Food and grocery wholesaler Metcash Ltd (ASX:MTS) has signed a A$2.5 billion deal to supply 45 former Coles supermarkets recently sold to independent retail chain FoodWorks. The 10-year supply contract includes fresh food and groceries, as well as liquor to be sold by eight attached bottle shops. Metcash has reaffirmed its guidance and said first quarter sales remained strong.
Sydney, Sep 4, 2009 AEST (ABN Newswire) - Wall Street overnight ended the losing streak and edged higher after the better-than-expected retail sales data. The good sales data in August to some extent eased the concerns over the key US employment gauge which is scheduled to release on Friday.
The Australian share market closed flat as financial and energy sectors declined while gold stocks strengthened. The benchmark S&P/ASX200 index lost 8.6 points, or 0.19 per cent, at 4429.6, while the broader All Ordinaries dropped 3.7 points, or 0.08 per cent, to 4432.9.
Key Economic Facts and Figures
Australian Treasurer Wayne Swan has warned premature withdrawal of economic stimulus could derail a global recovery in G20 finance ministers' meeting in London. Mr Swan said Australia's economic stimulus program was originally designed to be withdrawn gradually from the December quarter this year, through 2010.
Australia recorded a seasonally adjusted international trade deficit of A$1.556 billion in July, from a revised A$538 million deficit in June, according to the Australian Bureau of Statistics. The outcome was worse than the average market forecast of a July deficit around A$880 million.
M&A News
RMA Energy Ltd (ASX:RMT) said that the CREC Resources, a subsidiary of Chinese conglomerate China Railway Resources Group, has formally lodge a proportional takeover bid. RMA advised shareholders to take no action in relation to the CREC offer on receipt of the bidder's statement. CREC Resources has made a A$14.8 million bid for 80per cent of RMA Energy.
Important Corporate News
Corporate Express Australia's (ASX:CXP) first-half profit declined 8.8 per cent to A$25.47 million for the six months to July 31 compared with A$27.94 million in the prior corresponding period. The company said earnings before interest and tax for the full year ending January 2010 would be at the lower end of analysts' range of A$90.9 million to A$100.5 million.
Food and grocery wholesaler Metcash Ltd (ASX:MTS) has signed a A$2.5 billion deal to supply 45 former Coles supermarkets recently sold to independent retail chain FoodWorks. The 10-year supply contract includes fresh food and groceries, as well as liquor to be sold by eight attached bottle shops. Metcash has reaffirmed its guidance and said first quarter sales remained strong.
Transport infrastructure group Asciano (ASX:AIO) said it would appoint three new non-executive directors to its board. The new directors Malcolm Broomhead, Bob Edgar and Geoff Kleemann will be formally appointed at the company's next board meeting to be held on September 22.
Sandalwood grower and processor TFS Corp (ASX:TFC) said it has successfully completed an institutional placement of 28 million shares at A$1.00 per share. TFS will use the fund to pay down debt and boost its balance sheet as it looks to build business in the lucrative Indian and Middle Eastern markets in 2009-10.
Babcock & Brown Infrastructure (ASX:BBI) has signed an interim agreement with a potential cornerstone investor to continue to negotiate in good faith in recognition of the time and cost commitment required of the potential investor.
Business software provider Technology One Ltd (ASX:TNE) revised its guidance from a growth to a fall after an almost finalised contract was delayed. It expects net profit for the 12 months to September 30 will decline between six and 12 per cent from the previous guidance of 10 to 15 per cent profit growth in fiscal 2009.
Contact
Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net
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