In a historic move to untangle one of Australia’s most enduring corporate entanglements, Washington H. Soul Pattinson and Co. Ltd. and Brickworks Ltd. unveiled plans Monday to merge into a single AU$14 billion ($9.1 billion) powerhouse, bringing an end to a complex cross-shareholding structure dating back to 1969.
The all-Australian union, poised to become one of the top 40 firms on the ASX, aims to streamline governance, unlock trapped capital, and position the new entity for agile acquisitions and broader investor appeal. In a corporate world often compared to a game of chess, this long-awaited consolidation clears the board for bolder, faster moves.
Cross-Shareholding No More: Simplifying the Spaghetti
Under the proposed terms, the two companies’ interlocked holdings—totaling 148 million cross-held shares—will vanish, replaced by a new, ASX-listed entity retaining the Soul Patts name. Soul Patts shareholders will receive one-for-one shares, while Brickworks investors will get 0.82 shares per Brickworks share, reflecting a 10.1% premium over its most recent price.
That premium may have sparked Monday’s 27% surge in Brickworks stock, which closed at AU$35.10, while Soul Patts rose 16% to AU$43, signaling strong investor enthusiasm for the merger’s potential.
