Why has the Macquarie share price been thrashed 10% in a fortnight?

Macquarie reportedly lost a takeover bid for Suez Recycling and Recovery UK last week.

| More on:
A group of disappointed board members.

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

  • A consortium of companies has stepped in to rip the proposed acquisition from Macquarie's hands
  • The consortium exercised their right of refusal, which pushed Macquarie out of the picture
  • Still, Macquarie is on a steady acquisition trail

The Macquarie Group Ltd (ASX: MQG) share price is down 10.6% in two weeks. Last week the bank lost a proposed takeover bid for Suez Recycling and Recovery UK.

A consortium of companies has pushed in on Macquarie's acquisition of Suez, as reported by the Australian Financial Review.

Last Wednesday night, the consortium was said to exercise its right of refusal, which put Macquarie out of the picture.

The article reports that members of the consortium include the companies Meridiam, Global Infrastructure Partners, Caisse des Depots Group, and CNP Assurances. My Fool colleague Bernd notes, this is the same group of companies that own Suez's operations in France.

Before Macquarie's deal fell apart, Britain's market regulator had instructed French waste management giant Veolia, which owns Suez Recycling, to divest the business on antitrust concerns that were raised in May.

The divestment was deemed necessary as it could lead to anti-competitive practices, potentially leading to higher consumer prices.

A spokesperson for Macquarie made the following comments on the failed bid:

As previously announced, our proposed investment in Suez's UK recycling and recovery operations was subject to the satisfaction of certain closing conditions, including a right of first refusal. We look forward to identifying other opportunities in the sector where we can support the transition to a more sustainable, circular economy.

Macquarie reportedly offered to buy the company for 2.5 billion euros (AU$3.7 billion).

While Macquarie's acquisition of Suez has apparently fallen apart, the company could have other irons in the fire. In March, it was speculated that Macquarie could be eying up the wealth division of Westpac Banking Corp (ASX: WBC), which could be worth $1 billion.

Macquarie share price snapshot

The Macquarie share price is down 21% year to date. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is down 13% over the same period.

The company's market capitalisation is $63.98 billion.

Motley Fool contributor Matthew Farley 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 and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Financial Shares

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Financial Shares

IAG share price reaches new 5-year high! What next?

It’s been a great period for the insurance giant. Could it keep rising?

Read more »

Shot of a young businesswoman looking stressed out while working in an office.
Financial Shares

This $7 billion ASX 200 stock just crashed 11%. What's going on?

There's trouble in India and it's weighing on this stock today.

Read more »

A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements
Financial Shares

Here's what this top broker is saying about Macquarie shares

Is this investment bank heading to a new record high?

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Financial Shares

Up 25% in a year, why this ASX All Ords stock has 'plenty more upside'

Analysts think this stock could still have plenty of gas left in its tank.

Read more »

Two people climb to the summit and raise their arms in success as the sun rises brightly over the mountains.
Financial Shares

'Strong momentum': 2 ASX financial shares backed by top fundie for 2025

ASX financial shares had a strong trading session on Tuesday with several new price records set.

Read more »

A woman presenting company news to investors looks back at the camera and smiles.
Financial Shares

AMP shares on radar as M&A spotlight shines bright

The stock has rallied hard in 2024.

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Financial Shares

Are IAG shares still a buy for dividends at a 5-year high?

Here's my take on IAG's place in an income portfolio today.

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Financial Shares

After ResMed's 60% rise, this investor is now bullish on the 'most hated' ASX stock

Sometimes it pays to be a contrarian.

Read more »