Commonwealth Bank of Australia (ASX: CBA) shares are up 1.1% as we head into the lunch hour on Tuesday.
Thatâs broadly in line with the 1.2% gains posted by the S&P/ASX 200 Financials Index (ASX: XFJ) at this same time.
Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed yesterday trading for $95.07. Shares are currently trading for $96.12 apiece.
At that price, CommBank has a market cap of $162.4 billion, easily holding its own as Australiaâs largest financial institution.
Thatâs todayâs CBA share price action for you.
Now, hereâs what could be the ASX 200 bankâs next acquisition.
What acquisition is being considered?
In news unlikely to have a material impact on CBA shares today, The Australian reports that the big four bank is carrying out exclusive due diligence to potentially acquire ScotPac.
Citing unnamed sources, the article said that CBA and ScotPac were in takeover discussion last year as CBA aims to increase its footprint in small and medium-sized enterprises (SMEs) lending.
Neither ScotPac nor CBA commented on the acquisition rumours.
If youâre not familiar with ScotPac, the company was established back in 1988.
According to its website, âScotPac is Australia and New Zealandâs largest specialist provider of working capital solutions with a comprehensive range of invoice finance, asset finance and trade finance facilities.â
The company supports more than 5,000 businesses and has funded $27.3 billion of invoices over the past 30 years.
With CBA remaining mum about the potential acquisition, shareholders will have to wait and see how this unfolds.
How have CBA shares been tracking?
As you can see in the chart below, CBA shares came under selling pressure alongside the broader market in mid-February.
Year-to-date the CBA share price is down 6%.
Over the longer term, the ASX 200 bank has gained 31% in five years. And bear in mind, these figures donât include CBAâs twice-yearly dividend payouts.
The post Own CBA shares? This could be the banking majorâs next acquisition appeared first on The Motley Fool Australia.
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More reading
- How much do I need to invest in ASX shares for $100 in weekly passive income?
- Is right now a once-in-a-decade opportunity to buy ASX 200 bank shares?
- Investing in ASX 200 banks for dividends? Read this
- Will the turmoil among global banks trigger a stock market crash?
- A director is buying up CBA shares. Should you?
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 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 Scott Phillips.
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