CSL actually stands for Commonwealth Serum Laboratories, and they're an Aussie bio-tech company.
Background: CSL (which actually stands for Commonwealth Serum Laboratories) is an Aussie bio-tech company. They manufacture vaccines and other products to treat and prevent medical conditions.
What happened: This crew are worth a pretty penny (like $139 billion pretty) and now they've purchased Swiss pharma company Vifor for a whopping $16.4 billion.
What else: The deal gives CSL a huge foothold in the fast-growing market for kidney disease and iron deficiency treatments...this market is estimated to bring in US$25 billion annually by 2026. Thanks ageing population and rising obesity!
💡Mergers and acquisitions (M&A) are more popular right now than memes about ol' mate La Niña. And it's all thanks to cheap funding.
💡The official cash rate is at a record-low. And, when the cash rate is low, it means interest rates on loans tend to be low. In simple terms, the companies that borrow money to fund these big M&As can do so on the cheap.
💡So far, 820 deals worth around US$217 billion have been announced this year...which is double the previous record. And CSL's latest deal is just another notch in the belt.
Sign up for Flux and join 100,000 members of the Flux family