Merger Arbitrage Mondays – August 13, 2018
Merger activity decreased last week with three new deals announced and one pending deal closing. We also had two deals that failed as discussed in the deal updates section below. After several years of low deal failures (more than 95% of all deals closed), 2018 has turned out to be a difficult year with 11 deals failing since the start of the year. Nearly half of these deals failed on account of regulatory issues. Even if all active deals close this year (an unlikely scenario) and based on the number of new announcements we see through the end of the year, it is unlikely that we will see 95% of deals succeed this year.
You can find all the active deals listed below in our Merger Arbitrage Tool (MAT) that automatically updates itself during market hours.
There were two new deals announced in the Deals in the Works section.
Deal Statistics:
New Deals:
- The acquisition of Bemis Company (BMS) by Amcor Limited (AMC.AX) for $6.03 billion in an all stock deal. Under the terms of the agreement, Bemis shareholders will receive 5.1 New Amcor NYSE shares for each Bemis share held. The combination will be effected through a merger of Amcor and Bemis into a newly created holding company (‘New Amcor’) incorporated in Jersey. It is intended that New Amcor will be tax resident in the UK after closing. New Amcor will have a primary listing on the NYSE and a listing on the ASX. Amcor and Bemis shareholders will receive shares in New Amcor in a tax-free exchange.
- The acquisition of Beneficial Bancorp (BNCL) by WSFS Financial Corporation (WSFS) for $1.5 billion in a cash plus stock deal. Under the terms of the agreement, stockholders of Beneficial will receive 0.3013 shares of WSFS common stock and $2.93 in cash for each share of Beneficial common stock.
- The acquisition of The Dun & Bradstreet Corporation (DNB) by an Investor Group Led by CC Capital, Cannae Holdings and Thomas H. Lee Partners for $6.9 billion or $145 per share in cash.
Only plus or premium subscribers can access this post. Subscribe today.
