Merger activity increased last week with two new deals announced and five pending deals closing. Several deals with large spreads on account of regulatory hurdles including Bayer’s acquisition of Monsanto, AT&T’s (T) acquisition of Time Warner and China Oceanwide’s acquisition of Genworth (GNW) recently managed to get past those hurdles.
For a while last week it looked like Qualcomm’s (QCOM) acquisition of NXP Semiconductors (NXPI) would get past its last hurdle of approval by Chinese regulators but then it turned out that celebrations were premature. There were three semiconductor deals with large spreads a few weeks ago including the acquisition of Microsemi Corporation by Microchip Technology Incorporated (MCHP), the acquisition of Cavium (CAVM) by Marvell Technology Group (MRVL) and the acquisition of NXP Semiconductors by Qualcomm. The Microsemi acquisition closed on May 29th and the spreads on the other semiconductor deals narrowed considerably in May. Whether the NXPI deal gets the final nod from Chinese regulators will partly depend on ZTE’s fate and the growing trade war between the U.S. and China, which has now moved past the sable rattling phase.
You can find all the active deals listed below in our Merger Arbitrage Tool (MAT) that automatically updates itself during market hours.
There were no new deals announced in the Deals in the Works section.
Deal Statistics:
Total Number of Deals Closed in 2018 | 69 |
Total Number of Deals Not Completed in 2018 | 6 |
Total Number of Pending Deals | |
Cash Deals | 37 |
Stock Deals | 13 |
Stock & Cash Deals | 18 |
Special Conditions | 9 |
Total Number of Pending Deals | 77 |
Total Deal Size | $987.77 billion |
New Deals:
Deal Updates:
Closed Deals:
Top 10 deals with largest spreads:
Symbol | Announced Date | Acquiring Company | Closing Price | Last Price | Closing Date | Profit | Annualized Profit |
---|---|---|---|---|---|---|---|
AKRX | 04/24/2017 | Fresenius Kabi (N/A) | $34.00 | $15.42 | 06/30/2018 | 120.49% | 3664.99% |
RAD | 02/18/2018 | Albertsons Companies, Inc. (N/A) | $2.50 | $1.78 | 09/30/2018 | 40.45% | 141.96% |
SHPG | 05/08/2018 | Takeda Pharmaceutical Company Limited (TKPYY) | $194.74 | $161.75 | 06/30/2019 | 20.40% | 19.75% |
SCG | 01/03/2018 | Dominion Energy, Inc. (D) | $44.36 | $37.31 | 12/31/2018 | 18.90% | 35.20% |
GNW | 10/23/2016 | China Oceanwide Holdings Group Co., Ltd. (N/A) | $5.43 | $4.65 | 07/01/2018 | 16.77% | 470.97% |
CTWS | 03/15/2018 | SJW Group (SJW) | $75.80 | $65 | 12/31/2018 | 16.62% | 30.95% |
GGP | 03/26/2018 | Brookfield Property Partners (BPY) | $23.50 | $20.66 | 07/31/2018 | 13.75% | 116.68% |
STC | 03/16/2018 | Fidelity National Financial, Inc. (FNF) | $49.54 | $43.67 | 06/30/2019 | 13.44% | 13.01% |
NXPI | 10/27/2016 | QUALCOMM Incorporated (QCOM) | $127.50 | $113.16 | 06/30/2018 | 12.67% | 385.45% |
S | 04/29/2018 | T-Mobile US, Inc. (TMUS) | $6.15 | $5.49 | 06/30/2019 | 12.11% | 11.72% |
List of all pending deals:
Disclaimer: I hold positions in SteadyMed (STDY), WGL Holdings (WGL), GGP Inc. (GGP), magicJack VocalTec (CALL), Rite Aid (RAD) and Southcross Energy Partners (SXE). Please do your own due diligence before buying or selling any securities mentioned in this article. We do not warrant the completeness or accuracy of the content or data provided in this article.
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