Insights

Macquarie (ASX:MQG) share price up amid news of rival bid for Sydney Airport

Will the investment giant make a play for Australia’s largest airport?
The post Macquarie (ASX:MQG) share price up amid news of rival bid for Sydney Airport appeared first on The Motley Fool Australia. –

Macquarie Group Ltd (ASX: MQG) shares finished in the green today following reports it’s considering an attempt to secure a buyout for Sydney Airport Holdings Pty Ltd (ASX: SYD) as part of a consortium. By market close, the Macquarie share price was trading 0.45% higher at $157.17.

Let’s dive into today’s developments regarding a potential new bidding war for Australia’s largest airport operator.

Macquarie share price outperforms on Thursday

The Macquarie share price managed to outperform the S&P/ASX 200 Index (ASX: XJO) today, which finished the session just 0.2% higher. This came following reports from various sources that Macquarie is weighing up the possibility of lobbing a rival bid for Sydney Airport.

By way of a quick recap, last Friday a consortium of infrastructure investors had proposed a $22 billion all-cash buyout offer for Sydney Airport. The original consortium, made up by the syndicate of IFM Investors, QSuper and Global Infrastructure Partners, made the offer at $8.25 per share, a roughly 42% premium to the Airport’s closing price last Friday afternoon.

Now, according to Bloomberg, investment bank powerhouse Macquarie is said to be considering throwing its hat in the ring, reportedly structuring its own pitch to comb in investors from its stand-alone business Macquarie Infrastructure and Real Assets.

Regardless of whether the company were to match or beat the original offer, the buyout would rank as Australia’s largest-ever acquisition and would be on the podium as one of the largest airport transactions ever recorded.

Macquarie, which holds $562 billion in assets under management at the time of writing, may also consider joining the original consortium trio if the rival bid fails to convert, Bloomberg reported.

The Macquarie share price jumped in early trading this morning, reaching an intraday high of $157.87 around midday, before making the walk south into negative territory and then recovering to its closing level in the green.

Today’s results extend the gains for Macquarie shares over the past 12 months, which have posted a return of ~29% over this period.

What does this mean for Sydney Airport?

Shares in the airport operator catapulted from the market open today, jumping from $7.61 straight up to $7.88 in the first 30 minutes of trading.

After that, Sydney Airport shares largely traded sideways, with little volatility, finishing the day 2.89% higher.

Sydney Airport shares also saw a huge swing to the upside on Monday this week when the buyout offer was first announced.

Immediately following Monday’s open, the company’s shares skyrocketed 37% into the green, and have extended these gains today.

Monday’s extreme share price action can be clearly seen on the 3-month chart below.

Chart Source: The Motley Fool

Foolish takeaway

The Sydney Airport share price continues to remain under the magnifying glass, now that this potential new bidding war has surfaced.

Macquarie Group is reportedly still in the process of considering an offer, while the original offer of $22 billion in cash or $8.25 per share remains firmly on the table from the original consortium.

The Macquarie share price continues in the green over the past week, finishing up 0.14% at today’s close on the previous 5 days.

At the current market price, shares in Sydney Airport are still trading at a discount of ~5% to the original offer of $8.25 per share.

The post Macquarie (ASX:MQG) share price up amid news of rival bid for Sydney Airport appeared first on The Motley Fool Australia.

Should you invest $1,000 in Macquarie right now?

Before you consider Macquarie, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Macquarie wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

Why the Sydney Airport (ASX:SYD) share price flew higher again today
ASX 200 rises, Macquarie up, Rural Funds launches capital raising

ASX 200 midday update: Zip rockets, AMP asset sale

Is the Macquarie (ASX:MQG) share price a buy for dividends?
AMP (ASX:AMP) share price in focus after Macquarie (ASX:MQG) asset sale agreement

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!