Toll Group is Australia's largest transport and logistics provider for the resources industry, and this latest award is another win for Toll Group's expanding portfolio. For this project, Toll Group will construct and operate INPEX's Ichthys LNG Project Offshore Logistics Base, as well as provide continuing support for INPEX's Browse Basin project.

While the current contract lasts just a decade, Toll Global Resources CEO David Jackson hopes to continue this partnership for at least the 40-year duration of the Ichthys project. "The variety of work we're doing for the INPEX Offshore Logistics Base is an excellent example of Toll's capabilities in servicing the oil and gas sector," said Jackson in a statement today. "This facility, along with the associated drilling support facility, developed for INPEX in Broome by the Toll Mermaid joint venture, demonstrates Toll's commitment to invest in world-class facilities for our customers' world-class projects."

Toll Group expects construction for the project to be completed in early 2015, with full operations up and running by late 2015.

The post Toll Group grabs $90 million logistics project appeared first on The Motley Fool Australia.

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David Jones Limited (ASX: DJS) released a statement Thursday addressing an Australian Financial Review column proposing a 1.4-to-1 share trade "union" between David Jones and Myer Holdings Limited (ASX: MYR). David Jones thinks otherwise.

The company stated that "[i]f David Jones is approached with a proposal which is in the best interests of its shareholders and has the prospect of realising value for them, David Jones will inform its shareholders in accordance with its listing rule obligations. David Jones is not currently in discussions with Myer in relation to any such proposal."

The company did mention that Myer approached it in October 2013 with a potential offer to swap shares at a zero premium exchange ratio (1.06 Myer shares per David Jones share).

However, David Jones' directors ultimately rejected the offer, on the basis that the trade would have introduced significant commercial, market, business, and regulatory risks, including the ACCC review process for the transaction to even take place. David Jones would've had to divert company resources "with great uncertainty as to the final outcome and the potential to result in diminution of value of the David Jones business."

Since the proposal never passed beyond a confidential invitation to engage in further discussion, David Jones didn't disclose any details to shareholders. For the moment, at least, it seems the price is not right for David Jones to trade Myer shares.

Foolish takeaway

Activist investors and engaged media have an important role to play in the financial world, but David Jones is probably right to hold off on any Myer union. Even at a price as high at 1.4 Myer shares to David Jones, the allure of diversification may actually be "diworseification," a term made famous by legendary investor Peter Lynch.

David Jones is doing fine on its own, and recently took a major bite out of Myer's sales when it posted online-only specials during a week-long Myer website crash following Boxing Day. Even Myer's chief executive Bernie Brooks admitted David Jones had the upper hand, noting that it was a smart move "to capitalise on the fact that we were offline."

While a week-long website outage should hardly change a long-term investing thesis, the fact remains that David Jones knows what it does best – and a clever stock swap sale just isn't necessary.

The post David Jones Limited won't swap Myer stock appeared first on The Motley Fool Australia.

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Toll Group will haul Shell's bulk fuel across the nation to service stations in Queensland, New South Wales, Victoria, South Australia and Western Australia.

For Toll, this latest agreement further bolsters the two-sided relationship the company has with Shell. As both a significant user of transport fuel, as well as a supplier of bulk fuel transport, Toll is uniquely positioned to engage in partnership with Shell.

"We are really pleased to be expanding our business with Shell," said Toll Liquids manager Tim Kehoe in a statement. "Our businesses are well aligned in our determination to put safety first at all times and Shell has recognised this in awarding the work to Toll. This contract supports our fuel distribution strategy perfectly and further confirms Toll's commitment to sustainable investment in the sector."

Pending final arrangements, the deal should be sealed in the next few weeks.

The post Toll Holdings Limited snags $250 million Shell contract appeared first on The Motley Fool Australia.

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Coca-Cola Amatil Ltd (ASX: CCL) announced Thursday that it is squeezing more out of its juice business. The beverage company will invest $2.9 million to shift part of its juice production to its Adelaide beverage facility.

