At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) has followed the lead of US markets and is storming higher. The benchmark index is currently up 0.85% to 7,334.9 points.
Here's what is happening on the ASX 200 on Monday:
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Wesfarmers makes takeover offer
The Wesfarmers Ltd (ASX: WES) share price is edging higher on Monday. This follows news that the conglomerate has finally found a takeover target. That target is pharmacy chain operator and wholesale distributor Australian Pharmaceutical Industries Ltd (ASX: API). Wesfarmers has offered to acquire the Priceline Pharmacy owner for $1.38 cash per share. This represents a 21% premium to its last close price. Australian Pharmaceutical Industries' major shareholder, Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), has agreed to vote in favour of the proposal.
Mining shares rise
BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) shares are pushing higher and playing a key role in driving the ASX 200's strong gain. Both mining giants are up approximately 3% and 2%, respectively, at the time of writing. This has led to the S&P/ASX 200 Resources index rising a solid 2.3%
CBA shares downgraded
The Commonwealth Bank of Australia (ASX: CBA) share price is pushing higher today despite being the subject of a bearish broker note. According to the note, Macquarie has downgraded the banking giant's shares to an underperform rating but lifted its price target to $88.50. The broker made the move largely on valuation grounds.
Best and worst ASX 200 performers
The Viva Energy Group Ltd (ASX: VEA) share price is the best performer on the ASX 200 with a gain of almost 4%. This morning Goldman Sachs reiterated its buy rating and $2.70 price target on the fuel company's shares. The worst performer has been the Mercury NZ Ltd (ASX: MCY) share price with a 5% decline. This is despite there being no news out of the electricity company.
