You can't fault the S&P/ASX 200 Index (ASX: XJO) for consistency. For as long as (probably) any reader can remember, the ASX 200 has been dominated by more or less the same names.
There's the ever-present Commonwealth Bank of Australia (ASX: CBA), as well as its big four banking brethren. Telstra Corporation Ltd (ASX: TLS) has been a mainstay for decades now. As has Woolworths Group Ltd (ASX: WOW) and Wesfarmers Ltd (ASX: WES). And BHP Group Ltd (ASX: BHP) has been listed on the ASX for more than 100 years.
Perhaps the only significant change we have seen this side of the year 2000 has been the rise of CSL Limited (ASX: CSL). Although it seems like CSL has been one of the largest ASX blue-chips for years. Remember that CSL was a $30-somethig share a decade ago.
So that's why ASX investors might be in for a rude shock in 2022. Next year looks like the year the ASX 200 will have one of its biggest shake ups in decades.
Why? Well, for two potential reasons.
Image source: Getty Images
BHP set for unification
BHP is today the third-largest ASX 200 share by market capitalisation. But it could be set for a big promotion next year. As we've discussed on the Fool at length, BHP looks likely to initiate a stock market unification next year. BHP has said that the company intends to end its dual-listing structure on the London Stock Exchange next year, and make the ASX its sole home.
With the UK-listed shares coming home to the ASX, this would boost BHP's ASX-listed market cap from the current $140 billion or so to more than $206 billion. That would place it easily above Commonwealth Bank's rough market cap of $170 billion to make it the ASX's most valuable company by far.
Block to move Down Under
Block Inc (NYSE: SQ) is the company formerly known as Square. It's also Afterpay Ltd (ASX: APT)'s likely new owner since shareholders of both companies have now voted in favour of this marriage. As part of the acquisition deal announced back in August, Block will place a secondary listing on the ASX. This will give Afterpay shareholders the opportunity to own Block shares in the form of a CHESS Depositary Interest (CDI) on the ASX.
At Block's closing share price of US$165.88 on Thursday evening (US time), this company has a market capitalisation of US$76.52 billion (or $106.62 billion in AUD). That gives it a higher market cap than National Australia Bank Ltd. (ASX: NAB), meaning Block could occupy a spot in the ASX 200's top 5 holdings, or even possibly top 3. A US fintech payments giant in the top echelons of the ASX 200… Who would have thought?
