Key takeaways:

• Travel stocks have been one of the winning themes this week as results start to validate the sector remarkable turnaround

• Agricultural stocks have posted windfall profits, but the outlook is murky amid the impact of inclement weather

Two major takeover deals have inched closer to completion this week, which could result in the likes of BHP and Perpetual becoming even bigger players in their fields.

Which shares excelled?

Thanks to a recut takeover deal, Pendal Group (ASX: PDL) has been among this week top stocks. The company, which was lined up by fund peer Perpetual for a takeover, this week agreed with its suitor to change the merger ratio as part of the deal. 

Pendal shareholders were to originally receive one newly issued share in Perpetual for every seven and a half Pendal shares they own, plus $1.976 in cash per share. However, the deal now sees consideration of $1.65 in cash per share, and one share in Perpetual for every seven in PDL. 

At the same time, the courts also confirmed that if Perpetual were to walk away from the deal, which emerged as a risk last week, it would likely be liable for more than just a break fee. On the back of these developments, and reaffirmed support from the boards of both companies, investors clearly think the deal is now back on track, buying up shares in Pendal.

Iron ore has been a favoured trade, with China easing COVID travel rules earlier this week, including reduced quarantine times for inbound travellers and any close contacts of COVID travellers. The government has also bolstered its financial support to the Chinese property development sector, which is a direct user of iron ore and other commodities. This helped buoy the share prices of Champion Iron (ASX: CIA) and Fortescue Metals Group (ASX: FMG).Thanks to a remarkable turnaround in its operating fortunes, online travel agent Webjet (ASX: WEB) finds itself among the winners this week. Its half-year results show the strength of the recovery in the travel sector, with bookings up more than 130%, while revenue and total transaction values more than tripled. 

The business declared an underlying net profit after tax of $32 million, which is in stark contrast with a loss of comparable amount this time last year. Management cited the role that Webjet WebBeds business has played, where bookings and margins are performing ahead of pre-pandemic levels thanks to activity out of Europe and North America. It also expects to beat pre-COVID profits in FY23.

On the back of the strength of Webjet results, another name that took flight was SiteMinder (ASX: SDR). The company, which is the world's leading open hotel commerce platform, works with thousands of hotels, across 150 countries, to sell, market, manage, and grow their business. That means the booming travel market is serving as a positive backdrop for the company, at least in the eyes of shareholders.Finally, mining titan BHP (ASX: BHP) has lobbed another bid at copper producer OZ Minerals (ASX: OZL), just 15 weeks after its first effort was knocked back. The second bid appears to have done the trick, with OZ Mineral board recommending the offer of $28.25 per share, or an enterprise value of $9.6 billion. 

If approved, the deal will help BHP consolidate its Olympic Dam project with its target Carrapateena and Prominent Hill mines. As part of its bid, BHP will have four weeks to conduct exclusive due diligence and negotiate a binding offer. 

Which shares dragged on the market?

Agricultural goods and services business Elders (ASX: ELD) has been one of the week biggest disappointments thus far, with investors fleeing the company in the wake of its full-year results. Despite strong double-digit revenue and earnings growth throughout FY22, it was the company outlook, and news that its CEO is retiring, that shook investor confidence. 

The company has cited extreme rainfall along the east coast as a potential headwind for full harvest potential during both the summer and winter harvest periods ahead. At the same time, it also expects sheep and cattle prices to moderate in the mid-term, curtailing growth.

Fund manager Perpetual (ASX: PPT) is again on the list of the major movers, although this time its performance weighed on the broader market. It follows the recut deal made with Pendal, and warnings about significant financial consequences if it were to abandon the deal, effectively closing the door on the prospect of a takeover by Barings Private Equity Asia.On another note, lithium stocks have been rattled this week, with companies like Core Lithium (ASX: CXO), Allkem (ASX: AKE), Pilbara Minerals (ASX: PLS), and Sayona Mining (ASX: SYA), among others, feeling the heat. 

The catalyst for the sell-off was a steep decline in the price of lithium carbonate futures in China, with concerns that demand for the commodity could be starting to wane following speculation a major cathode producer has cut its production output.

Back to the agriculture theme, Graincorp (ASX: GNC) also finds itself on the list of this week underperforming stocks. Its full-year results told a story similar to Elders, with significant growth offset by concerns about inclement weather. 

The company expects a delay of several weeks to its upcoming harvest, impacting yield and quality, while growers and local businesses also stand to feel an impact from heavy rainfall. Another watch-point was news that margins eased throughout the second half of FY22, with agricultural product supply increasing out of Europe.

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