Macquarie share price slips despite rumours $3.7 billion acquisition imminent

French company Veolia is divesting itself of the assets to resolve antitrust concerns raised in May by UK regulators.

| More on:
A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The Macquarie share price is down 0.48% so far on Monday
  • The ASX 200 financial share is seeking to acquire Suez SA’s United Kingdom waste business for $3.7 billion
  • People in the know say a deal could be announced any day now

The Macquarie Group Ltd (ASX: MQG) share price is dipping into the red in early afternoon trading.

Macquarie shares closed on Friday at $176.93 each and are currently trading for $176.08 a share, down 0.48%.

The S&P/ASX 200 Index (ASX: XJO) financial share, which also counts amongst Australia's largest bank shares by market capitalisation, isn't the only financial share in the red. The S&P/ASX 200 Financials Index (ASX: XFJ) is also down 0.22% at the time of writing.

The Macquarie share price is dipping alongside the broader financial sector amid news hitting the wires about an imminent $3.7 billion acquisition.

Deal could be announced anytime

As Bloomberg reports, Macquarie appears poised to acquire Suez SA's United Kingdom waste business from Veolia Environnement SA for some 2.5 billion euros (AU$3.7 billion), according to "people with knowledge of the matter".

As the transaction details for water and waste-treatment business are private, those people requested anonymity.

Veolia is divesting itself of the asset to resolve antitrust concerns raised in May.

At the time, the UK Competition and Markets Authority said Veolia's acquisition of Suez's UK-based business could hurt competition and increase prices. Veolia didn't agree with that assessment but in June said it would divest itself of the asset. The company said the sale would "free up significant cash flow to finance new developments, particularly in the energy sector".

But Macquarie's acquisition isn't quite in the bag yet.

An investor group led by Meridiam SAS and Global Infrastructure Partners has already acquired Suez's operations in France. According to the people Bloomberg sourced, the investor group can still make a counteroffer to Macquarie's $3.7 billion bid for Suez's UK business.

Macquarie has not yet commented on the state of its acquisition bid.

Stay tuned.

Macquarie share price snapshot

The Macquarie share price is up more than 11% over the past 12 months. That compares to a full year loss of 7% posted by the ASX 200.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Mergers & Acquisitions

Six smiling health workers pose for a selfie.
Healthcare Shares

Guess how much $5,000 invested in Sigma shares in December 2023 is worth now!

Sigma shares have soared over the past year alongside the merger with Chemist Warehouse.

Read more »

A person holds a stop sign in front of their head
Mergers & Acquisitions

This ASX All Ords stock is up 150% in a year. Here's why it's just been placed in a trading halt

Why is this stock out of action on Monday? Let's find out.

Read more »

Multiple ASX share investors take on one another in a tug of war in a high rise building.
Mergers & Acquisitions

Up 116% in a year, Insignia Financial share price rockets again as bidding war heats up

Insignia Financial shares have just attracted takeover interest from a third suitor.

Read more »

Mining workers in high vis vests and hard hats discuss plans for the mining site they are at as heavy equipment moves earth behind them, representing opportunities among ASX 200 shares as nominated by top broker Macquarie
Materials Shares

Fortescue shares charge higher on Red Hawk takeover boost

This mining giant is moving closer to getting a takeover deal over the line.

Read more »

A man in a suit face palms at the downturn happening with shares today.
Mergers & Acquisitions

Guess which $8 billion ASX 200 stock just failed with a takeover bid

It has been an embarrassing outcome for the blue chip stock.

Read more »

Man pointing at a blue rising share price graph.
Mergers & Acquisitions

Guess which ASX All Ords tech stock just rocketed 30% on takeover news

The ASX All Ords tech stock is bucking the broader tech sell-off today to rocket higher.

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Mergers & Acquisitions

Fortescue shares slide on $254m Pilbara acquisition

This mining giant is making a new acquisition. Here's what it has announced.

Read more »

Ecstatic woman looking at her phone outside with her fist pumped.
Mergers & Acquisitions

Myer shares race higher on 'overwhelming support' for merger

The department store expects the merger to create a stronger business.

Read more »