While the Adelaide upgrade means more work for Thebarton locals, Coca-Cola Amatil is laying off 28 employees at its Ramco facility in South Australia. While juice extraction and blending will continue to occur at this facility, all bottling and packaging will take place in Adelaide by the second-half of 2014.

All redundant Ramco employees will be offered Coca-Cola jobs elsewhere in the country, and Coca-Cola's South Australia General Manager noted that "[w]e are working with employees and union officials to ensure a smooth transition is achieved over the coming months."

Foolish takeaway

This announcement may not seem like much, but Coca-Cola Amatil's continued focus on local production may eventually be its fruit business' saving grace. Coca-Cola's SPC Ardmona subsidiary hit hard times in the past few years as increased foreign imports and a strong Australian dollar pushed prices down to non-compete levels.

But a new partnership with Woolworths Limited (ASX: WOW) seems to be paying off as locals demand Aussie produce. When Woolworths announced that it would source its Select Canned Fruit line from Coca Cola's SPC Ardmona, sales skyrocketed. From October to July 2013, average sales increased 38%, reaching as high as 124% in fruit-growing areas.

Coca-Cola Amatil's announcement this week follows similar footsteps. Although the company is making strategic decisions to streamline production and increase efficiency, it's not at a cost to its country. Herbert made clear that Coca-Cola is "not closing down or moving our juice operations offshore, nor are we turning to overseas fruit or juice for our brands. We are instead maintaining our entire fruit juice production within South Australia."

If Australians keep up their current enthusiasm for locally-sourced products, Coca-Cola's latest decision will have paid off.

The post Coca-Cola Amatil Ltd shuffles fruit juice business while keeping local focus appeared first on The Motley Fool Australia.

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Woodside Petroleum Limited (ASX: WPL) announced this week that it has entered into a new agreement with Chubu Electric Power Company to supply up to 1.5 million tonnes of liquefied natural gas (LNG) to the Japanese company.

Woodside didn't disclose any financial details in its brief announcement, but did note that the deal will begin in April and run for three years. Chubu Electric's LNG will be sourced from Woodside Petroleum's Pluto offshore gas field, located near Karratha in Western Australia.

This isn't the first deal Woodside has made with Japanese energy companies. Since 2008, both Kansai Electric and Tokyo Gas have had 15-year sales agreements for Pluto LNG and a 5% stake in the foundation project.

According to Woodside's website, the Pluto field has delivered around $7.6 billion of gas to date. "The agreement demonstrates the importance of Pluto LNG volumes in meeting growing regional demand for natural gas and also Woodside's increasingly diverse LNG purchasing, sales and shipping arrangements," said Woodside CEO Peter Coleman in a statement.

The post Woodside Petroleum Limited sells more LNG to Japan appeared first on The Motley Fool Australia.

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DEXUS Property Group (ASX: DXS) announced Wednesday that it has acquired a Brisbane office tower for $161.3 million.

Dubbed "AM60" the 21-story building boasts 21,263 square meters of office and retail space, and is 100% leased to "high-calibre" tenants. Office building acquisitions are dependent on quality occupants, and AM60's packed out corporate clients, including anchor tenant Worleyparsons Limited (ASX: WOR), should ensure steady sales from this latest investment.

"Representing a core investment opportunity, AM60 is an important addition to DWPF's [DEXUS Wholesale Property Fund's] $2 billion office portfolio," said DWPF fund manager Graham Pearson in a statement. "This acquisition is in line with DWPF's strategy of investing in high-quality office properties which are well located in key Australian CBD office markets and with attractive financial metrics."

The building has an initial 9.1% yield, with a weighted average lease expiry of 4.3 years and no major potential moves until August 2017.

Since June 2012, DEXUS has raised $900 million in equity and purchased over $1 billion of office, retail, and industrial properties to bolster its strategic portfolio push.

The post DEXUS Property Group acquires $161 million Brisbane office tower appeared first on The Motley Fool Australia.

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Coca-Cola Amatil Ltd (ASX: CCL) released a statement on Tuesday noting that its arrangements with spirits company Beam Inc. will remain unaffected for at least a decade, despite Beam's recent buyout by Japanese brewing and distilling company Suntory Holdings Limited.

