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Cleanaway Waste Management Ltd (ASX: CWY) shares are slipping in morning trade today. At the time of writing, the Cleanaway share price is trading 3.02% lower at $2.25.

It’s been two weeks of wrangling for Cleanaway since the S&P/ASX 200 Index (ASX: XJO) listed waste management company announced its intentions to buy the Australian arm of France’s Suez SA. The deal was reportedly worth around $2 billion.

Legal rumblings over Cleanaway’s Suez acquisition plans

But in news dragging on the Cleanaway share price, the acquisition didn’t sit well with Veolia Environnement, which already owns 29.9% of Suez SA shares. Veolia is attempting to take over Suez with an 11.3 billion euro ($17.5 billion) bid, which would include the company’s Australian operations.

According to IBISWorld data, Cleanaway manages 22.7% of Australia’s waste treatment and disposal, while number two player Suez Australia controls around 18.3% of that market.

Only five days after Cleanaway’s acquisition announcement, on 9 March Veolia issued a legal warning over the takeover move. Apparently, the threat didn’t deter Cleanaway, and now Veolia has followed through.

Veolia launches lawsuit, naming Cleanaway

According to last night’s press release, Veolia has moved forward with legal action in France to stop the sale of Suez’s assets in Australia and the United Kingdom. The hearing is scheduled for 6 April.

Aside from Cleanaway Waste Management, the following companies are listed as defendants in the Veolia lawsuit: Suez SA, Suez Australia Holding Pty Ltd, Suez UK Group Holdings Ltd, I Squared Capital Advisors (US) LLC, I Squared Capital Advisors (US), and I Squared Capital Advisors (UK Parent) Limited, PLC.

According to the press release, Richard Kirkman, Veolia Australia Managing Director and CEO, said: “Any attempt by Suez to transfer strategic assets would be regarded as hostile to Veolia and contrary to the best corporate and competitive interests of Suez, its shareholders, employees and the market”.

The wrangling continues.

Cleanaway share price snapshot

Cleanaway shares have gained around 36% over the past 12 months, just slightly below the gains posted by the ASX 200.

So far in 2021, the Cleanaway share price is down by around 3.8%.

Cleanaway pays an annual dividend yield of 1.9%, fully franked. Based on the current Cleanaway share price, the company has a market capitalisation of around $4.77 billion.

More reading

• This fundie refuses to invest in gambling and fossil fuels
• Morgans just added this ASX 200 share to its model portfolio
• Cleanaway (ASX:CWY) share price on watch after Veolia legal warning
• Thursday’s top performing ASX 200 shares at the end of the session
• Cleanaway (ASX:CWY) share price swept up in >$2bn acquisition rumour

Motley Fool contributor Bernd Struben 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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The Westpac Banking Corp (ASX: WBC) share price is trading lower on Thursday morning despite announcing another asset sale.

At the time of writing, the banking giant’s shares are down 0.3% to $24.60.

What did Westpac announce?

This morning Westpac announced that it will be offloading yet another non-core business.

According to the release, Australia’s oldest bank has signed an agreement to sell its Westpac Lenders Mortgage Insurance (WLMI) business to Arch Capital (Arch).

As part of the deal, Westpac has entered into a 10-year exclusive supply agreement for Arch Capital to provide Lenders Mortgage Insurance (LMI) to the company.

Westpac will also retain responsibility for certain legacy matters and provide protection to Arch Group through a combination of customary warranties and indemnities.

What are the terms?

The release explains that the sale price will be at book value, which will be determined at completion. The transaction also includes small, fixed annual payments to Westpac over the next 10 years.

However, Westpac will record a loss on sale in FY 2021 from the separation and transaction costs, along with an $84 million write down in goodwill that was previously announced with its first quarter update.

Despite this, though, the transaction is expected to add approximately 7 basis points to Westpac’s Common Equity Tier 1 capital ratio.

Westpac’s Chief Executive Specialist Businesses & Group Strategy, Jason Yetton, commented: “The sale continues the simplification of our business and builds on our progress in becoming a simpler, stronger bank focussed on consumer, business and institutional banking.”

Mr Yetton also spoke positively about its partnership with Arch Group for LMI.

He added: “Westpac is pleased to be entering into a long-term partnership with Arch as LMI is an important product that helps the Group make home ownership more accessible for more Australians.”

Completion of the transaction remains subject to various regulatory approvals. However, management expects completion to occur by the end of August 2021.

Today’s decline hasn’t been able to take any of the shine off the Westpac share price performance this year. Since the start of 2021, Westpac’s shares are up an impressive 25.5%.

