ASX 200 midday update: Zip scraps Sezzle merger, Lake Resources’ short seller attack

At lunch on Tuesday, the S&P/ASX 200 Index (ASX: XJO) is fighting hard to stay in positive territory. The benchmark index is currently up 0.3% to 6,620.5 points.

Here’s what is happening on the ASX 200 on Tuesday:

Zip cancels merger with Sezzle

The Zip Co Ltd (ASX: ZIP) share price is heading in the right direction at last. This follows a positive reaction to the buy now pay later (BNPL) provider’s decision to scrap its merger with rival Sezzle Ltd (ASX: SZL). While the decision is mutual, Zip will pay Sezzle a break fee of US$11 million. Sezzle shares have crashed 34% on the news, leaving it with a market capitalisation of approximately $80 million. The market appears to believe its days are numbered.

Lake Resources halts shares after J Capital attack

The Lake Resources N.L. (ASX: LKE) share price has been halted on Tuesday. This is so the embattled lithium developer can respond to a short seller report from J Capital. The research firm commented: “Lake is one of several lithium explorers planning to use an unproven direct lithium extraction (DLE) technology to remove lithium from brine.[…] We believe, however, DLE will still use large amounts of water and produce toxic waste. Lake has failed to get an operational pilot plant on site three years after promising it would.”

AP Eagers’ update

The Eagers Automotive Ltd (ASX: APE) share price is pushing higher today after the auto retailer released a half-year trading update. Eagers revealed that it expects to report a statutory net profit before tax from continuing operations of $246 million. This is ahead of its guidance range of $225 million to $240 million.

Best and worst ASX 200 performers

The best performer on the ASX 200 index has been the New Hope Corporation Limited (ASX: NHC) share price with a 5% gain. This follows a positive night of trade for coal prices. Going the other way, the Core Lithium Ltd (ASX: CXO) share price is the worst performer with a 6% decline. Weakness in the lithium industry has offset the release of a mineral resource update.

The post ASX 200 midday update: Zip scraps Sezzle merger, Lake Resources’ short seller attack appeared first on The Motley Fool Australia.

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More reading

• ‘Gems in the chaos’: The outlook for ASX 200 shares in FY23
• Zip share price jumps 6% after merger deal with Sezzle is cancelled
• Sezzle share price plunges 35% as Zip merger scrapped
• Lake Resources shares on watch amid short seller attack
• The ASX sector set to pay out ‘massive record dividends’: fund manager

Motley Fool contributor James Mickleboro 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 ZIPCOLTD FPO. 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 Scott Phillips.

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