Merger Arbitrage Mondays – February 4, 2019

Merger activity increased last week with two new deals announced and eleven pending deals closing. 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 2019 28
Total Number of Deals Not Completed in 2019 1
Total Number of Pending Deals
Cash Deals 30
Stock Deals 20
Stock & Cash Deals 15
Special Conditions 4
Total Number of Pending Deals 69
Total Deal Size $596.37 billion

New Deals:

  1. The merger of Versum Materials (VSM) and Entegris (ENTG) for $4.89 billion in an all stock deal. Under the terms of the agreement, Versum Materials stockholders will receive 1.120 shares of Entegris for each existing Versum Materials share.
  2. The merger of TCF Financial Corporation (TCF) and Chemical Financial Corporation (CHFC) for $5 billion in an all stock deal. Under the terms of the agreement, TCF shareholders will receive 0.5081 shares of Chemical common stock for each share of TCF common stock.

Deal Updates:

  1. On January 28, 2019, Western Gas Partners (WES) announced that the special meeting of WES unitholders will be held on February 27, 2019.
  2. On January 29, 2019, Rowan Companies (RDC) announced that it has entered into an amendment to the Transaction Agreement with Ensco (ESV). Under the amended agreement, Rowan shareholders will receive 2.750 shares of Ensco for each share of Rowan they own.
  3. On January 29, 2019, Fresenius Medical Care said that it had agreed to extend the deadline for its planned takeover of NxStage Medical (NXTM) until August 6. FMC said the extension had been agreed due to the recent U.S. government shutdown which interrupted the Federal Trade Commission’s (FTC) ability to review the transaction.
  4. On January 29, 2019, Univar (UNVR) and Nexeo Solutions (NXEO) announced that Univar has established a special meeting date of February 27, 2019 to consider and vote on the proposals necessary to complete the previously announced Agreement with Nexeo Solutions.
  5. On January 30, 2019, Genworth Financial (GNW) and China Oceanwide Holdings Group announced that they have agreed to an eighth waiver and agreement of each party’s right to terminate the previously announced merger agreement. The eighth waiver and agreement extends the previous deadline of January 31, 2019 to March 15, 2019.
  6. On January 31, 2019, CenterPoint Energy (CNP) and Vectren (VVCreceived a final order from the Public Utilities Commission of Ohio.
  7. On February 1, 2019, ARRIS International (ARRS) stockholders voted to approve the proposed acquisition by CommScope Holding Company (COMM).
  8. On February 1, 2019, Travelport Worldwide Limited (TVPT) announced that the special meeting of its shareholders will be held on March 15, 2019.
  9. On February 1, 2019, Eli Lilly and Company (LLY) and Loxo Oncology (LOXOannounced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
  10. On February 1, 2019, Bristol-Myers Squibb (BMY)  and Celgene (CELG) announced that BMS has filed the Form S-4 with the U.S. Securities and Exchange Commission. The filing also includes a tentative date of April 12, 2019 for the Celgene and Bristol-Myers Squibb shareholder meetings.

Closed Deals:

  1. The acquisition of EnLink Midstream Partners (ENLK) by EnLink Midstream (ENLC) on January 25, 2019. It took 95 days for this deal to be completed.
  2. The acquisition of Bojangles’ (BOJA) by Durational Capital Management and The Jordan Company on January 28, 2019. It took 84 days for this deal to be completed.
  3. The acquisition of Dominion Energy Midstream Partners (DM) by Dominion Energy (D) on January 28, 2019. It took 63 days for this deal to be completed.
  4. The acquisition of CVR Refining (CVRR) by CVR Energy (CVI) on January 29, 2019. It took 12 days for this deal to be completed.
  5. The acquisition of Essendant (ESND) by Staples on January 31, 2019. It took 139 days for this deal to be completed.
  6. The acquisition of WildHorse Resource Development Corporation (WRD) by Chesapeake Energy Corporation (CHK) on February 1, 2019. It took 94 days for this deal to be completed.
  7. The acquisition of SendGrid (SEND) by Twilio (TWLO) on February 1, 2019. It took 109 days for this deal to be completed.
  8. The acquisition of Pandora Media (P) by Sirius XM Holdings (SIRI)  on February 1, 2019. It took 130 days for this deal to be completed.
  9. The acquisition of Access National Corporation (ANCX) by Union Bankshares Corporation (UBSH) on February 1, 2019. It took 119 days for this deal to be completed.
  10. The acquisition of Vectren Corporation (VVC) by CenterPoint Energy (CNP) on February 1, 2019. It took 284 days for this deal to be completed.
  11. The acquisition of Electro Scientific Industries (ESIO) by MKS Instruments (MKSI) on February 1, 2019. It took 94 days for this deal to be completed.

Top 10 deals with largest spreads:

Symbol Announced
Profit Annualized
INUV 11/05/2018 ConversionPoint Technologies, Inc. (N/A) $2.22 $1.24 03/31/2019 79.03% 524.49%
EHIC 04/06/2018 Teamsport Parent Limited (N/A) $13.50 $10.5 03/31/2019 28.57% 189.61%
PACB 11/01/2018 Illumina, Inc. (ILMN) $8.00 $6.84 06/30/2019 16.96% 42.40%
S 04/29/2018 T-Mobile US, Inc. (TMUS) $7.14 $6.22 06/30/2019 14.81% 37.03%
GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) $5.43 $4.84 03/15/2019 12.19% 114.09%
CELG 01/03/2019 Bristol-Myers Squibb Company (BMY) $99.89 $89.67 09/30/2019 11.40% 17.48%
STC 03/16/2018 Fidelity National Financial, Inc. (FNF) $48.39 $44.88 06/30/2019 7.81% 19.54%
TAHO 11/14/2018 Pan American Silver Corp. (PAAS) $4.10 $3.81 02/26/2019 7.61% 126.28%
RHT 10/28/2018 IBM (IBM) $190.00 $178.38 12/31/2019 6.51% 7.21%
GPIC 11/28/2018 Angel Holdings Godo Kaisha (N/A) $13.75 $12.93 06/30/2019 6.34% 15.85%

List of all pending deals:

The list of all pending deals is only available to InsideArbitrage Premium and Plus members.

Disclaimer: I hold positions in Athenahealth (ATHN) and Finisar (FNSR). 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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