Is the ASX about to wave goodbye to this billion-dollar nickel miner?

Western Areas stock is expected to trade for the last time tomorrow.

| More on:
Bird's eye view of a pair of yellow shoes next to a goodbye sign written in chalk on the pavement

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Tomorrow afternoon could bring Western Areas' last close on the ASX ever as the company prepares to be taken over by IGO 
  • IGO's acquisition was given the go-ahead by the Supreme Court of Western Australia today 
  • Under the takeover proposal, Western Areas shareholders are to receive $3.87 in cash for every stock they own in the company 

The ASX could be about to bid farewell to nickel mining giant Western Areas Ltd (ASX: WSA) as the company prepares to be acquired by S&P/ASX 200 Index (ASX: XJO) resources monolith IGO Ltd (ASX: IGO).

If all goes according to plan, Western Areas shares will be suspended from trading as of tomorrow's close. That will mark an end to the company's 22-year chapter on the ASX.

At the time of writing, the Western Areas share price is $3.87, 0.13% higher than its previous close.

For context, the ASX 200 is currently down 1.39% while the S&P/ASX 200 Materials Index (ASX: XMJ) is down 0.19%.  

Let's take a closer look at what the next few days could bring Western Areas.

Will tomorrow be this ASX nickel miner's last day of trade?

The ongoing acquisition of $1.2 billion nickel miner Western Areas by IGO has taken another step forward as the Supreme Court of Western Australia gives the takeover its tick of approval.

Now, all that there is to do is for Western Areas to lodge a copy of the court's orders to the Australian Securities and Investments Commission (ASIC), making the scheme legally effective. The company plans to do so tomorrow.

After the document is submitted, the company's stock is expected to close for the last time.

Though, Western Areas shareholders won't be left out in the cold. They'll receive $3.87 cold hard cash for every share in the company they own.

That's up from IGO's previous bid of $3.36 per share. It was placed before the now-renown short squeeze that saw the price of nickel rocketing 250% in a single day.

Thus, an independent expert found the initial bid – placed in December – undervalued the billion-dollar nickel miner come April.

It was a lucky happening for Western Area shareholders. They are now likely expecting a payout in the near future.

Should you invest $1,000 in Spdr Dow Jones Global Real Estate Esg Fund right now?

Before you buy Spdr Dow Jones Global Real Estate Esg Fund shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Spdr Dow Jones Global Real Estate Esg Fund wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Brooke Cooper 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.

More on Mergers & Acquisitions

Miner looking at a tablet.
Mergers & Acquisitions

Gold Road shares surge 10% on $3.7 billion takeover offer

The ASX 200 gold stock is soaring after finding itself in the acquisition crosshairs.

Read more »

A corporate team or board stands together and looks out the window.
Technology Shares

WiseTech shares charge higher on $3.5b acquisition news

This tech stock is ending the week positively. But why?

Read more »

Two CEOs shaking hands on a deal.
Financial Shares

This ASX 300 stock is jumping on surprise merger news

This stock could be having a very big makeover.

Read more »

A graphic showing three hands holding red paddles with the word BID, indicating a bidding war for an ASX share company
Mergers & Acquisitions

Guess which ASX All Ords stock just received a new takeover offer

Let's see which stock is in the crosshairs of a rival.

Read more »

Man with rocket wings which have flames coming out of them.
Technology Shares

Guess which ASX All Ords stock is rocketing 34% on takeover deal

This stock looks set to leave the ASX boards in the near future after accepting a takeover deal.

Read more »

Two miners standing together.
Gold

Northern Star Resources set to buyout rival De Grey mining

As gold soars, ASX miners continue to mine the acquisition pipeline.

Read more »

Man with rocket wings which have flames coming out of them.
Mergers & Acquisitions

Guess which ASX 300 stock is rocketing 15% on big takeover offer

Not every share is being dragged lower on Monday.

Read more »

Happy woman holding white house model in hand and pointing to it with a pen.
Mergers & Acquisitions

Up 70% this year, Domain share price wobbles on CoStar takeover update

Domain released an update on CoStar’s $2.8 billion takeover bid.

Read more »