July 27, 2025 • 6 mins
Bapcor, the company behind Autobarn, Burson and Midas, has issued a major profit warning, three directors have quit, and its share price has nosedive.
Paramount has finally merged with Skydance in an $8 billion USD deal after close to 2 years of negotiations.
LVMH has seen its share price fall more than 8% after investors get major tariff anxiety.
_
Learn more about iShares by BlackRock here
Download the free app (App Store): http://bit.ly/FluxAppStore
Download the free app (Google Play): http://bit.ly/FluxappGooglePlay
Daily newsletter: https://bit.ly/fluxnewsletter
Flux on Instagram: http://bit.ly/fluxinsta
Flux on TikTok: https://www.tiktok.com/@flux.finance
—-
The content in this podcast reflects the views and opinions of the hosts, and is intended for personal and not commercial use. We do not represent or endorse the accuracy or reliability of any opinion, statement or other information provided or distributed in these episodes.
__
Issued by BlackRock Investment Management (Australia) Limited ABN 13 006 165 975, AFSL 230 523. Refer to FSG available on our website. Before making any investment decisions, you should assess whether the product or service is appropriate for you and read the PDS and TMD available at blackrock.com.au.
See omnystudio.com/listener for privacy information.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:05):
This is what the Flux. I'm Brett and I'm Justin
and it's Monday, the twenty.
Speaker 2 (00:09):
Eighth of July. Does it wait? We spoke last week
about the battle between Employment Hero and its investor Slash
Friends Slash now Fox Seek. The Federal court has decided
that Seek cannot block Employment Hero from its APIs at
least until further court orders are issued, which could take
months or even years.
Speaker 1 (00:25):
Buys Employment Hero even more time, b Man, it does flexa.
As we come to the end of the month, it
is the perfect time to be checking your credit score.
Speaker 2 (00:31):
Did it go up this month?
Speaker 1 (00:32):
Did it go down?
Speaker 2 (00:33):
Because it can be updated every single month.
Speaker 1 (00:35):
So if you want to know how your credit card behavior,
how your loans, how your utilities might be impacting your
credit score, make sure you download the Flux app and
check it out.
Speaker 2 (00:43):
Three gigantic stories today, jus boy, let's do it for
our first. BAPCOORPS, the company behind autobarn Person and Miters,
has issued a major profit warning and three directors have
quit and its share price has nose dived.
Speaker 1 (00:55):
It must have been a very busy day at babcoor
hqb Man, So tell me more.
Speaker 2 (00:59):
All right? So Bapcoorp is a major Australian auto parts
retailer that's been around since nineteen seventy one and operates
over eleven hundred stores.
Speaker 1 (01:07):
We'd been talking at Autobarn and Berson and minors stores as well.
But Ben Man, you may remember back in March this year,
Bunnings announced plans to aggressively expand into auto parts. I
do three hundred new products across the three hundred stores.
Speaker 2 (01:19):
Huh. And at the time Bapcourt didn't seem to phase
by Bunning stepping on their toes. But now babcour has
warned of multiple hits all at once. Yep.
Speaker 1 (01:27):
The retail sales have dropped three and a half percent
due to competitor activity ahem Bunnings. Yep number two. They
suffered major contract disputes up to forty five million bucks
and also suffered losses on some businesses that they sold
over Man And if this wasn't bad enough, three of
the Bapcourt directors that dropped the mic and just walked
out the door.
Speaker 2 (01:45):
Next minute, that COR's share price dropped thirty percent, reducing
their market cap to just over one point two billion dollars.
Speaker 1 (01:51):
And be Man, that one point eighty three billion dollar
acquisition offer they received last year is looking quite good
right now?
Speaker 2 (01:57):
Oh it is too, So what is the key learning here?
Speaker 1 (01:59):
Rejected takeover bid can come to haunt aboard, especially when
things take a turn for the worst.
Speaker 2 (02:04):
Last year, Bapcoor's board knocked back at one point eight
three billion dollar bid from Bain Capital be Man.
Speaker 1 (02:10):
They rejected the offer, arguing it undervalued the company.
