It’s been a tough week on the ASX for Wesfarmers.
The post Here’s why the Wesfarmers (ASX:WES) share price is down 4% in a week appeared first on The Motley Fool Australia. –
The Wesfarmers Ltd (ASX: WES) share price has been struggling over the last week despite no news having been released by the company.
However, there is plenty of news involving Wesfarmers and its conquests have hit headlines since this time last week.
Additionally, Wesfarmers-owned hardware and leisure retail giant Bunnings is going ahead with its acquisition of Beaumont Tiles. The acquisition was approved by the Australian Competition and Consumer Commission (ACCC) on Thursday.
Wesfarmers hasn’t officially addressed any of the above happenings, making it impossible to say if they’ve moved its stock’s value.
At the time of writing, the Wesfarmers share price is $55.25, 0.9% higher than Friday’s close but 3.6% lower than it was this time last week
Let’s take a closer look at the week that’s been for Wesfarmers on the ASX.
Wesfarmers share price slides
The Wesfarmers share price has been battling over the last 7 days amid a flurry of news regarding the company.
Last Monday, Sigma Healthcare posed its bid to acquire API for a scrip-heavy $1.57 per share.
That bested Wesfarmers’ previous $1.55 all-cash offer for the Priceline operator.
The Wesfarmers share price gained 0.2% on the day Sigma posed its offer, before falling 3.7% over the following 2 sessions.
Now both companies are undergoing due diligence before each respective takeover moved forward. Wesfarmers’ due diligence period ends on 16 October.
Making the bidding battle more exciting – API’s board has flagged Sigma’s offer as superior. Whereas Wesfarmers’ takeover previously gained the support of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). Soul Patts owns around 19% of API’s shares.
In less dramatic but still significant news, Bunnings’ acquisition of Beaumont Tiles got the green light from the ACCC last week.
The Wesfarmers share price gained 0.8% on Thursday amid the release of the competition watchdog’s approval. However, it fell another 1.8% on Friday.
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Motley Fool contributor Brooke Cooper 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.