The Mineral Resources Ltd (ASX: MIN) share price is tumbling on Friday despite the company officially taking control of takeover target Norwest Energy NL (ASX: NWE).
The market is reacting poorly to today's news with the Mineral Resources share price currently 1.23% lower at $85.60.
Meanwhile, the Norwest share price has slumped 2.26% to trade at 6.5 cents.
Let's take a closer look at the latest from the S&P/ASX 200 Index (ASX: XJO)'s mammoth miner.
Mineral Resources share price plunges on takeover milestone
Major acquisition news appears to have failed to bolster market sentiment in Mineral Resources shares today.
The company revealed its voting power in Norwest surged to 53.86% on Thursday. That leaves it with control over the $425 million energy outfit.
The now-majority stakeholder offered one of its own shares for every 1,300 Norwest stocks held last month. The bid secured the approval of the takeover target's board after a lower offer was rejected in December.
That implied an offer price of 7.41 cents per share at the time. It also represented a 65% premium on the takeover target's last undisturbed share price.
Mineral Resources managing director and billionaire Chris Ellison has urged remaining Norwest shareholders to accept the offer, saying it's a "no brainer":
Those who don't accept will be left behind in a MinRes-controlled company with none of the upside of being a MinRes shareholder or exposure to our world-class portfolio of diversified assets.
Those who fail to promptly accept our revised offer will also miss out on receiving our interim dividend and risk having their own share price and liquidity diminish – but will still have to shoulder the burden of their share of significant Perth Basin exploration and development risk.
Mineral Resources' offer has been extended to 2 March on the milestone. It will be able to acquire all Norwest shares if its interest reaches 90%.
The ASX 200 mining giant is gearing up to release its earnings for the first half of financial year 2023 next Friday.
