Merger activity decreased last week with four new deals announced and four deals completed.
Founded in 2013 and headquartered in Oklahoma, Enable Midstream Partners (ENBL) owns, operates, and develops midstream energy infrastructure assets in the United States. On February 17, 2021, ENBL agreed to be acquired by Energy Transfer (ET), a provider of energy-related services. With the acquisition of ENBL, Energy Transfer will be able to increase its footprint across multiple regions and provide increased connectivity for its natural gas and NGL transportation businesses.
On February 21, The Wall Street Journal reported that M&T Bank (MTB) is nearing a deal to buy People’s United Financial (PBCT) for more than $7 billion.
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.
SPAC Arbitrage
There were 15 new SPAC IPOs, 41 potential SPAC IPOs filed last week and 8 new SPAC business combinations announced. You can find the new SPAC IPO announcements in our SPACs tool here.
Weekly Spread Changes:
The table below shows weekly spread changes between February 12, 2021, and February 19, 2021.
Symbol | Quote | Acquiring Company | Acquiring Company Quote | Current Spread | Last Week Spread | Spread Change Weekly | Deal Type |
---|---|---|---|---|---|---|---|
GNW | 3.28 | China Oceanwide Holdings Group Co., Ltd. (N/A) | 65.55% | 32.12% | 33.43% | All Cash | |
NEOS | 1.01 | Aytu BioScience, Inc. (AYTU) | 8.07 | -13.07% | -16.75% | 3.68% | All Stock |
PS | 21.05 | Vista Equity Partners (N/A) | -3.75% | -6.64% | 2.89% | All Cash | |
BPFH | 14.3 | SVB Financial Group (SIVB) | 540.4 | 0.85% | -1.53% | 2.38% | Cash Plus Stock |
DOYU | 16.37 | HUYA Inc. (HUYA) | 30.24 | 34.85% | 32.62% | 2.23% | All Stock |
CKH | 43.32 | American Industrial Partners (N/A) | -4.20% | -2.21% | -1.99% | All Cash | |
SG | 12.49 | Third Point Reinsurance Ltd. (TPRE) | 10.08 | -23.94% | -21.10% | -2.84% | Special Conditions |
NEWA | 3.92 | Crouching Tiger Holding Limited (N/A) | -6.89% | -3.69% | -3.20% | All Cash | |
CLGX | 89.22 | Stone Point Capital and Insight Partners (N/A) | -10.33% | -2.43% | -7.90% | All Cash | |
APHA | 20.25 | Tilray, Inc. (TLRY) | 29.21 | 20.89% | 43.48% | -22.59% | All Stock |
Deal Statistics:
Total Number of Deals Closed in 2021 | 22 |
Total Number of Deals Not Completed in 2021 | 1 |
Total Number of Pending Deals | |
Cash Deals | 52 |
Stock Deals | 17 |
Stock & Cash Deals | 10 |
Special Conditions | 4 |
Total Number of Pending Deals | 83 |
Aggregate Deal Consideration | $469.48 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 | $3.28 | 03/31/2021 | 65.55% | 629.61% |
DOYU | 10/12/2020 | HUYA Inc. (HUYA) | $22.08 | $16.37 | 06/30/2021 | 34.85% | 98.61% |
APHA | 12/16/2020 | Tilray, Inc. (TLRY) | $24.48 | $20.25 | 06/30/2021 | 20.89% | 59.12% |
XLNX | 10/27/2020 | Advanced Micro Devices, Inc. (AMD) | $154.38 | $138.71 | 12/31/2021 | 11.30% | 13.18% |
CHNG | 01/06/2021 | UnitedHealth Group Incorporated (UNH) | $25.75 | $23.39 | 12/31/2021 | 10.09% | 11.77% |
WLTW | 03/09/2020 | Aon plc (AON) | $246.61 | $224.98 | 06/30/2021 | 9.61% | 27.20% |
IPHI | 10/29/2020 | Marvell Technology Group Ltd. (MRVL) | $186.54 | $170.55 | 12/31/2021 | 9.38% | 10.93% |
ALXN | 12/12/2020 | AstraZeneca (AZN) | $167.47 | $155.51 | 09/30/2021 | 7.69% | 12.70% |
HCAP | 12/23/2020 | Portman Ridge Finance Corporation (PTMN) | $8.57 | $8 | 06/30/2021 | 7.09% | 20.05% |
AJRD | 12/20/2020 | Lockheed Martin Corporation (LMT) | $56.00 | $52.4 | 12/31/2021 | 6.87% | 8.01% |
List of all pending deals:
Conclusion:
With four new deals announced last week, we are now at 29 new deals since the beginning of the year. In contrast there have been an astounding 161 SPAC IPOs in 2021. The cumulative size of these SPAC IPOs is approaching $44 billion this year. While this is well below the $84 billion worth of deals announced this year, as these new SPAC IPOs find operating companies to merge with, the amount of capital allocated to SPACs will start rivaling regular M&A activity and may even eclipse it in the coming months.
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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