Author: openjargon

The S&P/ASX 200 Index (ASX: XJO) is having a day to remember on Friday. In afternoon trade, the benchmark index is up 1.9% to 8,798.8 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

Electro Optic Systems Holdings Ltd (ASX: EOS)

The EOS share price is down 2% to $9.30. This morning, this defence and space company announced the successful completion of its share purchase plan. Management advised that the plan was overwhelmingly supported, with EOS receiving valid applications of $95 million from 4,909 eligible shareholders. This was significantly higher than the original $25 million target. In light of the strong demand and in recognition of the ongoing support from retail shareholders, the board exercised its discretion to accept $40 million in applications. Combined with its $150 million institutional placement and $40 million strategic placement, EOS has raised a total of $230 million from investors.

Karoon Energy Ltd (ASX: KAR)

The Karoon Energy share price is down 2.5% to $2.00. Investors have been selling the energy producer’s shares after oil prices sank overnight. Traders were selling oil after US President Donald Trump announced that he expects to sign a peace deal with Iran very shortly. This is expected to result in the reopening of the Strait of Hormuz, bringing more oil supplies to market. The S&P/ASX 200 Energy index is down 1.6% at the time of writing.

REA Group Ltd (ASX: REA)

The REA Group share price is down almost 4% to $141.47. Investors have been selling this property listings company’s shares this week following the release of two bearish broker notes. After Bell Potter downgraded the property listings company’s shares to a sell rating (from buy), UBS has followed suit and cut its recommendation to neutral from buy with a reduced price target of $165 (from $213). UBS has concerns that recent property tax changes could weigh on listing volumes in the near term. Judging by its share price weakness, it seems that some investors agree with this view.

Woodside Energy Group Ltd (ASX: WDS)

The Woodside Energy share price is down 2% to $30.81. This follows the aforementioned pullback in oil prices overnight. This has overshadowed the release of an announcement this morning. Woodside revealed that it has exercised its right to acquire a further 10.67% interest in the Browse Joint Venture for up to US$400 million. This strengthens its position in Australia’s largest undeveloped conventional gas resource.

The post Why EOS, Karoon Energy, REA Group, and Woodside shares are falling today appeared first on The Motley Fool Australia.

More reading

• EOS shares are sliding again. Here’s what investors are worried about
• Woodside shares fall after a surprise $600 million move
• Woodside Energy lifts Browse JV stake under pre-emption deal
• Oil prices are back in focus. Here’s what that means for ASX energy shares
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor James Mickleboro has positions in REA Group and Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems. 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.

Cochlear Ltd (ASX: COH) shares are marching higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) hearing solutions company closed yesterday trading for $102.89. As we head into the Friday lunch hour, shares are swapping hands for $104.29 each, up 1.4%.

For some context, the ASX 200 is up 1.7% at this same time following claims by United States President Donald Trump that a peace deal with Iran may be just days away.

Despite today’s uptick, however, the Cochlear share price remains down a painful 60% in 2026.

Those losses will have only been modestly eased by the $2.15 a share in partly-franked dividends Cochlear paid to eligible stockholders on 13 April. Cochlear stock trades on a 4.1% partly-franked trailing dividend yield.

Which brings us back to our headline question.

With the company’s shares having lost more than half of their value over the last year, is the ASX 200 stock now trading for a bargain?

Should I buy Cochlear shares today?

MPC Markets’ Mark Gardner recently ran his slide rule over the ASX 200 stock (courtesy of The Bull).

“Cochlear remains a global leader in hearing implants, but the investment case has become more balanced,” he said.

“The shares have been under pressure after analysts re-assessed growth expectations and lowered revenue, margin and valuation assumptions,” Gardner added.

Looking to the company’s longer-term prospects, he said, “The long-term demand profile remains attractive, supported by ageing populations and continued adoption of implantable hearing technology.”

Explaining his hold recommendation on Cochlear shares, Gardner concluded:

However, the market will need evidence that procedure volumes and margins can recover before a stronger recommendation is warranted. At these levels, investors can continue to hold but should monitor earnings momentum and further analyst revisions.

What’s been happening with the ASX 200 stock?

Most of the pain for the shareholders was delivered on 22 April following the release of a decidedly unwelcome trading update.

Cochlear shares closed down 40.7% on the day after the company reported falling demand for its implants in developed markets, as well as flagging cancellations and delays in deliveries to the Middle East due to the ongoing conflict.