Coca-Cola Amatil noted that "provisions of the long-term agreement" between Beam and itself ensure no adverse effects through at least December 2023, when the arrangement expires.

Good or bad news?

Suntory's acquisition came as a bit of a surprise to the market. At $US16 billion, the deal wasn't cheap for the Japanese company. Beam's valuation makes it the fourth-highest spirits takeover multiple in the past 10 years, according to Bloomberg. Suntory has been gunning for global growth, and Beam presented itself as an opportunity the company couldn't refuse.

For Coca-Cola Amatil investors, that's an important statement. The company announced its latest 10-year deal with Beam last December, paving the way for new alcohol distribution channels. With Suntory in the mix, Coca-Cola Amatil has been dealt an entirely different hand.

Things could turn out well for Coca-Cola Amatil if Suntory decides to add on its own products to Coca-Cola Amatil's distribution. Currently, the Japanese company has its own Australian distribution channels, but it could be looking for all the help it can get as it carries the financial burden of its Beam buyout.

But Suntory bought Beam with global growth in mind, and the family-run business might not be keen to give its newly gained ground away. The acquisition propels Suntory from the fifteenth-largest liquor company to fourth, a move that makes it a more formidable competitor than ever with Coca-Cola Amatil's new liquor focus.

Foolish takeaway

It's too early to know how Suntory's expansion will ultimately play out. For the moment, Coca-Cola Amatil investors can rest easy that its 2023 Beam deal remains strong. In the coming months and years, Suntory's Australian intentions should come to light, and investors will need to weigh Coca Cola Amatil's reaction against their own investment case.

The post Does Coca-Cola Amatil Ltd face competition from Suntory? appeared first on The Motley Fool Australia.

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Mr. Yates has been employed with Transfield since the company acquired consulting firm APP seven years ago, and has held his chief executive post since January 2011. Transfield managing director and CEO Graeme Hunt thanked Mr. Yates for his work, wishing him all the best in his new role.

For BSA, Mr. Yates' new appointment is the result of a "comprehensive search process," following the resignation of its previous CEO and managing director on November 4. The company expects its newest appointee to assume his position in early March 2014.

Foolish takeaway

Corporate executive switchups are a fairly normal occurrence, and this latest move is nothing to be alarmed about. For Transfield, Mr. Yates' departure will simply have to be factored into the company's larger review of its operating model, which it will publicly reveal in more detail during its half-year results on February 27.

For BSA Limited, the appointment finally fills in a loose cog in its corporate team. This should allow the company to focus on more important fundamentals in the months to come.

The post BSA Limited snags Transfield Limited exec for CEO appeared first on The Motley Fool Australia.

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According to Transurban, the uptick is due primarily to increased traffic around the Sydney area, amplified by the M2 Upgrade completed in August 2013. Not only does the renovation mean more revenue for Transurban, it also means faster travel for Aussies. Travel time is down and travel speed is up, with significant peak travel time savings for commuters along the Hills M2.

"Increased patronage on our Sydney roads, and in particular the north-west corridor, reflects the improved service delivered by the Hills M2 upgrade," said CEO Scott Charlton in a statement. "We remain focused on delivering similar benefits to the residents of south-western Sydney through the upgrade to the M5 South-West Motorway, and exploring additional enhancement opportunities for road users on our networks in Sydney and Melbourne."

Looking ahead, Transurban's M5 West widening project is on schedule and on budget, with expected completion later this year.

The post Transurban Group revenue up 13.3% as upgrades deliver appeared first on The Motley Fool Australia.

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The "Glasshouse Gardens" project are the latest development that are part of Lend Lease's larger "International Quarter" project. The £1.3 billion ($2.4 billion) development includes both commercial and residential areas, and is meant to capitalise on the existing infrastructure put in place for the 2012 London Olympics.

