The BHP Group Ltd (ASX: BHP) share price is gaining this morning despite a breakdown in its discussions with Wyloo Metals regarding the takeover of Noront Resources.
Previously, the company announced it was in talks with Wyloo Metals to find a mutually beneficial agreement to acquire the Canada-based resource developer. However, that idea has now been scrapped.
At the time of writing, the BHP share price is $40.77, 2.03% higher than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) is also in the green today, with a 0.55% gain.
Let’s take a closer look at today’s non-price sensitive news from the iron ore giant.
BHP share price gains despite break down of talks
There’s been another bump in the road for BHP Lonsdale Investments’ – a wholly-owned subsidiary of BHP Group – 82 cent (C$0.75 cent) per share takeover offer for Noront Resources.
The company stated it entered “constructive discussions” with Wyloo Metals regarding the takeover offer but the pair were unable to reach an agreement.
BHP upped its takeover offer in October after Wyloo Metals posed its own takeover bid.
Despite the breakdown of discussions between the two, Noront Resources continues to recommend its shareholders support BHP’s all-cash offer.
More than half of the nickel, copper, platinum, and palladium developer’s shareholders must tender their shares to the offer for it to go ahead.
Fortunately, the news hasn’t dampened the BHP share price. And it’s not alone in its gains today.
Plenty of other ASX 200 resource shares are also having a great start to the week.
Right now, the S&P/ASX 200 Resources Index (ASX: XJR) is 1.31% higher.
Among the sector’s strong performers is Fortescue Metals Group Limited (ASX: FMG). Its share price is currently sporting a 1.1% increase.
Fortescue Metals chair Andrew Forrest also chairs his family’s private investment group, Tattarang, which owns Wyloo Metals. Tattarang also owns a 36% holding in Fortescue Metals.
Right now, the BHP share price is 4.27% lower than it was at the start of 2021. However, it has gained 8% since this time last month.
The post What’s boosting the BHP (ASX:BHP) share price 2% higher today? appeared first on The Motley Fool Australia.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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