Ansell (ASX:ANN) share price climbs 2% amid takeover rumours

Wednesday was a good day to be an Ansell shareholder.

| More on:
a healthcare worker wears full personal protective equipment including a face shield, mask, head covering and gown.

Image source: Getty Images

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

The Ansell Limited (ASX: ANN) share price ended Wednesday’s session higher after it was the subject of more takeover rumours.

According to reports in The Australian, the personal protective equipment maker could be on the radar of international rivals seeking new acquisitions.

As of Wednesday’s close, the Ansell share price is $32.61. That’s 2.32% higher than it was at the end of Tuesday’s session.

For context, both the S&P/ASX 200 Index (ASX: XJO) and the All Ordinaries Index (ASX: XAO) gained 0.8% on Wednesday.

Let’s take a closer look at the rumours surrounding Ansell today.

Ansell share price gains amid takeover rumours

The Ansell share price spent Wednesday in the green. The gains came after The Australian flagged the possibility Ansell is being viewed as a takeover target by its larger competitors.

The publication stated healthcare and safety product manufacturer 3M (NYSE: MMM) and protective equipment producer Dupont do Nemours Inc (NYSE: DD) are both on the lookout for new businesses to buy.

Further, it said Ansell, with its $4.17 billion market capitalisation, could be prime acquisition fodder. Particularly as debt is currently cheap and the business is performing well.

The company’s bottom line was positively impacted by the COVID-19 pandemic as people turned to using personal protective equipment to help stave off the virus.

Ansell reported US$2 billion worth of sales for financial year 2021, a 25.6% increase on the prior financial year.  

It also saw its net profit after tax boosted 57% on that of the prior comparable period, reaching US$248 million.

It’s not the first time The Australian has flagged Ansell as a takeover target this year.

In February, the publication stated private equity suitors could be readying themselves to make a bid for the ASX-listed company.

Despite reporting increased profits, the Ansell share price has struggled on the ASX this year.

It is currently 6% lower than it was at the start of 2021. It has also fallen 22% since this time last year.

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 has recommended Ansell Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

Happy miner with his arms folded.
Share Gainers

Up 52% since June, can the Pilbara Minerals share price extend gains?

Things are looking up for Pilbara Minerals shares right now

Read more »

jump in asx share price represented by man leaping up from one wooden pillar to the next
Share Gainers

Why has the De Grey share price leapt 36% in a month?

Investors have been sizing in since July.

Read more »

A smiling woman in a hat holding a ticket takes selfie inside a Qantas plane next to the window.
Share Gainers

Why did the Qantas share price fly higher today?

Increased demand for travel and cheaper oil prices are helping to propel this ASX airline share higher.

Read more »

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Share Gainers

Why Block, Lake, Mirvac, and QBE shares are racing higher

These ASX shares are having strong days...

Read more »

Two excited mining workers in yellow high vis vests and hardhats shake hands to congratulate each other on a mineral discovery
Share Gainers

Here are 2 ASX lithium shares surging on new discoveries

Demand for lithium continues to see high realised spot prices, with a positive flow-on effect to ASX lithium stocks.

Read more »

A happy woman sits on an outdoor deck with trees behind her and holds a credit card in one hand and her mobile phone in the other hand
Technology Shares

Why has the Block share price exploded 9% on the ASX today?

Why are Block shares booming in value this Thursday?

Read more »

ASX share price rise represented by investor riding atop leaping lion
Share Gainers

Why has the Liontown share price roared 30% higher in a week?

What's driving Liontown shares higher lately?

Read more »

A woman with strawberry blonde hair has a huge smile on her face and fist pumps the air having seen good news on her phone.
Share Gainers

Why Graincorp, Imugene, iSelect, and Mayne Pharma shares are racing higher

These ASX shares are on form on Wednesday...

Read more »