Takeover offers for Challenger and Cleanaway on a big day for deals

A Japanese-owned insurer has made a non-binding offer for Challenger, while Cleanaway has agreed to a $9.3 billion deal.

Confirmed

Two big Australian companies received takeover offers on Monday. Challenger, which sells retirement income products, received a "non-binding and conditional" offer from TAL Dai-ichi Life Australia. It offered $11.80 a share for the 79.5 per cent of Challenger it does not already own. That is 17.7 per cent more than its recent average share price. Challenger's board is considering the offer, and there is no certainty of a deal. Dai-ichi Life says no binding deal has been decided. Waste company Cleanaway went further. It signed a binding deal with Sedum Group, backed by EQT funds, at $3.095 cash a share, less any dividends. That values the business at about $9.3 billion, a 32.1 per cent premium. Cleanaway's board unanimously backs the deal, as long as no better offer comes and an independent expert agrees. It is expected to be finished by the end of March 2027. The Australian Financial Review said Monday's takeover deals were worth $22.4 billion. Many Australians own these shares through their super.