Soul Patts, Brickworks Announce $14B Merger Deal

Washington H. Soul Pattinson (Soul Patts) and Brickworks are merging to form a new ASX-listed entity valued at approximately A$14 billion (US$9 billion), ending a 56-year cross-shareholding arrangement initially created to stabilize dividends and fend off hostile takeovers. Soul Patts shareholders will own 72% of the merged entity, Brickworks shareholders 19%, and the remainder will be available to new investors, with Brickworks shareholders set to receive an implied 10.1% premium on their shares. The merger, which follows several previous failed attempts to unwind the cross-ownership, aims to simplify the corporate structure and improve shareholder value and transparency. Company leaders have praised the deal for its strategic and financial merits, noting that the new entity will have substantial holdings in real estate, private equity, and credit assets. The deal has already secured A$550 million in share commitments, fully underwritten by Aitken Mount Capital. The merged company will be named Washington H. Soul Pattinson and Company.