This saw management downgrade Cochlear’s full-year FY 2026 underlying net profit guidance to between $290 million and $330 million. That was down from the company’s prior FY 2026 underlying net profit guidance of $435 million to $460 million.

Cochlear also reduced its second-half FY 2026 sales growth forecast to 2% to 6% in constant currency.

The post Down 60%, are Cochlear shares now a bargain buy? appeared first on The Motley Fool Australia.

More reading

• Do experts rate BHP, Cochlear, and ResMed shares as buys, holds, or sells?
• Buy, hold, sell: 4DMedical, Cochlear, Westpac shares
• Why everyone selling Cochlear shares right now could regret it in 3 years
• WiseTech, Cochlear, CSL shares: Can these beaten down stocks rebound in 2026?
• Short sellers are targeting these 3 ASX shares this week. Are they right?

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

Electro Optic Systems Holdings Ltd (ASX: EOS) shares are struggling to find direction on Friday.

This comes after the defence technology company released the results of its Share Purchase Plan (SPP).

The EOS share price has moved between gains and losses early in morning trade. At the time of writing, it is down 2.85% to $9.20.

That extends a difficult week for the ASX defence share, which has fallen more than 14% over the past 5 trading days.

However, investors who bought a year ago are still sitting on an enormous win. EOS shares have climbed close to 300% since this time last year.

Let’s take a closer look at today’s announcement.

Shareholders wanted $95 million worth of stock

EOS confirmed that its SPP received applications worth approximately $95 million from 4,909 eligible shareholders.

That was well above the company’s original target of $25 million.

In response to the strong demand, the board increased the size of the offer to $40 million. EOS will now issue approximately 5 million new shares at $8 each.

The offer price was the same as the company’s recent institutional and strategic placements.

However, shareholders will not receive everything they applied for. EOS said applications would be scaled back on a pro-rata basis, taking into account each applicant’s shareholding at the record date.

Allocations will also be rounded so that eligible shareholders receive at least $1,000 worth of shares.

The new shares are expected to be issued next Tuesday, with trading due to begin the following day.

Why are EOS shares falling?

The SPP attracted almost four times its original target, showing there was no shortage of demand at $8 per share.

But the price is still well below where EOS shares are trading today. Even after this week’s fall, the stock remains 15% above the SPP issue price.

That may be encouraging some investors to take money off the table before the new shares begin trading next week.

There’s also the prospect of SPP participants locking in a quick gain once their shares are issued.

EOS has raised quite a large amount of capital in a short period. The SPP comes on top of a $150 million institutional placement and a $40 million strategic placement.

Has the EOS share price run too far?

EOS has enjoyed a huge rally as investors have backed growing defence spending and demand for counter-drone technology.

The company recently completed its acquisition of MARSS, adding AI-enabled command and control systems to its defence operations.

But after a gain of almost 300% in 12 months, expectations are much higher than they were a year ago.

The strong SPP demand is encouraging, but the extra shares and discounted issue price could keep the stock under pressure next week.

The post EOS shares are sliding again. Here’s what investors are worried about appeared first on The Motley Fool Australia.

More reading

• Why EOS, Karoon Energy, REA Group, and Woodside shares are falling today
• SpaceX starts trading today. Here’s what ASX investors need to know
• ASX defence shares like Droneshield have soared since 2022. Is there any growth left?
• Why might Pro Medicus shares soon be under pressure?
• Up 331% in a year. Can EOS shares keep storming higher?

Motley Fool contributor Aaron Teboneras 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 Electro Optic Systems. 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.

Despite recent positive pronouncements from US President Donald Trump, the Straight of Hormuz remains closed to shipping traffic and could stay that way for an indefinite amount of time.

The team at UBS has recently issued a research note on the impact of the closure on oil prices and has picked an Australian oil major as its preferred stock in the sector.

I’ll get to that shortly.

Firstly, let’s look at what they’re saying about oil prices.

Price trend is higher

UBS said:

We raise near term oil prices reflecting the extended closure of the Strait of Hormuz and assume that transit remains severely reduced until the end of July at which point we expect a gradual resumption of flows with 90% of lost supply back within 6 months.

The broker has lifted its third-quarter Brent Crude oil price forecast by US$20 per barrel to US$105, its fourth-quarter forecast by US$10 to US$90, and its 2027 forecast by US$5 to US$85.

