KPMG disrupts Big Law

👋 G’day

Today’s brief:

• KPMG breaks into Big Law with a competing law firm.

• The gender pay gap persists, particularly in finance and law.

• Star Casino goes residential with plans for Sydney apartment conversion.

And we’re back with the latest 👇

PRACTICE POINTS

Push for psychosocial safety

• Psychosocial health and safety at work is set for more regulatory changes. The Victorian Labor Government confirmed new regulations on the horizon. Employers can expect to:

  • Create written prevention plans when specific psychosocial hazards are identified—like aggression, bullying, exposure to traumatic events, high job demands, and sexual harassment

  • For employers with more than 50 staff, report to WorkSafe Victoria twice a year on any reportable psychosocial complaints.

• ASIC is on its anti-scam grind. New data shows the regulator has shut down over 10,000 investment scam websites and online ads. It also launched court action against HSBC Australia in December, accusing the bank of failing to protect customers scammed out of millions. This follows ASIC’s reports into 15 banks outside the big four, revealing plenty of room for improvement in anti-scam practices.

• In the first major Federal Court ruling on the Fair Work Act's intractable bargaining regime, the full court upheld the Fair Work Commission's decision that no 'agreed terms' existed for inclusion in a bargaining determination. Looks like the Commission will have a broad ability to consider what constitutes agreed matters. The case highlights the need for employers to clearly qualify that bargaining no agreement is made until full consensus is reached, especially when engaging in negotiations that might involve an intractable bargaining dispute: KWM

WORD ON THE STREET

KPMG’s Big Law disruption

• KPMG is set to become the first Big Four firm to offer legal services in the US, after the Arizona Supreme Court gave its approval. The catch? KPMG Law can’t take on clients already audited by KPMG or its network firms. Watch out Big Law, KPMG is coming for you. Learn more here.

• Blackstone CEO Steve Schwarzman pocketed over $US1bn (A$1.6bn) in pay and dividends in 2024. As the company’s largest shareholder (with a 20% stake), most of that haul came from dividends, not fund profits: AFR

• Johnson Winter Slattery has snagged energy partner Tom Fotheringham from DLA Piper. He’s joining the Brisbane office, where he’ll focus on mining, oil & gas, and renewables.

• Clayton Utz has nabbed banking and finance partner Brendan Smith from rival Baker McKenzie. With extensive major infrastructure, energy, and projects experience, Smith’s hire comes as Clayton Utz strengthens its focus on the growing demand for infrastructure and energy projects in Australia: Lawyers Weekly

TALKING POINTS

WFH wars

• Top US law firms are going hard on the anti-WFH push, with Paul Weiss demanding lawyers in the office 4 days a week. They’re joining heavyweights like Skadden, Davis Polk, and Latham & Watkins. Will Aussie firms follow suit or stay comfy in their home offices? Bloomberg Law

• Is the traditional legal model on its way out? Enter the rise of the “legalpreneur”. Lawyers are increasingly ditching big firms for new models that offer more freedom and flexibility. In NSW alone, over 7,300 private law practices were running last year, with a quarter led by a single principal—showing a shift away from rigid firm structures. These legalpreneurs are shaking up old-school methods like billable hours, opting for fixed fees instead. Oh, and 1 in 10 lawyers plan to quit the profession within a year of starting—thanks to burnout. Looks like the old model just isn’t cutting it anymore: Lawyers Weekly

• The Workplace Gender Equality Agency has refreshed its run down on the gender pay gap across industries. Australia's finance and insurance sectors continue to lead professional services in pay inequality, with women earning 22.2% less than men. That gap is the second-highest across industries, just behind construction. In law, about half of the reporting major law firms had a worse gender pay gap this time around: Bloomberg, Lawyers Weekly

TREASURY

DEAL ROOM

Prada’s $2.57bn Versace bid

• Milan-based fashion house Prada is circling in on a US$1.6bn (A$2.57bn) deal for Versace from Capri Holdings. The deal could be finalised within the month following a successful stage of initial due diligence. Even if the deal goes through, Prada’s market cap (US$22.5bn) remains a fraction of its French rival LVMH (owner of Louis Vuitton, Christian Dior and Fendi, to name a few), which sits at US$262bn: Bloomberg

• Iconic cheese brand Bega is in the spotlight amid Fonterra’s $2bn-plus asset sale. Some are speculating a merger could be in the cards, with Bega potentially raising equity mid-year to fund the acquisition—partially in cash, partially in scrip: The Australian

• Medibank, the $12bn Aussie health insurer, has gone all-in, buying 100% of healthcare tech company Medinet after dropping $10m on it last year. Medinet’s app lets GPs consult with patients via video, audio, and chat, while also generating digital referrals to specialists, pathology, and imaging: The Australian

• Potentia Capital has cashed in, selling mining software company Micromine for A$1.35bn to Weir Group, the £5.9bn (A$10bn) giant. Johnson Winter Slattery had Potentia’s back, while Herbert Smith Freehills looked after Weir: AFR

SECTOR SPECIFIC

End of an era

🚜 DIGGERS

• Remote power specialist Zenith Energy has wrapped up a $1.9bn refi, attracting 7 new lenders—including Deutsche Bank and Bank of China—alongside existing backers like ANZ and NAB, bringing the total to 14. This comes as bidders for a 50% stake in Zenith will resubmit first-round offers by the end of March: AFR

• Whyalla Steelworks was bleeding $1.5m a day before slipping into voluntary administration, with debts piling up to $1.34bn—$190m of that owed to employees and $570m owed to entities owned by British industrial giant Sanjeev Gupta. Korda Mentha has been brought in as administrators. And they say the business was "hard-wired" to lose money by selling products too cheaply to Sanjeev Gupta's British empire: The Australian, SMH

🏦 FIN

• AustralianSuper is cutting ties with troubled administrator MUFG, shifting member-facing services in-house. The nation’s largest super fund, reeling from several scandals, will manage advice and employer services internally, while retaining MUFG for only basic functions. The overhaul follows a $27m fine issued by ASIC for account mishandling: The Australian

• AZ Next Generation Advisory has secured a $345m debt deal to fuel its growth strategy, with global investment giant Barings acting as lead arranger. The funding comes months after Oaktree Capital’s $240m investment and follows a series of M&A deals. With this boost, AZ NGA is poised to expand both organically and through acquisitions. G+T advised Oaktree on the debt deal: AFR

🏡 RETAIL & REAL ESTATE

• Star Entertainment is reportedly considering converting its Sydney hotel and casino complex into apartments as part of a desperate cash grab: The Australian

• Sydney's industrial space is becoming a rare commodity. Retailers like Aldi are struggling to secure the warehousing and distribution facilities they need to keep pace with the city’s growing population. It took more than 2 years to land a lease for industrial land near the new Western Sydney airport: AFR

📱 TECH

• It’s the end of an era. Microsoft is pulling the plug on Skype, 14 years after buying the business for US$8.5bn (A$13.7bn). The pioneer of internet comms just couldn’t keep up with the likes of Zoom and WhatsApp: Financial Times

• Thanks to bumper sales in its Prime subscription business, Amazon hit a record $7.7bn in Australian revenue last year—up around 20%. That’s solidifying its growing grip on Australia’s e-commerce market: AFR

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