ASX Takeovers in 2026: Here are 5 Struggling Companies We Think Could be Next!

There could be a fair number of ASX Takeovers in 2026 – the year is not less than a fortnight old, and >$10bn steel giant BlueScope (ASX:BSL) was a target. We thought now would be a good time to consider which other companies could be targets.

Before we go into it, we would point out that it has been 10 months since we last derived a list. And since then, 2 of those companies have been taken over (Infomedia and Johns Lyng). So don’t be surprised to see at least one candidate as having been taken over this time next year. Without any further ado…

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5 Candidate Companies To be ASX Takeovers in 2026

Bapcor (ASX:BAP)

We acknowledge that there are plenty of struggling retailers that could be taken over, but it is all contingent on whether or not management would accept a deal. After all, it is inevitable that in accepting a deal that management does not believe a re-rating would be possible any time soon.

In one respect, you could argue Bapcor is unique in the sense of being a seller of auto parts as opposed to cheap clothes. But Bapcor is also unique in terms of how many setbacks it has suffered.

This is not just a company temporarily seeing customers careful with money weak conditions. It went through 3 profit downgrades in as many years and made it a fourth only a month ago. Companies have turned around investor perception after one profit downgrade, but very few after four. Realistically, we’d imagine any takeover offer above $3 would be accepted.

Paragon Care (ASX:PGC)

Paragon Care is a provider of equipment, devices and consumables to healthcare markets. The business serves hospitals, clinics, aged care, diagnostic labs and allied healthcare providers. But its share price has halved in the last year.

To be fair, not all of the decline has been its fault. It was hit by the collapse of Infinity Retail Pharmacy Group which has 54 outlets that Paragon was a major partner with. The group owed Paragon $47m that is unlikely to be recovered.

Nonetheless, Paragon reported negative free operating cash flow (~‑$11 m) as well as rising operating expenses from inflation, freight, insurance and other costs. This has pressured margins and investor confidence. Even though revenue was up over 20% in FY25, it called for mid-single digit revenue growth for FY26.

Treasury Wine Estates (ASX:TWE)

Things have not been the same since the pandemic for any company relying on China for part of its revenue. Even though China’s 200% tariffs on Australian wine are gone, the damage remains – or to be more specific, the foothold that American and European providers gained in the market is hard to undo. Trump’s tariffs added another spanner into the mix.

There are some things to like about this stock including some brands performing well. We’d imagine a private equitor would view it as an attractive takeover target. They may think they can turn it around in 3-4 years by rationalising brands and refocusing markets, then profiting by selling it back to ASX retail investors in a few years’ time.

Reece (ASX:REH)

Reece supplies plumbing, as well as bathroom, waterworks and HVAC-R (Heating, Ventilation, Air Conditioning and Refrigeration) products in Australia, as well as New Zealand and the United States. It serves professional trade, wholesale and retail markets. It has struggled with subdued demand and high capex. The effective retirement of its long-term Chairman also hurt.

In its most recent update, the company reported 2% sales growth on a like for like basis and 8% overall. But its EBITDA was down 8% and its EBIT by 18%. The company warned costs were elevated and costs would remain elevated. This company has navigated cycles before, but investors have short memories…perhaps shorter than would be suitors.

Adairs (ASX:ASH)

Unlike many other companies on this list, Adairs is in a state of pure competition. Adairs is a homewares retailer that sells instore and online, targeting middle-market consumers. In other words, it sits below high-end fashion (Sheridan for example) but above cheap fashion (anything from Target or Big W).  

In its FY25 result, there were some good signs, but FY26 has not begun well, and the company was forced to downgrade its guidance. But with the company trading at cheap multiples and still boasting reasonable margins (i.e. 59% gross under the latest guidance), it could be a takeover target.