The same familiar faces as last year dominate the asset heavyweights among the SA Giants. Banks and insurers, with significant assets in the form of loans or policyholder assets on the balance sheet, dominate. The only exceptions to the sectoral trend in the top 10 are BHP Billiton (4) and Anglo American (6).
It's significant that these financial players are still such heavyweights, considering that the financial markets have taken a considerable pounding in recent years. If equity markets continue to stagnate or fall for a while, then the situation may change. For now, though, financial companies are still right up at the top of the pile.
This is highlighted by the appearance of a relative minnow, at least in terms of market capitalisation and revenue, like financial and risk services provider Alexander Forbes in 14th place among the asset heavyweights.
Old Mutual still dominates this subsector by a wide margin, coming in at over R700bn of assets. Standard Bank and FirstRand are a shade over half its size. This may have changed recently with the strengthening of the rand, as much of Old Mutual's asset base is now domiciled in foreign jurisdictions like the UK and the US.
BHP Billiton, likewise, may experience an asset contraction as the rand strengthens, as most of its assets are outside SA.
Anglo's asset base is of extremely high quality and diverse. The quality also improved this year with the virtual halving of its debt through an accelerated debt repayment.
On a year-on-year comparison, weak equity markets are clear in the minor shrinkage of the assets of the three biggest life assurers, Old Mutual, Sanlam and Liberty.
Traditional industrial companies are relegated to the sub-R100bn league, with Sasol at 13, Sappi at 15 and SA Breweries at 18.
The newly named SABMiller's asset base should increase this year because of SAB's acquisition of Miller Brewing in the US last year. The deal had an enterprise value of about US$5bn, including net debt of about $2bn.
We won't know the exact figure until after publication of SABMiller's annual financials in July but it's safe to assume that the asset base has expanded significantly. Miller's vendor was Philip Morris (now Altria) which, in terms of the Miller sale agreement, is the largest shareholder in the SABMiller group.
