One of the worst performers on the market on Monday has been the Mineral Resources Limited (ASX: MIN) share price.
In afternoon trade the mining and mining services company's shares are down almost 10% to $16.10.
What happened?
Today's decline appears to be a negative reaction to the company's 80 cents per share offer for energy company AWE Limited (ASX: AWE).
The all scrip offer has been structured as one new Mineral Resources share for each 22.325 AWE shares held.
Management has stated that its proposal is not conditional on due diligence. This is due to it having undertaken significant due diligence into the Waitsia and Beharra Springs assets during the Origin Energy Ltd (ASX: ORG) divestment process in 2016.
According to the release, the acquisition of AWE fits within Mineral Resources' clean energy strategy of securing gas assets to vertically integrate the energy supply chain, including the use of LNG plants to provide power solutions to a wider range of end users.
Shareholders may need some convincing judging by its decline today.
