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Merger activity increased last week with one new deal announced and one active deal completed.
While we only saw 4 new deals announced this month, Q3 2020 was very active overall with 33 new deals announced. The total value of these deals was just north of $137 billion and six of these were worth over $10 billion each including Gilead’s recently announced acquisition of Immunomedics (IMMU).
Several deals in our list of active deals were granted early termination of the required waiting period under the Hart-Scott-Rodino Act from the The Federal Trade Commission (FTC) last week while others like InnerWorkings (INWK) received shareholder approval. I was closely tracking InnerWorkings on account of its nearly 6% spread but unfortunately did not buy before shareholder approval. The spread almost instantaneously narrowed to just 0.5% after shareholders approved the acquisition.
Shares of Standard AVB Financial (STND) shot up almost 73% on Friday, after the company announced that it was getting acquired by Dollar Mutual Bancorp for $158 million in cash.
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 last week.
Weekly Spread Changes:
The table below shows weekly spread changes between September 18, 2020, and September 25, 2020.
| Symbol | Quote | Acquiring Company | Acquiring Company Quote | Current Spread | Last Week Spread | Spread Change Weekly | Deal Type |
|---|---|---|---|---|---|---|---|
| GNW | 3.08 | China Oceanwide Holdings Group Co., Ltd. (N/A) | 76.30% | 65.55% | 10.75% | All Cash | |
| LINX | 6.27 | StoneCo Ltd. (STNE) | 53.13 | 4.78% | -1.65% | 6.43% | Special Conditions |
| TAT | 0.2249 | TAT Holdco LLC and TAT Merger Sub LLC (N/A) | 0.00 | -42.20% | -47.26% | 5.06% | All Cash |
| VRTU | 48.5 | Baring Private Equity Asia (N/A) | 0.00 | 5.88% | 1.66% | 4.22% | All Cash |
| CETV | 4.235 | PPF Group N.V. (N/A) | 8.15% | 4.33% | 3.82% | All Cash | |
| GRUB | 71.94 | Just Eat Takeaway.com N.V. (TKAYY) | 10.964 | 2.26% | 5.47% | -3.21% | All Stock |
| ONDK | 1.55 | Enova International, Inc. (ENVA) | 15.62 | 0.45% | 4.62% | -4.17% | Cash Plus Stock |
| INWK | 2.985 | HH Global Group Limited (N/A) | 0.50% | 5.63% | -5.13% | All Cash | |
| GILT | 5.63 | Comtech Telecommunications Corp. (CMTL) | 13.2 | 47.28% | 52.82% | -5.54% | Cash Plus Stock |
| SUNW | 2.09 | The Peck Company Holdings, Inc. (PECK) | 5.14 | -54.46% | -26.15% | -28.31% | All Stock |
Deal Statistics:
| Total Number of Deals Closed in 2020 | 96 |
| Total Number of Deals Not Completed in 2020 | 15 |
| Total Number of Pending Deals | |
| Cash Deals | 30 |
| Stock Deals | 14 |
| Stock & Cash Deals | 4 |
| Special Conditions | 3 |
| Total Number of Pending Deals | 51 |
| Aggregate Deal Consideration | $661.43 billion |
New Deals:
Deal Updates:
Closed Deals:
Top 10 deals with largest spreads:
| Symbol | Announced Date | Acquiring Company | Closing Price | Last Price | Closing Date | Profit | Annualized Profit |
|---|---|---|---|---|---|---|---|
| GNW | 10/23/2016 | China Oceanwide Holdings Group Co., Ltd. (N/A) | $5.43 | $3.08 | 09/30/2020 | 76.30% | 9283.01% |
| GILT | 01/29/2020 | Comtech Telecommunications Corp. (CMTL) | $8.29 | $5.63 | 10/31/2021 | 47.28% | 43.25% |
| TIF | 11/25/2019 | LVMH Moët Hennessy Louis Vuitton SE (LVMUY) | $135.00 | $115.65 | 12/31/2020 | 16.73% | 64.28% |
| FIT | 11/01/2019 | Google LLC (GOOG) | $7.35 | $6.53 | 12/31/2020 | 12.56% | 48.25% |
| MXIM | 07/13/2020 | Analog Devices, Inc. (ADI) | $71.49 | $65.53 | 06/30/2021 | 9.10% | 12.03% |
| CETV | 10/27/2019 | PPF Group N.V. (N/A) | $4.58 | $4.235 | 10/27/2020 | 8.15% | 99.11% |
| CBMG | 08/12/2020 | CBMG management (N/A) | $19.75 | $18.43 | 12/31/2020 | 7.16% | 27.52% |
| WLTW | 03/09/2020 | Aon plc (AON) | $212.07 | $198.67 | 06/30/2021 | 6.74% | 8.92% |
| CXDC | 06/15/2020 | Faith Dawn Limited and Faith Horizon (N/A) | $1.20 | $1.13 | 09/30/2020 | 6.19% | 753.69% |
| VRTU | 09/10/2020 | Baring Private Equity Asia (N/A) | $51.35 | $48.5 | 06/30/2021 | 5.88% | 7.77% |
List of all pending deals:
Disclaimer: I have a long position in Immunomedics (IMMU). 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