M&A 6 main events on the stock market-Budrigantrade review
2023.02.12 13:03
By Ray Johnson
Budrigannews.com – CVS agreed to buy Oak Street Health, and Public Storage made a hostile bid for its rival, in some of the biggest M&A headlines that you may have missed on Budrigantrade this week. The entire week’s Pro Recap can be found here.
Oak Street Health
CVS Health (NYSE:) confirmed that an agreement to acquire Oak Street Health has been reached (NYSE:) for $39 per share in cash, or an enterprise value of approximately $10.6 billion and an equity value of approximately $9.47 billion. The Wall Street Journal had reported the impending deal days earlier, which caused Oak Street Health stock to rise by nearly 30 percent on Tuesday and 4 percent on Wednesday.
This week, CVS Health shares increased by more than 4% while Oak Street Health shares increased by more than 32%.
Life Storage
Storage for Life (NYSE🙂 After receiving an unsolicited $11 billion bid to be acquired by Public Storage (NYSE:), the stock surged more than 11% on Monday. in a deal that is entirely stock-based, and Life Storage shareholders will get 0.4192 shares of Public Storage common stock for every Life Storage share they own.
Life Storage’s proposed purchase price, including debt, is $15 billion, making it one of the largest acquisitions to date in 2023.
Life Storage’s apparent inability to “engage constructively” with the company disappointed Public Storage CEO Joe Russell, he said. Two takeover bids were turned down by Life Storage’s board, one in December and one on January 31. Life Storage’s board may be willing to negotiate if Public Storage makes the takeover attempts public.
Additionally, Public Storage increased its dividend by 50% to $3.00 per share, or $12 annually, resulting in a 3.9% annual yield. With an ex-dividend date of March 14, 2023, the dividend will be paid to stockholders of record on March 30, 2023.
Life Storage shares gained more than 11% at the end of the week.
Newmont Goldcorp
Shares of Newcrest Mining in Sydney (ASX:), After receiving an offer to acquire it for $16.9 billion from its rival Newmont Goldcorp (NYSE:), Australia’s largest gold miner experienced a 9.3% increase on Monday. the second attempt of this kind in recent months. Shares of an American depositary (OTC:) were over 13% higher on the day.
For each Newcrest share, Newmont offered 0.380 of its own shares. Newcrest will hold 30% and Newmont 70% of the combined company if the deal goes through.
The shares of Newmont Goldcorp ended the week with a loss of more than 3%.
Brookfield Reinsurance
(NYSE) Brookfield Reinsurance likewise Argo (NYSE:) declared that they have finally agreed to merge. Argo shares rose nearly 4% on Wednesday following the announcement, closing the week with a 5% gain.
Brookfield Reinsurance will be purchasing Argo in an all-cash transaction worth approximately $1.1 billion.
Criteo S.A.
(NASDAQ) Criteo Reuters reported on Tuesday that after previous attempts to sell itself failed, is attempting again. The company is receiving guidance from investment bank Evercore Inc. throughout the sale process, which began last week. On Tuesday, the news caused Criteo shares to rise by approximately 8%, and the week ended with a gain of nearly 10%.
Globus Medical
NYSE: Globus Medical as well as NuVasive (NASDAQ:) announced their agreement for an all-stock merger. Shareholders of NuVasive will receive 0.75 shares of Globus Medical for each NuVasive share, at an implied price of $57.72 and a value of $3.1 billion based on Globus Medical’s closing price on February 8. The transaction was approved by the boards of both companies.
NuVasive shareholders will hold 28% and Globus Medical shareholders will hold 72% of the combined company at closing.
NuVasive gained nearly 3% (down more than 7% for the week) and Globus Medical fell 18% on Thursday following the announcement.
