Finance
Australia's AUB Group sinks as EQT, CVC drop $3.44 billion pursuit
Published by Global Banking and Finance Review
Posted on December 1, 2025
Last updated: January 8, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 1, 2025
Last updated: January 8, 2026
By Kumar Tanishk and Nikita Maria Jino
Dec 1 (Reuters) - Australia's AUB Group said on Monday its suitors EQT and CVC Asia Pacific had abandoned their pursuit that valued the insurance broker at A$5.25 billion ($3.44 billion), sending its shares more than 17% lower.
Shares of the Sydney-based firm plunged 17.5% by 0011 GMT to A$30.66 in what could be their weakest day on record and were the top losers on the benchmark ASX200 index, which was trading flat.
The consortium of Swedish private equity firm EQT and CVC Asia Pacific opted to halt further talks, AUB said in a statement, adding that the A$45 per-share offer aptly mirrored its market value.
The offer price represented a 25.1% premium to AUB's last close when announced in late October. The stock has never reached the offer price.
"Australian insurance companies remain attractive, despite a large player walking away from AUB," said Jessica Amir, a market strategist at online trading platform Moomoo, noting that premiums have been rising and margins are expanding as interest rates stay elevated.
"Regardless of the failed takeover, the fundamentals remain intact - a clear 'nothing to see here' moment for long-term shareholders... It also opens the door for rival bidders and gives retail investors a chance to buy the dip."
Meanwhile, AUB reaffirmed its fiscal 2026 forecast, projecting underlying net profit after tax in the range of A$215 million to A$227 million, up from A$200.2 million in 2025.
The group operates at 579 locations across Australia and serves nearly 1.2 million clients.
($1 = 1.5272 Australian dollars)
(Reporting by Kumar Tanishk and Nikita Maria Jino in Bengaluru; Editing by Subhranshu Sahu)
Equity refers to the ownership value in an asset or company, representing the shareholders' stake after all liabilities have been deducted.
A financial market is a marketplace where assets such as stocks, bonds, and currencies are traded, facilitating the exchange of capital and investment.
A takeover occurs when one company acquires control over another company, often through purchasing a majority of its shares.
A trading platform is software that allows investors to buy and sell financial securities like stocks and bonds through a brokerage.
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