The Fortescue Metals Group Ltd (ASX: FMG) share price is roughly flat this afternoon as reports filter through of fleecy acquisition.
In an otherwise uneventful day for the iron ore miner, shares finished up 0.38% at $20.94 apiece. An influx of buyers into the close helped Fortescue shares higher after dipping to an intraday low of $20.70 around 3pm.
Image source: Getty Images
What is next on Twiggy's buy list?
Fortescue executive chair and founder Andrew 'Twiggy' Forrest has become known for taking stakes in other companies and making acquisitions. However, the latest reported target might raise a few eyebrows at first glance.
According to The Australian Financial Review, the billionaire businessman has his sights set on Rawlinna Station. The renowned sheep station, situated 400km east of Kalgoorlie, spans more than one million hectares of red dirt.
Unlike previous Western Australian purchases made through his private investment group Tattarang, however, it is believed the Rawlinna deal would be made by Fortescue Metals Group directly.
At present, Rawlinna Station is known for its 60,000-odd head of Merino sheep. Though, it seems unlikely Fortescue is eyeing the station for a foray into the wool business. After all, it's iron ore that has boosted Fortescue shares to new heights and minted much of Twiggy's wealth.
Instead, utilising the land for developing renewable energy infrastructure could be on the cards under the guise of Fortescue Future Industries. The green hydrogen hopeful is expected to soon begin shedding light on its planned projects, with the details of the first development slated before the end of June.
Reports suggest that pastoral activities would 'co-exist' with the potential clean energy developments. The deal has yet to be solidified as it still requires government approval.
Was it a good week for Fortescue shares?
It was a lacklustre week for the iron ore miner. A steep fall in the steelmaking commodity, acting like a magnet, pulled the company's share price to the downside. As a result, Fortescue shares finished the week 5.5% worse off.
Fortescue's falling quarterly production certainly didn't do it any favours either. According to the release, mined production dropped 16% quarter-on-quarter for the three months ending 31 March 2023.
The report left Goldman Sachs reiterating its sell rating on the miner. Citing an overvaluation compared to peers, analysts from the investment bank tagged Fortescue shares with a $15.80 price target.
