Guess which ASX 200 stock just surged 16% in today's crashing market!

How is this ASX 200 stock leaping higher in Monday's tumbling market?

| More on:
Man pointing at a blue rising share price graph.

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

The S&P/ASX 200 Index (ASX: XJO) is taking a Trump tariff beating today, but that's not holding back this surging ASX 200 stock.

The outperforming company in question is Challenger Ltd (ASX: CGF).

Shares in the investment management company closed on Friday trading for $5.54. In earlier trade on Monday, shares just leapt to $6.40, up 15.5%. After some likely profit-taking, shares are changing hands for $5.97 apiece at the time of writing, up 7.8%.

To put that performance in better context, the ASX 200 is down 4.1% at this same time.

Here's what's grabbing investor interest today.

ASX 200 stock rockets on share acquisition news

The Challenger share price is surging today after the ASX 200 stock announced that TAL Dai-ichi Life Australia has agreed to acquire a 15.1% minority interest in the company from MS&AD Insurance Group Holdings.

TAL is a subsidiary of Dai-ichi Life Holdings, a Japanese-based mutual insurance company.

TAL is offering 763 yen per Challenger share, or approximately AU$8.46 per share. That's 52.7% above Friday's closing price.

In a media release, TAL said it "recognises the evolving needs of Australia's retirement market".

TAL said its minority investment in the ASX 200 stock reflects "TAL's long-term commitment to the retirement income solutions sector, where we expect to benefit from the anticipated market growth".

What did management say?

Commenting on the share acquisition proposal sending the ASX 200 stock flying higher in today's sinking market, Challenger CEO Nick Hamilton said:

Dai-ichi Life is a global leader in life insurance and we look forward to building a relationship that will benefit both our customers and shareholders. We welcome their significant investment in our business and will explore future opportunities that support our strategic objectives.

The strategic reinsurance relationship in place with MS Primary since 2016 has created significant shared value and we are pleased this will continue. This is an exciting time for Challenger as we deliver our growth strategy and provide financial confidence to even more Australians in retirement.

In 2024, Challenger and MS Primary, a subsidiary of MS&AD, renewed their reinsurance partnership for another five years.

Hamilton said that the arrangement continues to deliver "well above the minimum volume levels".

The company stressed that Challenger and MS Primary's successful decade-long collaboration will not be impacted by the share sale.

The ASX 200 stock's share sale to TAL remains subject to customary regulatory approvals, including from the Australian Foreign Investment Review Board (FIRB) and the Australian Prudential Regulation Authority (APRA).

Motley Fool contributor Bernd Struben 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 recommended Challenger. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

Market up or down
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors had a rough end to the week...

Read more »

Man in an office celebrates at he crosses a finish line before his colleagues.
Share Gainers

4 ASX 200 shares racing ahead of the benchmark this week

ASX investors sent these four stocks soaring 12% to 18% this week. But why?

Read more »

Man pointing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why BHP, Coronado Global, EBR Systems, and Whitehaven Coal shares are pushing higher today

These shares are ending the week on a positive note. Let's find out why.

Read more »

a young woman looks happily at her phone in one hand with a selection of shopping bags in her other hand.
BNPL shares

Up 87% since April, why the Zip share price can keep flying higher into 2026

A leading fund manager expects more outsized gains from Zip shares ahead.

Read more »

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a miserly session for investors today.

Read more »

Happy coal miner.
Share Gainers

Up 75% this week, why is this ASX All Ords stock rocketing again today?

Investors are piling into this ASX 300 stock on Wednesday. But why?

Read more »

A young woman smiles as she rides a zip line high above the trees.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a bountiful session for investors this hump day.

Read more »

Man looking happy and excited as he looks at his mobile phone.
Share Gainers

Why Coronado, DroneShield, Lovisa, and Mayne Pharma shares are racing higher today

These shares are having a good time on hump day. But why?

Read more »