More reading

• Is the Commonwealth Bank (ASX:CBA) share price a buy or hold?
• Westpac (ASX:WBC) share price lower despite Consumer and Business changes
• ASX 200 down 0.6%: Telstra upgraded, Webjet rated as a buy, Westpac update
• ASX 200 Weekly Wrap: Calm restored to the ASX 200
• 2 blue chip ASX dividend shares in the buy zone

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. 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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ASX lithium shares are in the spotlight as the Victorian government is set to introduce a world-first tax on electric vehicles.

The charge, which could cost the average owner $330 per year, is set to become law from 1 July. That is conditional on the government’s bill passing the state parliament.

The proposal stands in stark contrast to most other jurisdictions globally. Many nations, states, and localities provide tax incentives and rebates to encourage drivers to buy low or zero-emission vehicles.

ASX lithium miners, such as Lake Resources NL (ASX: LKE), Hawkstone Mining Ltd (ASX: HWK), and Piedmont Lithium Ltd (ASX: PLL) all have boomed recently on the back of ever-growing demand for lithium dependent electric vehicles.

Similarly, cobalt is an essential metal in the manufacturing of lithium-ion batteries. Miners like Cobalt Blue Holdings Ltd (ASX: COB) would be affected by any policy that impacted demand for electric vehicles.

So, the question is, will other governments follow suit? If so, what does that mean for ASX lithium shares and related industries? Let’s take a closer examination.

Why is the Victorian government taxing electric vehicles?

The charge, which will see owners pay 2.5 cents per kilometre travelled in zero-emission vehicles and 2 cents on hybrid cars, is being justified as a way for all drivers to pay for roads.

“Everybody who uses a road should pay their fair share to maintain them,” said Victorian Treasurer Tim Pallas.

As electric vehicles use no fuel and hybrid vehicles use a minimal amount, owners avoid paying fuel excise taxes that fund road infrastructure.

Zero-emission automobiles make up less than 1% of all Australian cars – well below nations in Europe, where the figure is approximately 4.7%. Federal government modelling expects the figure to increase from 5% – 25%.

Mr Pallas agrees. “We’ll get to a point where essentially there’ll be no revenue capacity for the state to manage the use and maintenance of our roads,” he said.

Will others follow Victoria’s lead?

In Australia, maybe. The South Australian government beat Victoria in introducing legislation to tax electric vehicles but shelved the plans to see what impact it would have in its neighbouring state.

According to The New Daily, the ACT, Tasmania, and Western Australia do not intend to introduce such a tax. However, New South Wales and Queensland have left the possibility open.

A discussion paper on electric vehicles released by the Federal Government in February examines the proposed Victorian tax and does not discredit it or rule it out on a federal level.

The paper, entitled Future Fuels Strategy, discusses strategies to increase uptake, including:

• investing in charging for infrastructure;
• trialling electric vehicles within the Commonwealth fleet, and;
• managing increased demand on the electricity grid.

The government, however, is not considering any form of increased fuel standards or financial benefits.

What is the general stance at a global level?

Australia is just a small player in total global car sales. Nations worldwide and the private sector are using their resources to encourage more electric vehicle sales, not fewer.

In the United States, for example, the government provides a tax credit of up to US$7,500 for each purchase of an electric vehicle. The European Union is targeting 30 million electric vehicles on its roads by 2030.

China requires 12% of all vehicles manufactured in or imported to the country to be electric.

Even General Motors Company (NYSE: GM) plans to stop selling cars with combustible engines by 2035.

While it’s impossible to predict, all indicators (even in Australia) point to electric car sales continuing to increase. Of course, more electric vehicles equal more demand for lithium, cobalt, and other metals required in battery manufacture.

ASX lithium and cobalt stock price snapshots

At the time of writing, the Lake Resources share price is trading 2.82% lower at 35 cents per share. In contrast, the Hawkstone share has lifted 2.78% to 3.7 cents, and Piedmont shares are selling at $1.04, up 1.96%. 

Over the course of 1 year, the share prices of each of these companies have increased between 173% and 338%.

The Cobalt Blue share price is currently up 1.23%, trading at 41 cents. Its share price has increased by 310% since this time last year.

