Dutch-British waste processor Renewi, which is also active in Belgium, has become a takeover target for an Australian investment fund. The asset management arm of investment bank Macquarie has made a bid valuing Renewi at around £636 million (€736 million). But the waste processor believes the price is too low and calls on shareholders not to accept the proposal.
According to Macquarie, the offer is more than half higher than the closing price of Renewi shares on Tuesday. Renewi’s board rejects the offer because it would be too low compared to all the possibilities the company believes it will have in the future.
Macquarie already invests heavily in waste companies, and last year bought several US companies in the industry. In June, for example, the Australians took a majority stake in Coastal Waste & Recycling, which collects waste from about 450,000 customers in Florida and Georgia.
This experience in waste processing could also benefit Renewi, says the bank’s investment department. Municipalities, companies and households in the Netherlands, the United Kingdom and Belgium could also benefit from the acquisition of the listed company.
Renewi was created in 2017 through the merger of the British Shanks Group and the Dutch company Van Gansewinkel. The rejected takeover offer caused a strong reaction on the Amsterdam Stock Exchange. Renewi shares were up about 39 percent Wednesday afternoon.
Free unlimited access to Showbytes? Which can!
Log in or create an account and never miss a thing from the stars.
“Total coffee specialist. Hardcore reader. Incurable music scholar. Web guru. Freelance troublemaker. Problem solver. Travel trailblazer.”
More Stories
Thai Air Force wants Swedish Gripen 39 fighter jets
Ageas surprises with higher operating result
Horse Palace in Belt for sale