The Australian government's recent decision to block Shell's takeover bid for Woodside Petroleum, the Australian oil company, was a surprise to many in the international financial community - except, perhaps to UBS Warburg and a handful of other investment banks.

UBS is advising BHP, the Australian mining company, on its merger with Billiton, and also GKN, the UK engineering company, on its merger with the Australian Brambles, the country's fourth largest company. Both of these Anglo-Australian mergers were announced this quarter, and both groups are opting for a dual-listed company (DLC) to bring the two merged companies together.