Speaker 2 (02:13):
Fast forward and the share price has tanked nearly thirty percent.
Speaker 1 (02:16):
Not only that, be Man, but the business is under
enormous pressure from Buddings.
Speaker 2 (02:20):
So juzzy boy. It's a reminder that when you reject
a takeover offer, you need to prove that you can
deliver more value independently.
Speaker 1 (02:26):
And be Man is that the only company to reject
a takeover offer and suffer the consequences?
Speaker 2 (02:30):
Well, I remember when Premier Investments tried to acquire Maya
back in twenty seventeen.
Speaker 1 (02:35):
Yep Meyer rejected it and tried to execute on its
turnaround strategy alone and failed.
Speaker 2 (02:40):
Now not only do Premier Investments have board seats at Maya,
they just sold their apparel brand's portfolio to Maya for
nine hundred million bucks. So be man.
Speaker 1 (02:47):
Sometimes an acquisition. Bird in the hand is worth two
in the bush.
Speaker 2 (02:51):
For our second story, Paramount has finally merged with sky
Dance in an eight billion US dollar deal after almost
two years of negotiation.
Speaker 1 (02:59):
So what I feel like this deal could be turned
into a movie itself?
Speaker 2 (03:02):
Be man? What is going on here all right, juziboy?
Some background. Paramount Global is the media and entertainment behamoth
that owns a heap of global entertainment brands.
Speaker 1 (03:11):
We'd be talking Paramount plus, streaming service, CBS, MTV, Nickelodeon,
Showtime and Pman even Network ten here in Australia.
Speaker 2 (03:18):
On the other hand, sky Dance has produced Mission Impossible,
Top Gun, Maverick, and plenty of other Hollywood blockbusters and
The Man.
Speaker 1 (03:25):
Back in twenty twenty three, the owners of Paramount expressed
interest in selling the biz.
Speaker 2 (03:29):
So this potential merger has been on and off and
on and off the cards since about December, between twenty
three when it all first started.
Speaker 1 (03:36):
And the negotiations collapsed in June twenty twenty four.
Speaker 2 (03:39):
They resumed in July twenty twenty.
Speaker 1 (03:41):
Four, and now finally in July twenty twenty five. The
eight billion US dollar merger has been approved by the
US Federal Communications Commission.
Speaker 2 (03:49):
Despite many hiccups along the way that were overcome. But juziway,
before you think about all the eight billion US dollars
of cash in a suitcase changing hands, there was actually none?
And why is that? Because it was an all star
our merger? Juzzy boy?
Speaker 1 (04:01):
Interesting? So what is the key learning here?
Speaker 2 (04:03):
An all stock merger is when one company acquires another
by offering shares instead of cash.
Speaker 1 (04:07):
Meaning ownership changes hands that no money does.
Speaker 2 (04:10):
In this case, the acquiring company, Skydance, pays for the
deal using stock.
Speaker 1 (04:14):
They issue new stock in exchange for control of Paramount.
Speaker 2 (04:18):
Meaning Paramount's existing shareholders will end up owning a chunk
of the new combined company.
Speaker 1 (04:22):
And the man Why do companies do this well.
Speaker 2 (04:24):
Firstly, and probably the main reason, it's a lot cheaper
because there's no need to borrow money or exchange cash
to get it done.
Speaker 1 (04:30):
Secondly, it aligns incentives because everyone now wants the new
company to succeed.
Speaker 2 (04:34):
And finally, it really signals confidence because Skydance is betting
that the future of the company will be worth more
than the two were worth separately. But be man, it
is not a risk free nop. If the new company stumbles,
those Skydance shares won't be so valuable.
Speaker 1 (04:47):
For our third and final story, LVMH has seen it's
share price for more than eight percent after investors got
major tariff and performance anxiety.
Speaker 2 (04:56):
Well, has LVMHOR lost its luxury crown? Juzzy boy, go on?
Speaker 1 (05:00):
So we know Elvi mahe the French a luxury conglomerate
that stands for Louis Vuitton, MUA Hennessy.
Speaker 2 (05:05):
And within this huge conglomerate there are more than seventy
luxury brands or Maissons as they like to call them.
