ASX 200 up 1.3%: Soul Patts-Milton merger, IGO jumps

It has been a much better day for the ASX on Tuesday…

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At lunch on Tuesday, the S&P/ASX 200 Index (ASX: XJO) is bouncing back from yesterday’s selloff. At the time of writing, the benchmark index is up 1.3% to 7,331.9 points.

Here’s what is happening on the market today:

Soul Pattinson-Milton merger

The Milton Corporation Limited (ASX: MLT) share price is surging higher today after announcing a proposed merger with investment house Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). The two companies intend to merge under an arrangement that will see the latter acquire 100% of the share capital in Milton it does not already own. The all-scrip proposal values Milton at approximately $6.00 per share. Both companies share the same chairman, Robert Millner.

IGO lithium transaction nears completion

The IGO Ltd (ASX: IGO) share price is charging higher today after revealing that a key condition precedent to forming a new lithium joint venture with Tianqi Lithium Corporation has progressed. In light of this, the clean energy focused mining company expects the transaction to complete on or before 30 June. The joint venture will initially be focused on the commissioning of Train 1 at the Kwinana Lithium Hydroxide Refinery.

Bank shares rebound

It has been a much more positive day of trade for Australia’s big four banks on Tuesday. All four are recording solid gains and are helping to drive the ASX 200 higher. The best performer in the group has been the Commonwealth Bank of Australia (ASX: CBA) share price with a gain of 2.5%. This is despite Morgan Stanley maintaining its bearish view on the company’s shares.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Tuesday has been the Milton share price with a 12% gain. This follows the announcement of merger plans. The worst performer has been the Tyro Payments Ltd (ASX: TYR) share price with a 4% decline on no news.

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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Tyro Payments. The Motley Fool Australia owns shares of and has recommended Washington H. Soul Pattinson and Company 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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