"Residents will be able to enjoy spectacular views of the London skyline and will benefit from the extensive transport network put in place for the London 2012 Olympic Games," said Lend Lease Project Director Kristy Lansdown in a statement. "Stratford is now well on its way to becoming one of the most well connected and desirable places to live in London and we look forward to delivering these great homes in this exciting and vibrant part of the capital."

The post Lend Lease continues London Olympic area redevelopment appeared first on The Motley Fool Australia.

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Billabong (ASX: BBG) announced today that it has appointed industry stalwart Susan Branch as its first Global General Manager for Billabong Womens. The position is a new one for the surfwear, action sports, and apparel company, and signifies a heightened interest in making their brand more female-friendly.

"Consistent with the strategic direction laid out at our recent Annual General Meeting, we're focusing on our big brands," said CEO Neil Fiske in a statement. "We see tremendous growth opportunity for Billabong Womens which is why we've specifically created this role to give it a dedicated focus. Susan is the ideal person to take on the role and we're delighted someone with her level of experience and talent is joining Billabong."

Ms. Branch will assume her position at Billabong this month, leaving her executive position of three years at Roxy/Quicksilver. "I'm joining Billabong at an exciting time as it undertakes its turnaround strategy," Branch noted in a statement. "This is a fantastic brand and I can't wait to begin working with the team as we reenergise and grow Billabong Womens globally."

The post Billabong focuses on females for turnaround appeared first on The Motley Fool Australia.

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Insurance Australia Group Limited (ASX: IAG) announced today that it is upping its catastrophe reinsurance programme by $600 million to $5.6 billion for the new year.

According to CFO Nick Hawkins, favourable reinsurance market conditions allowed Insurance Australia Group to increase the amount for 2014. "Our catastrophe reinsurance programme remains an intrinsic part of our capital management strategy," said Mr. Hawkins in a statement. "The structure of the programme is similar to that of prior years, and contains an element of multi-year cover, notably up to the $500 million layer and above $4 billion."

The full $5.6 billion is available to first-time earthquake catastrophes in Australia and New Zealand, a natural disaster that has been increasingly scrutinized after magnitude 7.1 and 6.3 earthquakes caused severe damage in Christchurch, New Zealand, in 2010 and 2011, respectively.

In addition to this latest dollar amount increase, IAG also recently announced that it will integrate New Zealand subsidiary AMI into its main reinsurance program this year, twelve months ahead of schedule.

For IAG customers, the new insurance amounts come down to maximum first event retentions of $175 million in Australia, NZ$175 million for New Zealand, $25 million for Thailand and Malaysia, and less than $1 million for Vietnam. Joint venture interests in India and China aren't included, and 88% of the entities covered under the program have a credit rating of A+ or higher.

The post IAG ups catastrophe reinsurance program to $5.6 billion for 2014 appeared first on The Motley Fool Australia.

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Toll Group (ASX: TOL) is handing over railroad rights. The transport and logistics company announced today that it has agreed to sell its own North Queensland rail service operations to Asciano's (ASX: AIO) Pacific National Rail.

Expected to be completed by February 2014, the move has been hailed as a further strengthening of the two corporations' relationship and a financial boost for Toll Group. "This agreement is a very positive transaction for Toll and all of our North Queensland customers," said Toll Group Managing Director Brian Kruger in a statement. "The deal allows us to continue to provide Toll Intermodal's customers with long-term access to quality rail infrastructure and significantly enhances the operational flexibility of our North Queensland business. It also reduces capital employed in this part of the business, which will result in an improvement in our return on invested capital."

The 13-year haulage agreement allows Toll to continue to service its North Queensland customers, while handing over day-to-day operations to Asciano. The two companies have extended their current interstate rail haulage agreement to 2022, and Pacific National Rail will acquire five North Queensland terminals for around $70 million.

Foolish takeaway

Toll is Australia's largest transport and logistics company – but bigger isn't always better. This agreement allows Toll to continue to do what it has always done, without sucking up capital that could be used elsewhere. Asciano's newly acquired assets were sold by Toll at book value, which leaves Toll with a clean cut and Asciano without worries of overinflated investments.

