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Merger Arbitrage Mondays - July 2, 2018

Jul. 02, 2018 9:36 AM ETCOOP, NSM, NXPI, AKRXQ, QCOM, MRVL, SHLM, GNW, LYB, FOX12 Comments


  • Merger activity decreased last week with six new deals announced.
  • The acquisition of Cavium (CAVM) by Marvell (MRVL) received Chinese regulatory approval.
  • The Antitrust Division of the United States Department of Justice cleared the pending acquisition by Disney (DIS) of Twenty-First Century Fox (FOX).

Merger activity decreased last week with six new deals announced. The second of the three semiconductor deals that had large spreads because of concerns that Chinese regulators might not approve the deal, received Chinese regulatory approval last week. The acquisition of Cavium (CAVM) by Marvell (MRVL) saw the spread on the deal collapse to just 0.17%. The spread on the deal was as high as 17.49% on May 11th. The Microsemi acquisition closed on May 29th and that only leaves the acquisition of NXP Semiconductors (NXPI) by Qualcomm, which had a wide spread of 16.68% as of last Friday.

You can find all the active deals listed below in our Merger Arbitrage Tool (MAT) that automatically updates itself during market hours.

There was one new deal announced in the Deals in the Works section.

Deal Statistics:

Total Number of Deals Closed in 2018 74
Total Number of Deals Not Completed in 2018 6
Total Number of Pending Deals
Cash Deals 41
Stock Deals 16
Stock & Cash Deals 21
Special Conditions 9
Total Number of Pending Deals 87
Total Deal Size $1.03 trillion

New Deals:

  1. The acquisition of Education Realty Trust (EDR) by Greystar Student Housing Growth and Income Fund for $4.6 billion or $41.50 per share in cash. We added EDR as a potential deal to the Deals in the Works section on June 1, 2018 and the price after the news of the potential deal came out was $37.94. Under the Merger Agreement, EdR will discontinue its regular quarterly dividends. However, if the transaction is completed after October 15, 2018, EDR stockholders will receive a per diem amount of approximately $0.00435 per share for each day from October 15, 2018 until (but not including) the closing date.
  2. The acquisition of Xerium Technologies (

This article was written by

Asif Suria profile picture
Comprehensive tools and detailed analysis for event-driven investors

I am an entrepreneur and investor with a focus on event driven strategies including merger arbitrage, spinoffs, (legal) insider trading, buybacks and SPACs. I was one of the earliest contributors on Seeking Alpha and started publishing here in 2005. For more than a decade I have been writing every week about M&A and interesting insider transactions. My work has been mentioned in Barron's, Dow Jones, BNN Bloomberg and other publications.  

I have been an active investor for more than two decades and my background in technology has helped me built tools that inform my investing process, especially as it relates to event-driven strategies that require updated data and processes. The focus on my Inside Arbitrage service is to provide investors with the right combination of tools and analysis to help them take advantage of strategies that can perform well across market cycles.  

Analyst’s Disclosure: I am/we are long STDY, WGL, CALL, RAD, GGP, SXE. 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.

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