notably Seven Group Holdings.
Kerry Stokes-controlled Seven acquired cash-strapped junior Nexus Energy in 2014 in a controversial and prolonged takeover battle and has also built 19.9 per cent stakes in Cooper Basin energy players Beach Energy and Drillsearch Energy, amid expectations it is positioning itself to benefit from a consolidation of interests in Australia's biggest onshore petroleum province.
Seven wants energy assets to form a "third pillar" to its media and mining equipment business as it seeks to emulate success Wesfarmers has achieved using a conglomerate structure.
A Quadrant spokesman declined to comment.
The assets include gas-processing facilities and associated infrastructure at Devil Creek, Varanus Island and Macedon.
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