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Merger Arbitrage Mondays – Rumored Deals, Regulatory Hurdles, and Rival Bids

  • December 12, 2022

Merger activity increased slightly last week with two new deals announced, and two deals completed. There was a significant increase in SPAC activity with nine SPACs entering into business combinations.

As we come close to the end of the year, things are beginning to heat up on the M&A front with rival bids, several large rumored deals and regulatory issues weighing  down multiple active deals.

Multiple Bids for Horizon Therapeutics (HZNP)

On November 29, 2022, we added Horizon Therapeutics as a potential deal in the works, when the company’s board had confirmed that it was engaged in highly preliminary discussions with Amgen (AMGN), Janssen Global Services (a unit of Johnson & Johnson), and Sanofi (SNY). Horizon’s shares were up 27% after the news of the possible takeover offers. Out of the three suitors, Johnson & Johnson (JNJ) and Sanofi dropped their bids, leaving Amgen as the only possible suitor.

The Wall Street Journal reported on Sunday, December 11, 2022 that Amgen is in advanced talks to buy drug company Horizon Therapeutics, in a takeover likely to be valued at well over $20 billion and mark the largest healthcare merger of the year.

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