Australia’s wealthiest couple, Andrew and Nicola Forrest, have separated after more than three decades of marriage, but they say the split will not affect their shared business or philanthropic interests.
Most of their wealth comes from a more than one-third stake in iron ore miner Fortescue, which is attempting to diversify into hydrogen production.
Andrew Forrest, the executive chair at Fortescue, is listed among the world’s 100 wealthiest people, with US$20.3bn, according to Forbes. When the wealth gets divided, Nicola Forrest is set to become Australia’s second-richest woman behind iron ore magnate Gina Rinehart.
In a joint statement, the couple said they would continue to create and give away money to tackle community and global challenges.
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“After 31 years of marriage, we have made the decision to live apart,” the pair said. “Our friendship and commitment to our family remains strong. There is no impact on the operations, control or direction of Fortescue, Minderoo or Tattarang.”
Minderoo is the Forrests’ philanthropic organisation, while Tattarang is an investment office that houses other business interests including bootmaker RM Williams.
The split was first confirmed by the billionaire couple to the Australian Financial Review in response to inquiries about a transaction that shifted Fortescue shares under the control of Nicola Forrest.
There have been other recent adjustments to the structure of the couple’s Fortescue holdings, as well as changes to the philanthropic objectives of Minderoo.
While the marriage breakdown will impact ownership stakes in Fortescue, assurances of their commitment to the iron ore miner and other interests are designed to soothe investor concerns.
When a major investor sells a large stake in a listed company, the share price would typically be depressed.
Vas Kolesnikoff, the head of Australia and New Zealand research at governance group Institutional Shareholder Services, said the initial signs were that the split would be handled amicably and business and philanthropic interests protected.
“No one knows how all this plays out, but it doesn’t seem like it’s a bayonets at 10 paces scenario,” Kolesnikoff said. “On the face of it, it’s not going to blow up.”
Influential couples have used various mechanisms to protect business interests when they separate.
When Jeff Bezos and MacKenzie Scott split up in 2019, the Amazon founder retained most of the couple’s shares in the company, and all of the voting rights, as part of the arrangement.
Shares in Fortescue were rising on Thursday in a strong market, which suggests there was no immediate concern from investors.
The Forrests were the first Australians in 2013 to sign the Giving Pledge – a vow also taken by Warren Buffett, Bill Gates and Elon Musk – to give away most of their wealth during their lifetimes.
With AAP
