EQT’s Pursuit of Perpetual Faces New Setback as Australian Wealth Manager Rejects Revised €1.5 Billion Offer
The decision highlights the increasingly disciplined approach to mergers and acquisitions as buyers and sellers continue to differ on valuations in today’s uncertain market.
Swedish investment firm EQT has suffered another setback in its attempt to acquire Australian financial services company Perpetual, after the target’s board unanimously rejected an improved takeover proposal worth approximately A$2.5 billion (€1.5 billion).
The revised offer valued Perpetual at A$22.07 per share, representing a modest increase over EQT’s initial proposal. However, the Australian wealth manager concluded that the offer continued to undervalue the business and was not in the best interests of shareholders.
The rejection leaves the future of the transaction uncertain and raises questions over whether EQT is prepared to increase its offer further or abandon the pursuit altogether.
Private equity remains active despite valuation gaps
The failed negotiations illustrate one of the defining trends in today’s mergers and acquisitions market: private equity firms continue to pursue high-quality assets, but boards are becoming increasingly reluctant to sell unless buyers offer substantial premiums.
Perpetual, one of Australia’s oldest financial institutions, has attracted repeated takeover interest in recent years as investors seek exposure to its corporate trust, asset management and wealth management businesses. The company has previously rejected several acquisition approaches, arguing they did not adequately reflect its strategic value.
EQT continues expanding globally
For EQT, the transaction fits within a broader strategy of expanding its international portfolio across financial services, healthcare, infrastructure and technology.
The Stockholm-based private equity group has become one of Europe’s largest investment firms, managing assets across multiple continents and actively pursuing acquisitions in developed markets.
Although the revised proposal offered shareholders a premium of roughly 22% over Perpetual’s share price before the initial approach became public, the board maintained that the valuation remained insufficient.
Market watches next move
Investors are now focused on whether EQT will return with a higher offer or walk away from negotiations.
Analysts note that prolonged uncertainty could weigh on Perpetual’s share price if expectations of a takeover begin to fade, while a significantly improved proposal could reopen discussions.
The case also reflects a broader shift in global dealmaking, where higher financing costs and greater economic uncertainty are forcing buyers to be more selective while encouraging target companies to defend valuations they believe underestimate future growth.
Europe remains a major force in global M&A
The proposed acquisition underscores the continued international reach of European private equity firms.
Despite a more cautious investment environment, companies such as EQT continue to seek strategic acquisitions outside Europe, particularly in financial services and infrastructure, as they diversify portfolios and pursue long-term value creation.
Whether negotiations resume or the deal collapses, the episode demonstrates that valuation discipline has become one of the defining characteristics of today’s global M&A market.
