Unexpected defeat for Macquarie in $1.3b bid on European waste company

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Unexpected defeat for Macquarie in $1.3b bid on European waste company
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The target, Renewi, appears to have put the financial services giant back in its box. But it left the door open for a higher bid.

| Macquarie has staged a forced retreat from a £665 million takeover bid for European waste management group Renewi, after the target refused to play ball.

Renewi’s share price nose-dived after Macquarie’s statement, shedding more than 18 per cent. The stock closed at £5.40, having soared as high as £7.37 after Macquarie first tabled its £7.75-a-share bid on September 28.Renewi signalled a desire to remain independent and pursue its own growth path, but at least formally left the door open for an even higher bid.

Macuqarie’s initial offer represented a 50 per cent premium to the pre-bid share price, but Renewi said it had consulted shareholders before rejecting the proposal. Macquarie has spent over a decade steadily building its presence in the waste management sector, having spent more than $US5 billion in the United States, with other investments in Asian countries including China and Korea.

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