Merger activity increased last week with seven new deals announced. None of the active deals were completed.
The month of December has started off with a surge of new deals being announced and two of the largest deals of the year announced in the first two weeks. Three of the new deals announced last week were potential deals in the works.
In one of the largest drug deals announced this year, AstraZeneca, the company that has developed a coronavirus vaccine with Oxford University entered into a $39 billion deal to buy Boston-based Alexion Pharmaceuticals. On May 12, 2020, Hedge fund Elliott Management had publicly called on Alexion Pharmaceuticals to sell itself. With this acquisition, Astra Zeneca looks forward to adding treatments for uncommon blood and immunological disorders to its portfolio.
On December 13, 2020, Huntington Bancshares Incorporated (HBAN) and TCF Financial Corporation (TCF) entered into a definitive agreement under which the companies will combine in an all-stock merger with a total market value of approximately $22 billion. We have not yet added this deal to our database because the terms of the agreement have not been specified.
Another highlight from last week was Alaska Communications Systems Group (ALSK) and GCM Grosvenor announcing an amendment to their merger agreement by increasing their per share consideration from $3.00 to $3.20.
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 December 4, 2020, and December 11, 2020.
Symbol | Quote | Acquiring Company | Acquiring Company Quote | Current Spread | Last Week Spread | Spread Change Weekly | Deal Type |
---|---|---|---|---|---|---|---|
CXDC | 1.03 | Faith Dawn Limited and Faith Horizon (N/A) | 16.50% | 0.84% | 15.66% | All Cash | |
GNW | 4.32 | China Oceanwide Holdings Group Co., Ltd. (N/A) | 25.69% | 14.08% | 11.61% | All Cash | |
DOYU | 11.71 | HUYA Inc. (HUYA) | 20.35 | 26.86% | 15.78% | 11.08% | All Stock |
ALSK | 3.63 | Macquarie Capital and GCM Grosvenor (N/A) | -11.85% | -20.21% | 8.36% | All Cash | |
SOGO | 8.17 | Tencent Parties (N/A) | 10.16% | 4.05% | 6.11% | All Cash | |
CCR | 4.64 | CONSOL Energy Inc. (CEIX) | 6.51 | 2.42% | 4.57% | -2.15% | All Stock |
LINX | 7.28 | StoneCo Ltd. (STNE) | 75.11 | -14.15% | -10.59% | -3.56% | Special Conditions |
SG | 12.3 | Third Point Reinsurance Ltd. (TPRE) | 9.6 | -22.76% | -19.15% | -3.61% | Special Conditions |
HPR | 12.1 | Bonanza Creek Energy, Inc. (BCEI) | 23.35 | -78.00% | -74.13% | -3.87% | All Stock |
EIDX | 113.8 | BridgeBio Pharma, Inc. (BBIO) | 61.35 | -35.62% | -23.40% | -12.22% | Special Conditions |
Deal Statistics:
Total Number of Deals Closed in 2020 | 127 |
Total Number of Deals Not Completed in 2020 | 16 |
Total Number of Pending Deals | |
Cash Deals | 40 |
Stock Deals | 19 |
Stock & Cash Deals | 6 |
Special Conditions | 4 |
Total Number of Pending Deals | 69 |
Aggregate Deal Consideration | $931.25 billion |
New Deals:
Deal Updates:
Top 10 deals with largest spreads:
Symbol | Announced Date | Acquiring Company | Closing Price | Last Price | Closing Date | Profit | Annualized Profit |
---|---|---|---|---|---|---|---|
ALXN | 12/12/2020 | AstraZeneca (AZN) | $175.29 | $120.98 | 09/30/2021 | 44.89% | 56.30% |
DOYU | 10/12/2020 | HUYA Inc. (HUYA) | $14.86 | $11.71 | 06/30/2021 | 26.86% | 49.27% |
GNW | 10/23/2016 | China Oceanwide Holdings Group Co., Ltd. (N/A) | $5.43 | $4.32 | 12/31/2020 | 25.69% | 521.03% |
GSUM | 10/01/2020 | Gridsum Corporation (N/A) | $2.00 | $1.68 | 03/31/2021 | 19.05% | 64.37% |
CXDC | 06/15/2020 | Faith Dawn Limited and Faith Horizon (N/A) | $1.20 | $1.03 | 12/31/2020 | 16.50% | 334.68% |
IPHI | 10/29/2020 | Marvell Technology Group Ltd. (MRVL) | $165.75 | $149.11 | 12/31/2021 | 11.16% | 10.63% |
SOGO | 09/29/2020 | Tencent Parties (N/A) | $9.00 | $8.17 | 12/31/2020 | 10.16% | 206.00% |
XLNX | 10/27/2020 | Advanced Micro Devices, Inc. (AMD) | $157.95 | $143.83 | 12/31/2021 | 9.82% | 9.36% |
WLTW | 03/09/2020 | Aon plc (AON) | $220.44 | $204.4 | 06/30/2021 | 7.85% | 14.39% |
FBSS | 10/01/2020 | Virginia National Bankshares Corporation (VABK) | $18.56 | $17.33 | 06/30/2021 | 7.11% | 13.04% |
List of all pending deals:
Disclaimer: I have a long position in Otelco (OTEL). 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.
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