Speaker 1 (05:12):
Love your French. We'd be talking Louis Vuitton, Dior, Givonci, Fendi, Celine, Kenzo,
tag Koya, and also luxury drinks like moe Verve Hennessy.
Speaker 2 (05:20):
The big man.
Speaker 1 (05:21):
ELVI maschis warned that its first quarter earnings were ugly.
Speaker 2 (05:24):
We're talking a first half net profit fall of twenty
two percent. And how did this happen? Well, sales of
their wine and spirits business will hit hardest.
Speaker 1 (05:31):
YEP suffered a nine percent drop, apparently because of weakening
cognac demands.
Speaker 2 (05:35):
Who knew so many people like KGNAC in the first place,
doesn't boy yep.
Speaker 1 (05:38):
They also claimed that the tourists were a reason for
the drop in that revenue, but their fashion and leather
goods also fell by five percent. Next minute, investors hitting
the cell button and Elvi Major share price fill more
than eight percent. And here's the thing.
Speaker 2 (05:49):
Elvia Major CEO seems to think that its brands are
actually still performing very well, relatively speaking relative to the
poor economy. Interesting, So what is the key learning here?
Speaker 1 (05:58):
Luxury brands like we Mage don't live quarter to quarter.
They play the long game.
Speaker 2 (06:03):
While this latest earnings dip did spook some investors, lvmhor
reckons this isn't a sign of a collapse, more of
a global pause. Luxury consumers are not abandoning luxury, they reckon,
They're just being more selective.
Speaker 1 (06:13):
For example, b Men, during the two thousand and eight
two thousand and nine global financial crisis, a personal luxury
goods market declined eight percent, according to Baine.
Speaker 2 (06:21):
And then between twenty ten and twenty nineteen, the luxury
market sector grew at a compound and your growth rate
of about seven percent.
Speaker 1 (06:28):
So be man in a luxury market, the smart move
isn't to chase every dip like a typical retailer.
Speaker 2 (06:32):
No, it's to stay aspirational and wait for your customers
to come crawling back when the economy comes back. Floxam.
Speaker 1 (06:38):
With only a few days left of July, now is
the time to check the credit score this month.
Speaker 2 (06:42):
Did it go up?
Speaker 1 (06:43):
Did it go down?
Speaker 2 (06:44):
Have you been spending and repaying?
Speaker 1 (06:45):
It's all in the Flux app in our credit health toll.
Speaker 2 (06:48):
Thanks for listening and we'll see you on Wednesday.
This is what the Flux. I'm Brett and I'm Justin
and it's Monday, the twenty.
Speaker 2 (00:09):
Eighth of July. Does it wait? We spoke last week
about the battle between Employment Hero and its investor Slash
Friends Slash now Fox Seek. The Federal court has decided
that Seek cannot block Employment Hero from its APIs at
least until further court orders are issued, which could take
months or even years.
Speaker 1 (00:25):
Buys Employment Hero even more time, b Man, it does flexa.
As we come to the end of the month, it
is the perfect time to be checking your credit score.
Speaker 2 (00:31):
Did it go up this month?
Speaker 1 (00:32):
Did it go down?
Speaker 2 (00:33):
Because it can be updated every single month.
Speaker 1 (00:35):
So if you want to know how your credit card behavior,
how your loans, how your utilities might be impacting your
credit score, make sure you download the Flux app and
check it out.
Speaker 2 (00:43):
Three gigantic stories today, jus boy, let's do it for
our first. BAPCOORPS, the company behind autobarn Person and Miters,
has issued a major profit warning and three directors have
quit and its share price has nose dived.
Speaker 1 (00:55):
It must have been a very busy day at babcoor
hqb Man, So tell me more.
Speaker 2 (00:59):
All right? So Bapcoorp is a major Australian auto parts
retailer that's been around since nineteen seventy one and operates
over eleven hundred stores.
Speaker 1 (01:07):
We'd been talking at Autobarn and Berson and minors stores as well.
But Ben Man, you may remember back in March this year,
Bunnings announced plans to aggressively expand into auto parts. I
do three hundred new products across the three hundred stores.
