Super Retail Group buys Rebel Sport chain for $610 million: Midday Roundup

Super Retail Group has snapped up market-leading sports goods retailer Rebel Group from Archer Capital for $610 million, and has announced a $344 million raising to help fund the deal.

Super Retail Group is the owner of Super Cheap Auto, BCF and Goldcross Cycles chains.

The listed company says this acquisition is “highly complementary” and is expected to deliver mid-single digit earnings per share accretion in the 2012 financial year.

The acquisition comprises 90 Rebel Sport stores, 36 A-Mart Allsports stores, and two Performance Sports stores. Rebel generated $603 million of revenue is the 2011 financial year.

Shares rise 1.5% on new hope for Europe

The Australian sharemarket has risen over 1.5% higher this morning after a rally from the United States late last week over continued hopes that Europe will be able to solve its debt issues.

The benchmark S&P/ASX200 index was up 1.6% or 65 points to 4270.9 at 12.00 AEST, while the Australian dollar remained above parity at $US1.03.

AMP shares rose 2.15% to $4.27, while Commonwealth Bank shares rose 1.54% to $48.23. Westpac shares rose 1.67% to $21.97, while NAB rose 1.94% to $24.75.

Prime Minister warns Qantas, unions to negotiate

Prime Minister Julia Gillard has told the ABC this morning that while the Government cannot yet intervene in an industrial dispute that has caused hundreds of flight cancellations, she has urged both parties to return to the negotiating table.

The comments come as Qantas cancelled 16 flights today, warning 400 will be gone over the next month due to industrial action from engineers. It also says it has been forced to ground three plans.

Engineers, ground staff and pilots are all threatening strikes, calling for better pay and working conditions.

“We are still at the stage in this dispute where both parties say they want to negotiate a conclusion to it,” she told the ABC. “So my message has been loud and clear: they should get round a table and get it done.”

Business lending lifts in August

Meanwhile, business lending figures have outperformed expectations for August.

According to the Australian Bureau of Statistics, commercial finance commitments rose by 7.9% to $32.948 billion, while personal finance increased 2.2% to $7.145 billion.

Revolving personal credit commitments lifted 2.9%, and fixed lending commitments rose by 1.6%.

Car sales fall in September: ABS

Sales of new motor vehicles in Australia dropped 1.5% in September, the Australian Bureau of Statistics says, with 86,872 new cars sold.

The figure is worse than expected, with analysts tipping a 0.6% fall.

Sales are still 1.3% higher than the previous corresponding period in 2010.