The new deal also takes care of a regulatory railblock. Starting next year, new minimum rail volume obligations on Toll in North Queensland might've proved troublesome for the company. With ownership handed over to Asciano, Toll Group no longer has to worry about hitting its regulatory quota.

The post Toll Group hands over Queensland rail rights to Asciano appeared first on The Motley Fool Australia.

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Ansell (ASX: ANN) is taking its gloves off. The protection solutions corporation announced last Friday that it has successfully divested its Marigold household gloves and Comasec cleaning products to Freudenberg Home and Cleaning Solutions (FHCS), a German company.

While the deal's dollar value clocks in at just $14.5 million, the divestment is further indication that Ansell is shedding off less-profitable portions of its 2012 Comasec acquisition. According to Ansell's press release, the newly divested divisions offered little long-term value compared with the rest of the Comasec portfolio.

"We are delighted to enter into this agreement with FHCS and look forward to many years of ongoing partnership," said Magnus Nicolin, CEO of Ansell.  "As our primary focus is on providing a broad range of hand protection solutions for the business-to-business market, divesting the Marigold consumer brand to FHCS is consistent with our long-term strategy."

The divestment details also included a five-year extension of the current partnership agreement between Ansell and FHCS, which confirms that Ansell's Malaysia facility will continue to supply cleaning products for FHCS's portfolio.

Foolish takeaway

When a company that's not struggling divests a subsidiary, it's usually for the best. With no need to raise capital to reduce debt or make a last attempt at some crazy capital expenditure strategy, a divestment is almost always a clean cut to drop less-profitable portions of a company's portfolio.

Small strategic divestments such as these might also make Ansell a more stable "cash cow" company in the future. Its share price is up 30% in the last year, putting its forecasted fiscal 2014 dividend yield at 1.9%. While that's good for a growth stock, income investors will want more from Ansell – and a little extra cash could provide an uptick in distributions that dividend lovers will certainly welcome.

The post Does Ansell's latest divestment mean a bigger dividend? appeared first on The Motley Fool Australia.

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Toll Group (ASX: TOL) announced today that is has secured $380 million worth of contracts with Coca-Cola Amatil (ASX: CCL) to span the next five years. With Toll Group as Aussie's leading provider of transport and logisitics and Coca-Coca Amatil as one of the top five Coca-Cola bottlers in the world, the logistics match is meant to maximize the scale and efficiency that each company can offer.

The five-year contract will nearly double Toll Group's sales in route distribution, bulk distribution and inter-state road, rail and sea transport. "To be awarded such an extensive portfolio of contracts from an industry leader such as Coca-Cola Amatil recognises the innovative solutions of Toll's Contract Logistics and Intermodal business," said Bruce Wilson, General Manager of the same business. "As a long-term supplier of transport services to the beverage industry throughout the Asia Pacific region, we look forward to working with Coca-Cola Amatil to improve the supply chain."

Foolish takeaway

A $380 million five-year contract is a significant win, even for a company as large as Toll Group. With annual sales of $8.7 billion, the annualized value of this contract is equivalent to a 0.9% increase in sales, and the sustainability and reliability of this contract makes it all the more valuable.

And this may be the beginning of an even more fruitful relationship. Toll Group and Coca-Cola Amatil have significant overlap in their global operations, and Australia is just one country. Coca-Cola Amatil currently operates in six Asia-Pacific countries, while Toll Group stretches globally across 50 nations.

If Toll Group can prove itself with this sizeable contract, Coca-Cola Amatil (or other multinational bottling companies) may put more work on the table that could make this current arrangement look like an anthill.

The post Toll Group grabs $380 million Coca-Cola Amatil contract appeared first on The Motley Fool Australia.

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In an interview with AdNews, founder Dick Smith noted that his company's model is based on the Paul Newman line in the U.S., and hopes that the launch of his new foundation and a brighter spotlight at Woolworths will go a long way for his company.