Speaker 2 (01:19):
Huh. And at the time Bapcourt didn't seem to phase
by Bunning stepping on their toes. But now babcour has
warned of multiple hits all at once. Yep.
Speaker 1 (01:27):
The retail sales have dropped three and a half percent
due to competitor activity ahem Bunnings. Yep number two. They
suffered major contract disputes up to forty five million bucks
and also suffered losses on some businesses that they sold
over Man And if this wasn't bad enough, three of
the Bapcourt directors that dropped the mic and just walked
out the door.
Speaker 2 (01:45):
Next minute, that COR's share price dropped thirty percent, reducing
their market cap to just over one point two billion dollars.
Speaker 1 (01:51):
And be Man, that one point eighty three billion dollar
acquisition offer they received last year is looking quite good
right now?
Speaker 2 (01:57):
Oh it is too, So what is the key learning here?
Speaker 1 (01:59):
Rejected takeover bid can come to haunt aboard, especially when
things take a turn for the worst.
Speaker 2 (02:04):
Last year, Bapcoor's board knocked back at one point eight
three billion dollar bid from Bain Capital be Man.
Speaker 1 (02:10):
They rejected the offer, arguing it undervalued the company.
Speaker 2 (02:13):
Fast forward and the share price has tanked nearly thirty percent.
Speaker 1 (02:16):
Not only that, be Man, but the business is under
enormous pressure from Buddings.
Speaker 2 (02:20):
So juzzy boy. It's a reminder that when you reject
a takeover offer, you need to prove that you can
deliver more value independently.
Speaker 1 (02:26):
And be Man is that the only company to reject
a takeover offer and suffer the consequences?
Speaker 2 (02:30):
Well, I remember when Premier Investments tried to acquire Maya
back in twenty seventeen.
Speaker 1 (02:35):
Yep Meyer rejected it and tried to execute on its
turnaround strategy alone and failed.
Speaker 2 (02:40):
Now not only do Premier Investments have board seats at Maya,
they just sold their apparel brand's portfolio to Maya for
nine hundred million bucks. So be man.
Speaker 1 (02:47):
Sometimes an acquisition. Bird in the hand is worth two
in the bush.
Speaker 2 (02:51):
For our second story, Paramount has finally merged with sky
Dance in an eight billion US dollar deal after almost
two years of negotiation.
Speaker 1 (02:59):
So what I feel like this deal could be turned
into a movie itself?
Speaker 2 (03:02):
Be man? What is going on here all right, juziboy?
Some background. Paramount Global is the media and entertainment behamoth
that owns a heap of global entertainment brands.
Speaker 1 (03:11):
We'd be talking Paramount plus, streaming service, CBS, MTV, Nickelodeon,
Showtime and Pman even Network ten here in Australia.
Speaker 2 (03:18):
On the other hand, sky Dance has produced Mission Impossible,
Top Gun, Maverick, and plenty of other Hollywood blockbusters and
The Man.
Speaker 1 (03:25):
Back in twenty twenty three, the owners of Paramount expressed
interest in selling the biz.
Speaker 2 (03:29):
So this potential merger has been on and off and
on and off the cards since about December, between twenty
three when it all first started.
Speaker 1 (03:36):
And the negotiations collapsed in June twenty twenty four.
Speaker 2 (03:39):
They resumed in July twenty twenty.
Speaker 1 (03:41):
Four, and now finally in July twenty twenty five. The
eight billion US dollar merger has been approved by the
US Federal Communications Commission.
Speaker 2 (03:49):
Despite many hiccups along the way that were overcome. But juziway,
before you think about all the eight billion US dollars
of cash in a suitcase changing hands, there was actually none?
And why is that? Because it was an all star
our merger? Juzzy boy?
Speaker 1 (04:01):
Interesting? So what is the key learning here?
Speaker 2 (04:03):
An all stock merger is when one company acquires another
by offering shares instead of cash.
Speaker 1 (04:07):
Meaning ownership changes hands that no money does.
