Merger Arbitrage Mondays – Charles Schwab’s Acquisition of Ameritrade Trades At A Small Spread
Merger activity remained unchanged with three new deals announced and one deal 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:
New Deals:
- The acquisition of TD Ameritrade Holding Corporation (AMTD) by The Charles Schwab Corporation (SCHW) for $26 billion in an all stock deal. Under the terms of the agreement, TD Ameritrade stockholders will receive 1.0837 Schwab shares for each TD Ameritrade share. I am surprised the spread on this all stock deal is just 3.5%. Considering how much of the independent Registered Investment Advisor (RIA) market the combined entity will control, regulatory approval is the key risk for this deal.
- The acquisition of AVX Corporation (AVX) by Kyocera Corporation for $2.61 billion or $19.50 per share in cash. Kyocera currently owns approximately 72% of AVX’s outstanding shares.
- The merger of SORL Auto Parts (SORL) with Ruili International for $351.05 million or $4.72 per share in cash in a management led going-private transaction. We added SORL as a potential deal to the Deals in the Works section on April 25, 2019, and the price after the news of the potential deal came out was $3.89.
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