CBA share price edges higher amid acquisition rumours

The Commonwealth Bank of Australia (ASX: CBA) share price is moving higher in morning trade, up 0.5%.

CBA shares closed yesterday trading for $94.46 and are currently trading for $94.93 apiece.

After a sharp sell-off yesterday, it’s broadly a good day across the markets, with the S&P/ASX 200 Index (ASX: XJO) up 0.3% at the time of writing. And the big financial shares are outperforming, as witnessed by the 0.6% gain posted by the S&P/ASX 200 Financials Index (ASX: XFJ).

That’s the latest price action for you.

So, what’s all this about a potential acquisition?

What acquisition rumours are circulating?

In news unlikely to have a material impact on the CBA share price today, The Australian reports that sources have said the big bank is eyeing Vocus Retail.

Vocus Retail provides broadband, mobile, voice, and energy services. And the company is expected to officially go on the market through UBS over the coming days.

Now if you’re not familiar with all of CommBank’s services, acquiring a company like Vocus might seem a bit odd. However, the bank already offers broadband and certain utility services.

According to CBA:

We’re proud to partner with Australian-owned companies that provide better outcomes for our customers and the community, such as more NBN.

More are a forward-thinking, customer-focused provider of internet and phone plans that can get your household or business connected and help you save money.

You may also recall the days when Vocus was listed on the ASX. Those days came to an end in June 2021, when the company delisted after accepting a takeover proposal from a consortium comprised of Macquarie Infrastructure and Real Assets and its managed funds and Aware Super.

But CBA isn’t the only big name that appears to be eyeing Vocus Retail.

According to The Australian, Origin Energy Ltd (ASX: ORG), Aussie Broadband Ltd (ASX: ABB) and AGL Energy Ltd (ASX: AGL) all may be interested in acquiring the company.

CBA share price snapshot

The CBA share price hasn’t been immune to the forces dragging on global equities this year (we’re looking at you, soaring inflation and interest rates), though it has outperformed the benchmark.

Year-to-date CBA shares are down 7%. That compares to a 10% loss posted by the ASX 200 so far in 2022.

The big four bank is also a popular income stock. At the current share price, CBA pays a trailing dividend yield of 3.9%.

The post CBA share price edges higher amid acquisition rumours appeared first on The Motley Fool Australia.

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More reading

• ASX 200 shares dump $60 billion in horror session. Here’s how Wednesday unfolded
• Macquarie shares bear the brunt of bank sell-off amid inflation bomb
• Expert predicts stock market will crash 20% lower in the next four weeks as US inflation rages out of control
• Why are ASX 200 shares tumbling like dominos on Wednesday?
• Why this fund manager is not banking on CBA shares right now

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Aussie Broadband Limited. The Motley Fool Australia has recommended Aussie Broadband Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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