For now, the new products are being piloted in Woolworths' Balgowlah store, but a positive reception could see Dick Smith nationwide. The new products will also allow users to pick the charity they wish Dick Smith to donate to, by taking a picture of their purchased item and texting it to the company along with the intended recipient.

Smith seems more than happy to partner with Woolworths over Wesfarmers' (ASX: WES) Coles, who he believes may be focusing too much on low prices. Dick Smith products sell at a higher price to competitors, and Smith told AdNews that "if you keep doing the low prices thing that Coles is doing, Aldi and Costco win that battle because they don't have the same costs or staff. You have to go premium and quality."

Foolish takeaway

The Australian grocery retail market is exceedingly tight. Woolworths and Wesfarmers are each attempting to grab more market share, but with different strategies. Woolworths has gone for more expensive brands with potentially higher margins. That line-up now includes Dick Smith, and is a major reason why Coca-Cola Amatil's (ASX: CCL) failing SPC Ardmonda fruit business has been able to regain some footing as a local food option across Australia.

Coles is carving out a cheaper niche, capturing an important market segment that is more price sensitive. But as Mr. Smith warned, that niche has seen several new players recently, and it's less certain whether Coles can keep up with prices heading down.

The post Why Woolworths may win the food retail fight appeared first on The Motley Fool Australia.

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Ramsay Health Care Limited (ASX: RHC) announced today that it has officially completed the acquisition of Medipsy, a French psychiatric hospital group.

The deal was originally announced on 2 December, and came two and a half years after Ramsay Health Care originally bought up a 57% stake in Medipsy. For this final acquisition of remaining shares, Ramsay has agreed to pay out €149.4 million (A$229.8 million) in cash, as well as well the assumption of €2.5 million (A$3.8 million) in debt and financial leases from previous owner Générale de Santé.

According to Ramsay's press release, Medipsy is a "leading operator of private psychiatric hospitals," with 30 hospitals, 2,600 beds, and around €150 million (A$230.7 million) in annual sales.

With this latest purchase, Ramsay now operates 40 hospitals in France, bringing its five-country total to 151. The company expects the acquisition to be EPS profitable in 12 months.

The post Ramsay Health Care acquires 30 French hospitals appeared first on The Motley Fool Australia.

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According to the new report, Chinese policies meant to reduce the country's coal dependence will push down demand growth over the next five years. Although China alone is expected to account for around 60% of all new demand worldwide, new forecasts put average annual growth at 2.3% per year through 2018, instead of the previously predicted 2.8%.

For Australian coal companies, that downward revision spells pinched profits. China accounts for one-fifth of Australia's coal exports, with companies like BHP Billiton (ASX: BHP), Rio Tinto (ASX: RIO), Whitehaven Coal (ASX: WHC) and New Hope Corporation (ASX: NHC) relying on China for a major portion of their sales.

With 15% of Aussie coal already being extracted at a loss, lower demand could push this number higher. And while current mines may manage, around $50 billion of new coal projects could be suspended or abandoned if current trends keep up.

However, the IEA made sure to stress that coal demand will not disappear overnight. "Like it or not, coal is here to stay for a long time to come," noted executive director Maria van der Hoeven at the report's unveiling. "Coal is abundant and geopolitically secure, and coal-fired plants are easily integrated into existing power systems. With advantages like these, it is easy to see why coal demand continues to grow. But it is equally important to emphasise that coal in its current form is simply unsustainable."

Ms. van der Hoeven also pointed to new technologies as potentially increasing coal demand. Coal gasification is expected to contribute more to China's gas supply than shale gas over the next half-decade, and this process could potentially keep coal on the energy table long after its previous generation techniques are deemed obsolete.

Foolish takeaway

No country needs coal. Every country needs energy. As these latest reports show, it's important for energy investors to remember that the second statement rules supreme. Coal may be a growing energy source for China, but the country will ultimately choose whatever fuel gives it the best balance of cost, political security, and environmental benefit. Smart investors will diversify their own investments, choosing a balanced portfolio that reflects a variety of alternative futures.

The post Aussie coal companies feel the squeeze from China's diminishing demand growth appeared first on The Motley Fool Australia.

