Sweden's EQT agrees to acquire Australia's Cleanaway Waste for US$6.5 billion, adding another case to the wave of privatizations of Australian stocks.

Swedish private equity firm EQT AB has agreed to acquire Australian waste management company Cleanaway Waste Management Ltd. through one of its entities, in a deal that values the company at about A$9.3 billion (US$6.5 billion). After a period of weak share price performance, the Australian company becomes the latest local firm to pass into private hands. According to an exchange announcement on Monday, EQT entity Sedum Group Pty Ltd. will acquire 100% of Cleanaway's shares for A$3.095 in cash per share, less the amount of any dividend. The waste management company's board will also pay shareholders a fully franked special dividend before the transaction is implemented, in the range of A$0.145 to A$0.190 per share. Melbourne-based Cleanaway thus joins a growing list of companies that have successively become targets of private equity acquisitions as their share prices came under pressure in the public market. Property group Ingenia Communities Group and IDP Education Ltd. are both currently in talks with private equity acquirers; advertising company oOh!Media Ltd. agreed in August to be taken private for A$898 million. The announcement said Cleanaway's board unanimously recommends that shareholders vote in favor of the transaction, which remains subject to conditions including shareholder approval and regulatory approval. Shareholders will be able to vote by the end of February 2027, and the transaction is expected to be implemented by the end of March. Barrenjoey Markets Pty Ltd. and Macquarie Capital are serving as joint financial advisers to Cleanaway, and Ashurst Perkins Coie is serving as its legal adviser.