ASX 200 (ASX:XJO) midday update: Fortescue jumps, Wesfarmers dealt takeover blow

Here’s what’s happening on Monday…

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At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a solid gain. The benchmark index is currently up 0.9% to 7,408 points.

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

Mining shares drive ASX 200 higher

It has been a positive start to the week for the mining giants BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG), and Rio Tinto Limited (ASX: RIO). They are all helping to drive the ASX 200 higher on Monday after the iron ore price continued its recovery on Friday night. According to Metal Bulletin, the spot benchmark iron ore price rose 2.4% to US$111.33 a tonne.

Sandfire shares returns and sink

One mining share not rising today is Sandfire Resources Ltd (ASX: SFR). The Sandfire share price is sinking after announcing the successful completion of the institutional component of its equity raising. The copper miner has raised $926 million at $5.40 per new share. This represents a 13.2% discount to its last close price. These funds are being used to acquire the Matsa mining complex in Spain.

Wesfarmers outbid for API

The Wesfarmers Ltd (ASX: WES) share price is trading lower today after being dealt a takeover blow. This morning Sigma Healthcare Ltd (ASX: SIG) made a $1.57 per share offer to acquire pharmacy chain operator and distributor Australian Pharmaceutical Industries Ltd (ASX: API). This compares to the $1.55 per share offer Wesfarmers made. The API board has granted Sigma due diligence to facilitate a binding offer. It believes the offer is more favourable to shareholders.

Best and worst ASX 200 performers

The best performer on the ASX 200 today has been the Flight Centre Travel Group Ltd (ASX: FLT) share price with an 8% gain. This appears to have been driven by a positive reaction to New South Wales’ roadmap out of lockdown. The worst performer has been the Sandfire share price with a 12% decline following its equity raising.

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