Stocks of the Hour: Bank of Queensland, Commonwealth & Boral

Company News

by Michael Luu

The Bank of Queensland has received the green light from the The Treasurer of the Commonwealth of Australia to proceed with its acquisition of boutique loans provider ME Bank. The approval was the only regulatory prerequisite for transaction to follow through. The $5.9 billion retail bank has secured the takeover deal with ME Bank for 1.3 billion. The funds will be transferred upon the completion of the transaction.

Shares in Bank of Queensland (ASX:BOQ) are trading 4.7 per cent lower at $8.81.

Banking giant Commonwealth (ASX:CBA) is set to offload its home and vehicle insurance division to South African-headquartered insurer Hollard Group. The transaction entails an upfront cash consideration of $625 million and undisclosed milestone-based add-ons. The deal will also pave the way for further collaboration between Commonwealth and Hollard Group, as the two parties plan to engage in joint investment opportunities in the insurance space.

Shares in Commonwealth Bank of Australia (ASX:CBA) are trading 5.3 per cent lower at $98.22.

Construction materials manufacturer Boral (ASX:BLD) is accelerating the downgrade of the company’s footprint in the US market, having agreed to a divestment of the company’s North American production assets. Boral has accepted an offer worth $2.9 billion from US company Westlake Chemical to takeover Boral’s North American building products operations.

Shares in Boral (ASX:BLD) are trading 0.7 per cent higher at $6.83.

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