M&A Monday: four deals, $22.4b, one theme

What happened

On Monday 19 October, four ASX-listed companies moved a step closer to new owners. Wilson Asset Management put the combined value at $22.4 billion.

• Challenger (~$7.8b). A unit of Japan's Dai-ichi Life, already a 20% holder, tabled a non-binding, indicative proposal at $11.80 a share. The board is considering it.
• Cleanaway (~$9.4b). EQT firmed its interest into a proposed scheme at $3.095 cash a share, a 32% premium to the last close.
• Reliance Worldwide ($4.1b). Brookfield's agreed deal cleared its go-shop window with no rival bid.
• FleetPartners ($1.1b). PEP-owned SG Fleet signed a binding scheme at $5.30 cash, ahead of ORIX and a Sumitomo consortium.

The deals in detail

• Challenger. Dai-ichi first bought 15.1% in April 2025 and now holds about 20.4%. Its $11.80 is a 19.8% premium to the prior close and is subject to due diligence. The shares jumped more than 15% to $11.33, their highest since 2018.
• Cleanaway. EQT's $3.095 cash scheme implies an enterprise value of about $9.3 billion. Implementation is targeted by March 2027, subject to shareholder and regulatory approvals.
• Reliance Worldwide. Brookfield's price is fixed in US dollars at US$3.38 a share, about A$4.87 on 19 October. Its first proposal in August was about 32% above the undisturbed price. The 30-day go-shop ended with no rival, the scheme vote is set for December, and completion is targeted for late December.
• FleetPartners. SG Fleet's $5.30 beat the $4.65 offered by ORIX and a Sumitomo consortium. It still needs ACCC, FIRB and New Zealand approvals, plus shareholder and court sign-off.

The pattern

Three of the four buyers are offshore. The fourth is private equity. That is the trend PwC flagged in February: foreign buyers accounted for 45% of Australian deal value in 2025, up from 30% a year earlier, while private equity buyouts rose 32% to US$30.5 billion.

It is also happening with the cash rate at 4.60% after four RBA hikes this year. Dearer debt has not stopped buyers who bring patient equity and see listed mid-caps priced below what the businesses are worth to them. Fund managers quoted by Wilson Asset Management point to that valuation gap, to mid-caps left behind as rates rose, and to a weaker Australian dollar that makes local assets cheaper for offshore buyers.

The currency detail

Brookfield fixed its Reliance price in US dollars, so the Australian-dollar value moves with the exchange rate until completion. That is a small clause with a real effect: it decides who carries currency risk between signing and settlement.

The mid-market read

None of these are mid-market deals, but the logic runs down the size curve. If your business has been overlooked on market or under-priced in private hands, someone with offshore capital is already doing the maths. Three things to have ready before the call comes:

1. An EBITDA you can defend. Every normalisation documented, line by line, before a buyer's diligence team does it for you.
2. Your own value range. So an unsolicited approach becomes a negotiation, not a surprise.
3. A view on the fine print. Currency, conditions, approvals and timing can move the real price as much as the headline.

What to watch

• Whether Dai-ichi's due diligence on Challenger turns into a binding offer.
• FIRB and ACCC clearances for Cleanaway and FleetPartners.
• Reliance Worldwide's scheme vote in December.

General information only, not financial product advice. Deal values are as reported by Wilson Asset Management and can differ by source and by measure (equity or enterprise value).