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American Equity Accepts Brookfield’s $4.3 Billion Takeover Offer – Merger Arbitrage Mondays

  • July 10, 2023

Key Highlights

  • American Equity Investment Life Holding Company (AEL) to be acquired by Brookfield Reinsurance (BNRE) for $4.3 billion in a cash-plus stock deal.
  • JetBlue Airways (JBLU) chooses to end its legal fight to preserve its regional alliance with American Airlines Group (AAL) in order to obtain regulatory support for its acquisition of Spirit Airlines (SAVE).
  • EU antitrust regulators initiate a comprehensive investigation into Amazon’s (AMZN) planned acquisition of iRobot (IRBT), expressing concerns that the deal could impede competition within the robot vacuum cleaner market.

New Deal: American Equity Investment Life Holding Company (AEL)

On July 5, 2023, American Equity Investment Life Holding Co. accepted a $4.3 billion cash and stock takeover bid from an arm of Canadian investment giant Brookfield.

Incorporated in 1995 and based in West Des Moines, Iowa, AEL, along with its wholly-owned operating subsidiaries, specializes in selling fixed index and fixed rate annuities. The annuities industry has been benefiting from higher interest rates, which is boosting the profitability of newly issued policies. Before receiving the current offer, the stock experienced some volatility. Prosperity Group initially made an offer in December 2022, but withdrew it after AEL did not entertain their proposal.

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