McMillan Shakespeare in talks to acquire main rival

McMillan Shakespeare may be in negotiations to acquire its main rival Smart Salary in a deal worth up to $300 million, according to the Australian Financial Review.

Sources told the newspaper that Australia's largest salary packaging company requested exclusive talks for a deal after it emerged that Smart Salary's parent company, UT Group, was looking to sell the company.

McMillan Shakespeare occupies 50% of market share in the novated leasing and salary packaging sector while Smart Salary is the next biggest at 15%. A number of smaller companies take up the remainder.

The $1.2 billion listed company has been a market darling over the past year, surging by 40% to $15.90.