It's a good day on the ASX for the Life360 Inc (ASX: 360) share price after news broke that, if all goes to plan, the company will be added to the S&P/ASX 200 Index (ASX: XJO) this month.
Interestingly, the reason behind the location technology company's expected inclusion is entirely out of its control.
At the time of writing, the Life360 share price is $11.54, 11.71% higher than its previous close.
Let's take a closer look at the news driving the software development company's stock higher today.
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Here's why the Life360 share price is surging on Wednesday
The Life360 share price is surging on news the company will benefit from the merger of energy giants Santos Ltd (ASX: STO) and Oil Search Ltd (ASX: OSH).
S&P Dow Jones Indices announced Life360 will be taking the place of Oil Search on the ASX 200 when (and if) the planned merger is finalised.
Oil Search shareholders gave the merger the go-ahead yesterday. More than 95% of those who voted were in favour of the transaction.
Additionally, Santos announced the merger has been given the green light by the Independent Consumer and Competition Commission of Papua New Guinea this morning.
There are still some conditions the transaction must clear before Life360 is given its place among the ASX giants. One is PNG court approval. However, it's looking promising.
S&P Dow Jones Indices is preparing to remove Oil Search from the ASX 200 on 13 December. That's also when it's expected to be delisted.
If Life360 is admitted to the index as planned, it will be one of its smaller members. Though, the company has grown significantly this year.
Right now, the Life360 share price is 203% higher than it was at the start of 2021.
