Stock of the day
EQT and CVC ended takeover discussions with AUB Group, wiping out the premium and sparking a 16% share price decline.
(AI video summary)
This video was created on 1 December 2025 for IG audiences by ausbiz.
AUB Group has confirmed that takeover discussions with private equity firms EQT and CVC have ended after more than a month of due diligence. The proposed deal, which included a binding bid of $45 a share and valued the insurance broker and underwriter at more than $5 billion, has been withdrawn.
The company reaffirmed its underlying net profit guidance of $215 million and stated that its focus will now shift to organic growth initiatives and acquisition opportunities.
Analysts warn the insurance sector may have peaked after a multi-year rally driven by inflation and higher yields. Falling yields and slowing global growth could pressure margins.
AUB shares fell 16% following the announcement, erasing the takeover premium. Analysts suggest that investors who held on for the bid should consider taking profits and reallocating capital.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.