Speaker 2 (04:10):
In this case, the acquiring company, Skydance, pays for the
deal using stock.
Speaker 1 (04:14):
They issue new stock in exchange for control of Paramount.
Speaker 2 (04:18):
Meaning Paramount's existing shareholders will end up owning a chunk
of the new combined company.
Speaker 1 (04:22):
And the man Why do companies do this well.
Speaker 2 (04:24):
Firstly, and probably the main reason, it's a lot cheaper
because there's no need to borrow money or exchange cash
to get it done.
Speaker 1 (04:30):
Secondly, it aligns incentives because everyone now wants the new
company to succeed.
Speaker 2 (04:34):
And finally, it really signals confidence because Skydance is betting
that the future of the company will be worth more
than the two were worth separately. But be man, it
is not a risk free nop. If the new company stumbles,
those Skydance shares won't be so valuable.
Speaker 1 (04:47):
For our third and final story, LVMH has seen it's
share price for more than eight percent after investors got
major tariff and performance anxiety.
Speaker 2 (04:56):
Well, has LVMHOR lost its luxury crown? Juzzy boy, go on?
Speaker 1 (05:00):
So we know Elvi mahe the French a luxury conglomerate
that stands for Louis Vuitton, MUA Hennessy.
Speaker 2 (05:05):
And within this huge conglomerate there are more than seventy
luxury brands or Maissons as they like to call them.
Speaker 1 (05:12):
Love your French. We'd be talking Louis Vuitton, Dior, Givonci, Fendi, Celine, Kenzo,
tag Koya, and also luxury drinks like moe Verve Hennessy.
Speaker 2 (05:20):
The big man.
Speaker 1 (05:21):
ELVI maschis warned that its first quarter earnings were ugly.
Speaker 2 (05:24):
We're talking a first half net profit fall of twenty
two percent. And how did this happen? Well, sales of
their wine and spirits business will hit hardest.
Speaker 1 (05:31):
YEP suffered a nine percent drop, apparently because of weakening
cognac demands.
Speaker 2 (05:35):
Who knew so many people like KGNAC in the first place,
doesn't boy yep.
Speaker 1 (05:38):
They also claimed that the tourists were a reason for
the drop in that revenue, but their fashion and leather
goods also fell by five percent. Next minute, investors hitting
the cell button and Elvi Major share price fill more
than eight percent. And here's the thing.
Speaker 2 (05:49):
Elvia Major CEO seems to think that its brands are
actually still performing very well, relatively speaking relative to the
poor economy. Interesting, So what is the key learning here?
Speaker 1 (05:58):
Luxury brands like we Mage don't live quarter to quarter.
They play the long game.
Speaker 2 (06:03):
While this latest earnings dip did spook some investors, lvmhor
reckons this isn't a sign of a collapse, more of
a global pause. Luxury consumers are not abandoning luxury, they reckon,
They're just being more selective.
Speaker 1 (06:13):
For example, b Men, during the two thousand and eight
two thousand and nine global financial crisis, a personal luxury
goods market declined eight percent, according to Baine.
Speaker 2 (06:21):
And then between twenty ten and twenty nineteen, the luxury
market sector grew at a compound and your growth rate
of about seven percent.
Speaker 1 (06:28):
So be man in a luxury market, the smart move
isn't to chase every dip like a typical retailer.
Speaker 2 (06:32):
No, it's to stay aspirational and wait for your customers
to come crawling back when the economy comes back. Floxam.
Speaker 1 (06:38):
With only a few days left of July, now is
the time to check the credit score this month.
Speaker 2 (06:42):
Did it go up?
Speaker 1 (06:43):
Did it go down?
Speaker 2 (06:44):
Have you been spending and repaying?
Speaker 1 (06:45):
It's all in the Flux app in our credit health toll.
Speaker 2 (06:48):
Thanks for listening and we'll see you on Wednesday.
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
The Joe Rogan Experience
The official podcast of comedian Joe Rogan.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Special Summer Offer: Exclusively on Apple Podcasts, try our Dateline Premium subscription completely free for one month! With Dateline Premium, you get every episode ad-free plus exclusive bonus content.