ASX 200 (ASX:XJO) midday update: Rio Tinto’s lithium acquisition, Pilbara Minerals jumps

Here’s what’s happening on the ASX 200 on Wednesday…
The post ASX 200 (ASX:XJO) midday update: Rio Tinto’s lithium acquisition, Pilbara Minerals jumps appeared first on The Motley Fool Australia. –

At lunch on Wednesday, the S&P/ASX 200 Index (ASX: XJO) has given back its early gains and is now trading lower. The benchmark index is currently down 0.2% to 7,340.3 points.

Here’s what is happening on the ASX 200 today:

Rio Tinto acquires lithium operation

The Rio Tinto Limited (ASX: RIO) share price is trading lower today despite announcing an acquisition. The mining giant intends to pay US$825 million or A$1.15 billion for the Argentina-based Rincon lithium project. The release notes that it is a large brine project with the potential to be one of the lowest carbon operations in the industry.

Pilbara Minerals shares surge higher

The Pilbara Minerals Ltd (ASX: PLS) share price is surging higher today following the release of a bullish broker note out of Macquarie Group Ltd (ASX: MQG). Its analysts suspect that lithium prices could remain at sky high levels for the next four years. As a result, they have upgraded their earnings forecasts and price target on Pilbara Minerals’ shares accordingly. Macquarie now has an outperform rating and $3.70 price target on its shares.

Charter Hall tumbles

The Charter Hall Group (ASX: CHC) share price is tumbling today after announcing the acquisition of a 50% interest in Paradice Investment Management (PIM). Charter Hall will pay $207 million for the stake. This comprises 70% in shares and 30% in cash. PIM is a fund manager with around $18.2 billion in funds under management.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Wednesday has been the Pilbara Minerals share price with a 7%. Macquarie’s bullish note appears to be behind this. The worst performer has been the Charter Hall share price with a 5% decline. Investors don’t appear keen on its new acquisition.

The post ASX 200 (ASX:XJO) midday update: Rio Tinto’s lithium acquisition, Pilbara Minerals jumps appeared first on The Motley Fool Australia.

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Rio Tinto (ASX:RIO) share price slumps amid $1.15b lithium acquisition

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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