Key takeaways:

• Lithium stocks surge higher as takeover news prompts a wave of buying activity

Merger and acquisition activity ramped up this week as offshore buyers made a play for two ASX 200 constituents, in turn pushing the index higher.

Which shares excelled?

Amid a frenzy of excitement, lithium explorer Liontown Resources (ASX: LTR) soared almost 70% in a single session as the company attracted a high-profile takeover bid. 

Heavyweight giant Albemarle lobbed a $5.5 billion offer at the ASX lithium player, equivalent to $2.50 per share, and a 64% premium versus the stock last trading price before the offer. However, LTR management wasted no time in dismissing the offer, clearly letting its suitor know that the bid was deemed not up to scratch. 

Despite the rejection, it appears Albemarle hasn't given up its pursuit just yet, with the US-listed specialty chemicals manufacturer increasing its stake in Liontown. At the time of its original bid, an Albemarle subsidiary held approximately 2.2% of all shares in LTR, but that has since increased to approximately 4.3% of all securities on issue.

Liontown meteoric rise may also come back to bite short sellers, with the stock earlier this week ranking as one of the most shorted names across the ASX. That follows a weak period for battery metals stocks on account of lower lithium carbonate prices in China, with the commodity trading more than 50% off its recent high. 

Nonetheless, the takeover bid worked in favour of industry peers this week, with the likes of Syrah Resources (ASX: SYR), Allkem (ASX: AKE), Pilbara Minerals (ASX: PLS), Sayona Mining (ASX: SYA), and Core Lithium (ASX: CXO) all leaping higher.Not to be outdone, United Malt Group (ASX: UMG) also made headlines this week on the back of a takeover offer. The company received a $1.5 billion bid from French malster Malteries Soufflet, the largest commercial malster in Europe, and the second largest in the world.

After submitting a series of initial bids that were declined, a $5 per share offer has seemingly won endorsement from the company. United Malt management indicated the company has entered into a process and exclusivity deed with its suitor, although the bid remains conditional, non-binding, and subject to adjustment for any dividends yet to be paid out. Malteries Soufflet will now conduct due diligence over the next 10 weeks.

The gold sector continues to outperform amid an uncertain backdrop, with a host of mid-tier producers taking the spotlight this week. Names like Chalice Mining (ASX: CHN), Regis Resources (ASX: RRL), and Ramelius Resources (ASX: RMS) led the way after the precious metal recovered from an early-week dip to rally higher and once again close in on a price of $US2,000 per tonne.Two subsidiaries of mining and infrastructure contractor NRW Holdings (ASX: NWH) have won work with Fortescue Metals Group, bolstering the company share price. DIAB Engineering was awarded a $20 million contract for crusher and supporting infrastructure maintenance at the new Iron Bridge magnetite mine, while RCR Mining Technologies won a $34 million contract for the design and construction of a primary crushing facility for the Christmas Creek Hall Hub development project. On the back of the news, shares in NRW Holdings bounced off an eight-month low. Uranium shares are also making an impact, just days after investment broker Bell Potter gave the sector a thumbs up. Following a poor start to the year, the broker believes share price weakness in Paladin Energy (ASX: PDN) and Boss Energy (ASX: BOE), as well as their upcoming production restarts present an opportunity for investors to buy the dip. If this week trading action is anything to go by, some onlookers may have taken notice.Shareholders in SiteMinder (ASX: SDR), Iress (ASX: IRE), Costa Group (ASX: CGC), PEXA Group (ASX: PXA), Reliance Worldwide (ASX: RWC), and Sandfire Resources (ASX: SFR) will also be happy with the performance of their holdings after a positive showing.

Which shares dragged on the market?

Just a week after billionaire Andrew Forrest Wyloo Metals made a play for Mincor Resources (ASX: MCR), the nickel producer is dealing with a setback that could derail its deal. That follows news some of the nickel it supplied to BHP had failed to meet product quality standards.

The iron ore titan also rejected Mincor request to amend their supply contract to adjust terms governing product quality. That led to Mincor withdrawing its nickel production guidance, a result that is likely to draw the ire of Wyloo Metals given its on-market offer was made on an unconditional basis.

Retailer Harvey Norman (ASX: HVN) is among the underperformers this week, although this new leg down in the company share price is unlikely to ruffle the feathers of its shareholders. That because the company traded ex-dividend today, and the decline reflected the 13 cents per share fully-franked dividend that will soon be on its way to the bank accounts of eligible shareholders.Also nursing minor losses this week are Qube Holdings (ASX: QUB), Centuria Capital (ASX: CNI), and Imugene (ASX: IMU).

We'll be back next week with another Weekly ASX Trading Wrap Up - until then, have a great week!