EQT Makes A$5.25 Billion Takeover Offer for AUB Group Amid Insurance Sector M&A Surge

Swedish private equity giant EQT has made a takeover bid for Australia’s AUB Group, valuing the insurance brokerage firm at approximately A$5.25 billion (US$3.41 billion). Under the proposal, EQT is offering A$45 per AUB share, representing a 25.1% premium to the company’s last closing price. Following the announcement, AUB’s stock surged as much as 11% to a record high of A$39.95, though it remained below the offer price.

The bid comes after EQT’s earlier A$43 per share offer, indicating its strong interest in expanding within Australia’s financial services sector. AUB confirmed it had entered a confidentiality and exclusivity agreement with EQT, granting the firm six weeks of due diligence access beginning October 8.

Despite steady institutional backing, AUB’s shares have underperformed the broader market and its rival Steadfast Group over the past year. The company temporarily paused trading on Monday after its shares jumped more than 12%, citing the need to address speculation surrounding the potential acquisition.

AUB’s shareholder structure has evolved recently, notably after Odyssey Investment Partners sold down nearly A$277 million worth of shares last year. Its top investors now include First Sentier Investors and Capital World Investors, according to data from LSEG.

The takeover interest highlights growing M&A activity in Australia’s insurance sector, as global investors pursue stable returns in a resilient market. Analysts from Jarden noted that with organic growth slowing and brokers well-capitalized, consolidation is likely to continue.

EQT, known for its global acquisitions, has also been linked to potential bids for Perpetual’s wealth and corporate trust business, signaling its ongoing appetite for Australian financial assets.