On Friday, Stifel analysts downgraded shares of Renewi PLC (RWI:LN) from Buy to Hold, setting a price target of £8.70. This move follows the recent developments in the company’s acquisition proceedings. Last week, Renewi announced that its Board and Bidco—a consortium comprising Macquarie Group (OTC:MQBKY) and British Columbia Investment Management Corporation (BCI)—had agreed on the terms of a recommended cash offer of 870 pence per share.
The acquisition saga began when Macquarie first proposed to buy Renewi for 775 pence per share in September 2023. After the Board rebuffed a revised offer of 810 pence, a preliminary agreement was finally struck at 870 pence per share in November 2024. As of February 13, 2025, when the agreement was announced, 21.1% of Renewi’s shareholders, including Directors with an interest in the company, have committed irrevocably to the offer.
Stifel analysts believe a competing bid is unlikely at this stage, considering that Macquarie’s interest in Renewi has been public knowledge since September 2023, and no other potential buyers have stepped forward. The analysts’ commentary suggests that the current offer from Macquarie and BCI is expected to proceed without significant challenge.
Renewi’s share price and the broader market response to the downgrade and the acquisition news will be closely watched by investors. The company’s stock performance in the coming days will reflect the market’s reception of both the Stifel downgrade and the ongoing acquisition process.
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