Australia's Macquarie Group has made a significant move in the UK's mergers and acquisitions landscape by proposing to acquire the UK-listed waste management company Renewi for approximately £700.9 million ($887 million). This offer comes after a previous attempt by Macquarie to take over Renewi was rejected last year. The proposed deal values Renewi at 870 pence per share, representing a 57% premium to its closing price prior to the announcement. Renewi's shares surged by as much as 47% following the news, marking their highest level since August 2022.

Macquarie, Australia's largest investment bank, has reached a preliminary agreement with Renewi on the financial terms of the deal. The asset manager has received commitments from major shareholders, including Coast Capital, Avenue Europe International Management, and Paradice Investment Management, who collectively own 19% of Renewi's shares, to support the offer. Renewi has agreed to provide Macquarie with access to its books for due diligence, and the board has indicated it would recommend the offer to shareholders if a formal bid is made.

This acquisition is part of a broader trend of foreign firms acquiring undervalued UK-listed companies. Renewi, which operates in Belgium, the Netherlands, France, and Portugal, has been a leader in Europe's recycling markets. The company recently sold its UK municipal division to Biffa, allowing it to focus on expanding its operations across Europe.

Macquarie's offer is seen as a strategic move to bolster its presence in the waste management sector, following its acquisition of Beauparc Utilities in 2021. The deal is expected to support Renewi's current strategy and transformation programs, while safeguarding employee rights.

The proposed acquisition is subject to regulatory approval, with a deadline for a formal offer set for December 26. If successful, this deal would mark another significant foreign acquisition of a UK-listed firm, amidst a flurry of similar transactions in recent months.