Merger activity increased last week with four new deals announced and one deal completed. The action was mostly in the red hot SPAC area where we saw the pace of IPOs and business combination announcements continue unabated.
On Friday, February 5, 2020, Chevron Corporation (CVX) submitted a non-binding proposal to the Board of Directors of Noble Midstream Partners (NBLX), to acquire the company through a merger transaction at a value of $12.47 per share. This announcement came less than a week after the chief executives of Exxon Mobil (XOM) and Chevron spoke about combining the two companies for what could be one of the largest corporate mergers ever.
Another highlight from last week was an announcement from the Federal Trade Commission, with support from the Antitrust Division of the U.S. Department of Justice, stating that they will be temporarily suspending early termination to filings made under the Hart-Scott-Rodino Act. This could translate into mergers taking slightly longer to close, all things being equal.
You can find all the active deals listed below in our Merger Arbitrage Tool (MAT) that automatically updates itself during market hours.
There was one new deal announced in the Deals in the Works section last week.
SPAC Arbitrage
There were 27 new IPOs filed last week and 12 new SPAC business combinations announced. You can find the new SPAC IPO announcements in our new SPACs tool here.
Weekly Spread Changes:
The table below shows weekly spread changes between January 29, 2021, and February 5, 2021.
Symbol | Quote | Acquiring Company | Acquiring Company Quote | Current Spread | Last Week Spread | Spread Change Weekly | Deal Type |
---|---|---|---|---|---|---|---|
APHA | 16.67 | Tilray, Inc. (TLRY) | 25.72 | 29.31% | 24.55% | 4.76% | All Stock |
HPR | 11.12 | Bonanza Creek Energy, Inc. (BCEI) | 23.64 | -75.76% | -78.35% | 2.59% | All Stock |
QEP | 3.18 | Diamondback Energy, Inc. (FANG) | 64.45 | 1.34% | -0.54% | 1.88% | All Stock |
BPFH | 13.17 | SVB Financial Group (SIVB) | 490.91 | 0.93% | -0.89% | 1.82% | Cash Plus Stock |
WDR | 25.01 | Macquarie Asset Management (N/A) | -0.04% | -1.15% | 1.11% | All Cash | |
LINX | 7.07 | StoneCo Ltd. (STNE) | 85.71 | -11.60% | -8.09% | -3.51% | Special Conditions |
CXDC | 1.13 | Faith Dawn Limited and Faith Horizon (N/A) | 6.19% | 10.09% | -3.90% | All Cash | |
NEWA | 3.68 | Crouching Tiger Holding Limited (N/A) | -0.82% | 3.69% | -4.51% | All Cash | |
DOYU | 14.49 | HUYA Inc. (HUYA) | 26.77 | 34.87% | 43.94% | -9.07% | All Stock |
GNW | 3.7 | China Oceanwide Holdings Group Co., Ltd. (N/A) | 46.76% | 91.20% | -44.44% | All Cash |
Deal Statistics:
Total Number of Deals Closed in 2021 | 16 |
Total Number of Deals Not Completed in 2021 | 1 |
Total Number of Pending Deals | |
Cash Deals | 50 |
Stock Deals | 16 |
Stock & Cash Deals | 10 |
Special Conditions | 4 |
Total Number of Pending Deals | 80 |
Aggregate Deal Consideration | $452.6 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 | $3.7 | 01/31/2021 | 46.76% | -2438.03% |
DOYU | 10/12/2020 | HUYA Inc. (HUYA) | $19.54 | $14.49 | 06/30/2021 | 34.87% | 88.99% |
APHA | 12/16/2020 | Tilray, Inc. (TLRY) | $21.56 | $16.67 | 06/30/2021 | 29.31% | 74.81% |
XLNX | 10/27/2020 | Advanced Micro Devices, Inc. (AMD) | $151.49 | $136.48 | 12/31/2021 | 11.00% | 12.27% |
IPHI | 10/29/2020 | Marvell Technology Group Ltd. (MRVL) | $182.27 | $165.5 | 12/31/2021 | 10.13% | 11.31% |
GSUM | 10/01/2020 | Gridsum Corporation (N/A) | $2.00 | $1.83 | 03/31/2021 | 9.29% | 65.21% |
CHNG | 01/06/2021 | UnitedHealth Group Incorporated (UNH) | $25.75 | $23.8 | 12/31/2021 | 8.19% | 9.15% |
WLTW | 03/09/2020 | Aon plc (AON) | $241.08 | $223.91 | 06/30/2021 | 7.67% | 19.57% |
ALXN | 12/12/2020 | AstraZeneca (AZN) | $165.64 | $153.92 | 09/30/2021 | 7.62% | 11.83% |
OSN | 12/17/2020 | New Ossen Group Limited (N/A) | $5.10 | $4.75 | 06/30/2021 | 7.37% | 18.81% |
List of all pending deals:
Disclaimer: I have long positions in Otelco (OTEL) and Zagg (ZAGG). 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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