They added:

As inventories edge closer to critical levels over the coming 2 months, we anticipate oil prices may briefly exceed $120/bbl. Despite lifting oil, we trim LNG prices over 2H26 (2027+ unchanged) recognising global gas markets have been supported by weaker demand, fuel switching & additional US supply all helping mitigate the loss of ~17% of Qatari supply. Despite this, we see LNG price risk skewed to the upside as demand to refill low gas storage levels in Europe suggests tightness may persist over the next 6-9 months.

UBS said the timing of a resolution to the Straight of Hormuz situation remains the key uncertainty for oil markets and added, “we expect Brent Crude to trade within the $80 to $150/bbl range depending on scenarios”.

Which ASX energy company is best positioned?

Among Australian energy companies, UBS has picked Santos Ltd (ASX: STO) as its preferred pick in the sector.

They said:

STO is trading at an implied oil price of $67/bbl offering investors inexpensive leverage to the upside risk in near term oil prices. While our upside oil price scenario sees Brent at $135/bbl over 2H26 & $90/bbl in 2027, even our downside price scenario (Brent at $90/bbl in 3Q26, $80/bbl in 4Q26 and $75/bbl in 2027) implies STO is undervalued at the current price.

UBS has a price target of $8.60 on Santos shares compared to $7.96 currently.

The broker is neutral on Woodside Energy Group Ltd (ASX: WDS) with a price target of $30.40, and sell-rated on Beach Energy Ltd (ASX: BPT).

The post Which ASX energy company is best placed to benefit from high oil prices? appeared first on The Motley Fool Australia.

More reading

• Oil prices are back in focus. Here’s what that means for ASX energy shares
• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Cameron England 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.

If you are looking for good value ASX stocks, then read on.

That’s because Bell Potter has just named one stock as a “compelling value play.”

Which ASX stock?

The stock that the broker is recommending to clients is Select Harvests Ltd (ASX: SHV).

It is an integrated grower, processor, and marketer of almonds, owning and operating farming and processing assets in Australia.

Bell Potter highlights that recent developments in the important Californian almond growing region could give the ASX stock a boost. It said:

The implementation of the Sustainable Groundwater Management Act (SGMA) in California has the potential to result in a multi-year reduction in Californian almond supply, kickstarting an upward price cycle that would be materially beneficial for SHV.

The affected acreage: California produces ~77% of global almonds and supplies ~83% of global exports. Counties deemed in chronically overdrafted basins account for ~80% Californian almonds production. The implementation of sustainability plans in 2020, looks to be already reducing yields and as we approach 2040, there remains the scope for an acceleration in orchard removals to reach sustainability targets.

In light of this, the broker sees Australia as a logical supply hub. It adds:

First derivative winners are established almond producers (and SHV is the best ASX listed exposure). But there is also likely to be a reallocation of capital towards Australian assets and this could create a growth narrative for SHV that is missing. This would likely be through development of new orchards and/or expanded third party processing and marketing opportunities. There would also likely be favourable gains in orchard values.

Should you invest?

According to the note, the broker has retained its buy rating and $5.30 price target on the ASX stock.

Based on its current share price of $3.89, this implies potential upside of 36% for investors over the next 12 months.

In addition, Bell Potter is expecting a 2.5% dividend yield over the period, boosting the total potential return beyond 38%.

Commenting on its investment thesis, the broker said:

While yields and prices are volatile year-to-year, we see the key implication being a long-duration upswing in the commodity value first and asset values second. Trading at a 28% discount to market NAV and 5.4x FY26e EBITDA we see SHV as a compelling value play on what could be one of the best global plays on a SGMA.

The post Why this ASX stock is a ‘compelling value play’ appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• 15 ASX shares going ex-dividend before EOFY
• Bell Potter says this ASX 300 stock can storm 36% higher
• Why Galan Lithium, Life360, Select Harvests, and Siteminder shares are storming higher
• This company has just announced a buyback, and the shares are surging

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 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.

Rio Tinto Ltd (ASX: RIO) shares are charging higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant closed yesterday trading for $180. In morning trade on Friday, shares are changing hands for $184.27 apiece, up 2.4%.

For some context, the ASX 200 is up 1.7% at this same time following assertions from US President Donald Trump that a peace deal with Iran is virtually a done deal.

Today’s outperformance from Rio Tinto shares will be familiar to longer-term shareholders.

Indeed, shares in the ASX 200 mining stock are up a whopping 71.2% since this time last year, smashing the 2.6% 12-month gains posted by the benchmark index.

But let’s not forget that passive income.

