Swedish private equity firm EQT has made a A$5.25bn ($3.41bn) takeover offer for AUB Group, one of Australia’s largest insurance broking companies, as global investors continue to target the country’s financial services sector, according to a report by Reuters.

Under the proposal, EQT is offering A$45 per share in cash, a 25.1% premium to AUB’s last closing price and higher than its previous bid of A$43. The firm has been granted exclusive access to AUB’s books for a six-week due diligence period that began on 8 October.

The announcement sent AUB shares up 11% to a record A$39.95, though the stock remains below the proposed offer price. The Sydney-listed company has agreed to a confidentiality and exclusivity agreement with EQT as discussions progress.

The potential acquisition comes as insurance brokers across Australia and New Zealand attract increased private equity interest, driven by stable premium growth and robust cash generation. 

AUB, which has underperformed its rival Steadfast Group over the past year, counts First Sentier Investors and Capital World Investors among its largest shareholders. The company’s ownership structure shifted last year following a A$277m partial sell-down by U.S. private equity firm Odyssey Investment Partners.

For EQT, the move extends its ongoing push into Asia-Pacific financial services, following recent interest in Perpetual’s wealth and corporate trust business. The deal, if completed, would mark one of the region’s largest private equity acquisitions in the insurance broking sector this year.

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