It’s a bid-mad Monday after $A60 billion in deals were revealed first thing this morning.
US payments platform Square offered to buy the buy now pay later pioneer, Afterpay in a multi-billion dollar all paper transaction.
Square will acquire all the shares Afterpay under a scheme of arrangement with an implied value of $US29 billion ($A39 billion).
The deal came at the same time on Monday morning as local oil groups, Santos and Oil Search finally agreed to merger in a $21 billion all paper deal (See separate story).
The Square deal will see – if there are no competing offers – Afterpay’s founders Nick Molnar and Anthony Eisen staying on at the company.
Afterpay shareholders will receive a fixed exchange ratio of 0.375 shares of Square Class A common stock for each Afterpay ordinary share they hold.
Square shares last traded at $US247.26 a share on the New York Stock Exchange.
Square was founded by Jack Dorsey after he had started Twitter.
In a statement on Monday Mr Dorsey said the two companies have a shared purpose.
“We built our business to make the financial system more fair, accessible and inclusive and Afterpay has built a trusted brand aligned with those principles,” he said.
“Together we can better connect our cash app and seller ecosystems to deliver even more compelling products and services for merchants and consumers, putting the power back into their hands.”
The bid means Square will be taking on giants like Klarna, the big Swedish-based Buy now pay later company which is planning to ramp up its operations in Australia. The Commonwealth Bank has around 5% of Klarna and is also planning its own version of a buy now pay later operation.
Apple is also planning a version through its ApplePay facility on its iPhone Wallets andPayPal has also entered the field.
