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.