Merger Arbitrage Mondays – The Battle For Anixter International Heats Up

Merger activity decreased with two 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 three new deals announced in the Deals in the Works section.

Deal Statistics:

Total Number of Deals Closed in 2019 190
Total Number of Deals Not Completed in 2019 9
Total Number of Pending Deals
Cash Deals 48
Stock Deals 22
Stock & Cash Deals 5
Special Conditions 5
Total Number of Pending Deals 80
Aggregate Deal Consideration $1.35 trillion

New Deals:

  1. The acquisition of Cincinnati Bell (CBB) by Brookfield Infrastructure Partners (BIP) for $2.6 billion or $10.50 per share in cash.
  2. The acquisition of AquaVenture Holdings Limited (WAAS) by Culligan for $1.1 billion or $27.10 per share in cash.

Deal Updates:

  1. On December 23, 2019, Genworth Financial (GNW) and China Oceanwide Holdings Group announced they have agreed to a 13th waiver and agreement of each party’s right to terminate the previously announced merger agreement. The 13th waiver and agreement extends the previous deadline of December 31, 2019 to no later than March 31, 2020.
  2. On December 23, 2019, Anixter (AXE) announced that Anixter and CD&R agreed to an Amended and Restated Merger Agreement to increase the per-share consideration payable to Anixter’s shareholders to $86.00 per share in cash from $82.50 per share in cash and a $2.50 contingent value right.
  3. On December 24, 2019, WESCO International (WCC) confirmed that it is seeking to acquire Anixter International(AXE), and has most recently made an offer valued at $90 per Anixter share.
  4. On December 26, 2019, WESCO International (WCCconfirmed it has delivered to the Anixter International (AXE) board of directors an improved proposal to acquire Anixter, a leading global distributor of Network & Security Solutions, Electrical & Electronic Solutions and Utility Power Solutions, for $93.50 per share in cash and stock.

Closed Deals:

  1. The acquisition of Carbonite (CARB) by Open Text Corporation (OTEX) on December 24, 2019. It took 43 days for this deal to be completed.

Top 10 deals with largest spreads:

Symbol Announced
Date
Acquiring
Company
Closing
Price
Last
Price
Closing
Date
Profit Annualized
Profit
PACB 11/01/2018 Illumina, Inc. (ILMN) $8.00 $5.24 03/31/2020 52.67% 208.97%
S 04/29/2018 T-Mobile US, Inc. (TMUS) $7.92 $5.2 01/31/2020 52.34% 597.02%
GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) $5.43 $4.36 03/31/2020 24.54% 97.36%
ABDC 08/13/2019 Crescent Capital BDC, Inc. (N/A) $11.02 $9.19 12/31/2019 19.91% 7268.23%
FIT 11/01/2019 Google LLC (N/A) $7.35 $6.48 06/30/2020 13.43% 26.78%
SORL 11/29/2019 Ruili International Inc. (N/A) $4.72 $4.44 06/30/2020 6.31% 12.58%
MLNX 03/11/2019 NVIDIA Corporation (NVDA) $125.00 $117.86 03/31/2020 6.06% 24.03%
AMTD 11/25/2019 The Charles Schwab Corporation (SCHW) $52.39 $50.36 12/31/2020 4.02% 4.00%
YTRA 07/17/2019 Ebix, Inc. (EBIX) $3.27 $3.14 12/31/2019 3.98% 1453.03%
FSBC 12/19/2019 Evans Bancorp, Inc. (EVBN) $17.80 $17.12 06/30/2020 3.97% 7.92%

List of all pending deals:

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

Disclaimer: I hold long positions in Sprint (S), Mellanox Technologies (MLNX) and Pacific Biosciences of California (PACB). 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

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