Beginning the week on a positive note, the ASX 200 index kicked off in the green zone and concluded Monday with a 10-point increase. The index gained 0.14% and ended at 7,267.1 points, driven by notable gains in the gold and metals, and mining sectors.
In the last week, the index ended the week with a slightly positive sentiment, closing at 7,253.8 on Friday.
Australia is gaining prominence as a hub for dealmaking in the Asian region, where overall deal activity continues to be subdued.
Among the big news on the deals, gold-mining company Newcrest Mining Limited (AU:NCM) has supported the takeover offer from rival mining giant Newmont Corporation (NYSE:NEM). The offer involves exchanging 0.4 shares of Newmont for each share of the Australian company. NCM stock gained 1.52% during the day.
In February, Newmont initially made an all-share offer to Newcrest, which was rejected. However, in April, Newmont increased its bid to A$29.4bn, prompting Newcrest’s interest in the offer.
Upon completion, this deal will stand as the third-largest transaction involving an Australian company. Furthermore, there is potential for an industry-wide impact as the merged entity may divest smaller mines.
Recently, Australia-based lithium mining company Allkem Limited (AU:AKE) also announced its merger with U.S.-based Livent Corp. (NYSE:LTHM). With the merger, the companies are targeting to raise production output to 248,000 metric tonnes by 2027, positioning the merged company as the third-largest lithium producer globally.
Among the gainers, funeral services provider InvoCare Limited (AU:IVC) topped the charts with a gain of 12% after the company received an offer worth AU$1.86 billion from private equity firm TPG.
Silver Lake Resources Limited (AU:SLR) was up by 7.8% today. Last week, the company announced the submission of a revised proposal to St Barbara Limited (AU:SBM), expressing interest in acquiring the Leonora assets located in Western Australia.
Among the losers, Pointsbet Holdings Ltd. (AU:PBH) fell by more than 20% after the company sold its U.S. assets to Fanatics for $150 million.
