Fury Fumbles, Battalion Bends Again – Merger Arbitrage Mondays

Battalion Oil (BATL): $6.57

Market Cap: $108.12 M

Battalion Oil entered a merger agreement with Fury Resources in December 2023, expecting to complete the transaction within the first quarter of 2024. However, the $450 million cash deal hit a roadblock when Fury Resources failed to meet key funding deadlines.

Battalion Oil had been on top of our Merger Arbitrage Tool for several months because the deal spread became unusually high, raising concerns that the deal might fall apart due to multiple amendments. By June, the deal spread had exceeded 200% and reached 280% as the twice-extended termination date of September 12 approached. The current termination date is December 31, 2024.

Despite Fury’s missed funding deadlines, Battalion Oil allowed Fury additional time to provide evidence of financing, as failing to do so would have given Battalion the right to terminate the agreement. Still hoping to close the merger, Battalion extended the timeline, allowing Fury to secure equity funding. But once again, Fury failed to deliver the required financing documents in full.

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