Why is Cleanaway Waste Management stock rallying today?

Cleanaway Waste Management shares experienced a significant rise of 4.1% to A$2.675 on Monday following the company's confirmation of EQT Infrastructure's completion of the agreed exclusivity period and its renewed takeover proposal. EQT Infrastructure's due diligence process did not uncover any adverse findings, and the original offer price remains unchanged.

Both companies are actively working toward a mutual implementation deed, although a binding agreement has yet to be finalized, maintaining a sense of uncertainty in the market. However, the positive news surrounding the takeover proposal has provided investors with a clear signal of potential growth.

Adding to the day's momentum, Cleanaway's record date for its final fully franked FY26 dividend of 3.50 cents per share has been reached. This payment is scheduled to be made on October 8, 2026, and has attracted additional investor attention. The dividend represents a notable 14.2% increase compared to the prior corresponding period, demonstrating the company's strong underlying earnings trajectory.

The FY26 underlying EBIT for Cleanaway has risen 14.2% to approximately A$470 million, driven by solid waste services growth and the integration of the Contract Resources acquisition. Despite performing slightly below average within the ASX 200, Cleanaway Waste Management has managed to gain market attention and generate positive sentiment among investors, fueled by the anticipated merger and the company's robust financial performance.