The IGO Ltd (ASX: IGO) share price is surging today despite talks of a potentially transformational copper deal falling through.
Discussions regarding IGO’s acquisition of the CSA Copper Mine – owned by Glencore – have ended without an agreement.
However, the market seems to be far from disappointed. At the time of writing, the IGO share price is $11.81, 8.05% higher than its previous close.
Let’s take a closer look at what’s driving the exploration and mining company’s stock higher on Tuesday.
IGO share price launches on failed acquisition talks
The IGO share price has burst into the green on Tuesday despite the end of talks that could have seen the company acquiring one of the richest copper mines in the world.
IGO confirmed it was conducting due diligence on the CSA Mine last week. As The Motley Fool Australia reported at the time, IGO was rumoured to be considering undergoing a capital raise to afford the acquisition – expected to be worth more than $1 billion.
In a statement released to the ASX today, the company said it, “regularly evaluates opportunities to grow its business via disciplined mergers and acquisitions.”
“The company will only complete transactions which it believes will deliver strong and accretive returns and are in the best interest of shareholders at the time,” IGO continued.
Today’s news has the potential to disappoint some market watchers. Luckily, there’s still plenty of hope for an IGO acquisition in the near future.
Fortescue Metals Group Limited‘s (ASX: FMG) Andrew ‘Twiggy’ Forrest gave IGO’s bid for Western Areas Ltd (ASX: WSA) the ‘thumbs up’ last month.
Forrest’s Wyloo Consolidated Investments owns a 9.8% stake in Western Areas.
IGO’s approximately $1 billion all-cash bid for the nickel producer was announced in mid-December.
The IGO share price has soared by around 70% over the past year. However, it is up just 3% this year to date and less than 1% over the past month.
The post Why is the IGO (ASX:IGO) share price rocketing 8% today? appeared first on The Motley Fool Australia.
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More reading
- IGO (ASX:IGO) share price tumbles 6% on new acquisition talks
- IGO (ASX:IGO) share price lifts as Twiggy greenlights nickel acquisition
- Why is this broker so bullish on the IGO (ASX:IGO) share price?
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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