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Insurance Australia Group Limited (ASX: IAG) announced Monday that it is buying Wesfarmers' (ASX: WES) underwriting business for $1.85 billion. The deal includes subsidiaries WFI and Lumley Insurance, and also comes with a 10-year distribution agreement with Wesfarmers' Coles stores.

"This is a unique opportunity, which is expected to deliver significant long-term value for IAG shareholders and unlock further growth potential for our businesses in Australia and New Zealand," said IAG managing director Mike Wilkins in a statement today.

Of special interest to IAG shareholders, the deal is expected to deliver "modest" earnings per share (EPS) accretion in the first year, with "at least" 5% accretion in the second year, excluding integration and amortisation costs.

While the deal will be funded from ordinary equity, subordinated debt, and internal funds, the majority ($1.2 billion) comes from an institutional placement on 13 December. Wilkins noted that in addition to pushing up profitable growth in Australia, this latest move should help solidify its position as New Zealand's top underwriting business. IAG expects to incur around $120 million in pre-tax integration costs, but estimates pre-tax net synergy gains at around $140 million per year.

Pending regulatory approvals, the deal should be sealed by Q2 of calendar 2014. In its press release, IAG also took the opportunity to reaffirm its fiscal 2014 guidance of gross written premium growth between 5% and 7% and a reported insurance margin between 12.5% and 14.5%.

Foolish takeaway

IAG just got bigger, and this latest acquisition is well in line with its current businesses. At the same time, Wesfarmers has managed to divest a non-core asset, ostensibly allowing the company to focus more on its major retail and manufacturing assets. The move comes at an especially bad time for Australia's largest insurer, QBE Insurance Group (ASX: QBE). Last week, QBE announced a series of write-downs on its North American businesses and shares fell a whopping 22%.

As a smaller player, Suncorp Group Limited (ASX: SUN) will also have to watch out for IAG's new size. With $96 billion in assets, Suncorp is no small player, but IAG's new purchase puts the two corporations on a more competitive scale. The insurance world just got a little smaller, and investors will need to keep a close watch on how this latest acquisition plays out over the next year and beyond.

The post IAG snags underwriting business for $1.85 billion appeared first on The Motley Fool Australia.

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After nearly 20 years in the business, Brindabella Airlines is officially grounded. The regional NSW airline company announced today that it is officially suspending all flights as the corporation heads into receivership.

Receiver David Winterbottom noted in a statement: "Given the approaching Christmas and New Year period we will be working very hard to minimise the inconvenience to customers and importantly, enable alternative travel options." Qantas (ASX: QAN) has stepped up to the plate, providing additional services along Brindabella's routes. "It's unfortunate that Brindabella has suspended its operations, however as the national carrier we stand ready to assist the community," said Qantas CEO Alan Joyce in a statement on Saturday. Joyce added that customers currently holding Brindabella tickets will be eligible for discounted Qantas rates.

The now-defunct airline operated up to 250 sectors a week, with regional flights headed out from Canberra, Sydney, and Brisbane hubs.

Foolish takeaway

With Brindabella Airlines out, there's more open demand on the market. According to the Sydney Morning Herald, Brindabella even had regulatory approval with the NSW government to operate as the sole airline provider for flights between Sydney and Mudgee, Cobar, Narrabri, and Moree, plus winter flights to Cooma.

While Qantas is starting to stake claims, other airlines like Regional Express (ASX: REX) and Virgin Australia Holdings (ASX: VAH) could be quick to land with their own offerings. Brindabella's niche is a small one, but the scale of other airlines could make this new market more profitable than the previous provider found it. NSW government approval will ultimately play a large role in determining the winners and losers of this new slice of the market. While the jury's currently out, a $30 million tourism deal between Qantas and the NSW government announced in April could give Qantas an extra edge in any opportunities. Airline investors will need to keep a close watch on this developing case over the next few weeks – be sure to check back in with The Motley Fool for the latest news on Brindabella's replacement.

The post Is there some good news for Qantas? appeared first on The Motley Fool Australia.

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