The Westpac Banking Corp (ASX: WBC) share price is having a strong day.
In morning trade, the banking giant's shares are up 2% to $23.92.
This means the Westpac share price is up 16% since the start of the month.
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Why is the Westpac share price rising today?
There have been a couple of catalysts for the rise in the Westpac share price on Tuesday.
The first is a strong showing in the banking sector following a very positive session on Wall Street overnight. This has seen all of the big four banks climb today.
The second catalyst, which has seen the Westpac share price outperform its peers, is investors responding positively to the release of an announcement this morning.
What was announced?
Earlier today, Westpac confirmed that it is looking at the potential acquisition of payments processor Tyro Payments Ltd (ASX: TYR). The bank commented:
Westpac confirms it is in preliminary discussions with Tyro Payments Limited to acquire 100% of the company's issued share capital. There is no certainty that any transaction will result.
Australia's oldest bank believes that acquiring Tyro would strengthen its small business offering. It briefly explained:
An acquisition would strengthen Westpac's small business proposition, enabling it to better support customers and grow merchant acquiring, particularly in the hospitality and healthcare sectors.
What's happening with Tyro's shares?
Interestingly, the Tyro share price has barely moved today despite this news. It is currently up only 0.5%, which could be an indication that investors aren't overly convinced that a deal will be struck based on what management said this morning.
Tyro commented:
The Company confirms it has received approaches from several parties expressing interest in a potential change of control transaction, including Westpac Banking Corporation. None of these approaches are sufficiently definite or advanced to warrant further disclosure at this time.
The Company notes that these approaches are non-binding and highly conditional in nature, and there is no certainty that a binding offer or a transaction of any kind will eventuate.
