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ASX 200 (XJO) To Open Lower, 3 ASX Shares To Watch

The ASX 200 (INDEXASX:XJO)(^AXJO) is expected to open lower today, the USA’s S&P 500 Index (.INX) fell by 0.07% on Friday.

The ASX 200 (INDEXASX: XJO)(^AXJO) is expected to open lower today, the USA’s S&P 500 Index (.INX) fell by 0.07% on Friday.

Australian Dollar ($A) (AUDUSD): 68.79US cents

Dow Jones (DJI): up 0.15%

Oil (WTI): $US61.68 per barrel

Gold: $US1,502 per ounce

ASX Sharemarket News

In ASX sharemarket news, Bellamy’s Australia Ltd (ASX: BAL) has entered into a takeover arrangement with China Mengniu Dairy Company, which is going to buy all of Bellamy’s shares.

The total cash amount will be $13.25 per share from Mengniu, being $12.65 cash and a $0.60 per share special dividend.

This values Bellamy’s at $1.5 billion and is a 59% premium to the closing price last week.

The Bellamy’s Board has unanimously recommend that shareholders vote in favour of the Scheme.

Bellamy’s CEO Andrew Cohen said: “Mengniu is a preeminent dairy company in China and an ideal partner for our business. It offers a strong platform for distribution and success in China, and a foundation for growth in the organic dairy and food industry in Australia.”

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Virgin Australia Holdings Ltd (ASX: VAH) is in the news this morning after it confirmed media reports that it has entered into an agreement with Affinity to buy back its 35% minority investment in Velocity Frequent Flyer for $700 million.

A number of conditions still need to be reached including getting funding and Virgin receiving Foreign Investment Review Board (FIRB) approval.

But it’s expected to complete before the end of 2019.

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Sims Metal Management Ltd (ASX: SGM) has provided a trading update for the first half of FY20.

Recent and significant falls in ferrous and non-ferrous prices will hurt its HY20 result.

The trade war is having an effect, with steel mills reducing their scrap purchases and the outlook for scrap purchasing.

The current price is potentially lower than the price that it makes sense for scrap supplier to gather and sell scrap. Deep sea freight costs have risen too, adding to the pain.

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