What could a possible Tyro takeover mean for NAB shares?

Westpac Banking Corp (ASX: WBC) has its sights set on ASX fintech Tyro Payments Ltd (ASX: TYR), with a potential takeover tipped to strengthen its small business offerings. That could land a decent impact on National Australia Bank Ltd (ASX: NAB) shares.

NAB is currently the market leader in small business banking, and the business sphere is offering the big four some major growth.

Right now, the NAB share price is up 1.79% at $31.33. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has lifted 1.78%.

Let’s take a closer look at what today’s takeover talk could mean for NAB shares.

What could Westpac’s latest takeover talks mean for NAB?

Westpac and Tyro both confirmed they’re in takeover talks this morning. The big four bank says swallowing the tech stock could see it “better support customers and grow merchant acquiring”.

Tyro’s loan originations leapt 283% year-on-year to $99.1 million worth in financial year 2022. Its gross transaction value also surged 34% to $34.2 billion, while the number of merchants using the fintech’s offerings increased 10% to 63,770.

Of course, Westpac could be the name behind those merchants – and their data – if talks progress.

It’s only been a matter of weeks since The Australian speculated NAB had the most to gain from a Tyro takeover. It suggested the second largest of the big four would be the one most likely to put forward an acquisition offer for the $800 million fintech.

NAB’s business and private banking division brought in the majority of its cash earnings over the half year to March. It was responsible for $1.4 billion of the bank’s earnings – a 17.5% increase on that of the prior comparable period.

It’s also aiming to grow its foothold in the sector. Speaking on its most recent results, NAB business and private banking executive Andrew Irvine said:

We’ve established great momentum and are poised for further growth … This is a brilliant time to be in business and an even better time to be the bankers behind Australia’s entrepreneurs.

But, if NAB did consider lobbing a bid at Tyro, it seemingly passed on the fintech. Whether Westpac will push forward with its takeover talks is yet to be seen.

NAB share price snapshot

The NAB share price has been a strong performer so far this year.

It has gained 6.6% since the start of 2022. It’s also currently 8.8% higher than it was this time last year.

Meanwhile, the ASX 200 has dumped 10.6% year to date and 8.1% over the last 12 months.

The post What could a possible Tyro takeover mean for NAB shares? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• It’s a good day on the ASX 200. So why is the Woodside share price getting beaten up?
• Why is the Santos share price getting left behind the ASX 200 today?
• Is now the time to start buying cheap ASX 200 shares? Here’s what UBS says
• Is ASX 200 lithium player Lake Resources profitable?

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 positions in and has recommended Tyro Payments. The Motley Fool Australia has recommended Tyro Payments and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/SPJMEFh