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Australia’s Macquarie explores $6 billion deal for Britain’s M&G, Sky News reports
Home > Top Stories > Australia’s Macquarie explores $6 billion deal for Britain’s M&G, Sky News reports
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(Reuters) – Australian investment bank Macquarie Group Ltd is at the early stages of exploring a takeover bid of over 5 billion pounds ($6.00 billion) for British money manager M&G, Sky News reported on Wednesday citing sources.
Macquarie is yet to make an approach to M&G’s board, according to the report.
The valuation is unclear as of now, the report said, adding that a typical takeover premium of 30% would take the offer to around 6.5 billion pounds.
Macquarie is unlikely to keep M&G’s insurance operations, the report added, and could either partner with a firm that could acquire that part the business or look to sell after completing the takeover.
M&G did not immediately respond to a Reuters request for comment while Macquarie declined to comment on the report.
The deal comes at a turbulent time for the British financial services sector as retail savers and investors battle with economic recession, rising interest rates and rampant inflation partly due to the impact of the Ukraine conflict.
(Reporting by Kanjyik Ghosh in Bengaluru; Editing by Krishna Chandra Eluri)
A takeover bid is an offer made by one company to purchase another company, typically at a premium over its current market price, to gain control of that company.
A valuation premium is an additional amount added to the market price of a company's shares during a takeover bid, often reflecting the perceived value of the company to the acquirer.
Insurance operations refer to the activities related to providing insurance products and services, including underwriting, claims processing, and risk management.
An economic recession is a significant decline in economic activity across the economy that lasts for an extended period, typically visible in GDP, income, employment, and production.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power, and is typically measured by the Consumer Price Index (CPI).
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