More reading

• These are the top performing ASX lithium stocks in 2021 so far
• Why Lake Resources, PainChek, Z Energy, & Zip shares are rising today
• Why the Lake Resources (ASX:LKE) share price is shooting 10% higher today
• Why the Piedmont Lithium (ASX:PLL) share price is zooming 9% higher today
• Why Afterpay, Piedmont Lithium, ResApp, & Santos are charging higher

Motley Fool contributor Marc Sidarous 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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The Volpara Health Technologies Ltd (ASX: VHT) share price is on course to record a strong gain on Thursday.

In morning trade, the healthcare technology company’s shares are up a solid 4% to $1.35.

Today’s gain means that the Volpara share price has now risen by over 18% since this time last year.

Why is the Volpara share price storming higher today?

Investors have been buying Volpara’s shares today after it announced the publication of the results of the second round of Project DENSE in Radiology.

The DENSE trial, which is based in the Netherlands, started collecting patients 10 years ago. It is the first randomised controlled study on the clinical utility of breast MRI supplemental screening for women with extremely dense breasts. The study is using the company’s Volpara Density software to assess breast density.

The first results from DENSE trial in December 2019 showed a significant reduction in interval cancers in those women being selected for breast MRI using Volpara Density, but with a relatively high false-positive rate.

Second time around, although the incremental cancer detection rate was lower than that of the first round, the false-positive rate was only 26.3 versus 79.8 per 1000 screening examinations.

Volpara’s CEO Dr Ralph Highnam was pleased with the results and particularly the reduction in false positives being reported.

He said: “The first results from DENSE showed a dramatic decrease in the number of interval cancers by varying screening based upon VolparaDensity. These follow-up results demonstrate that as screening programs settle into these new protocols, the number of false positives is significantly reduced and makes the new protocol much more viable.”

“We are incredibly proud to be part of this work, which has been a 10-year journey for us and the investigators but is showing a real benefit to women,” Dr Highnam concluded.

More reading

• 3 ASX Healthcare shares feeling a little under the weather
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• Is it time to buy these 2 hot ASX healthcare shares?

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends VOLPARA FPO NZ. The Motley Fool Australia has recommended VOLPARA FPO NZ. 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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Vital Metals Limited (ASX: VML) shares have been placed in a trading halt on Thursday, pending an announcement of a capital raise. According to its website, the company is on the verge of transitioning from a rare earths explorer to a producer.

The Vital Metals share price has soared from the 1 cent range twelve months ago to a close of 8 cents on Wednesday. 

Transformational year for Vital Metals  

Vital Metals has achieved a number of significant milestones during its journey from explorer to producer. 

On 22 September 2020, the company signed a binding term sheet to negotiate definitive agreements for the construction and operation of a rare earth extraction plant to produce a mixed rare earth carbonate. 

By 22 December 2020, Vital Metals had entered into a binding term sheet with REEtec for an annual volume of 1,000 tonnes of rare earth oxide over five years. Both parties have an option to increase this offtake volume up to 5,000 tonnes over ten years. 

Vital’s strategy is to develop its flagship Nechalacho project in two stages. Stage one of the operations focuses on the current development and construction of the site to begin producing rare earth oxide, while stage two aims to expand its current resource and project size. The company announced that drilling for stage two had commenced on 16 February 2021. 

By 26 February, Vital announced it was on track to commence rare earth production at its Nechalacho project by Q2 CY21. This would make Vital the first rare earths producer in Canada and only the second producer in North America. 

Trading halt for capital raise 

Vital Metals shares have entered a trading halt on Thursday regarding a capital raise. The company anticipates that it will resume trading by Friday 19 March.  

In the company’s half-year accounts for 31 December 2020, it had $6 million in cash and cash equivalents and delivered a net loss of $4 million. 

More reading

• Why the Vital Metals (ASX:VML) share price just hit a 5 year high

Motley Fool contributor Kerry Sun 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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Unibail-Rodamco-Westfield CDI (ASX: URW) shares are edging lower today despite the company advising it has finalised the sale of its French office buildings. At the time of writing, the Unibail share price is trading 0.71% lower at $5.62.

What did Unibail announce?

The Unibail share price is in negative territory after the shopping centre operator provided investors with an update on its divestment.

According to its release, Unibail has completed the disposal of its Village 3, 4, and 6 office buildings. Located in the La Défense (Paris region), the offices were sold to French institutional investors.

This follows the separate office disposal agreements that were entered into in December last year.

An institutional fund managed by La Française Real Estate Managers took the keys to Village 3 on 4 March 2021. Village 4 and 6 followed thereafter with institutional fund manager Perial AM taking ownership on 17 March 2021.

The total global lease area comprised 22,144 square meters, with Orange and Orange Cyberdefense as the main tenants.

