Swedish investment firm EQT AB and CVC Capital Partners‘ Asia Pacific arm have ended talks over a possible buyout of Australian insurance broker AUB Group Ltd, according to regulatory filings.
In a letter to the Australian Exchange, AUB said the consortium has scrapped a potential deal that had contemplated paying A$45 a share in cash for the company. Bloomberg reported that the offer valued AUB at around $3.4 billion.
“The consortium has advised AUB that it does not intend to proceed with a binding proposal at a price of A$45 per share. Accordingly, the parties have agreed to terminate discussions,” AUB said.
AUB’s board said it continued to believe the A$45-a-share price “appropriately values” the company in the current market environment.
AUB, an ASX 200-listed group, operates insurance broker and underwriting agency businesses across about 579 locations, and said its teams work with about 1.2 million clients to place more than $11 billion in insurance premiums with domestic and international insurers.
The broker had been in discussions with EQT and CVC after receiving an unsolicited, confidential, and non-binding indicative proposal to acquire 100% of AUB via a scheme of arrangement, the company said.
Chief executive Michael Emmett said AUB’s performance remained “robust”, pointing to a clear strategy and disciplined execution.
“The recent due diligence process, while demanding, has reaffirmed our confidence in our improvement initiatives and long-term growth prospects,” Emmett said.
The company, he added, would now focus on its organic growth plans and acquisition opportunities.
AUB also reaffirmed its FY2026 guidance for underlying net profit after tax of A$215.0 million to A$227.0 million, implying earnings growth of 7.4% to 13.4%.
It said it remained confident in its forecast FY2026 financial performance and saw “significant opportunities” to grow profits in FY2027 and beyond.
AUB shares tumbled as much as 18% to A$30.48 on Monday morning in Sydney.
