ASX 200 (ASX:XJO) midday update: Telstra's acquisition, Mineral Resources jumps

Here's what is happening on the ASX 200 today…

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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 strong gain. The benchmark index is currently up 0.65% to 7,464.8 points.

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

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Telstra announces US$1.6bn Digicel Pacific acquisition

The Telstra Corporation Ltd (ASX: TLS) share price is pushing higher today after announcing a major acquisition. According to the release, Telstra has teamed up with the Australian Government to acquire the South Pacific-based telco, Digicel Pacific. The two parties have agreed to pay US$1.6 billion up front and up to an additional US$250 million. This latter is subject to Digicel Pacific's business performance over the next three years. Telstra expects the deal to be earnings per share accretive.

Mineral Resources shares jump

The Mineral Resources Limited (ASX: MIN) share price is racing higher today after announcing the restart of its 40% owned Wodgina Lithium Mine in the Pilbara region of Western Australia. Wodgina, which has been on care and maintenance since November 2019, will be restarted to produce spodumene concentrate during the third quarter of 2022. The company will initially focus on restarting one of Wodgina's three 250,000tpa processing lines.

Pilbara Minerals shares halted

The Pilbara Minerals Ltd (ASX: PLS) share price is paused on Monday after requesting a trading halt. The lithium miner requested the halt as it prepares an announcement on a strategic transaction concerning a downstream joint venture. Not further details were provided. However, just over two years ago, Pilbara Minerals announced binding terms with South Korean conglomerate, POSCO, for the formation of an incorporated joint venture in South Korea. The joint venture intends to build and operate a 40ktpa LCE primary lithium hydroxide downstream chemical processing facility.

Best and worst ASX 200 performers

The best performer on the ASX 200 has been the Mineral Resources share price with a 9% gain. This follows news that it is restarting the Wodgina Lithium Mine. The worst performer has been the Perpetual Limited (ASX: PPT) share price with a 6% decline. This may be due to profit taking after some strong gains last week.

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 Telstra Corporation 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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