Stocks of the Hour: Qube, Collins Foods & Wesfarmers

Company News

by Melissa Darmawan

The competition watchdog has slapped Qube (ASX:QUB) with an investigation into the company’s $90 million spending spree to acquire Newcastle Agri Terminal. The deal went ahead before the ACCC gave its tick of approval on potential competition concerns. Shares in Qube Holdings (ASX:QUB) closed 0.6 per cent lower at $3.27.

Collins Foods (ASX:CKF) inked a deal to run the KFC chain in the Netherlands over the next decade with Yum! Brands. The plan is to open up to 130 new KFC stores, quadrupling Collins' Dutch store count of 29. The agreement kicks off on the last day of this year. Shares in Collins Foods (ASX:CKF) closed 6.9 per cent higher at $12.81.

Wesfarmers (ASX:WES) snapped up their 19.3 per cent share in Priceline owner Australian Pharmaceutical Industries (ASX:API), in an effort to block out the owner behind the Amcal and Guardian brands, Sigma (ASX:SIG). The battle between the retail giants heated up after Sigma (ASX:SIG) swooped in and trumped Wesfarmers second offer. Despite Sigma’s offer being superior to Wesfarmers, the move prevents Sigma talking to API’s largest stakeholder, Washington Soul Pattinson who owns 19.3 per cent of the company. Shares in Wesfarmers (ASX:WES) closed 0.5 per cent higher at $54.33 while shares in Australian Pharmaceutical Industries (ASX:API) closed 1.7 per cent higher at $1.53, and shares in Sigma (ASX:SIG) closed flat at $0.57.

Click on the ASX code for the full story or go to fnn.com.au

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