Merger Arbitrage Mondays – M&A Activity Increases For The Fourth Week In A Row
Merger activity increased with six new deals announced and two 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 two new deals announced in the Deals in the Works section.
Deal Statistics:
| Total Number of Deals Closed in 2019 | 168 |
| Total Number of Deals Not Completed in 2019 | 9 |
| Total Number of Pending Deals |
| Cash Deals | 36 |
| Stock Deals | 20 |
| Stock & Cash Deals | 9 |
| Special Conditions | 5 |
| Total Number of Pending Deals | 70 |
| Aggregate Deal Consideration | $1.24 trillion |
New Deals:
- The acquisition of Wright Medical Group (WMGI) by Stryker Corporation (SYK) for $5.4 billion or $30.75 per share in cash.
- The acquisition of IBERIABANK Corporation (IBKC) by First Horizon National Corporation (FHN) for $5.28 billion in an all stock deal. Under the terms of the merger agreement, IBERIABANK shareholders will receive 4.584 shares of First Horizon for each IBERIABANK share they own.
- The acquisition of Pattern Energy Group (PEGI) by Canada Pension Plan Investment Board for $6.1 billion or $26.75 per share in cash. We added PEGI as a potential deal to the Deals in the Works section on August 12, 2019, and the price after the news of the potential deal came out was $24.76.
- The acquisition of Aircastle Limited (AYR) by Marubeni Corporation and Mizuho Leasing Company, Limited for $7.4 billion or $32.00 per share in cash. We added AYR as a potential deal to the Deals in the Works section on October 24, 2019, and the price after the news of the potential deal came out was $26.20.
- The acquisition of William Lyon Homes (WLH) by Taylor Morrison Home Corporation (TMHC) for $2.4 billion in a cash plus stock deal. Under the terms of the agreement, Taylor Morrison will acquire all of the outstanding shares of William Lyon Homes common stock for per share consideration of (1) $2.50 in cash and (2) 0.800 shares of Taylor Morrison common stock.
- The acquisition of Diversified Restaurant Holdings (SAUC) by ICV Partners for $130 million or $1.05 per share in cash.
Deal Updates:
- On November 5, 2019, the Federal Communications Commission (FCC) officially approved the merger of T-Mobile (TMUS) and Sprint (S). This news barely had any impact on Sprint stock and the spread on the deal continues to remain wide because the companies still need to settle with various states that have filed lawsuits to block the merger.
- On November 6, 2019, Brazil’s anti-trust regulator CADE approved the acquisition of Avon Products (AVP) by personal care maker Natura Cosmeticos SA.
- On November 6, 2019, Shareholders of Presidio (PSDO) approved the company’s merger with BC Partners at a special meeting of shareholders.
- On November 8, 2019, the Department of Justice announced that BB&T Corporation (BBT) and SunTrust Banks (STI) have agreed to divest 28 branches across North Carolina, Virginia, and Georgia with approximately $2.3 billion in deposits to resolve antitrust concerns arising from BB&T’s proposed merger with SunTrust.
Closed Deals:
- The acquisition of Reven Housing REIT (RVEN) by KBS Strategic Opportunity REIT on November 4, 2019. It took 65 days for this deal to be completed.
- The acquisition of Genomic Health (GHDX) by Exact Sciences Corporation (EXAS) on November 8, 2019. It took 102 days for this deal to be completed.
Top 10 deals with largest spreads:
Closing
Price |
|---|
| PACB | 11/01/2018 | Illumina, Inc. (ILMN) | $8.00 | $4.69 | 03/31/2020 | 70.58% | 182.70% |
| S | 04/29/2018 | T-Mobile US, Inc. (TMUS) | $8.30 | $6.11 | 01/31/2020 | 35.86% | 161.60% |
| GNW | 10/23/2016 | China Oceanwide Holdings Group Co., Ltd. (N/A) | $5.43 | $4.04 | 12/31/2019 | 34.41% | 251.16% |
| ABDC | 08/13/2019 | Crescent Capital BDC, Inc. (N/A) | $11.02 | $8.93 | 12/31/2019 | 23.40% | 170.85% |
| CRZO | 07/15/2019 | Callon Petroleum Company (CPE) | $9.31 | $7.72 | 12/31/2019 | 20.56% | 150.07% |
| OHAI | 08/01/2019 | Portman Ridge Finance Corporation (PTMN) | $1.46 | $1.3099 | 12/31/2019 | 11.46% | 83.65% |
| MLNX | 03/11/2019 | NVIDIA Corporation (NVDA) | $125.00 | $115.06 | 12/31/2019 | 8.64% | 63.06% |
| AGN | 06/25/2019 | AbbVie Inc. (ABBV) | $194.09 | $181.28 | 03/31/2020 | 7.07% | 18.30% |
| TSG | 10/02/2019 | Flutter Entertainment PLC (PDYPF) | $23.00 | $21.77 | 09/30/2020 | 5.66% | 6.38% |
| ACIA | 07/08/2019 | Cisco Systems, Inc. (CSCO) | $70.00 | $66.43 | 07/31/2020 | 5.37% | 7.46% |
List of all pending deals:
The list of all pending deals is only available to InsideArbitrage Premium and Plus members.
Disclaimer: I hold long positions in Sprint (S), Mellanox Technologies (MLNX), Pacific Biosciences of California (PACB), Celgene (CELG) and Bristol-Myers Squibb (BMY). 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.
Connect with me on LinkedIn: http://www.linkedin.com/in/asifsuria or follow me on Twitter@asifsuria
