Retail sales remain flat in November: Midday Roundup

Retail sales have remained flat in November, according to the latest figures from the Australian Bureau of Statistics.

On a trend basis, sales rose by 0.3%, but on a seasonally adjusted basis they were flat, following a rise of 0.2% in October and a rise of 0.3% in September.

Food retailing rose 0.4%, household goods were up 0.6%, cafes, restaurants and takeaway were up 0.6% and “other” was up 0.2%, while department stores fell 0.2%, clothing, footwear and accessories fell 0.1% in trend terms, according to the figures.

Spending in New South Wales rose by 0.5%, Western Australia was up 0.8% and the Northern Territory was up 0.6%, the figures show.

Spotless requests a higher bed from PEP

Industrial services company Spotless has requested Pacific Equity Partners make a higher bid.

Spotless wants PEP to increase its offer to $743 million, from the $711 million offered in early December.

Spotless said it had told PEP it would recommend shareholders vote in favour of an offer of $2.80 per share.

The price considers the “significant investment that Spotless has made for the medium- and long-term benefit of the business, and ensuring that all shareholders are adequately compensated for this investment”, the company said in a statement.

“This is the lowest price at which the Spotless board would be willing to unanimously recommend a scheme of arrangement.”

Shares flat after weak retail figures

The Australian sharemarket has remained flat this morning after weaker-than-expected retail figures were released by the ABS.

The benchmark S&P/ASX200 index was down 11 points or 0.3% to 4096.8 at 12.00 AEST, while the Australian dollar was also slightly down to $US1.01c.

AMP shares lost 1.2% to $4.13, while Commonwealth Bank shares rose 0.12% to $49.57. Westpac fell 0.25% to $19.97 as NAB rose 0.17% to $23.44.

Rio Tinto to acquire remaining shares in Hathor

Rio Tinto will buy the remaining shares in Canadian uranium group Hathor Exploration after increasing its stake in the company to 94%, as per Canadian law.

Rio Tinto is offering $4.48 per share to take over the company.

The mine is located in western Canada, and supplies about 20% of the world’s uranium reserves.

ACCC criticised on lost Metcash case

Two former politicians have criticised the competition regulator for its unsuccessful attempt to block a takeover by grocery wholesaler Metcash of an ailing supermarket chain.

The Federal Court rejected the Australian Competition and Consumer Commissioner’s bid to block Metcash’s takeover of 80 Franklins stores.
National senator Ron Boswell and former Keating Government minister Christ Schacht have told The Australian the laws were designed to allow companies to grow so they can compete effectively.

The ACCC argued that the takeover would restrict competition in wholesale markets, but advocates say a strengthened Metcash will provide competition to supermarket giants Woolworths and Coles.

Suncorp notes cost of disasters

Suncorp has warned that it expects natural hazard costs for the six months to December 31 to be between $360 and $420 million, due to storms and the earthquake in New Zealand.

“Suncorp’s reinsurance arrangements provide protection should the cost of (the Melbourne hailstorm) exceed $250 million,” the bank said in a statement.

“In challenging market conditions, we are pleased to have concluded a program which provides us with increased coverage,” IAG chief executive Mike Wilkins said.