ASX 200 midday update: Wesfarmers makes API takeover bid, BHP & Rio Tinto rising

The ASX 200 is on the rise on Monday…
The post ASX 200 midday update: Wesfarmers makes API takeover bid, BHP & Rio Tinto rising appeared first on The Motley Fool Australia. –

At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) has followed the lead of US markets and is storming higher. The benchmark index is currently up 0.85% to 7,334.9 points.

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

Wesfarmers makes takeover offer

The Wesfarmers Ltd (ASX: WES) share price is edging higher on Monday. This follows news that the conglomerate has finally found a takeover target. That target is pharmacy chain operator and wholesale distributor Australian Pharmaceutical Industries Ltd (ASX: API). Wesfarmers has offered to acquire the Priceline Pharmacy owner for $1.38 cash per share. This represents a 21% premium to its last close price. Australian Pharmaceutical Industries’ major shareholder, Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), has agreed to vote in favour of the proposal.

Mining shares rise

BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) shares are pushing higher and playing a key role in driving the ASX 200’s strong gain. Both mining giants are up approximately 3% and 2%, respectively, at the time of writing. This has led to the S&P/ASX 200 Resources index rising a solid 2.3%

CBA shares downgraded

The Commonwealth Bank of Australia (ASX: CBA) share price is pushing higher today despite being the subject of a bearish broker note. According to the note, Macquarie has downgraded the banking giant’s shares to an underperform rating but lifted its price target to $88.50. The broker made the move largely on valuation grounds.

Best and worst ASX 200 performers

The Viva Energy Group Ltd (ASX: VEA) share price is the best performer on the ASX 200 with a gain of almost 4%. This morning Goldman Sachs reiterated its buy rating and $2.70 price target on the fuel company’s shares. The worst performer has been the Mercury NZ Ltd (ASX: MCY) share price with a 5% decline. This is despite there being no news out of the electricity company.

The post ASX 200 midday update: Wesfarmers makes API takeover bid, BHP & Rio Tinto rising appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

Australian Pharmaceutical (ASX:API) share price soars 18% on Wesfarmers bid
Why the BHP share price is charging higher on Monday

Wesfarmers (ASX:WES) share price rises on API takeover offer
Why the Commonwealth Bank (ASX:CBA) share price is beating the ASX 200
ASX 200 Weekly Wrap: COVID wobbles ASX as shares retreat

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 owns shares of and has recommended Washington H. Soul Pattinson and Company Limited and Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!