Merger activity slowed down last week with no new deals announced, one completed active deal and one deal terminated.
Two potential deals were announced last week.
- According to Bloomberg, UBS Group (NYSE:UBS) Chairman Axel Weber has been studying the feasibility of a mega-merger with rival Credit Suisse Group (NYSE:CS) as part of a regular thought-exercise on future strategic options.
- 51job (NASDAQ:JOBS) announced that its Board of Directors has received a preliminary non-binding proposal letter from DCP Capital Partners to acquire all of the outstanding common shares of the company for $79.05 in cash per common share.
Due to failure of NHT’s operating partnership to consummate the acquisition and for material breaches of the merger agreement, Condor Hospitality Trust (NYSEMKT:CDOR) decided to terminate its merger agreement with NHT Operating Partnership. The Company is entitled to receive a termination fee of $11.925 million within five business days of its termination of the merger agreement.
Weekly Spread Changes:
The table below shows weekly spread changes between September 11, 2020, and September 18, 2020.
|Symbol||Quote||AcquiringCompany||AcquiringCompany Quote||CurrentSpread||Last WeekSpread||Spread ChangeWeekly||DealType|
|GNW||3.28||China Oceanwide Holdings Group Co., Ltd. (N/A)||65.55%||46.36%||19.19%||All Cash|
|TIF||116.26||LVMH Moët Hennessy Louis Vuitton SE (OTCPK:LVMUY)||98.8||16.12%||0.00%||16.12%||All Cash|
|GRUB||69.25||Just Eat Takeaway.com N.V. (OTCPK:TKAYY)||10.885||5.47%||2.67%||2.80%||All Stock|
|ONDK||1.57||Enova International, Inc. (ENVA)||16.55||4.62%||2.02%||2.60%||Cash Plus Stock|
|MR||4.52||Southwestern Energy Company (SWN)||2.45||1.12%||-1.46%||2.58%||All Stock|
|GILT||5.55||Comtech Telecommunications Corp. (CMTL)||15.45||52.82%||55.17%||-2.35%||Cash Plus Stock|
|CBMG||18.7||CBMG management (N/A)||0.00||5.61%||8.46%||-2.85%||All Cash|
|TAT||0.2465||TAT Holdco LLC and TAT Merger Sub LLC (N/A)||0.00||-47.26%||-42.09%||-5.17%||All Cash|
|BREW||16.47||Anheuser-Busch (N/A)||0.18%||5.63%||-5.45%||All Cash|
|SUNW||0.84||The Peck Company Holdings, Inc. (PECK)||3.35||-26.15%||-18.44%||-7.71%||All Stock|
|Total Number of Deals Closed in 2020||95|
|Total Number of Deals Not Completed in 2020||15|
|Total Number of Pending Deals|
|Stock & Cash Deals||4|
|Total Number of Pending Deals||51|
|Aggregate Deal Consideration||$661.28 billion|
- September 14, 2020: According to Reuters, Israel’s Petroleum Council gave its approval for Chevron (NYSE:CVX) to take over Noble Energy’s (NASDAQ:NBL) stakes in Israeli natural gas fields.
- On September 15, 2020, Momenta Pharmaceuticals (NASDAQ:MNTA) announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (“HSR”), in connection with the all-cash tender offer by Vigor Sub, a wholly-owned subsidiary of Johnson & Johnson (NYSE:JNJ).
- On September 16, 2020, Livongo (NASDAQ:LVGO) and Teladoc Health (NYSE:TDOC) announced that the Special Meeting of stockholders is scheduled to take place virtually on October 29, 2020.
- On September 18, 2020, Bitauto Holdings Limited (NYSE:BITA) announced that it has called an extraordinary general meeting of shareholders to be held on October 23, 2020.
- On September 16, 2020, Genworth Financial (NYSE:GNW) announced that while it continues to work with China Oceanwide Holdings Group toward closing the merger transaction with Oceanwide by September 30, 2020, Genworth has scheduled its 2020 Annual Meeting in order to comply with the New York Stock Exchange listing standards.
- September 18, 2020: According to Reuters, LVMH said that it had submitted its troubled takeover of Tiffany(NYSE:TIF), which is now at the center of a legal dispute between the two groups, for EU approval as it seeks to counter accusations that it deliberately stalled antitrust proceedings.
- September 19, 2020: According to Reuters, the U.S. Justice Department said it approved Anheuser-Busch’s (NYSE:BUD) plan to buy the shares of Craft Brew Alliance (NASDAQ:BREW) that it does not already own.
- The acquisition of 58.com (WUBA) by Quantum Bloom Group on September 18, 2020. It took 95 days for this deal to be completed.
- On September 18, 2020, Condor Hospitality Trust announced that it has terminated its merger agreement with NHT Operating Partnership. The Company terminated the merger agreement due to failure of NHT’s operating partnership to consummate the acquisition of the Company and for material breaches of the merger agreement by NHT’s operating partnership and its affiliates.
Top 10 deals with largest spreads:
|GNW||10/23/2016||China Oceanwide Holdings Group Co., Ltd. (N/A)||$5.43||$3.2800||09/30/2020||65.55%||2392.53%|
|GILT||01/29/2020||Comtech Telecommunications Corp. (NASDAQ:CMTL)||$8.48||$5.55||10/31/2021||52.82%||47.49%|
|TIF||11/25/2019||LVMH Moët Hennessy Louis Vuitton SE (OTCPK:LVMUY)||$135.00||$116.26||12/31/2020||16.12%||57.68%|
|FIT||11/01/2019||Google LLC (NASDAQ:GOOG)||$7.35||$6.37||12/31/2020||15.38%||55.05%|
|MXIM||07/13/2020||Analog Devices, Inc. (NASDAQ:ADI)||$72.39||$66.14||06/30/2021||9.45%||12.19%|
|WLTW||03/09/2020||Aon plc (NYSE:AON)||$217.08||$205.31||06/30/2021||5.73%||7.39%|
|INWK||07/16/2020||HH Global Group Limited (N/A)||$3.00||$2.84||12/31/2020||5.63%||20.16%|
|CBMG||08/12/2020||CBMG management (N/A)||$19.75||$18.7||12/31/2020||5.61%||20.09%|
|GRUB||06/10/2020||Just Eat Takeaway.com N.V. (OTCPK:TKAYY)||$73.04||$69.25||06/30/2021||5.47%||7.06%|
|ONDK||07/28/2020||Enova International, Inc. (NYSE:ENVA)||$1.64||$1.57||12/31/2020||4.62%||16.55%|
The aggregate deal consideration decreased to $661.28 billion last week.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: Disclaimer: 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.