DJs takeover approved; Metcash auto grab: Midday Roundup

The Foreign Investment Review Board has approved the $2.15 billion takeover of David Jones by South Africa’s Woolworths Holdings.

This comes as DJs reports a 4.1% increase in third-quarter sales.

The Australian department store’s board has recommended shareholders approve the takeover at a meeting expected to be held in June.

Metcash auto grab

Food, liquor and hardware wholesaler Metcash has acquired Midas Australia in a bid to expand its automotive parts and service business.

The purchase price was not disclosed.

Midas Australia was owned by TBC Corp. The company currently operates 88 automotive service centres across Australia.

Shares up on open

Australian shares have followed Wall St’s lead to recover on a high after a turbulent week.

Sales trader Niall King from CMC markets said blotches had surfaced on the corporate earnings picture in the US throughout the week, but equity valuations had raced ahead.

“More compelling fundamental evidence may be required to take indices beyond their recent highs,” said King.

The S&P/ASX200 benchmark was up 29 points to 5464.8 at 11.50 AEST. On Wednesday the Dow Jones closed 117.52 points higher, up by 0.72% to 16518.5.

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