Daily Roundup

OCL.ASX MFG.ASX S32.ASX COL.ASX BIO.ASX

Objective Corporation has announced that the Australian Department of Defence will not renew its Upgrade and Support Program agreement, ending a partnership that had lasted over 25 years. The deal provided document and records management support to approximately 140,000 users across all defence divisions, including deployed forces. While the non-renewal will trim Objective's Annual Recurring Revenue, the company expects its FY26 ARR balance to remain in line with FY25 on a constant currency basis. Despite the setback, Objective says it remains committed to investing in defence and national security solutions for the Five Eyes market.

In a major consolidation play, Magellan Financial Group has completed its merger with Barrenjoey Capital Partners, creating a diversified Australian financial services powerhouse. Subject to shareholder approval at the upcoming AGM, the combined entity will rebrand as Barrenjoey Group Limited, with the ASX ticker changing from MFG to BJY. David Gonski AC takes the helm as Independent Non-Executive Chairman, while Brian Benari steps in as CEO. The merger brings together Magellan's investment management and distribution business with Barrenjoey's financial markets and corporate finance operations. Full-year results for the period ending 30 June 2026 will land on 27 August.

Over in the resources sector, South32 has struck a landmark deal to offload its entire aluminium value chain to Alcoa for up to US$5.6 billion. The transaction comprises US$3.1 billion in upfront cash, US$1.0 billion in Alcoa shares, assumed debt of US$0.75 billion, and contingent payments of up to US$0.75 billion tied to commodity prices. The sale is expected to wrap up in the second half of FY27, pending regulatory and shareholder approvals. South32 plans to return approximately US$500 million to shareholders through a special dividend and will pocket roughly US$125 million in annual overhead savings post-transaction. The company is positioning itself as a focused upstream base metals supplier with transformational growth prospects. Alongside the asset sale, Matt Daley has been appointed as South32's new CEO, with outgoing chief Graham Kerr continuing as a strategic advisor.

From Alcoa's perspective, acquiring South32's bauxite, alumina, and aluminium assets represents a strategic expansion that should generate approximately US$900 million in synergies. The US$4.1 billion deal will strengthen Alcoa's standing as a leading pure-play upstream aluminium company and is anticipated to close in the first half of 2027. Alcoa plans to fund the transaction through a combination of cash and newly issued common stock, representing roughly 6% of its outstanding shares post-issuance. South32 shareholders could also pocket up to an additional US$750 million contingent on future alumina and aluminium prices.

On the retail front, the Australian Competition and Consumer Commission has blocked Coles' proposed acquisition of a supermarket and liquor site in Kalgoorlie-Boulder, Western Australia. The ACCC determined that the deal would substantially lessen competition in the region's grocery retail market by eliminating an effective independent competitor. Coles had planned to develop the site into a full-line supermarket and liquor store, but the extensive Phase 2 assessment ultimately led to the regulator's opposition.

Separately, Coles has confirmed it's in discussions with TPG regarding a potential acquisition of Greencross Pet Wellness Company. The retailer is currently undertaking due diligence and emphasises that any transaction would need to be strategically compelling and capable of delivering attractive shareholder returns. The company notes there's no certainty the deal will proceed and will keep the market updated as discussions evolve.

Meanwhile, Biome Australia has reported a stellar performance for FY26, posting record annual sales revenue of $23.9 million, up 30% from the prior year. The company injected $5.5 million in new sales revenue during the period, with the second half reaching $11.5 million, up 20% on H2 FY25. June marked a milestone moment as sell-through crossed 100,000 units for the first time. Same-store sales across all channels surged 39% for the full year, while international revenue climbed 26% to $1.8 million, with established footholds in Canada, Ireland, the UK, and New Zealand. Biome remains on track to hit its Vision 27 target of at least $75 million in cumulative sales.