ASX 200 (ASX:XJO) midday update: Sydney Airport agrees to takeover, Wesfarmers’ strikes API deal

Here’s what is happening on the market 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 small decline. The benchmark index is currently down 0.1% to 7,447.3 points.

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

Sydney Airport agrees takeover deal

The Sydney Airport (ASX: SYD) share price is pushing higher today after accepting a takeover approach. According to the release, the airport operator has given the thumbs up to an offer of $8.75 per share from a consortium of investors led by IFM Investors and Global Infrastructure Partners. This values Sydney Airport at $32 billion on an enterprise value basis. Sydney Airport’s board has unanimously recommended its shareholders vote in favour of the deal.

ANZ shares fall after going ex-dividend

The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price trading lower today. However, it has nothing to do with its performance or a broker note. Rather, it is due to the bank’s shares trading ex-dividend for its fully franked final dividend of 72 cents per share. Eligible shareholders can look forward to receiving this latest dividend on 16 December. For the same reason, the Macquarie Group Ltd (ASX: MQG) share price is trading lower today.

Wesfarmers to acquire API

The Wesfarmers Ltd (ASX: WES) share price is trading lower today despite announcing a deal to acquire Australian Pharmaceutical Industries Ltd (ASX: API). Wesfarmers will be acquiring the pharmacy chain operator and distributor for $1.55 cash per share. While this represents only a modest premium to the most recent API share price, it is a 35.4% premium to its undisturbed closing share price on 9 July 2021. On that day Wesfarmers made its first offer of $1.38 per share.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Monday has been the St Barbara Ltd (ASX: SBM) share price with a 6% gain. A number of gold miners are storming higher today after a rise in the gold price on Friday. The worst performer has been the Polynovo Ltd (ASX: PNV) share price with an 8% decline. On Friday afternoon this medical device company announced the surprise resignation of its Managing Director, Paul Brennan.

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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. owns shares of and has recommended POLYNOVO FPO. The Motley Fool Australia owns shares of and has recommended Wesfarmers 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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