For both transactions, the net disposal price to be received is 213 million euros. This includes all transfer taxes and transaction costs from the acquisition.

Unibail stated that with the latest agreements wrapped up, along with the SHiFT disposal, the group has completed 0.8 billion euros of its asset disposal target. The company has its sights set on delivering 4 billion euros via its European asset disposal program.

Quick take on Unibail

Established in 2007, Unibail is a European commercial real estate company headquartered in Paris, France. The company operates flagship shopping centres around the world and has an estimated portfolio valued at around 56.3 billion euros.

About the Unibail share price

Over the past 12 months, the Unibail share price has gained around 30%, with year to date gains sitting at around 10%.

The company’s shares have been on a wild rollercoaster ride since COVID-19 came into the world last March. At the end of September, Unibail shares were swapping hands for as little as $2.41, before accelerating upwards.

On current valuation grounds, Unibail commands a market capitalisation of roughly $1.2 billion, with more than 219.4 million shares outstanding.

More reading

• ASX 200 down 0.6%: Telstra upgraded, Webjet rated as a buy, Westpac update

Motley Fool contributor Aaron Teboneras 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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The Vulcan Energy Resources Ltd (ASX: VUL) share price is pushing higher on Thursday.

In morning trade, the clean lithium company’s shares are up 4% to $6.62.

This latest gain means the Vulcan Energy share price is now up 139% since the start of the year.

Why is the Vulcan Energy share price charging higher today?

Investors have been buying Vulcan Energy shares today after it announced a key new appointment to its board.

According to the release, the company has appointed former Tesla Head of Battery and Energy Supply Chain, Annie Liu, as a Non-Executive Director.

While at Tesla, Ms. Liu led and managed the multi-billion-dollar strategic partnerships and sourcing portfolios that support the electric vehicle (EV) giant’s Energy and Battery business units.

This includes Battery, Battery Raw Material, Energy Storage, Solar and Solar Glass, as well as raw materials sourcing efforts such as lithium for battery cells.

In addition to this, Ms. Liu is a co-founder of Alto Group Inc. It is a trusted advisor and counsellor to many of the world’s influential businesses in the EV value chain. The release notes that Alto Group also serves private and institutional investor clients in deal generation and due diligence with a focus on sustainable energy sectors.

Vulcan Energy’s Chairman, Gavin Rezos, commented: “Annie Liu has a deep knowledge and understanding of battery supply chains and the lithium marketplace. Her profound insights into OEM requirements will provide invaluable assistance to the Vulcan Board and Management.

Ms. Liu added: “Vulcan has a ready market on its doorstep with OEMs in close vicinity. I’m excited to help Vulcan with its premium product branding around Zero Carbon Lithium to meet the EU’s requirement for ethically sourced, sustainable battery metal supplies with a low carbon footprint.”

More reading

• Why the Vulcan Energy (ASX:VUL) share price is up today
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Motley Fool contributor James Mickleboro 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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If you’re interested in adding some exposure to the small side of the market to your portfolio then you might want to take a look at the shares listed below.

Here’s why these ASX small caps have been tipped as buys:

Bigtincan Holdings Ltd (ASX: BTH)

Bigtincan is an artificial intelligence-powered sales enablement automation platform provider. Among the growing number of blue chips using its platform are 7 of the top 10 companies on the Fortune 500. Bigtincan has been growing very quickly in recent years and looks well-placed to continue this trend in FY 2021 following a very strong half year result last month. At the end of the half, its annualised recurring revenue (ARR) stood at $48.4 million. This was a 50% increase over the prior corresponding period.

Analysts at Ord Minnett are positive on its prospects. They currently have a buy rating and $1.08 price target on its shares.

Doctor Care Anywhere Ltd (ASX: DOC)

Doctor Care Anywhere is a growing UK-based telehealth company. It is aiming to deliver high-quality, effective, and efficient care to its patients, while reducing the overall cost of providing clinical services. Thanks to the growing popularity of telehealth, Doctor Care Anywhere has been growing quickly. For example, in January it released its fourth quarter update and revealed a 151% increase in revenue to 3.8 million pounds.

Bell Potter is a fan of the company. It has a buy rating and $1.95 price target on the company’s shares.

Universal Store Holdings Limited (ASX: UNI)

Universal Store is a fashion retailer with a growing network of stores across Australia. It has been performing positively during the pandemic and recently released a very strong half year result. For the six months ended 31 December, Universal Store delivered a 23.3% increase in sales to $118 million and a 63.6% increase in underlying net profit after tax to $21.1 million. This was driven by strong online and like for like store growth. Pleasingly, management is confident this strong form will continue in the second half.

