ASX 200 down 0.2%: Northern Star & Saracen announce mega merger, IAG settles class action

Northern Star Resources Ltd (ASX:NST) and Insurance Australia Group Ltd (ASX:IAG) shares are making moves on the ASX 200 on Tuesday…

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

At lunch on Tuesday the S&P/ASX 200 Index (ASX: XJO) is on course to end its winning streak. The benchmark index is currently down 0.2% to 5,928.7 points.

Here's what is happening on the market today:

Worried young male investor watches financial charts on computer screen

Image source: Getty Images

Northern Star-Saracen Mineral mega merger.

Both the Northern Star Resources Ltd (ASX: NST) share price and the Saracen Mineral Holdings Limited (ASX: SAR) share price are storming higher on Tuesday after the gold miners announced a mega merger to create a $16 billion gold mining giant. Management notes that the merger will create a top 10 global gold company targeting production of 2 million ounces of gold per annum exclusively in tier-1 locations. It also expects the merger to result in unique pre-tax synergies of $1.5 billion to $2 billion.

IAG announces class action settlement.

The Insurance Australia Group Ltd (ASX: IAG) share price is dropping lower on Tuesday after announcing that it has settled a class action brought against it by Johnson Winter & Slattery. According to the release, the class action related to add-on insurance products sold through motor vehicle and motorcycle dealers. Insurance Australia has agreed to pay $138 million, which remains subject to approval by the Federal Court of Australia. Inclusive of all related costs and after insurance recoveries, IAG anticipates a net after tax impact from this settlement of less than $50 million.

BHP increases Shenzi stake.

The BHP Limited (ASX: BHP) share price is trading lower today after announcing an agreement to acquire an additional 28% working interest in the Shenzi development in the deepwater Gulf of Mexico. BHP has agreed a purchase price of US$505 million. This deal will increase the mining giant's working interest to 72% and immediately add approximately 11,000 barrels of oil equivalent per day of production.

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Tuesday has been the Northern Star share price with a 7% gain following its merger announcement. The worst performer has been the Mirvac Group (ASX: MGR) share price with a 3.5% decline on no news. A number of property companies have come under pressure today.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Frustrated and shocked business woman reading bad news online from phone.
Gold

Why is this $1.5 billion ASX 200 gold stock tumbling 8% today?

Still up 31% in a year, this ASX 200 gold stock is getting hammered today. But why?

Read more »

Happy woman looking for groceries. as she watches the Coles share price and Woolworths share price on her phone
Opinions

3 reasons why the Coles share price is a buy

It seems like a great time to invest in this supermarket giant.

Read more »

A man rests his chin in his hands, pondering what is the answer?
Broker Notes

Buy, hold, sell: Macquarie, Boss Energy, CBA shares

The market looks set to endure a sixth consecutive day in the red.

Read more »

Hand holding small sack of coins giving to another hand.
Share Market News

How much could the BHP share price rise in the next year?

This is a good time to consider whether BHP is appealing.

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Broker Notes

Guess which ASX 200 share could rise 90% according to Bell Potter

Let's see what the broker is saying about this stock this week.

Read more »

A business person directs a pointed finger upwards on a rising arrow on a bar graph.
Opinions

A rare buying opportunity in 1 of Australia's top shares?

This business looks very undervalued to me!

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Broker Notes

These ASX 200 shares could rise 25% to 70%

Morgans expects big returns from these top stocks.

Read more »

ASX 200 shares broker downgrade origami paper fortune teller with buy hold sell and dollar sign options
Broker Notes

Down 42% in a year, are Boss Energy shares now a bargain buy?

A leading analyst provides his outlook for Boss Energy’s beaten down shares.

Read more »