Merger activity increased last week with six new deals announced and four deals completed. All six deals were multi-billion dollar deals. The largest deal announced last week was the acquisition of MGM Growth Properties (MGP) by VICI Properties (VICI).
MGM Growth Properties is one of the leading publicly traded real estate investment trusts which engages in the acquisition, ownership and leasing of large-scale destination entertainment and leisure resorts. The company entered into a definitive agreement to be acquired by VICI Properties last week for $17.2 billion, including about $5.7 billion in debt, in an all stock transaction. According to the press release, simultaneous with the closing of the transaction, VICI Properties will enter into an amended and restated triple-net master lease with MGM Resorts. The lease will have an initial total annual rent of $860 million, inclusive of MGP’s pending acquisition of MGM Springfield, and an initial term of 25 years, with three 10-year tenant renewal options.
Another highlight from last week was Qualcomm’s (QCOM) $4.6 billion bid for Veoneer (VNE). Based in Stockholm, Sweden, Veoneer spun off from long-time safety equipment supplier Autoliv (ALV) in 2018. The company designs, develops and manufactures software, hardware and systems for occupant protection, advanced driving assistance systems (ADAS), collaborative and automated driving. Veoneer entered into a definitive merger agreement to be acquired by Magna International (MGA) last month for $31.25 per share. Qualcomm’s offer at $37 per share, tops Magna’s offer by 18%. Veoneer’s board determined that the Qualcomm’s offer “would reasonably be expected to result in a ‘Superior Proposal,’ as defined under terms of Veoneer’s merger agreement with Magna,”
You can find all the active deals listed below in our Merger Arbitrage Tool (MAT) that automatically updates itself during market hours.
There were no new deals announced in the Deals in the Works section last week.
SPAC Arbitrage
There were 7 SPAC IPOs filed and 5 new SPAC business combinations announced last week. You can find the new SPAC IPO announcements in our SPACs tool here.
Weekly Spread Changes:
The table below shows weekly spread changes between July 30, and August 6, 2021
Symbol | Quote | Acquiring Company | Acquiring Company Quote | Current Spread | Last Week Spread | Spread Change Weekly | Deal Type |
---|---|---|---|---|---|---|---|
TEDU | 1.34 | Kidedu Holdings Limited (N/A) | 0.00 | 198.51% | 102.02% | 96.49% | All Cash |
MX | 19.23 | South Dearborn Limited (N/A) | 50.81% | 39.56% | 11.25% | All Cash | |
JOBS | 69.35 | Garnet Faith Limited (N/A) | 0.00 | 13.99% | 9.76% | 4.23% | All Cash |
XLNX | 150.19 | Advanced Micro Devices, Inc. (AMD) | 110.11 | 26.35% | 22.14% | 4.21% | All Stock |
OSN | 4.4 | New Ossen Group Limited (N/A) | 15.91% | 13.21% | 2.70% | All Cash | |
KSU | 271.77 | Canadian National Railway Company (CNI) | 107.86 | 18.40% | 20.48% | -2.08% | Cash Plus Stock |
FVCB | 19.85 | Blue Ridge Bankshares, Inc. (BRBS) | 17.53 | 1.49% | 3.61% | -2.12% | All Stock |
ENBL | 8.14 | Energy Transfer LP (ET) | 9.27 | -2.12% | 1.37% | -3.49% | All Stock |
SBBP | 2.08 | Xeris Pharmaceuticals, Inc. (XERS) | 2.31 | -12.93% | 0.71% | -13.64% | All Stock |
VNE | 38.69 | Magna International Inc. (MGA) | 83.66 | -19.23% | -0.22% | -19.01% | All Cash |
Deal Statistics:
Total Number of Deals Closed in 2021 | 115 |
Total Number of Deals Not Completed in 2021 | 8 |
Total Number of Pending Deals | |
Cash Deals | 47 |
Stock Deals | 35 |
Stock & Cash Deals | 10 |
Special Conditions | 2 |
Total Number of Pending Deals | 94 |
Aggregate Deal Consideration | $823.61 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 |
---|---|---|---|---|---|---|---|
TEDU | 04/30/2021 | Kidedu Holdings Limited (N/A) | $4.00 | $1.34 | 09/30/2021 | 198.51% | 1367.08% |
MX | 03/26/2021 | South Dearborn Limited (N/A) | $29.00 | $19.23 | 12/31/2021 | 50.81% | 127.89% |
XLNX | 10/27/2020 | Advanced Micro Devices, Inc. (AMD) | $189.76 | $150.19 | 12/31/2021 | 26.35% | 66.33% |
CHNG | 01/06/2021 | UnitedHealth Group Incorporated (UNH) | $25.75 | $21.31 | 12/31/2021 | 20.84% | 52.45% |
KSU | 05/21/2021 | Canadian National Railway Company (CNI) | $321.77 | $271.77 | 12/31/2022 | 18.40% | 13.17% |
COHR | 03/25/2021 | II-VI Incorporated (IIVI) | $282.21 | $242.04 | 12/31/2021 | 16.60% | 41.77% |
OSN | 12/17/2020 | New Ossen Group Limited (N/A) | $5.10 | $4.4 | 09/30/2021 | 15.91% | 109.56% |
JOBS | 06/21/2021 | Garnet Faith Limited (N/A) | $79.05 | $69.35 | 12/31/2021 | 13.99% | 35.21% |
SJR | 03/15/2021 | Rogers Communications Inc. (RCI) | $32.40 | $28.75 | 06/30/2022 | 12.70% | 14.21% |
AJRD | 12/20/2020 | Lockheed Martin Corporation (LMT) | $51.00 | $46.4 | 12/31/2021 | 9.91% | 24.96% |
List of all pending deals:
Conclusion:
Six active deals were successfully completed last week, which included the acquisition of Weingarten Realty Investors (WRI) by Kimco Realty Corporation (KIM). According to The Wall Street Journal, potential deal in the works Sanderson Farms (SAFM) is in advanced talks with Cargill to sell itself for $203 per share. We added SAFM as a potential deal on June 21, 2021, when the company announced that it was exploring a sale.
Disclaimer: I have long positions Nuance Communications (NUAN) and Change Healthcare (CHNG). I also have put options in Change Healthcare. 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.