If you’d owned Rio Tinto stock this past year, you would have received two fully-franked dividends totalling $5.89 a share. This sees Rio Tinto trading on a fully-franked trailing dividend yield of 3.2%.

Which brings us back to our headline question.

Should I buy the ASX mining share for passive income?

Are Rio Tinto shares a good buy for passive income today?

Morgans’ Damien Nguyen recently analysed the investment outlook for the Aussie mining giant (courtesy of The Bull).

“Rio Tinto is a world class diversified miner with high quality iron ore, aluminium and copper assets generating solid cash and consistent shareholder returns,” he said.

Nguyen noted:

Iron ore earnings remain central to the investment case, but are sensitive to Chinese property and infrastructure activity, which continues to face near term headwinds. Copper and lithium assets provide structural growth exposure.

On the passive income front, Nguyen said, “The balance sheet is strong and the dividend remains well-supported, making RIO a sound income holding.”

But, keeping in mind that the Rio Tinto share price has leapt more than 71% over the past year, Nguyen maintained his hold recommendation on the stock.

“With the near-term earnings outlook balanced rather than clearly positive, we retain a hold recommendation,” he concluded.

What’s the latest from the ASX 200 mining stock?

Rio Tinto released its first-quarter (Q1 2026) update on 21 April.

Highlights for the three months included a 13% year-on-year increase in Pilbara iron ore production to 78.8 million tonnes.

Copper production was up 9% from Q1 2025 to 229,000 tonnes.

“Operating excellence drove 9% YoY copper equivalent production growth across our portfolio as the Oyu Tolgoi copper mine continues to ramp up as planned,” Rio Tinto CEO Simon Trott said of the strong growth.

Rio Tinto shares closed up 0.8% on the day of the results release.

The post Should I buy Rio Tinto shares for passive income? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Woodside, Rio Tinto, NAB shares
• Why these ASX blue-chip shares are strong buys right now
• Rio Tinto shares slump 7.5% from an all-time high: Buy, sell or hold?
• 3 top ASX mining shares for investors right now
• Are Fortescue or Rio Tinto shares the better buy?

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.

S&P/ASX 200 Index (ASX: XJO) shares are rising strongly on Friday, up 1.9% to 8,797.6 points.

This follows US President Donald Trump claiming a peace agreement with Iran could be reached this weekend.

Meanwhile, brokers have indicated new confidence in several ASX 200 shares.

Let’s check them out.

Deep Yellow Ltd (ASX: DYL)

The Deep Yellow share price is $1.41, up 3.3% today.

Over the past month, this ASX 200 uranium share has fallen 22%.

Jefferies upgraded Deep Yellow shares to a buy rating on Monday.

The broker has a 12-month price target of $1.90.

This suggests a potential 35% upside ahead.

TPG Telecom Ltd (ASX: TPG)

The TPG share price is $3.70, down 0.1% today.

Over the past month, this ASX 200 telecommunications share has fallen 9%.

JP Morgan upgraded TPG Telecom shares to a hold rating this week.

The broker has a 12-month price target of $3.70.

This implies the stock is fully priced.

Graincorp Ltd (ASX: GNC)

The Graincorp share price is $5.20, up 1.6% today.

Over the past month, this ASX 200 consumer staples share has dropped 15%.

Ord Minnett upgraded Graincorp shares from an accumulate to buy rating this week.

The broker said:

We note that at the first-half FY26 results release on 14 May, there were growing concerns for the FY27 crop due to significant areas of northern NSW and Queensland not having sufficient soil moisture profiles to plant and a weather forecast suggesting a dry winter and the chance of El Nino.

Relieving rains of the past two weeks, however, have washed away these fears.‍ The FY27 crop is likely to be smaller than FY26, but it is now unlikely to be the disaster it was shaping up to be.

In Ord Minnett’s view, this makes the 21% retracement in the GrainCorp share price since 14 May seem like a significant overreaction.

The broker has a 12-month price target of $7.25 on Graincorp shares.

This suggests a potential capital gain of almost 40% over the next year.

Vysarn Ltd (ASX: VYS)

The Vysarn share price is 98 cents, down 0.5% today.

Vysarn delivers production services to the resources, utilities, and construction sectors.

Morgans upgraded this ASX materials small-cap share after Vysarn announced an acquisition.

The broker lifted its rating from speculative buy to buy.

It also raised its target price from 90 cents to $1.10.

This implies a potential 12% upside ahead.

