Merger activity decreased last week with one new deal announced and one deal completed. With only eleven new deals announced, deal activity moderated significantly during the month of November.
According to the Wall Street Journal, S&P Global (SPGI) is in advanced talks to acquire IHS Markit (INFO) for about $44 billion. If announced on Monday, this would be one of the largest deals this year.
Incorporated in 1906, The Goldfield Corporation is a leading provider of electrical construction and maintenance services in the energy infrastructure industry primarily in the Southeast and mid-Atlantic regions of the United States and Texas and also a real estate developer of residential properties on the east coast of Florida. On November 24, 2020, the company entered into a definitive agreement to be acquired by First Reserve at a significant premium of 64% to its closing price the previous day.
Another significant highlight from last week was Front Yard Residential Corporation (RESI) and Pretium and Ares Management Corporation (ARES) amending their merger agreement. This amendment was negotiated after Front Yard received an unsolicited binding proposal from an unaffiliated third party to acquire all outstanding shares of Front Yard common stock. According to the press release, the revised transaction price represents a 63% premium over Front Yard’s closing share price on October 16, 2020, the last trading day prior to the date on which the company entered into the merger agreement.
Front Yard has become the gift that keeps giving. Four weeks ago when the deal between Front Yard and Ares Management was struck, I wrote the following about the deal,