Macquarie Group’s shares dropped slightly due to differences in the market about the acquisition.
Macquarie Asset Management has set its sights on buying Qube Holdings Ltd. in a deal valued at A$11.6 billion ($7.5 billion). This deal would widen Macquarie’s global portfolio of infrastructure holdings by adding Australia’s leading ports and rail company.
Under the terms of the deal, Qube investors would receive AU$5.20 per share in cash, which is 28% more than the last closing price, the company stated on Monday.
Qube stated that its board recommended that investors accept the offer at this price if Macquarie Asset Management, a division of Macquarie Group, granted exclusive due diligence until Feb 1.
This exclusivity will enable Macquarie to see Qube’s financials and operations before making a bid. They will make a deal after clearing regular clearance, from the Investment Review Board and the Australian Competition & Consumer Commission.
Qube operates a network of transport and trade infrastructure that handles a vast array of goods and services necessary to the Australian economy, including outbound grain and cottonseed shipments, bulk-car imports from Asia, and rail cargo distribution across the country.
It oversees A$960 billion in assets across public and private markets, including container leasing, car and grain terminals, and a range of road and rail services in New York and New Jersey, as well as South Korean toll roads, making it a consolidated logistics operation in the region. This shows that it has a consistent appetite for core infrastructure assets that would produce stable, long-term returns. It could use Qube’s logistics network to support its existing infrastructure investments.
Qube’s share price increased by 19% in Sydney trading to reach AU$4.89, though this is short of the offer price. The gap between Qube’s stock price reflects the uncertainty of a lengthy due diligence process, regulatory challenges, and the time required to complete a deal.
Macquarie Group’s shares dropped slightly due to differences in the market about the acquisition.
This is not the first time Macquarie has approached Qube about a buyout. They made a previous bid with a lower offer, a shorter negotiation period, and limited initial due diligence. The details of the previous deal were not disclosed, but Qube clarified that there is no certainty that a binding offer will occur even after the current review period.
Macquarie Asset Management valued Qube for A$11.6 billion, which is about 14.4 times what Qube is expected to earn in the 2025 financial year before accounting for interest payments, taxes, depreciation, and amortisation. This valuation highlights the premium Macquarie is willing to pay for a company that has a critical role in Australia’s logistics and trade infrastructure.
The deal comes at a time of increased merger and acquisition activity in the Australian logistics sector. Other companies that have recently made deals include DP World’s acquisition of Silk Logistics, which expanded its warehousing and cartage capabilities, and Lindsay Australia, which bought SRT Logistics to grow its national cold chain footprint. These deals reflect a recent trend of consolidation as industry players plan moves for future growth and increased competition.
Qube’s chairman, John Bevan, expressed his optimism about the ongoing discussion and the board’s commitment to acting in shareholders’ best interests. Meanwhile, analysts like Samuel Seow from Citibank have stated that there is a positive outlook on Qube’s prospects but cautioned about risks from market competition and potential labour disruptions.
As the process unfolds, the focus will be on Macquarie’s ability to complete due diligence and secure the necessary approvals. If the deal gets a green light, it will mark another significant chapter in both Macquarie’s and Qube’s corporate histories, reshaping Australia’s logistics industry and reinforcing the appeal of infrastructure assets to global investors.