Morgans said:

VYS is acquiring NewGround, adding highly accretive (~25% EPS) annuity-style earnings that, alongside greater customer-base diversification in the industrial division, materially increases earnings visibility.

The limited upfront cash component of $8.3m preserves balance sheet flexibility, providing further capacity to continue building out its integrated water-services platform via acquisitions.

Incorporating NewGround from early October, we raise our EPS forecasts in FY27 and FY28 by +19 and +24% respectively.

Reflecting the improvement in earnings quality and reduced volatility, we upgrade VYS from Speculative Buy to Buy.

While the Kariyarra asset management business carries a binary outcome, at the current share price, investors are getting this optionality for free.

The post 4 ASX shares upgraded by brokers this week appeared first on The Motley Fool Australia.

More reading

• 3 ASX small-cap shares to buy: Morgans
• Broker names 3 ASX All Ords shares to buy
• 7 ASX shares attracting upgraded ratings this week
• TPG Telecom just raised its dividend. Here’s what that means for income investors
• Here are the top 10 ASX 200 shares today

JPMorgan Chase is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen 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 JPMorgan Chase and Jefferies Financial Group. The Motley Fool Australia has recommended Vysarn. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Woodside Energy Group Ltd (ASX: WDS) shares are under pressure on Friday following a major update from the energy giant.

At the time of writing, the Woodside share price is down 2.57% to $30.71.

The fall comes after the company revealed it has stepped in to block another energy group from buying into a major Australian gas project.

Woodside shares have still climbed around 31% in 2026, helped by rising oil prices amid the Middle East conflict.

Let’s take a closer look at the announcement.

Woodside blocks Inpex from entering Browse

According to the release, Woodside has exercised its pre-emption rights to acquire PetroChina‘s 10.67% interest in the Browse Joint Venture.

PetroChina had previously agreed to sell the stake to Japanese energy company Inpex. However, existing Browse partners were given the right to match the terms of that deal.

Woodside has now stepped in and will pay PetroChina US$225 million, which is around $320 million at the current exchange rate.

The company will also reimburse PetroChina for cash contributions made to the project since 30 June 2025.

A further US$175 million payment could be made if the Browse partners approve a final investment decision (FID) for the Brecknock, Calliance, and Torosa fields by 30 June 2032.

Including the potential payment, the total price could reach US$400 million, or about $570 million.

Of course, the acquisition remains subject to regulatory approvals and other conditions.

If no other partner exercises its pre-emption rights, Woodside’s stake in Browse will increase from 30.6% to 41.27%.

Why does Woodside want a bigger stake?

Browse is Australia’s largest undeveloped conventional gas resource and sits about 425 kilometres north of Broome.

The current plan is to send the offshore gas through a pipeline to the North West Shelf’s Karratha Gas Plant for processing.

This would provide a new supply as production from the existing North West Shelf fields declines.

Inpex operates the Ichthys LNG facility in Darwin and could have pushed for Browse gas to be processed in the Northern Territory instead of Western Australia.

By buying PetroChina’s interest, Woodside keeps Inpex out of the joint venture and gains more control over how the project is developed.

The purchase also gives Woodside greater exposure to the project’s potential production and cash flow if it eventually moves ahead.

Why are Woodside shares falling?

It appears that the market may simply be taking some money off the table after a strong run.

Woodside shares have climbed with oil prices this year, leaving expectations much higher than they were at the start of 2026.

Furthermore, Browse has not reached an FID and will require major spending, regulatory approvals, and support from the other joint venture partners.

While buying a bigger stake strengthens Woodside’s position, it also increases the company’s exposure to those costs and risks.

The post Woodside shares fall after a surprise $600 million move appeared first on The Motley Fool Australia.

More reading

• Woodside Energy lifts Browse JV stake under pre-emption deal
• Oil prices are back in focus. Here’s what that means for ASX energy shares
• 5 things to watch on the ASX 200 on Friday
• ASX 200 slips as oil shock puts investors on edge
• Why Lendlease, Meteoric Resources, Super Retail, and Woodside shares are rising today

Motley Fool contributor Aaron Teboneras 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.

Magellan Financial Group Ltd (ASX: MFG) shares are ending the week in style.

In morning trade, the fund manager’s shares are up 6.5% to $9.64.

This even compares favourably to a booming S&P/ASX 200 Index (ASX: XJO), which is up 1.7% on Friday amid peace hopes in the Middle East.

Why are Magellan shares racing higher?

Investors have been buying the company’s shares after it released a major update on its proposed merger with Barrenjoey.