Morgans is positive on the company and has put an add rating and $8.37 price target on its shares.

More reading

• Wilson Asset Management thinks these 2 small cap ASX shares are a buy
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends BIGTINCAN FPO. The Motley Fool Australia has recommended BIGTINCAN FPO and Doctor Care Anywhere Group PLC. 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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The Splitit Ltd (ASX: SPT) share price is under pressure on Thursday following the release of an announcement.

At the time of writing, the buy now pay later provider’s shares are down 1% to 97.5 cents.

This means the Spiltit share price is now down 25% year to date.

What did Splitit announce?

This morning Splitit revealed that its global expansion has continued with new merchant deals.

According to the release, the company has formed a new partnership with a financial services company and expanded into key verticals through new merchant agreements worldwide.

In respect to the financial services company, Splitit has signed a deal with Findex. Its clients will now have the ability to pay for their professional services fees via monthly instalments using their existing credit cards via Splitit.

The company notes that Findex provides financial solutions to more than 250,000 personal and business clients across Australia and New Zealand.

What about the other merchant agreements?

Splitit has been busy signing up a number of new merchants. And while they are not well-known brands, management notes that they have lifted its addressable market to US$2.3 billion.

Among the new marchants are US based jewellery retailer Michaels Jewelry, Giant Bicycles, Echelon Fitness, Mate Bike, and furniture retailer Poly and Bark.

Splitit’s CEO, Brad Paterson, commented: “With more than $2.3BN in addressable sales volume now signed and currently integrating, Splitit acceptance continues to grow with some great new brands and further expansion into professional services, luxury goods, home furnishings and outdoor.”

“Our global platform and breadth of partnerships, combined with an AOV of $1K make us an attractive partner to merchants across the globe,” Mr Paterson added.

Though, one leading retailer that you won’t find on the Splitit platform is Kogan.com Ltd (ASX: KGN). Despite highlighting its partnership with the online retail giant in 2019, it has neglected to advise that this partnership has now been discontinued.

More reading

• ASX 200 unmoved, Flight Centre soars, Afterpay keeps falling
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• Splitit (ASX:SPT) share price sinks as trade volumes bounce
• ASX 200 sinks 2.4%, Afterpay plunges, AMP jumps
• Splitit (ASX:SPT) share price tumbles despite quadrupling its revenue

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. 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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The Afterpay Ltd (ASX: APT) share price is trading lower again on Thursday morning. At the time of writing, the payments company’s shares are down almost 2.5% to $110.42. 

This means the Afterpay share price is now down over 7% since the start of the year.

Why is the Afterpay share price down 7% in 2021?

Investors have been selling Afterpay’s shares for a number of reasons in 2021. One is profit taking after some outrageous gains over the last 12 months. Another reason has been rising bond yields, which have put pressure on the tech sector.

In addition to this, concerns over increasing competition appears to have been weighing on the company’s shares. This follows the launch of BNPL services by PayPal, Shopify, and even Commonwealth Bank of Australia (ASX: CBA) this week. You can read more about the latter here.

Should Afterpay shareholders be concerned by increasing competition?

Goldman Sachs has been looking into the BNPL sector. It believes that further growth lies ahead for the sector thanks to a number of structural drivers. The broker also feels that Afterpay is well-placed to overcome the increasing competition.

It commented: “Declining popularity of credit cards and rising use of debit cards are likely to remain structural drivers. As a transaction-driven business model it is necessary for BNPL providers to scale with merchants and consumers to generate sustainable network effects.”

“This is why we believe relatively few players will dominate this sector in each market and flag that APT is showing the operational signs of being one of the key winners in this space (strong customer growth, merchant pipeline and frequency of use trends). Competition will likely be fierce but the market growth opportunity is substantial and unlikely to prevent APT from achieving our customer and Gross Merchandise Value forecasts.”

Where next for the Afterpay share price?

While Goldman Sachs’ analysts believe the Afterpay share price can still go higher from here, it isn’t enough for the broker to put a buy rating on its shares.

Its analysts have retained their neutral rating and $127.60 price target. This implies potential upside of 15.5%

More reading

• Revealed: 4 least profitable industries in Australia
• Is the new CBA BNPL service bad news for Afterpay and Zip shares?
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 dips, CBA launches BNPL, Fonterra reports
• 2 ASX investing strategies that could give young people an advantage

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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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