Cleanaway shares fall more than 4% as EQT takeover deadline nears

Shares in Cleanaway Waste Management tumbled during afternoon trading as investors awaited a definitive decision from Swedish private equity group EQT Infrastructure regarding its proposed acquisition of Australia's largest waste management company. According to reporting from Yahoo Finance and Capital Brief, the stock dropped more than 4% to reach $2.53, leaving the trading price roughly 19% below EQT’s proposed offer of $3.13 a share.

The stark difference between the market valuation and the buyout proposal highlights a deep disconnect among investors, who remain uncertain whether the transaction will ultimately proceed. This market tension unfolds against a broader backdrop of five years of sideways share price performance for the company. During that period, labour costs, inflation, and the operational expenses of waste management have weighed heavily on the business, as noted in the source reporting.

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Despite the market drop, Cleanaway received written reconfirmation from EQT Infrastructure stating that nothing had emerged from its due diligence review that was likely to prevent it from proceeding with the proposed acquisition. EQT’s board was scheduled to meet overnight to consider approving a potential non-binding offer. Meanwhile, the companies recently extended exclusive due diligence until 7am on Monday while progressing negotiations on an implementation deed for EQT's proposal.

The potential transaction has triggered broader conversations across the market regarding an ongoing wave of mergers and acquisitions in Australia, where global buyout funds are actively targeting undervalued industrial giants. According to Australian Financial Review coverage, at least 15 lenders are seeking approval to underwrite a colossal $5.5 million-plus debt package that would bankroll EQT’s $9.4 billion takeover of ASX-listed Cleanaway. Institutional investors including Cbus and Schroders are among those privately raising concerns, while Tanarra Capital accused the company of hiding its price negotiations.

Debate over the adequacy of the valuation remains fierce among market commentators. Writing in The Australian, commentator Robert Gottliebsen argued that EQT's offer falls below the underlying value of Cleanaway's core operations. He pointed to US waste disposal infrastructure businesses trading at around 14 times earnings before interest, tax, depreciation and amortisation. Applying that multiple, Gottliebsen estimated Cleanaway could be worth about $12 billion, or roughly $4 a share, above EQT's proposed offer.

Concurrently, fundamental business performance presents a complex financial picture detailed in company filings and stock analysis data. In fiscal year 2026, ASX:CWY's revenue was 4.40 billion, an increase of 14.28% compared to the previous year's 3.85 billion. Earnings were 98.50 million, a decrease of -37.22%. Earnings and cash flow grew in FY 2026, led by Solid Waste Services and Contract Resources, despite challenges in Health and Industrial Services. Major financial institutions have also weighed in on the stock: Goldman Sachs initiated coverage of Cleanaway Waste Management (TSPCF) with a Buy rating and A$3.15 price target The firm says the company has a “strong” strategic position in Australia’s waste… Similarly, RBC Capital analyst Owen Birrel initiated coverage of Cleanaway Waste Management with an Outperform rating and A$3.25 price target. Cleanaway is Australia’s largest provider of waste management servic...

Cleanaway stated that there was no certainty the proposal would result in a binding offer capable of being put to shareholders or that any transaction would proceed. Markets remain in a tense holding pattern ahead of the Monday morning deadline as EQT's final decision approaches.