According to the release, the Australian Competition and Consumer Commission (ACCC) has determined that the merger between Magellan Financial Group and Barrenjoey Capital Partners may be put into effect.

It notes that the determination is unconditional and subject to the expiry of the statutory 14-day review period.

The ACCC explained:

The ACCC has determined that the Acquisition may be put into effect as it considers that the Acquisition is unlikely to have the effect of substantially lessening competition in any market. In reaching its decision, and based on the material before it, the ACCC makes the following findings.

The Parties do not compete closely in the supply of asset management services in Australia as they focus on different asset classes and client types. The market share aggregation in the supply of asset management services in Australia resulting from the Acquisition is estimated to be low. The Parties would likely continue to face competition from alternative suppliers of asset management services in Australia.

As a result, Magellan expects to complete the merger in early July.

Name change

Subject to completion of the merger, the Magellan board revealed that it intends to seek shareholder approval to change the company’s name from Magellan Financial Group Ltd to Barrenjoey Group Limited.

In addition, if approved, the company’s ASX ticker will be changed from MFG to BJY.

Commenting on the news, Magellan’s chair, Andrew Formica, said:

The ACCC’s clearance is a significant milestone in the completion of the Merger and brings us one step closer in our shared ambition to build one of Australia’s leading financial services businesses. MFG has built a recognised investment management franchise, supported by deep investment expertise and longstanding client relationships.

As we bring these two businesses together it is important that our brand reflects both the expanded capabilities of the combined Group and the opportunities ahead. The decision to adopt the Barrenjoey name recognises the transformational nature of the Merger and follows feedback from our clients, our people and our shareholders since announcement of the Merger. A unified brand will provide greater clarity while reflecting the innovative culture, alignment of interests and commitment to clients that will define the combined organisation.

The post Magellan shares race 6% higher on big merger news appeared first on The Motley Fool Australia.

More reading

• Magellan Financial Group shares: ACCC backs merger and rebrand plans
• Three ASX shares with fresh buy recommendations to target this week

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 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.

S&P/ASX 200 Index (ASX: XJO) gold stock Vault Minerals Ltd (ASX: VAU) is rocketing today.

Vault Minerals shares closed yesterday trading for $3.84. In early morning trade on Friday, shares are changing hands for $4.10 apiece, up 6.8%. That sees Vault commanding a market cap of around $4 billion.

For some context, the ASX 200 is up 1.6% at this same time amid renewed hopes for a US peace deal with Iran.

Here’s why Vault Minerals shares are charging ahead of those gains.

ASX 200 gold stock jumps on mine restart progress

Investors are bidding up Vault Minerals shares after the company announced that it has lodged a key regulatory permit to restart its Sugar Zone gold mine, located in the Canadian province of Ontario.

The ASX 200 gold stock said it submitted its fully certified Closure Plan Amendment (CPA) to the Ontario Ministry of Energy and Mines (MEM) following a formal invitation to do so.

Vault called the permit submission “a critical advancement in the regulatory pathway” for filing of the CPA for the Southern Tailings Management Facility (STMF). The company noted this supports its planned restart of underground development at the project in the first quarter of FY 2027 (Q1 FY 2027).

The miner is aiming to recommence processing and gold production at Sugar Zone in Q1 FY 2028.

Mining and processing activities were suspended at the mine in August 2023. Since then, the ASX 200 gold stock has completed an extensive drilling campaign of around 114,000 metres.

This exploration program culminated in an Ore Reserve of 2.3Mt at 5.4 g/t for 389,000 ounces of gold, and the addition of a third mining front at Sugar Zone South.

What did the local First Nations leadership say?

The ASX 200 gold stock said it was only able to lodge the permit following the successful completion of consultations with First Nations communities in the area.

Commenting on the planned restart of operations at the Sugar Zone gold mine, Netmizaaggamig Nishnaabeg chief Clyde Jacobs said, “Vault operates within Netmizaaggamig Nishnaabeg’s (NN) Aboriginal title lands and traditional territory.”

Jacobs added:

NN welcomes the completion of the Ministry’s technical review and supports the submission of the Sugar Zone Closure Plan Amendment as an important milestone toward the planned restart of operations.

NN is a strong voice who advocated for responsible development at Sugar Zone from the outset and appreciates Vault’s continued commitment to a respectful and mutually beneficial relationship grounded in environmental stewardship, meaningful employment and procurement opportunities, and long-term shared benefits on NN’s traditional lands.

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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.