Sydney, March 20, 2026, 10:32 AEDT
Macquarie Group was in focus in Sydney on Friday after it filed another update on its on-market buyback, a share repurchase program, and investors kept weighing the firm’s decision to walk away from a bid for Kuwait’s oil pipeline network valued at up to $7 billion. The shares finished Thursday at A$196.09, down 0.65%, according to ASX data. 1
For markets, the bigger issue may be the Kuwait pullout. It is one of the clearest signs yet that the Iran war is starting to unsettle Gulf dealmaking, an area where Macquarie has deployed capital for years, just as higher oil prices and Australia’s return to rate increases threaten to lift funding costs. 2
Two people familiar with the matter told Reuters Macquarie informed Kuwait Petroleum Corporation last Friday that it was exiting the sale process because of the conflict and the uncertain outlook. KPC is still seeking non-binding offers by April 7 despite declaring force majeure — a contract clause used when extraordinary events disrupt obligations — and cutting production. 2
Martin Bradley, Macquarie’s head of infrastructure for Europe, the Middle East and Africa, said in an emailed statement the firm “will continue to be committed to the region” and was still progressing long-term opportunities, including in Kuwait. He did not comment on the specific pipeline sale. 2
BlackRock and KKR had previously been reported as interested in the pipeline network, though Reuters could not determine whether they remain in the running. Other Gulf asset sales are still moving ahead, but advisers told Reuters that deadlines and pricing are coming under pressure as investors revisit war-risk clauses and financing assumptions. 2
Macquarie went into the latest bout of volatility after telling investors in February that conditions were “satisfactory”. The group reported a A$7.5 billion capital surplus at Dec. 31, with deposits up 6% to A$204.5 billion and home loans up 7% to A$172.2 billion. 3
That domestic bank is now dealing with a tougher rate backdrop. Macquarie said on Tuesday it would raise variable home-loan reference rates and the rates paid on transaction and savings accounts by 25 basis points, or 0.25 percentage point, from April 2 after the Reserve Bank of Australia lifted the cash rate to 4.10%. Ben Perham, head of personal banking, said the lender wanted to give mortgage customers more time to adjust while passing the full increase to savers. 4
The near-term outlook is uncertain. A longer conflict around the Strait of Hormuz could further slow infrastructure dealmaking and push valuations lower, while competition in Australian mortgages was already squeezing margins in Macquarie’s banking unit before the latest rate move. 2
Macquarie has also been returning capital to shareholders. It extended its on-market buyback to Nov. 6, 2026 in January and said about A$1.013 billion of the A$2 billion program had been completed as of Jan. 20; Friday’s ASX notice was another update under that plan. 5
