Merger activity increased last week with seven new deals announced and one deal completed. Two of the seven new deals announced last week were potential deals in the works.
We added U.S. insurer American National Group (ANAT) to our list of potential deals on May 11, 2021, when Reuters reported that the company was exploring options that could include a sale of the company. The stock was trading at $141.50 after this announcement came out, representing a premium of 16.09% to the unaffected share price of $122.56 on May 11, 2021. American National was founded in 1905 by William Lewis Moody Jr. in Galveston, Texas. The majority of the stock of ANAT is controlled by the Moody family through various trusts and holdings. On August 9, 2021, the company entered into a definitive agreement to be acquired by Brookfield Asset Management Reinsurance Partners (BAMR) for $190 per share in cash.
The second successful potential deal was the acquisition of Sanderson Farms (SAFM) by Cargill and Continental Grain Company. We added Sanderson Farms as a potential deal on June 21, 2021, after The Wall Street Journal reported that the chicken producer had attracted interest from suitors including agricultural investment firm Continental Grain. SAFM stock was trading at $166.19, a 6.96% jump in stock price after this announcement. Founded in 1947 and is headquartered in Laurel, Mississippi, Sanderson Farms is the third largest chicken producer in the U.S. by processing capacity. SAFM entered into a definitive agreement to be acquired by Continental Grain on August 9, 2021 for $203 per share in cash, representing a 30.3% premium to Sanderson Farms’ unaffected share price of $155.74 on June 18, 2021, the last full trading day prior to media speculation about the potential sale of Sanderson Farms.
Another highlight from last week was Canadian Pacific Railway Limited (CP) submitting another proposal to acquire Kansas City Southern (KSU). The Board of Directors of KSU determined that the unsolicited bid did not constitute a “superior proposal”.
You can find all the active deals listed below in our Merger Arbitrage Tool (MAT) that automatically updates itself during market hours.