Pallet maker Brambles Ltd has received an offer to merge with Toll Holdings Ltd in a friendly arrangement that would forge a $15 billion global logistics powerhouse, The Australian Financial Review reports.
The newspaper understands that Brambles chairman Graham Kraehe was approached about six weeks ago by Credit Suisse investment banking co-head Rob Stewart with a deal that involved Brambles purchasing Paul Little's Toll Holdings.
While Mr Little was aware of the move, it is further understood that he was not directly involved in the decision to approach Brambles with a deal, that was contingent on him leading the new company.
On Thursday, Toll Holdings said it expects trading conditions to remain generally flat in the short term after announcing a $270 million full year profit.
Mr Little said Toll's strong profit growth and strong balance sheet put the company in a good position for further merger and acquisition activity.
Specifically, Mr Little has long been a supporter of a Toll-Brambles tie-up.
BXB Price at posting:
$7.35 Sentiment: Hold Disclosure: Held
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